Author: roymorgansocial

Clay forces Hope Downs rethink

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Original article by Nick Evans
The West Australian – Page: online : 25-Aug-15

Rio Tinto is experiencing technical problems at the Hope Downs 1 iron ore project in Western Australia. The company found that ”clay-like geothetic material” at Hope Downs 1’s two main deposits clogs up processing equipment. The problem has an adverse impact on production rates at Hope Downs 1. Rio Tinto applied to the state’s Environmental Protection Authority to be allowed to mine the nearby Baby Hope deposit. Dry material from the deposit is suitable for blending with the clay that causes mechanical problems.

CORPORATES
RIO TINTO LIMITED – ASX RIO, WESTERN AUSTRALIA. ENVIRONMENTAL PROTECTION AUTHORITY, HANCOCK PROSPECTING PTY LTD, BC IRON LIMITED – ASX BCI, FORTESCUE METALS GROUP LIMITED – ASX FMG

IBM blames Qld health division for $1.2b payroll debacle

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Original article by Mark Ludlow
The Australian Financial Review – Page: 7 : 26-Aug-15

The Supreme Court heard on 25 August 2015 that the Queensland Government was to blame for delays and cost increases in the health payroll system. IBM’s lawyer, Shane Doyle, told the court the problems were caused by the health department changing the project’s scope. The Government alleges that IBM made "negligent and misleading" representations of its credentials.

CORPORATES
IBM AUSTRALIA LIMITED, SUPREME COURT OF QUEENSLAND, ACCENTURE AUSTRALIA LIMITED, LIBERAL-NATIONAL PARTY OF QUEENSLAND, AUSTRALIAN LABOR PARTY, QUEENSLAND HEALTH

Australians complacent, unprepared for difficult future

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 26-Aug-15

Former Treasury secretary Martin Parkinson has criticised politicians for failing to warn Australians about tough times ahead. The lack of leadership is evident as politics is dominated by slogans. The short-term opportunism and complacency of the political elite make Australia ill prepared for future challenges.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

‘Overinflated’ property no investor lure

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 9 : 26-Aug-15

Investors are unlikely to shift their money from equities to property. Alan Hull, of the Australian Investors Association, says property prices are too high to justify such a move. AMP Capital chief economist, Shane Oliver, notes that yields in residential property, of about three per cent, are not attractive enough to trigger the transfer of funds to real estate.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, WATPAC LIMITED – ASX WTP, FINDER.COM.AU, AUSTIN AUSTRALIA, PROPERTY INVESTORS ALLIANCE, AGS FINANCIAL GROUP, AUSTRALIAN INVESTORS ASSOCIATION LIMITED

Engage centres could fetch up to $200m

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Original article by Matthew Cranston
The Australian Financial Review – Page: 33 : 26-Aug-15

Engage Capital is selling a portfolio of three shopping centres in Queensland. The company expects to receive as much as $A200 million for the portfolio which includes the MKT Deception Bay in Brisbane, the Ashmore City Shopping Centre on the Gold Coast and the Wilsonton Shopping Centre in Toowoomba. Their anchor tenants include Woolworths, Coles, Drakes Supa IGA, and ALE.

CORPORATES
ENGAGE CAPITAL PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, ALE PROPERTY GROUP – ASX LEP, SHAYHER PROPERTIES PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD

Blackmores gives six weeks’ pay to staff as share of profit bonanza

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 26-Aug-15

Blackmores has reported a rise of 83 per cent in net profit after tax to $A46.6 million for 2014-15. Total sales increased 36 per cent to $A471.6 million. Commenting on the results, Blackmores CEO Christine Holgate said on 25 August 2015 that staff will receive an extra six weeks’ pay as part of a profit-sharing scheme. The final dividend was raised by 63 per cent to $A1.35 a share.

CORPORATES
BLACKMORES LIMITED – ASX BKL, BIOCEUTICALS PTY LTD, VITACO HEALTH LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, ASX LIMITED – ASX ASX, NUTRA-LIFE HEALTH AND FITNESS AUSTRALIA PTY LTD, HEALTHERIES OF NEW ZEALAND LIMITED, MUSASHI PTY LTD

NBN’s secret strategy to bypass telcos

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Original article by David Ramli
The Australian Financial Review – Page: 6 : 26-Aug-15

NBN Co would like to use retailers to sell internet access. The company is considering selling a wholesale service to new entrants such as Woolworths, Australia Post or Vodafone Australia which would resell NBN services under their own brands. Smaller internet service providers could be disadvantaged if the proposal to that effect is indeed implemented.

CORPORATES
NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, AUSTRALIA POST, VODAFONE AUSTRALIA LIMITED, M2 GROUP LIMITED – ASX MTU, DODO AUSTRALIA PTY LTD, IPRIMUS

Leaders seek tax, super reform

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 : 26-Aug-15

The National Reform Summit will be held on 26 August 2015 in Sydney. Business, industry, welfare and union leaders will debate all aspects of Australia’s tax system. Reforms are needed to ensure productivity growth, higher workforce participation, fiscal policy to stimulate economic growth, and sustainability of a retirement income system.

CORPORATES
ACTU, KPMG AUSTRALIA PTY LTD, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Down one day … up the next but it’s not a crisis, say CEOs

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Original article by Vesna Poljak, Clancy Yeates, Jonathan Shapiro, Misa Han
The Australian Financial Review – Page: 1 : 26-Aug-15

The Australian economy is in a much better shape than the sharemarket would suggest. Investors seem to have overreacted to a slowdown in the Chinese economy. ANZ Banking Group CEO Mike Smith said on 25 August 2015 that China still has huge "potential". Paul Griffiths, chief investment officer for fixed income at Colonial First State, notes that panic among investors is limited to equities, with bonds remaining unaffected.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COLONIAL FIRST STATE GROUP LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ASX LIMITED – ASX ASX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, AUSCAP ASSET MANAGEMENT PTY LTD, SHENZHEN COMPOSITE INDEX, SHANGHAI COMPOSITE INDEX, CITIGROUP PTY LTD

SMSFs told to hold their nerve and buy

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 9 : 26-Aug-15

Self-managed superannuation funds have been advised to remain calm during a period of extreme volatility on the Australian sharemarket. Wayne Leggett, principal at Paramount Wealth Management in Perth, says the Australian economy is in a good shape. Australian stocks are still relatively cheap and there are many attractive buying opportunities.

CORPORATES
PARAMOUNT WEALTH MANAGEMENT, STANDARD AND POOR’S ASX 200 INDEX, SMSF ASSOCIATION, UBS HOLDINGS PTY LTD, HLB MANN JUDD