Author: roymorgansocial

Big four banks mauled in bear market as capital rules bite

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Original article by Clancy Yeates
The Australian Financial Review – Page: 14 : 24-Aug-15

Shares in Australia’s major banks continue to be under pressure. Since the beginning of 2015, they have lost more than $A85 billion in their combined market value, or more than 20 per cent. Shares in the ANZ Banking Group declined 23.9 per cent from their April peak of $A37.25. Investors worry about the bank’s exposure to Asia and to Australian mining companies.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, CADENCE CAPITAL LIMITED – ASX CDT, BELL POTTER SECURITIES LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD

Presentation has ‘elements of a wake’

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Original article by Matthew Cranston, Robert Harley
The Australian Financial Review – Page: 34 : 21-Aug-15

Depressed conditions in the Brisbane and Perth office leasing markets hindered performance of the Investa Office Fund (IOF). IOF leased 55,000 sq m of office space in 124 deals, but like-for-like net property income fell 1.3 per cent. Funds from operations rose 4.5 per cent and, because of strong revaluations, net tangible asset backing rose 8.1 per cent. Mirvac is poised to buy the entire Investa platform.

CORPORATES
INVESTA OFFICE FUND – ASX IOF, INVESTA PROPERTY GROUP, MIRVAC GROUP – ASX MGR, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, MORGAN STANLEY REAL ESTATE

Qantas’ great recovery due to cost falls

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Original article by Michael Smith
The Australian Financial Review – Page: 28 : 21-Aug-15

The key to the turnaround in the fortunes of Qantas is due largely to external factors, including lower fuel prices and the removal of the carbon tax, as well as heavy cost-cutting. CEO Alan Joyce’s next challenge is finding operational growth, though the decision to order eight new Boeing Dreamliners was an important symbolic gesture signifying confidence in the future.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, BOEING COMPANY, ASX LIMITED – ASX ASX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Calls mount for reform to class-action protocol

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 33 : 21-Aug-15

Australian corporations paid out almost $A1 billion in class-action disputes in 2014-2015 as cases doubled, a trend that is likely to accelerate under the influence of litigation funders. Plaintiff firm Maurice Blackburn handled the most cases, recovering $A889 million in settlements. With major foreign players joining the pool of litigation funders, the Australian Government is considering changes to class-action rules, the Productivity Commission having already recommended a licensing scheme for the funders.

CORPORATES
AUSTRALIA. ATTORNEY-GENERAL’S DEPT, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, KING AND WOOD MALLESONS, MAURICE BLACKBURN PTY LTD, SLATER AND GORDON LIMITED – ASX SGH, VOCATION LIMITED – ASX VET, ALLCO FINANCE GROUP LIMITED, JONES DAY, IMF BENTHAM LIMITED – ASX IMF, HERBERT SMITH FREEHILLS PTY LTD

51pc top tax rate ‘is fairer’ than GST rise

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Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 21-Aug-15

State and federal treasurers will discuss fiscal issues at a meeting in Canberra on 21 August 2015. The Victorian Government will propose at the meeting to raise extra funds for public health through an increase in the Medicare levy by two percentage points. The federal Government wants to raise the goods and services tax (GST) rate by five per cent and reduce personal and corporate taxes at the same time. New South Wales and South Australia favour raising the GST rate from 10 per cent to 15 per cent and use the extra revenue on public health.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA

ACCC gives tick to TPG’s iiNet takeover

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Original article by David Ramli
The Australian Financial Review – Page: 20 : 21-Aug-15

The Australian Competition and Consumer Commission has approved TPG Telecom’s takeover of iiNet. TPG will now become Australia’s second biggest provider of fixed-line broadband with 1.7 million customers, compared with 3.1 million for Telstra and one million for Optus.

CORPORATES
TPG TELECOM LIMITED – ASX TPM, IINET LIMITED – ASX IIN, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, AUSTRALIAN COMPANIES AND SECURITIES COMMISSION, ASX LIMITED – ASX ASX, M2 GROUP LIMITED – ASX MTU, DODO AUSTRALIA PTY LTD, IPRIMUS, NBN CO LIMITED

Adani mine approvals closer

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Original article by Mark Ludlow
The Australian Financial Review – Page: 10 : 21-Aug-15

The Queensland Government has given preliminary approval for the expansion of the Abbot Point coal terminal, the export hub for the proposed Carmichael mine. The breakthrough was welcomed by Adani, the Indian energy giant, which also expressed frustration with anti-coal activists. Queensland is backing the $A16.5 billion Galilee Basin development to create thousands of jobs.

CORPORATES
QUEENSLAND. DEPT OF ENVIRONMENT AND HERITAGE PROTECTION, AUSTRALIA. DEPT OF THE ENVIRONMENT, ADANI ABBOT POINT TERMINAL PTY LTD, ADANI MINING PTY LTD, QUEENSLAND. DEPT OF EMPLOYMENT, ECONOMIC DEVELOPMENT AND INNOVATION

Senate split on China trade deal

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 21-Aug-15

The Australian Greens and four crossbench senators voted for a motion demanding the government change or abandon the China Australia Free Trade Agreement. Their opposition to the landmark deal in its present form put it at the mercy of the Australian Labor Party (ALP), which helped defeat the motion. But the ALP, under pressure from the trade unions, is insisting the Federal Government deliver on its promise to put Australian jobs first.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF IMMIGRATION AND BORDER PROTECTION

Treasury’s wine-tax rort guide

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Original article by Simon Evans
The Australian Financial Review – Page: 1 : 21-Aug-15

A rebate system introduced in 2004 to help small winegrowers in regional areas is being rorted by some unscrupulous operators, according to Assistant Treasurer Josh Frydenberg. The number of entities claiming wine equalisation tax (WET) credits in 2013-14 was 1967, about 100 more than in 2006-07. The Treasury estimates abuse of the so-called WET rebates is set to cost taxpayers $A350 million by 2016. Frydenberg has released a discussion paper and set up a panel of industry experts as he moves to reform the system.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, DE BORTOLI WINES PTY LTD, THE YALUMBA WINE COMPANY, FRASER GALLOP ESTATE, WINEMAKERS’ FEDERATION OF AUSTRALIA INCORPORATED

Goldman sees value as ASX faces worst month since 2012

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Original article by
The Australian Financial Review – Page: 22 : 21-Aug-15

Goldman Sachs equity strategist Matthew Ross believes Australian stocks are now cheap by historical standards. The banks are particularly attractive as they are now trading on a forward price-earnings (PE) ratio of 12.5 times, compared with the industrial PE of 17.5 times earnings. Technical analysis of the Australian stock market suggests that the S&P/ASX 200 index can rise as much as 28 per cent from its current level.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX