Author: roymorgansocial

Google a scary competitor, says Ten boss

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Original article by Paul McIntyre
The Australian Financial Review – Page: 29 : 22-Jun-15

Foxtel’s MCN advertising business will assume responsibility for selling ads on the Ten Network in September 2015. Ten CEO Hamish McLennan says global internet companies such as Google present a major threat to Australian TV broadcasters, and warns that they could soon be competing with traditional media companies for sports broadcasting rights. MCN CEO Anthony Fitzgerald adds that there is a need to redefine TV as consumers are now watching broadcast-quality video on a range of devices.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, MULTI CHANNEL NETWORK PTY LTD, SOUND ALLIANCE PTY LTD, GOOGLE INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, OPTIMUM MEDIA DIRECTION PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, QANTAS AIRWAYS LIMITED – ASX QAN, McDONALD’S AUSTRALIA LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, THE HOOPLA

RBA must cut again to weaken $A as Fed takes dovish view

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Original article by Vesna Poljak
The Australian Financial Review – Page: 24 : 19-Jun-15

Many Australian economists now expect the US Federal Reserve to delay a rate cut until December 2015, in the wake of its June monetary policy meeting. The central bank gave indications that any rate rises over the next several years will be at a slower pace than previously expected. This in turn has heightened expectations that the Reserve Bank will further reduce interest rates, in order to put downward pressure on the Australian dollar.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD

Qantas takes on Air NZ with home turf Jetstar flights

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 & 20 : 19-Jun-15

Qantas aims to lift the market share of its Jetstar subsidiary in New Zealand (NZ) by offering flights to regional cities, where Air NZ is the dominant carrier. Jetstar NZ currently boasts a market share of 20.5 per cent and only provides flights between the nation’s major cities. Cam Wallace of Air NZ is not fazed by the Qantas move, noting that the carrier had been expecting it and is well placed to compete on regional routes.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, JETSTAR AIRLINES PTY LTD, AIR NEW ZEALAND LIMITED – ASX AIZ, CRAIGS INVESTMENT PARTNERS LIMITED, AMERICAN AIRLINES INCORPORATED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, EMIRATES AIRLINES, CHINA EASTERN AIRLINES CORPORATION LIMITED, CHINA SOUTHERN AIRLINES COMPANY LIMITED, JAPAN AIRLINES COMPANY LIMITED, QANTASLINK, NEW ZEALAND. DEPT OF THE PRIME MINISTER AND CABINET

Iron ore price hits wall of steel

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 25 : 19-Jun-15

The price of iron ore was trading at $US61.51 per tonne on 18 June 2015, having peaked at $US65.61 in the previous week. National Australia Bank regards $US60 per tonne as a fair price for the steel input given current market conditions, while Fraser Phillips of RBC Capital Markets does not expect the recent gains in the iron ore price to be maintained unless demand for steel improves.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RBC CAPITAL MARKETS, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE CAPITAL PTY LTD, DALIAN COMMODITY EXCHANGE, SHANGHAI FUTURES EXCHANGE

Rio urges long game on China iron ore need

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 19-Jun-15

China’s production of crude steel fell by 1.7 per cent in the March 2015 quarter, with a slowdown in the nation’s residential property market adversely affecting demand for steel. Andrew Harding, the CEO of Rio Tinto’s iron ore division, forecasts that demand for steel in China will remain subdued for the next few years. However, he is upbeat about the outlook for both iron ore and steel in the long-term, due to future strong demand in China and other parts of Asia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, CHINA IRON AND STEEL INDUSTRY ASSOCIATION, ATLAS IRON LIMITED – ASX AGO, BC IRON LIMITED – ASX BCI

Woolies investors fear more pain before gain

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 12 : 19-Jun-15

Fund managers and shareholders are concerned about the possible actions that will be taken by the successor to Woolworths CEO Grant O’Brien in a bid to turn around its fortunes. These include reduced profit margins and asset writedowns. Ben Gilbert of UBS is concerned that Woolworths may seek to combat falling sales by instigating a grocery price war, while Sheridan Hure of Aurora Funds Management warns that Woolworths’ shares may keep falling.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, UBS HOLDINGS PTY LTD, AURORA FUNDS MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, NIKKO ASSET MANAGEMENT GROUP, EGON ZEHNDER INTERNATIONAL, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, BIG W DISCOUNT STORES, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, DEUTSCHE BANK AG, MERRILL LYNCH (AUSTRALIA) PTY LTD

Legal aid cuts risk injustices: UK judge

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Original article by Katie Walsh
The Australian Financial Review – Page: 33 : 19-Jun-15

Justice Nicholas Mostyn of the High Court of England & Wales has expressed concern about reduced government funding for legal aid in Australia and the UK. He says the funding cuts will threaten both the rule of law and the principle of equality before the law. Meanwhile, the Productivity Commission has urged governments at state and federal level to boost legal aid funding by $A200m.

CORPORATES
HIGH COURT OF ENGLAND AND WALES, AUSTRALIA. PRODUCTIVITY COMMISSION, LAW COUNCIL OF AUSTRALIA, NATIONAL PRO BONO RESOURCE CENTRE, THE LAW SOCIETY OF NEW SOUTH WALES, SUPREME COURT OF NEW SOUTH WALES, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, FAMILY COURT OF AUSTRALIA, PRICEWATERHOUSECOOPERS, NATIONAL LEGAL AID

Former QBE executive faces fraud charges

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 & 21 : 19-Jun-15

US prosecutors will allege that James Shea and Eugene Fallon embezzled Australian-listed QBE Insurance Group of some $US2.6m ($A3.37m). Shea was a vice-president of QBE at the time of the alleged fraud, while Fallon was an external consultant. Shea has been accused of falsifying invoices and forging the signature of the insurer’s CFO. The Commonwealth Bank has also been embroiled in a fraud case.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DISTRICT COURT OF NEW YORK, COMPUTER SCIENCES CORPORATION, SERVICMESH CSC, ACE FOUNDATION

Business satisfaction with banks shows small improvement in May

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 18-Jun-15

A Roy Morgan Business Single Source survey has found that the satisfaction level of Australian business banking customers rose by 0.2 per cent to 65.8 per cent in May 2015. However, it remains well below the peak of 69.6 per cent in November 2014. Westpac still has the highest customer satisfaction rating among business customers of the four major banks, at 68.2 per cent, ahead of National Australia Bank (64.9 per cent). Meanwhile, smaller banks continue to outperform the "big four", with Bendigo Bank boasting a business customer satisfaction rating of 81.1 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO BANK, SUNCORP BANK, MACQUARIE BANK LIMITED – ASX MBL

RBA reveals why boards won’t invest

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Original article by Jacob Greber, Jemima Whyte, Jenny Wiggins, Anne Hyland, Yolanda Redrup, Perry Williams, Agnes King
The Australian Financial Review – Page: 1 & 8 : 19-Jun-15

Research by the Reserve Bank of Australia has examined factors that deter companies from making capital investments. Some 90 per cent of companies said they would only commit to new investment if the hurdle rate is at least 10 per cent. However, the central bank notes that some companies are applying outdated hurdle rates that do not reflect current interest rates. Computershare tries to maintain its return on capital at a certain level, according to CFO Mark Davis, but is open to revising it when this is deemed to be necessary.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMPUTERSHARE LIMITED – ASX CPU, TECHNOLOGY ONE LIMITED – ASX TNE, ARISTOCRAT LEISURE LIMITED – ASX ALL, AURIZON HOLDINGS LIMITED – ASX AZJ, WESFARMERS LIMITED – ASX WES, BORAL LIMITED – ASX BLD, WOODSIDE PETROLEUM LIMITED – ASX WPL, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD