Author: roymorgansocial

PM’s inaction makes super ‘vulnerable’

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Original article by Sally Patten, Sally Rose
The Australian Financial Review – Page: 1 & 6 : 3-Jun-15

Financial system inquiry chairman David Murray says changes to Australia’s superannuation regime will be necessary in the future. The Federal Government has indicated that super reform is not on its agenda, but Murray says that failure to pursue reforms will ultimately undermine confidence in the super system. The Australian Council of Social Service is among the organisations that have called for a review of the entire retirement incomes system.

CORPORATES
AUSTRALIAN COUNCIL OF SOCIAL SERVICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, COMMITTEE FOR SUSTAINABLE RETIREMENT INCOMES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, LIBERAL PARTY OF AUSTRALIA

China scopes local iron ore

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Original article by Tess Ingram
The Australian Financial Review – Page: 11 : 2-Jun-15

The iron ore price is trading at about $US63 per tonne, having shed nearly 50 per cent in the last year. Adam Handley of law firm Minter Ellison notes that the sharp fall in the price of the steel input has prompted Chinese companies to consider mergers and acquisitions in Australia, as well as debt and equity deals with embattled producers. He adds that Chinese investors have become more willing to pursue hostile takeovers.

CORPORATES
MINTER ELLISON, FORTESCUE METALS GROUP LIMITED – ASX FMG, CITIC LIMITED, SHANGHAI BAOSTEEL GROUP CORPORATION, RECORD POINT PTY LTD, SINO IRON PTY LTD, CITIGROUP PTY LTD, BC IRON LIMITED – ASX BCI, GRANGE RESOURCES LIMITED – ASX GRR, ARRIUM LIMITED – ASX ARI, CLIFFS NATURAL RESOURCES INCORPORATED, GINDALBIE METALS LIMITED – ASX GBG, MOUNT GIBSON IRON LIMITED – ASX MGX, MINERAL RESOURCES LIMITED – ASX MIN

Buy shares, not bonds, says Morgan Stanley

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Original article by Rose Powell
The Australian Financial Review – Page: 23 : 2-Jun-15

Morgan Stanley forecasts that Australian shares will deliver a return of 5.8 per cent over the next 12 months and 10.3 per cent in the longer-term. Meanwhile, the firm expects international shares to achieve a short-term return of 15.4 per cent and 10.3 per cent in the long-term. However, Morgan Stanley is bearish about the outlook for Australian bonds and global sovereign bonds.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, PERPETUAL LIMITED – ASX PPT

Fortescue pushes for ore inquiry in WA

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Original article by Amanda Saunders
The Australian Financial Review – Page: 11 : 2-Jun-15

Fortescue Metals Group is expected to lobby Western Australia’s economics standing committee to hold a parliamentary inquiry into the iron ore industry. Opposition MP Bill Johnston failed in a recent bid for parliament to hold such an inquiry, while Premier Colin Barnett holds the view that a parliamentary inquiry would not be appropriate. The Australian Government has also rejected Fortescue’s request for a federal inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, WESTERN AUSTRALIA. LEGISLATIVE ASSEMBLY STANDING COMMITTEE ON ECONOMICS AND INDUSTRY, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF WESTERN AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, MINERALS COUNCIL OF AUSTRALIA

China lobbies ACCC on Qantas alliance

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 12 : 2-Jun-15

The Australian Competition & Consumer Commission (ACCC) opposes an alliance between Qantas and China Eastern Airline on competition grounds. However, Chinese ambassador Ma Zhaoxu has asked ACCC chairman Rod Sims to take into account the relationship between the two nations when deciding whether to block the alliance. He argues that the deal will have no impact on competition. The ACCC is concerned that the two carriers would dominate the Sydney-Shanghai route.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIRLINES CORPORATION LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, TOURISM AUSTRALIA PTY LTD, CATHAY PACIFIC AIRWAYS LIMITED, SINGAPORE AIRLINES LIMITED, JETSTAR HONG KONG AIRWAYS LIMITED, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, AUSTRALIAN AND INTERNATIONAL PILOTS ASSOCIATION, TTF AUSTRALIA LIMITED TOURISM AND TRANSPORT FORUM, TTF AUSTRALIA LIMITED, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, ETIHAD AIRWAYS

Grim GDP figures may mean further rate cuts

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Original article by Vesna Poljak
The Australian Financial Review – Page: 18 : 2-Jun-15

The general expectation of economists is that Australia recorded GDP growth of about 0.6 per cent in the March 2015 quarter. However, Citigroup has forecast real GDP growth of just 0.5 per cent, while Damien Boey of Credit Suisse says there is the potential for GDP on a nominal basis to contract in the first two quarters of calendar 2015. Boey says the GDP outlook may prompt the Reserve Bank to further reduce the cash rate in the near-term.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL RESERVE BANK OF ATLANTA

Mining exploration dips by 76pc in three years

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Original article by Tess Ingram
The Australian Financial Review – Page: 12 : 2-Jun-15

Data from the Australian Bureau of Statistics shows that mining corporations spend just $A381m on exploration programs in the March 2015 quarter, which is 13.4 per cent lower than previously. Spending on exploration in Queensland and Western Australia were hardest hit, recording declines of 32 per cent and 12 per cent respectively. Expenditure on iron ore exploration fell by 43.4 per cent during the quarter, and it has fallen by 76 per cent over the last three years.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, BOART LONGYEAR LIMITED – ASX BLY

Vocation cuts back, rebrands in survival bid

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Original article by Simon Evans
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Australian-listed Vocation will implement a five-point plan aimed at turning around its fortunes. The vocational education provider will adopt a new business name and rebrand several of its businesses, while more than 40 of its courses will be discontinued. CEO Stewart Cummins is confident that the group will become profitable in 2015-16. Vocation currently boasts just 160 employees, with its workforce cut due to asset sales and redundancies.

CORPORATES
VOCATION LIMITED – ASX VET, CUSTOMER SERVICE INSTITUTE OF AUSTRALIA, AVANA EDUCATION PTY LTD, REAL INSTITUTE PTY LTD, BAWM GROUP PTY LTD, ASPIN PTY LTD, ENDEAVOUR COLLEGE OF NATURAL HEALTH, STUDY GROUP INTERNATIONAL, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Woolworths on the hunt for new non-executive directors

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Original article by Sue Mitchell
The Australian Financial Review – Page: 1 & 9 : 2-Jun-15

Boardroom renewal is on the agenda at Woolworths, as it seeks a replacement for Ian Macfarlane following his resignation as a non-executive director in March 2015. The retail giant has not ruled out making more than one board appointment. David Thomas of CLSA says Woolworths should select a candidate with retail experience. Meanwhile, Woolworths has rejected suggestions that it is also seeking a successor to CEO Grant O’Brien.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CLSA AUSTRALIA PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, BIG W DISCOUNT STORES, RESERVE BANK OF AUSTRALIA, TESCO PLC, KELLOGG (AUSTRALIA) PTY LTD, JETSTAR AIRLINES PTY LTD, BAIN AND COMPANY

Tampons, pads and panty liners across the states

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Jun-15

A Roy Morgan Single Source survey has found that 50 per cent of Australian women aged 14-54 bought sanitary pads in an average four weeks in the year to December 2014. Meanwhile, 33 per cent bought tampons and 24 per cent bought panty liners. Around one in 10 women in this age group bought all three feminine products in an average month. The research also shows that tampons are most widely bought in Tasmania (38 per cent of women aged 14-54), but women there are less inclined than in other states to buy pads (46 per cent) or liners (20 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED