Author: roymorgansocial

Morrison on meds: toll of top office laid bare

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Original article by Cameron Stewart
The Australian – Page: 1 & 2 : 26-Apr-24

Former prime minister Scott Morrison has revealed that he experienced "debilitating and agonising" anxiety during much of his tenure in the nation’s top job. Morrison says his anxiety became increasingly acute as he steered the nation through challenges such as the COVID-19 pandemic and strained relations with China, and his doctor eventually prescribed medication to help him to cope with the medical condition. Morrison says the "unrelenting and callous" brutality of politics and media attacks contributed to his anxiety, but he acknowledges that this is the reality of politics.

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Australians flattened by biggest tax increase in world

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Original article by Shane Wright
The Sydney Morning Herald – Page: Online : 26-Apr-24

Data from the OECD shows that the amount of income tax paid by the average wage-earner in Australia rose by 7.6 per cent in 2023. New Zealand ranked second among developed nations with an average tax increase of 4.5 per cent. The OECD says the decision to phase out the low- and middle-income tax offset contributed to the sharp rise in Australians’ personal income tax bills in 2023-24. The temporary measure was part of the former Coalition government’s stage-three tax cuts package.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Mining investment pipeline leaks $68bn a year

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Original article by Joe Kelly
The Australian – Page: 6 : 26-Apr-24

Data from the Minerals Council of Australia shows that the value of completed mining projects totalled $21.3bn in 2023, compared with $84bn in 2013. However, the resources project pipeline increased from just 244 in 2017 to 450 in 2023. The MCA’s analysis also shows that the value of resources projects that reached the construction stage totalled $75bn in 2023, down from $255bn in 2013. MCA CEO Tania Constable says government policy settings are responsible for a significant proportion of possible mining investment that is not going ahead.

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MINERALS COUNCIL OF AUSTRALIA

Facebook shifts $1.1b offshore as local profits rise 36pc

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 14 : 26-Apr-24

Facebook Australia’s latest accounts reveal that it paid its overseas affiliates $1.14 billion for ‘purchases of services’ in the 12 months to 31 December, up from $1.03 billion in 2022. The rise in Facebook’s ‘purchases of services’ came as its post-tax profit rose 36 per cent to $47.1 million, while the number of people working for Facebook in Australia declined by 16 per cent. Despite an broader decline in advertising, Facebook reported reported $1.34 billion from Australian advertisers in the subject year, up 6.8 per cent from $1.26 billion the year before.

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FACEBOOK AUSTRALIA PTY LTD

BHP’s bold Anglo American bid

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 26-Apr-24

BHP says that acquiring Anglo American would increase its exposure to ‘future facing commodities’, given that the latter has significant copper assets. Anglo American has advised that its board is considering the Stg31bn ($60bn) offer, which it has described as "unsolicited, nonbinding and highly conditional". BHP’s offer comprises 0.7097 of its shares for every Anglo American share. The bid values the target at Stg25.08 per share, although BHP is effectively proposing to pay Stg16.82 per share because the offer is conditional on Anglo American selling its stakes in Anglo Platinum and Kumba Iron Ore to its current shareholders. Anglo American has given BHP a deadline of 22 May to make a firm offer or walk away from the proposed deal.

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BHP GROUP LIMITED – ASX BHP, ANGLO AMERICAN PLC, ANGLO AMERICAN PLATINUM CORPORATION, KUMBA IRON ORE LIMITED

Inflation means tax cuts could pose a risk

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Original article by Sarah Ison, Lydia Lynch
The Australian – Page: 6 : 26-Apr-24

AMP’s chief economist Shane Oliver says the higher-than-expected inflation data for the March quarter means the revised stage-three income tax cuts present a greater economic risk than when they were first announced. He contends that the tax cuts to be announced in the 14 May budget would have been less of a risk to the economy if inflation had been falling. Veteran economist Chris Richardson notes that it has been known for a long time that the tax cuts will be inflationary. Consumer prices rose by one per cent in the March quarter; this compares with economists’ expectations of 0.8 per cent growth, and the 0.6 per cent increase in the December quarter.

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AMP LIMITED – ASX AMP

Saying it with flowers tops the $1 billion cash splash on Mum for 12 May

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Apr-24

Research from the Australian Retailers Association in collaboration with Roy Morgan shows that Australians are set to spend $995 million on Mother’s Day this year; this is up $70 million (or 7.5%) from 2023. Despite the increased spend, some 400,000 fewer people are set to buy Mother’s Day gifts this year, highlighting the impact of the cost-of-living crunch. The higher overall spend is due to a higher spend per person of $102 (up from $92 in 2023), reflecting inflationary driven price increases and indicating that those who are less affected by cost-of-living pressures are spending more. Flowers, alcohol, or an experience top the gifts for mothers and others. Continuing the trend in recent years, 19% of people who purchase a present will be gifting somebody other than their birth mother. This includes their partner, friend, mother-in-law, grandmother, sister or daughter. The ARA-Roy Morgan Snap SMS survey was conducted with an Australian-wide cross-section of 2,191 Australians aged 18+ from 3-5 April.

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ROY MORGAN LIMITED, AUSTRALIAN RETAILERS ASSOCIATION

Why Foxtel faces its streaming apocalypse

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 15 : 26-Apr-24

Foxtel boasted annual earnings of nearly $1bn a decade ago, when nearly one in every three households had a pay-TV subscription. However, Foxtel has been hard hit by competition from subscription video-on-demand services. Analysts expect Foxtel’s earnings to fall to about $390m in the 2026 financial year, while its own streaming platforms will lose key HBO content if Warner Bros Discovery proceeds with plans to launch its own SVOD service in Australia. Foxtel CEO Patrick Delany says the company is now essentially two separate businesses, focused on streaming and its legacy pay-TV operations. Foxtel’s 3.1 million SVOD users account for 66 per cent of its customer base, but just 23 per cent of group revenue; in contrast, its 1.5 million pay-TV customers contribute 63 per cent of revenue.

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FOXTEL MANAGEMENT PTY LTD

RBA to increase cash rate to 5.1pc, says top forecaster

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 26-Apr-24

The consensus of economists is that the Reserve Bank of Australia will upgrade its near-term inflation forecast in May, following the release of the latest CPI data. A stronger-than-expected headline inflation rate of one per cent for the March quarter – and 3.6 per cent in the year to March – has also prompted economists to forecast that the RBA will delay its first official interest rate cut. However, while most economists expect the RBA’s next move will be a rate cut, Judo Bank’s chief economic adviser Warren Hogan has forecast that it will increase the cash rate three times in 2024, from 4.35 per cent at present to 5.1 per cent. He had previously anticipated that the first rate cut would occur in early 2025.

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RESERVE BANK OF AUSTRALIA, JUDO BANK PTY LTD, JUDO CAPITAL HOLDINGS LIMITED – ASX JDO

Fortescue confident on export guidance

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Original article by Nick Evans
The Australian – Page: 16 : 25-Apr-24

Pure-play iron ore miner Fortescue has advised that its shipments from the Pilbara totalled 43.3 million tonnes in the March quarter. This was 11 per cent lower than the December quarter and down six per cent year-on-year. The lower export volumes have been attributed to the impact of a haulage train derailment during the quarter. Fortescue has conceded that full-year shipments are likely to be at the lower end of its guidance of 192-197 million tonnes. Fortescue shipped just 138.5 million tonnes in the first half of 2023-24, which will require it to ship 53.5 million tonnes in the final quarter. Meanwhile, Fortescue has further downgraded its forecast for shipments from the Iron Bridge magnetite project.

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FORTESCUE LIMITED – ASX FMG