Author: roymorgansocial

Mining royalties queried

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-May-15

Senate economics committee chairman Sam Dastyari has questioned whether the BHP Billiton and Rio Tinto offshore marketing hubs are affecting the Western Australian Government’s revenue from iron ore royalties. He says Premier Colin Barnett should look into the issue, especially given that the Australian Taxation Office is also undertaking an investigation into the practice of using trading hubs in Singapore.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN LABOR PARTY, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, WESTERN AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN TAXATION OFFICE, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE

AGL Energy shares hit 8-year high

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 27-May-15

AGL Energy has revealed details of its "strategic road map", which will include cost reductions and asset sales. AGL plans to divest its 50 per cent stake in the 420-megawatt Macarthur wind farm in Victoria, which is expected to fetch about $A500m. Some analysts believe that AGL will also sell its upstream gas business, while a decision on the Gloucester coal seam gas project will be made later in 2015. AGL shares closed 6.3 per cent higher at $A16.45 on 26 May.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, MACQUARIE GENERATION, MORGAN STANLEY AUSTRALIA LIMITED, AES CORPORATION, MACQUARIE WEALTH MANAGEMENT

Stock index ‘loaded with risk’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 20 : 27-May-15

The head of Australian equities at Lazard, Rob Osborn, is concerned about the S&P/ASX 200’s weighting toward banks. The sector comprised nearly 42 per cent of the benchmark index in March 2015, and Osborn notes that one sector has had a significant weighting in the index on just two other occasions in the last 15 years – the technology boom in 2000 and the resources boom in 2008. In both instances a correction resulted in these sectors falling sharply. Meanwhile, bank stocks have fallen by nearly 10 per cent since March.

CORPORATES
LAZARD PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DAVNET LIMITED, ECORP LIMITED, NEWS CORPORATION – ASX NWS

Cochlear looks to new CEO for kick-start

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Original article by Tim Binsted
The Australian Financial Review – Page: 15 & 20 : 27-May-15

Australian-listed Cochlear has advised that the head of its North American division, Chris Smith, will succeed CEO Chris Roberts in September 2015. Roberts has been CEO since 2004, and Cochlear has indicated that it wants to place more emphasis on lifting sales and revenue under Smith. He will join Cochlear in the role of deputy CEO on 1 July. Cochlear shares closed 1.4 per cent higher at $A88.66 on 26 May.

CORPORATES
COCHLEAR LIMITED – ASX COH, RESMED INCORPORATED – ASX RMD, MACQUARIE GROUP LIMITED – ASX MQG, NUCLEUS GROUP, SEEK LIMITED – ASX SEK, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, AUSTRALIAN MANUFACTURING WORKERS’ UNION

Bang & Olufsen Australia sold to luxury watches group

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Original article by Simon Evans
The Australian Financial Review – Page: 21 : 27-May-15

Emerald Group Investments intends to expand the Bang & Olufsen brand after buying the Australia and New Zealand business. Bang & Olufsen currently operates 10 retail outlets in Australasia, and Emerald Group CEO James Kennedy has declined to comment on the sale price. Emerald Group boasts annual revenue of about $A40m, and owns the LK Boutique stores in Sydney and Melbourne, which sell upmarket watches and jewellery.

CORPORATES
EMERALD GROUP INVESTMENTS PTY LTD, BANG AND OLUFSEN (AUSTRALIA) PTY LTD, BANG AND OLUFSEN A/S, LK BOUTIQUE, CROWN MELBOURNE LIMITED, THE STAR, COSTCO WHOLESALE CORPORATION, WAL-MART STORES INCORPORATED

ANZ-Roy Morgan Consumer Confidence Holds Recent Gains

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.0 per cent to 113.5 in the week ended 24 May 2015, following strong growth in the previous fortnight. Confidence has been trending above its long-run average for two continuous weeks, following a five-month run of below average growth. Confidence remains 14.3 per cent higher than the level for the same time in 2014. The sub-index for households’ finances in the next year has risen by 2.7 per cent, although the sub-index for expectations of the economic outlook in the next year fell by 5.3 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Lend Lease switches brolly for fold logo

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Original article by Robert Harley
The Australian Financial Review – Page: 39 : 27-May-15

Australian-listed Lend Lease Group will undertake a corporate makeover, rebranding itself as Lendlease and replacing its long-standing canopy logo. CEO Steve McCann describes the group’s new "fold" logo as "fluid and flexible". Lend Lease will gradually introduce the new branding over a two-year period.

CORPORATES
LEND LEASE GROUP LIMITED – ASX LLC, STW COMMUNICATIONS GROUP LIMITED – ASX SGN, HOUSTON

Hockey, PM split over tampon tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 27-May-15

Some Coalition MPs have criticised a push by Treasurer Joe Hockey to exempt women’s sanitation products from the GST. Economists have also questioned the proposal, with Saul Eslake of Bank of America Merrill Lynch arguing that the GST should be broadened to include male hygiene products such as condoms rather than exempting tampons. Australian Chamber of Commerce & Industry CEO Kate Carnell has expressed a similar view, saying exempting more items from the GST will add to the compliance burden for businesses.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN BROADCASTING CORPORATION, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIAN LABOR PARTY

Coke Life’s launch lacks fizz

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Original article by Patrick Commins, Sue Mitchell
The Australian Financial Review – Page: 29 : 27-May-15

Coca-Cola Australia’s Sarah Prestwood says consumers have responded positively to the new Coke Life softdrink, and sales to date have exceeded expectations. However, Credit Suisse believes that Coke Life’s sales during its first five weeks on the Australian market were well below those of Coke Zero and Coke Vanilla upon their initial launch. The firm has a 12-month share price target of $A10.60 on Coca-Cola Amatil.

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, COCA-COLA AUSTRALIA, CREDIT SUISSE (AUSTRALIA) LIMITED

Fortescue’s secret shell in Singapore

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1 & 8 : 27-May-15

Fortescue Metals Group chairman Andrew Forrest recently criticised BHP Billiton and Rio Tinto for using marketing hubs in Singapore, which has lower corporate tax rate than Australia. However, it has been revealed that Fortescue itself established a Singapore-based iron ore marketing company in January 2014. The iron ore price has since shed around 55 per cent, which has significantly reduced Fortescue’s profits.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE INTERNATIONAL MARKETING, AUSTRALIAN TAXATION OFFICE, GLENCORE PLC, VALE SA