Author: roymorgansocial

Big miners spook Abbott

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Original article by Phillip Coorey, Julie-anne Sprague, Mark Ludlow
The Australian Financial Review – Page: 1 & 4 : 20-May-15

Fortescue Metals Group chairman Andrew Forrest says the Australian Government should proceed with a parliamentary inquiry into the iron ore industry. He notes that lower prices for the steel input affects government revenue, and he says the Government should not yield to pressure from BHP Billiton and Rio Tinto. The two big miners have criticised proposals for a federal inquiry, while Prime Minister Tony Abbott has moderated his position on the issue, after previously supporting such an inquiry.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Medical cannabis start-up set to raise capital through ASX listing

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Original article by Sally Rose
The Australian Financial Review – Page: 23 : 18-May-15

MGC Global is seeking up to $A3m in an Australian IPO, and it will have a market capitalisation of about $A9.5m if the offer is fully subscribed. Israel-based MGC has proposed a backdoor listing via gold explorer Erin Resources, and it aims to commence the production of cannabinoid resin. Several other medical marijuana companies have previously listed on the Australian sharemarket.

CORPORATES
ERIN RESOURCES LIMITED – ASX ERI, MGC GLOBAL, PHYTOTECH MEDICAL LIMITED – ASX PYL, VERONA CAPITAL PTY LTD, CANN PHARMACEUTICALS

Hey Presto: Streaming joint venture gets ACCC green light

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Original article by Jared Lynch
The Australian Financial Review – Page: 33 : 18-May-15

The Australian Competition & Consumer Commission has approved the Presto joint venture between Seven West Media and Foxtel. Presto’s Shaun James says this will allow the partners to substantially increase the content that is available on the video streaming service. Meanwhile, Fraser McLeish of Credit Suisse expects US-based Netflix to become the leading player in Australia’s video streaming sector. He forecasts that the industry will boast revenue of $A700m by 2023.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, FOXTEL MANAGEMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, NETFLIX INCORPORATED, CREDIT SUISSE (AUSTRALIA) LIMITED, STAN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, QUICKFLIX LIMITED – ASX QFX, CITIGROUP PTY LTD, GOOGLE INCORPORATED

ASIC warns on property bubble

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 18-May-15

Australian Securities & Investments Commission chairman Greg Medcraft has raised concern about the growth in residential property prices in Melbourne and Sydney. He notes that the long-term average income to average household income is now at a record high, and he warns that interest rates will eventually rise. Medcraft is particularly concerned about self-managed superannuation funds investing in residential property, as a house is often their only asset.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FIRSTMAC LIMITED, RESERVE BANK OF NEW ZEALAND, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, THE CASH STORE PTY LTD, NIMBLE PTY LTD, COUNCIL OF FINANCIAL REGULATORS

Tax breaks to lift borrowing

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Original article by Clancy Yeates
The Australian Financial Review – Page: 18 : 18-May-15

The Commonwealth Bank of Australia (CBA) expects more small businesses to take out loans as a result of the Australian Government’s May 2015 Budget. CBA’s Clive van Horen says the $A5.5bn small business package should boost the confidence of small businesses and provide them with the incentive to invest in new equipment. However, TS Lim of Bell Potter says that even with the tax breaks, many small businesses will be reluctant to increase their debt.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Fortnum drops commissions for life advice

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Original article by Ruth Liew
The Australian Financial Review – Page: 18 : 18-May-15

Fortnum Financial Advisers will abolish upfront commissions on the sale of life insurance policies from 1 July 2015. Its financial planners will instead use either a fee-for-service or hybrid commission model, and executive chairman Ray Miles says there was widespread support for the change among its advisors. Centrepoint Alliance and AMP are among the other groups that have abolished upfront commissions.

CORPORATES
FORTNUM FINANCIAL ADVISERS PTY LTD, AMP LIMITED – ASX AMP, CENTREPOINT ALLIANCE LIMITED – ASX CAF

The great washing machine debate: top-loader vs front-loader

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

A Roy Morgan Single Source survey, which was carried out in the year to December 2014, has found that 52 per cent of Australian households own a top-loading washing machine. This compares with 60 per cent in 2010. The proportion of households with a front-loading washing machine has risen from 27 per cent to 34 per cent over the same period. The survey also shows that households occupied by young parents or mid-life families are the most likely to own a front-loader (41 per cent and 42 per cent respectively), while older households (27 per cent) are the least likely to do so.

CORPORATES
ROY MORGAN RESEARCH LIMITED

BHP Billiton fears ease ahead of South32 debut

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 18-May-15

South32 will be among Australia’s top 50 listed companies when its shares begins trading on a deferred settlement basis on 18 May 2015. Paul Young of Deutsche Bank expects the BHP Billiton spin-off to trade at about 0.7 times net present value, adding that BHP shares could be re-rated as a result of the demerger. Some of BHP’s institutional shareholders will watch the initial performance of South32 shares before deciding to increase or decrease their holdings in the spin-off.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, DEUTSCHE BANK AG, ABERDEEN ASSET MANAGEMENT LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI, X2 RESOURCES PARTNERS LP, GLENCORE PLC

A-League win for Fox Sports, SBS

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Original article by Max Mason
The Australian Financial Review – Page: 34 : 18-May-15

Some 13,000 spectators on average attended an A-League match during the 2014-15 season. The competition has also been popular with TV viewers, with SBS reporting 24.6 per cent growth in audience numbers in 2014-15. Meanwhile, Fox Sports notes that pay-TV audience numbers have increased by 45 per cent since the A-League was established in 2005. SBS and Fox Sports jointly paid $A160m for the A-League broadcasting rights in a four-year deal in 2013.

CORPORATES
SPECIAL BROADCASTING SERVICE (SBS), FOX SPORTS AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, THE A LEAGUE PTY LTD, FOOTBALL FEDERATION AUSTRALIA LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, MELBOURNE VICTORY FOOTBALL CLUB PTY LTD, SYDNEY FOOTBALL CLUB, SOCCEROOS, SPINACH ADVERTISING PTY LTD, AUSTRALIAN LABOR PARTY

Budget’s sugar hit lifts Coalition back to 50:50

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-May-15

A Fairfax/Ipsos Poll shows that support for the Federal Coalition on a two-party preferred basis has risen from 46 per cent to 50 per cent since April 2015. Meanwhile, the Coalition’s primary vote has increased from 39 per cent to 43 per cent in the wake of the May 2015 Budget. The personal approval rating of Prime Minister Tony Abbott has risen by eight per cent to 42 per cent, and his rating as preferred prime minister is up six points at 44 per cent.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, IPSOS AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY