Author: roymorgansocial

WA braces for housing slump

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Original article by Jonathan Barrett
The Australian Financial Review – Page: 3 : 12-May-15

The Western Australian Government’s revenue from property-related taxes is forecast to be between $A2.6bn and $A2.9bn annually over the next four years. However, slowing sales of residential properties may adversely affect state revenue, and Hegney Property Group’s Gavin Hegney expects house prices to fall by 1-2 per cent in 2015. Demand for housing is expected to fall as population growth slows.

CORPORATES
HEGNEY PROPERTY GROUP, BANK OF WESTERN AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, LIBERAL PARTY OF WESTERN AUSTRALIA

Budget’s switch to spending

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Original article by Phillip Coorey, Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 11-May-15

The Australian Government’s May 2015 Budget will replace all existing rebates for childcare services with one means-tested subsidy. However, Prime Minister Tony Abbott has indicated that the $A3.5bn childcare package is conditional on Senate support for welfare reforms that were in the 2014 Budget. Shadow treasurer Chris Bowen has reiterated that the Opposition will not support the proposed changes to family benefits.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF SOCIAL SERVICES, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. PRODUCTIVITY COMMISSION

UBS small-caps funds feature lithium play

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 18 : 11-May-15

Demand for lithium is rising by 10 per cent each year, and Australian-listed Orocobre’s Olaroz mine in Argentina yields 10 per cent of global supply. UBS Global Asset Management is upbeat about Orocobre, while Western Areas and Sundance Energy are the only other resources stocks in the portfolios of its small and micro-capitalisation funds at present.

CORPORATES
OROCOBRE LIMITED – ASX ORE, WESTERN AREAS LIMITED – ASX WSA, SUNDANCE ENERGY AUSTRALIA LIMITED – ASX SEA, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, TESLA MOTORS INCORPORATED, SIRIUS RESOURCES NL – ASX SIR

Hockey rejects recession fears

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 11-May-15

The Australian Government’s Mid-Year Economic and Fiscal Outlook had forecast GDP growth of 2.5 per cent in 2014-15. This is expected to be scaled back in the May 2015 Budget, but Treasurer Joe Hockey has downplayed suggestions by Macroeconomics’ Stephen Anthony that there is the potential for a recession in 2016. Meanwhile, Hockey is confident that the Government can keep the unemployment rate at no more than 6.5 per cent, compared with 6.2 per cent at present.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MACROECONOMICS.COM.AU PTY LTD, RESERVE BANK OF AUSTRALIA

Toll to drop off ASX after Japan Post vote

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 15 : 11-May-15

Toll Holdings shareholders are widely tipped to vote in favour of a $A6.5bn takeover offer from Japan Post on 13 May 2015. The deal, which requires the support of 75 per cent of shareholders, has received regulatory approval in Australia, Japan and New Zealand. Toll will be delisted if shareholders approve the deal.

CORPORATES
TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, NEW ZEALAND. OVERSEAS INVESTMENT COMMISSION, JAPAN FAIR TRADE COMMISSION, FEDERAL EXPRESS CORPORATION, TNT EXPRESS WORLDWIDE, AUSTRALIA POST, OFFICEWORKS SUPERSTORES PTY LTD, MAILMAN GROUP, GRANT SAMUEL AND ASSOCIATES PTY LTD

Market to take cue from Hockey budget

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Original article by Sally Rose
The Australian Financial Review – Page: 20 : 11-May-15

The Australian sharemarket is tipped to take its lead from the US when trading resumes on 11 May 2015. Futures traders have priced in a 43-point rise for the S&P/ASX 200, after it shed 3.1 per cent in the previous week. Investors will be awaiting the Federal Budget on 12 May, as well as the upcoming release of wages and housing finance data.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. FEDERAL RESERVE BOARD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, NASDAQ COMPOSITE INDEX, AMP LIMITED – ASX AMP, CITIGROUP PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, BANK OF ENGLAND, CONSERVATIVE PARTY (GREAT BRITAIN), RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Farmers ‘ready to invest’ again

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Original article by Tim Binsted
The Australian Financial Review – Page: 18 : 11-May-15

Australian farmers’ total debt stands at about $A60.9bn, Rabobank Australia CEO Thos Gieskes says capital investment is on the agenda again. In recent years many farmers have focused on reducing debts incurred during the drought, but Gieskes says farmers are increasingly upbeat about the sector’s outlook. Meanwhile, he says the Federal Government should redirect funding for the Farm Finance Concessional Loans Scheme to rural R&D programs.

CORPORATES
RABOBANK AUSTRALIA LIMITED, AUSTRALIA. DEPT OF AGRICULTURE, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, RABODIRECT

Telstra has no plans to charge Netflix

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Original article by Jared Lynch
The Australian Financial Review – Page: 30 : 11-May-15

Telstra spokesman Steve Carey notes that video now comprises around 50 per cent of the telco’s traffic, but he says it has ruled out charges streaming video providers to access its network. Singtel Optus CEO Allan Lew recently said such fees could be an option for providing higher-quality service to companies such as Netflix. Meanwhile, Telstra is pursuing a deal with Netflix to undertake joint marketing campaigns and promotions.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, NETFLIX INCORPORATED, SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, FOXTEL MANAGEMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, IINET LIMITED – ASX IIN

Cbus advised to appoint more independents

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Original article by Sally Patten
The Australian Financial Review – Page: 13 : 11-May-15

An independent report has made recommendations aimed at improving corporate governance at the Cbus superannuation fund. They include appointing more independent directors, including an independent chairman. The report, which was produced by Graeme Samuel on behalf of Cbus, also recommends measures aimed at preventing scandals such as the leaking of members’ personal information to the Construction, Forestry, Mining & Energy Union in 2014.

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ACTU, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Rio chief says coal price slump to last

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Original article by Amanda Saunders
The Australian Financial Review – Page: 13 : 11-May-15

The price of thermal coal has fallen to around $US63 per tonne, compared with $US150 in 2011. Rio Tinto executive Jean-Sebastien Jacques is bearish about the outlook for thermal coal, forecasting that the price may not recover for 3-4 years. The head of the group’s coal division says his main aim at present is to ensure that all of Rio’s coal mines continue to be cash-flow positive. He has downplayed suggestions that Rio could exit the coal business, but says any asset would be for sale at the right price.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP