Author: roymorgansocial

Shocks likely as weaker $A hits home

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 20 : 10-Feb-15

Shane Lee of CIMB notes that consensus forecasts for earnings per share in the February 2015 reporting season have not been unduly affected by the sharp fall in the value of the Australian dollar. CSL, Boral and Newcrest Mining are among the stocks that could potentially have benefited from the lower currency in the first half of 2014-15. Lee notes that Boral will have greater downside risk in fiscal 2016, when less of its foreign exposure will be hedged

CORPORATES
CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CSL LIMITED – ASX CSL, BORAL LIMITED – ASX BLD, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, COCHLEAR LIMITED – ASX COH, PERSEUS MINING LIMITED – ASX PRU, SONIC HEALTHCARE LIMITED – ASX SHL, TRANSFIELD SERVICES LIMITED – ASX TSE, AMCOR LIMITED – ASX AMC, ALUMINA LIMITED – ASX AWC, WHITEHAVEN COAL LIMITED – ASX WHC, OCEANAGOLD CORPORATION – ASX OGC, RIO TINTO LIMITED – ASX RIO, ILUKA RESOURCES LIMITED – ASX ILU, ATLAS IRON LIMITED – ASX AGO, SANDFIRE RESOURCES NL – ASX SFR, MOUNT GIBSON IRON LIMITED – ASX MGX

Concerns grow over NSW asset sales

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Original article by Will Glasgow
The Australian Financial Review – Page: 8 : 10-Feb-15

A new public opinion poll shows that support for asset sales in New South Wales is waning. The Fairfax Media/Ipsos poll, which was carried out from 5-7 February 2015, shows that 23 per cent of electors support the partial sale of the electricity network. This is six per cent lower than in November 2014. The State Government will use proceeds from the partial privatisation to fund new infrastructure projects if it wins the 28 March election

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, IPSOS AUSTRALIA PTY LTD, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF NEW SOUTH WALES, LIBERAL-NATIONAL PARTY OF QUEENSLAND

Embrace telematics or lose share, insurers told

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Original article by Ruth Liew
The Australian Financial Review – Page: 21 : 10-Feb-15

Brian Wallace of IT group CSC believes that the introduction of telematics technology in Australia’s insurance industry is inevitable. He says car insurers in particular will need to implement telematics in order to protect their market share. Insurance Australia Group has ruled out offering such products, but QBE Insurance Group says its telematics product has resulted in cost savings of up to 30 per cent for some customers when renewing their policies

CORPORATES
COMPUTER SCIENCES CORPORATION, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, ACCENTURE, CELENT COMMUNICATIONS LLC, NRMA LIFE LIMITED, CGU INSURANCE AUSTRALIA LIMITED

Budget the big casualty

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Original article by Laura Tingle
The Australian Financial Review – Page: 1 & 6 : 10-Feb-15

The Liberal Party of Australia’s motion for a leadership spill failed on 9 February 2015, although the future of Prime Minister Tony Abbott remains tenuous. The motion to dump Abbott was defeated by just 11 votes, but the leadership turmoil will put the Federal Government’s Budget strategy under scrutiny. Abbott has conceded that the May 2014 Budget may have been overly ambitious, and many of the initiatives outlined on Budget night are in doubt. There will also be much uncertainty about the upcoming 2015 Budget

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIAN LABOR PARTY

Ansell profit jumps 33.7pc after two major acquisitions

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Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 10-Feb-15

Ansell has reported a 33.7 per cent rise in net profit to $A87.7 million for the second half of 2014. The Australian-listed rubber glove and condom maker’s revenue increased by 20 per cent to $US847.3 million. CEO Magnus Nicolin said on 9 February 2015 that the company benefited from two major deals completed in 2014. New acquisitions will be considered

CORPORATES
ANSELL LIMITED – ASX ANN, BARRIERSAFE SOLUTIONS INTERNATIONAL, MIDAS AUSTRALIA PTY LTD, INVESTORS MUTUAL LIMITED, STANDARD AND POOR’S ASX 200 INDEX, CLSA, CREDIT LYONNAIS SECURITIES ASIA LIMITED

ALP increases lead before Abbott’s ‘Pyrrhic victory’ in today’s L-NP leadership vote; Government Confidence drops to 89

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 9-Feb-15

A multi-mode Morgan Poll on Federal voting intention has found that support for the Coalition on a two-party preferred basis has fallen by one per cent to 42.5 per cent. The poll, which was carried out on the weekends of 31 January-1 February and 7-8 February 2015, also shows that support for the Australian Labor Party has risen by one per cent to 57.5 per cent. Roy Morgan Research executive chairman Gary Morgan says that following the defeat of the motion for a leadership spill, the New South Wales election will be the next test for Prime Minister Tony Abbott, and a close result or a loss would throw the Liberal Party back into "crisis mode"

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, PALMER UNITED PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Bank bosses set for big pay days

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 20 : 10-Feb-15

The personal wealth of the CEOs of Australia’s four major banks has been boosted by the strong gains in the banks’ share prices. Commonwealth Bank CEO Ian Narev now holds some $A30m worth of shares in the bank, while the shares and options of ANZ Bank CEO Mike Smith are worth around $A61m based on the bank’s current share price. Wilson Asset Management’s Geoff Wilson says shareholders usually do not object to the high remuneration of CEOs provided investors also benefit from increased wealth

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WILSON ASSET MANAGEMENT, STANDARD AND POOR’S ASX 200 BANKS INDEX, RESERVE BANK OF AUSTRALIA

Abbott to keep challenge at bay

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Feb-15

Sources within the Federal Government suggest that between 35 and 40 Coalition MPs are likely to vote in favour of a leadership spill on 9 February 2015. Supporters of the attempt to oust Prime Minister Tony Abbott require at least 52 of the 102 votes to be cast in order for the spill to proceed. However, some observers believe that even if Abbott triumphs it could be only a matter of time before he faces another leadership challenge

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, 2GB, MACQUARIE RADIO NETWORK LIMITED – ASX MRN, FAIRFAX MEDIA LIMITED – ASX FXJ, THE NIELSEN COMPANY (AUSTRALIA) PTY LTD, LIBERAL PARTY OF NEW SOUTH WALES, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

Foxtel, Discovery plot Ten strategy

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Original article by Dominic White, Jake Mitchell
The Australian Financial Review – Page: 29 : 9-Feb-15

Ten Network’s 14.9 per cent shareholder, Bruce Gordon, opposes a $A590m takeover bid by Foxtel and Discovery Communications. However, the bidders may consider a revised takeover strategy whereby they would acquire Ten’s main assets while Ten itself remains listed on the sharemarket. While Ten’s directors would have to approve any such deal, the bidders would only need the support of 51 per cent of Ten’s voting shareholders

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, LAZARD ASSET MANAGEMENT LIMITED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, CROWN RESORTS LIMITED – ASX CWN, FAIRFAX MEDIA LIMITED – ASX FXJ

RBA helps BoQ in its new thrust

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Original article by Shaun Drummond
The Australian Financial Review – Page: 21 : 9-Feb-15

The Bank of Queensland (BoQ) will be hoping that its mortgage lending business will be boosted by the 25 basis point reduction in the cash rate on 3 February 2015. The regional bank was quick to announce that it will reduce its fixed and variable home loan rates, as well as its business lending rates. BoQ shares closed at $A13.31 on 6 February, although the consensus share price target of analysts is $A12.71. Most analysts have a "buy" or "hold" recommendation on the stock

CORPORATES
BANK OF QUEENSLAND LIMITED – ASX BOQ, RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, INVESTEC BANK (AUSTRALIA) LIMITED, EZCORP INCORPORATED, SUNCORP GROUP LIMITED – ASX SUN, MACQUARIE SECURITIES PTY LTD, JP MORGAN AUSTRALIA LIMITED, BELL POTTER SECURITIES LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY