Author: roymorgansocial

‘Acquisitions the only way’ for South32

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Original article by Amanda Saunders
The Australian Financial Review – Page: 21 : 4-Feb-15

BHP Billiton’s proposed South32 spin-off is slated to debut on the Australian sharemarket by mid-2015. Deutsche Bank’s Paul Young has a valuation of $US13bn ($A16.7bn) on South32, and cautions that the group will have to pursue acquisitions as its scope for organic growth will be limited. He expects South32 to shun BHP’s progressive dividends policy in favour of a payout ratio of 30-40 per cent

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED, DEUTSCHE BANK AG, SOUTH AFRICA COAL

Seven ‘too small to take out Beach’

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Original article by James Thomson
The Australian Financial Review – Page: 20 : 4-Feb-15

Seven Group Holdings has built up a 13.4 per cent stake in Beach Energy, after initially purchasing 3.5 per cent of the group’s shares in late January 2015. The share raid has prompted speculation of a takeover play, but Tim Mann of Morningstar believes that Seven Group lacks sufficient financial firepower to effect a takeover. Martin Kronborg of Credit Suisse suggests that the move may be in expectation that Beach will attract another suitor

CORPORATES
SEVEN GROUP HOLDINGS LIMITED – ASX SVW, BEACH ENERGY LIMITED – ASX BPT, MORNINGSTAR PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, WESTRAC HOLDINGS PTY LTD, BAILLIEU HOLST LIMITED

Shutter island: a snapshot of the 4.3 million Australians now sharing photos online

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Feb-15

A Roy Morgan Single Source survey has found that 23 per cent of Australians aged 14+ regularly uploaded pictures to photo-sharing websites in the year to September 2014. This compares with just eight per cent in 2012. The survey also shows that three million Australians uploaded photos via their mobile phone in an average four-week period in the year to September 2014, while 2.5 million used a computer

CORPORATES
ROY MORGAN RESEARCH LIMITED, FACEBOOK INCORPORATED, PINTEREST, INSTAGRAM LLC, TUMBLR INCORPORATED, SNAPCHAT INCORPORATED

Workload warning after trainee deaths

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Original article by Julia Medew
The Age – Page: 6 : 4-Feb-15

David Castle, who chairs the Victorian branch of the Royal Australian & New Zealand College of Psychiatrists, says the body has for some time voiced fears about the job stress created for members by new rules in the Mental Health Act. The comments follow reports that three trainee psychiatrists at the state’s hospitals died unexpectedly in late 2014 and early 2015, as well as an intern at Geelong Hospital. New Victorian Mental Health Minister Martin Foley has refused to declare whether there will be an investigation into the deaths

CORPORATES
THE ROYAL AUSTRALIAN AND NEW ZEALAND COLLEGE OF PSYCHIATRISTS, VICTORIA. DEPT OF HEALTH, THE GEELONG HOSPITAL, AUSTRALIAN MEDICAL ASSOCIATION (VICTORIA) LIMITED

Untreated trauma costs $9.1b a year: report

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Original article by Rachel Browne
The Sydney Morning Herald – Page: 5 : 4-Feb-15

A new study by Pegasus Economics states that the annual loss to the Australian economy stemming from unresolved childhood trauma after sexual abuse is $A9.1bn. The four issues of alcohol abuse, mental illness, obesity, and suicide or attempted suicide were looked at in the research, commissioned by the Adults Surviving Child Abuse lobby group for its 2015 Budget submission to the Federal Government. Meanwhile the Royal Commission into Institutional Responses to Child Sexual Abuse estimates the cost over a decade of a redress scheme for victims at $A4.3bn

CORPORATES
ADULTS SURVIVING CHILD ABUSE, AUSTRALIA. ROYAL COMMISSION INTO INSTITUTIONAL RESPONSES TO CHILD SEXUAL ABUSE, PEGASUS ECONOMICS

Rate cut fires up shares

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 & 6 : 4-Feb-15

The Australian dollar fell to its lowest level since the global financial crisis after the Reserve Bank reduced the cash rate to 2.25 per cent on 3 February 2015. Several smaller banks have reduced their standard variable mortgage rates by the full 25 basis points, although the four major banks have yet to respond. Federal Treasurer Joe Hockey says they should do so, adding that he expects the central bank to further reduce the cash rate in coming months. Factors such as the slowing economy and weak consumer sentiment contributed to the rate cut

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, PRICELINE PTY LTD, BANK OF QUEENSLAND LIMITED – ASX BOQ, MEMBERS EQUITY BANK PTY LTD, ING DIRECT, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, INTERNATIONAL MONETARY FUND, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, TRANSURBAN GROUP LIMITED – ASX TCL

Why CBA is a standout with investors

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 4-Feb-15

Morgan Stanley estimates that Commonwealth Bank of Australia (CBA) shares are now trading at 15.7 times the group’s forecast earnings for 2014-15. In contrast, the stock has traded at an average of around 12.9 per cent during the last 10 years. CBA shares have risen by 5.5 per cent in the last month, closing above $A90 on 3 February 2015. Shares in the three other major banks have also rallied in 2015, but CBA is the only one with a 30 June financial year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

China poised to boost investment in Australia

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Original article by Scott Murdoch, Annabel Hepworth, Wang Yuanyuan
The Australian – Page: 19 : 3-Feb-15

China’s State Council has ruled that the nation will use its $US3trn ($A3.9trn) worth of foreign currency reserves to make investments overseas. The targets will include major infrastructure projects, and Australia is set to be among the nations benefiting from the inflow of funds. The groundwork was laid by the Australian Government’s recent signing of a new free trade agreement with China. However some uncertainty remains on the issue of Chinese state-owned enterprises needing approval from Australia’s Foreign Investment Review Board for large asset purchases

CORPORATES
AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, CHINA. STATE COUNCIL, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, CORRS CHAMBERS WESTGARTH, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, QINGHUA UNIVERSITY

Less demand for places in top private schools

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Original article by Bethany Hiatt
The West Australian – Page: 13 : 3-Feb-15

There has been a decline in the waiting lists for admission to many private schools in Perth, according to some principals. South Perth’s Wesley College is among the private schools that have reported lower demand for places, particularly in its junior school. College head David Gee suggests that factors such as the downturn in the mining sector and the uncertain economic outlook may have contributed to falling demand

CORPORATES
WESLEY COLLEGE, HALE SCHOOL, SCOTCH COLLEGE

Property powerhouses set the pace on price rises

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Original article by Turi Condon
The Australian – Page: 5 : 3-Feb-15

Figures from CoreLogic RP Data show that house prices in Sydney and Melbourne increased by 1.4 per cent and 2.7 per cent respectively in January 2015. The Perth, Adelaide and Darwin property markets recorded house price declines during the month. CommSec’s Craig James says the Reserve Bank will consider the state of the residential property market when deciding whether to reduce the cash rate on 3 February

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERITON APARTMENTS PTY LTD, RESERVE BANK OF AUSTRALIA