Author: roymorgansocial

Business in a tizz over Beijing minister lunch

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Original article by Will Glasgow, Ben Packham
The Australian – Page: 5 : 19-Mar-24

The Chinese government and the Australia China Business Council have organised a last-minute lunch for Australian business leaders to meet with China’s Foreign Minister Wang Yi on Wednesday. Senior executives from mining companies BHP and Rio Tinto are expected to attend the lunch, while executives from Treasury Wine Estates and Graincorp have also been invited, but may not be able to attend due to the short notice. Commenting on the lunch, a source from one of the invited companies said that "everyone’s really nervous. No one wants to do anything that upsets things".

CORPORATES
AUSTRALIA CHINA BUSINESS COUNCIL, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, TREASURY WINE ESTATES LIMITED – ASX TWE, GRAINCORP LIMITED – ASX GNC

BHP braces for iron ore challengers

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Original article by Matt Bell
The Australian – Page: 13 & 18 : 19-Mar-24

Iron ore futures briefly fell below $US100 per tonne in Singapore trading on Monday; Macquarie Equities in turn downgraded BHP’s shares from ‘outperform’ to ‘neutral’, in response to the uncertain outlook for iron ore in the medium-term. Meanwhile, BHP has used a shareholders’ briefing to warn that the iron ore market will become more competitive by the end of this decade, with production from mines in Africa set to boost global supply. However, CFO Vandita Pant said that BHP will have a competitive edge, given that it is the lowest-cost producer of iron ore. Meanwhile, CEO Mike Henry said a decision on the future of the Nickel West business is likely to be made shortly.

CORPORATES
BHP GROUP LIMITED – ASX BHP, MACQUARIE EQUITIES LIMITED

Supermarket break-up powers called for

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Original article by Tom McIlroy, Ronald Mizen
The Australian Financial Review – Page: 7 : 19-Mar-24

The Greens want the Australian Competition & Consumer Commission to be given powers to apply for a court order to break up companies that abuse their market power. Greens senator Nick McKim says supermarkets are the focus of the proposed divestiture laws, although he emphasises that the ACCC could also use these powers to target companies in other sectors. Meanwhile, the Australian Retail Association has rejected claims that grocery giants Coles and Woolworths are price-gouging, contending that the duopoly’s sales and costs have increased much faster than their profits over the last five years.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN GREENS, AUSTRALIAN RETAILERS ASSOCIATION, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW

Cyclone Megan wreaks havoc on South32 manganese port

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Original article by Tom Richardson, Brad Thompson
The Australian Financial Review – Page: 7 : 19-Mar-24

Diversified miner South32 has declined to comment on the damage to export infrastructure associated with its Groote Eylandt manganese mine in the Northern Territory. A bulk carrier struck a loading wharf during strong winds that emanated from Cyclone Megan, causing damage to both the wharf and the vessel. Sources have questioned whether the Groote Eylandt port will become operational again, citing factors such as the cost of repairs and the mine’s remaining life is limited. It is the world’s biggest source of manganese, although South32 has previously indicated that the mine could be exhausted by the end of this decade.

CORPORATES
SOUTH32 LIMITED – ASX S32

Federal voting intention unchanged in mid-March ALP 51.5% cf. L-NP 48.5%

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Mar-24

The latest Roy Morgan survey shows that support for the ALP is unchanged at 51.5%, ahead of the Coalition on 48.5% (also unchanged) on a two-party preferred basis. If a Federal Election were held now the Albanese Government would be re-elected, but forced into minority government with the support of minor parties and independents. Primary support for both major parties fell: support for the Coalition was down 1% to 37%, while support for the ALP was down 0.5% to 31.5%. Support for the Greens dropped 0.5% to 12.5%, One Nation support increased 1.5% to 5.5%, with the biggest increase in support in Queensland, up 2.5% to 8%. Support for Independents was unchanged at 9% and support for Other Parties was up 0.5% to 4.5%. The latest Roy Morgan survey is based on interviewing a representative cross-section of 1,710 Australian electors from March 11-17. Further details will be released in Roy Morgan’s weekly video update presented by CEO Michele Levine.

CORPORATES
ROY MORGAN LIMITED, MORGAN POLL, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, ONE NATION PARTY

Borrowers on slow march to mortgage cliff amid rollover

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Original article by Patrick Commins
The Australian – Page: 4 : 19-Mar-24

The Commonwealth Bank’s head of Australian economics Gareth Aird notes that the worst fears about the so-called ‘mortgage cliff’ have not eventuated. However, he adds that the shift from fixed to variable-rate home loans has had an impact on many households’ spending. Meanwhile, it is estimated that more than 250,000 households will transition to variable-rate home loans over the next 18 months; their mortgage repayments are set to rise sharply, even if the Reserve Bank does not increase the cash rate again.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA

New home supply to hit decade low

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Original article by Larry Schlesinger, Michael Read
The Australian Financial Review – Page: 1 & 32 : 19-Mar-24

The Urban Development Institute of Australia has forecast that just 79,000 new home builds will be completed nationwide in 2026. This is 26 per cent lower than in 2023, and the slump in new housing supply is set to further reduce the affordability of homes and rental properties. The dire forecast also casts further doubt on the federal government’s target of building an additional 1.2 million homes over five years. Barrenjoey’s chief economist Jo Masters says this target is ‘aspirational’, and will require high rates of apartment construction; she adds that apartments have a longer construction and lead time than houses.

CORPORATES
URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA, BARRENJOEY CAPITAL PARTNERS PTY LTD

Minister snubs US: Kiwis are closest

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Original article by Sarah Ison
The Australian – Page: 1 & 5 : 19-Mar-24

Opposition foreign affairs spokesman Simon Birmingham says comments by Trade Minister Don Farrell that the US is not Australia’s closest ally are "errant and disturbing". Farrell made the remark when asked on Monday why Australia had resumed funding to Gazan aid body UNRWA when the US had not, with Farrell stating that Australia was independent, and that over the course of history, New Zealand was its closest internat­ional ally, rather than the US. Birmingham said Farrell’s statement was something he would have expected from the Greens, not a senior government minister.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIAN GREENS

Penalty rates for WFH outdated

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 7 : 13-Mar-24

Key employers’ groups have used submissions to the Fair Work Commission’s review of industry awards to opposed providing employees with a general right to work from home. However, the Australian Chamber of Commerce & Industry and the Australian Industry Group have argued that overtime and penalty rates should not apply to remote workers who opt to work in the early evening to ‘make up’ for time lost during ordinary working hours, such as to attend to personal needs such as picking up their children from school.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP

Alumina agrees to Alcoa’s takeover

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Original article by Chris Herde
The Australian – Page: 16 : 13-Mar-24

Alumina’s directors have recommended that shareholders should vote in favour of Alcoa’s $3.3bn takeover offer in the absence of a superior proposal. Alumina chairman Peter Day says the time is right to combine the two companies, which are joint venture partners in Alcoa World Alumina & Chemicals. Alumina’s 40 per cent stake in AWAC is its sole asset, and its shareholders will own about 31.6 per cent of the merged group. Alumina was founded in 2002 via the demerger of Western Mining Corporation’s aluminium and bauxite assets.

CORPORATES
ALUMINA LIMITED – ASX AWC, ALCOA INCORPORATED, ALCOA WORLD ALUMINA AND CHEMICALS