Author: roymorgansocial

Time to reassess $250,000 deposit guarantee, says Swan

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Original article by Joyce Moullakis
The Australian – Page: 15 & 23 : 22-Mar-23

Former federal treasurer Wayne Swan says the recent spate of bank failures is in some ways similar to the global financial crisis, although he stresses that the factors at play in 2023 are different to those of 2008-09. Swan notes that Australia now has some buffers in place that were not present during the GFC, while enforcement and regulatory arrangements have been improved since then. The bank deposit guarantee is amongst the measures that were introduced in response to the GFC; Swan contends that the latest turmoil in the global banking sector means that it would be appropriate for the federal government and regulators to consider increasing the $250,000 threshold.

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Bank of mum and dad the biggest factor in young Australians entering property market, research finds

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Original article by Abhranil Hazra
The Guardian Australia – Page: Online : 22-Mar-23

Research undertaken by the Australian Housing & Urban Research Institute shows that financial assistance from their family has become crucial for many younger Australians to buy their own home. The research found that some 40 per cent of Australians in the 25-34 age group expect to rely on money from their parents to help them to buy a home. Lead researcher Laurence Troy says people without access to such financial support could potentially be locked out of home ownership. The survey also found that unstable and low incomes are a major hurdle to saving for a house deposit.

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AUSTRALIAN HOUSING AND URBAN RESEARCH INSTITUTE

Nickel miner Mincor seeks better offer after Forrest bids $760m

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Original article by Peter Milne
The Age – Page: Online : 22-Mar-23

Fortescue Metals Group’s founder Andrew Forrest has launched a takeover bid for Mincor Resources via his private company, Wyloo Metals. Forrest is offering $1.40 per share, which represents a 35 per cent premium to Mincor’s closing price on Monday. The nickel miner’s shares rose 41 per cent to $1.47 on Tuesday in response to the bid. Wyloo already has a 19.9 per cent stake in Mincor, which produces nickel sulphide in Western Australia’s Goldfields region. Mincor’s board has advised shareholders to take no action regarding the offer until it has considered the bid and makes a recommendation.

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MINCOR RESOURCES NL – ASX MCR, WYLOO METALS PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

RBA signals rates pause amid warning on woeful productivity

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Original article by Tom Dusevic
The Australian – Page: 1 & 4 : 22-Mar-23

The minutes from the Reserve Bank of Australia’s board meeting on 7 March show that it may be open to leaving the cash rate on hold in April. The minutes note that RBA board members agreed to reconsider the case for a pause at the April meeting, as this would provide it with additional time to reassess the outlook for the economy. The board also noted that a rate pause will be appropriate at some point in order to more fully assess the effect of the 10 consecutive interest rate increases to date. The minutes show that the RBA board is also concerned about Australia’s low level of productivity and its impact on inflation.

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RESERVE BANK OF AUSTRALIA

Cashed-up New Hope to double coal volumes

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 22-Mar-23

New Hope Corporation has posted a 2022-23 interim net profit of $668.6m, which is 102 per cent higher than previously. New Hope received an average of $467.40 a tonne for its thermal coal during the six months to 31 January. Shareholders will receive an interim dividend of $0.30 per share and a special dividend of $0.10 a share. Meanwhile, New Hope expects coal production from its existing mines to exceed 14 million tonnes in 2026, compared with 7.6 million tonnes in 2022. However, CEO Rob Bishop warns that a coal shortage is looming, given that the new mines that are opening in Australia will not be sufficient to offset the number of mines that are slated to close in coming years.

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NEW HOPE CORPORATION LIMITED – ASX NHC

Super fund satisfaction drops to 66.6% in February 2023 – down 5.4% points from record high in January 2022

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Mar-23

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 66.6% in February 2023. This is 5.4% lower than the record high reached just over a year ago in January 2022 (72.0%). Despite the decrease over the last year superannuation satisfaction is still higher than the long-term average of 57.9% from 2007-2023, and also higher than at any time prior to the pandemic years of 2021-22 when the measure was at record highs. However, superannuation satisfaction is now at its lowest since December 2020 (64.8%). Customer satisfaction for Industry Funds has declined by 6.3% points since January 2022 to 67.9% – the largest decline for any of the super fund categories; the customer satisfaction of Retail Funds has declined by 5.6% points to 61.3%. Unisuper and HESTA now have the highest customer satisfaction ratings among Industry Funds, ahead of AustralianSuper and HOSTPLUS. The highest-placed Retail Super Fund is Macquarie, followed by MLC, OnePath and Colonial First State. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 60,000 Australians each year.

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ROY MORGAN LIMITED

ABC staff cancel strike after winning pay rise, but some rankled by disrespect

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Original article by Zoe Samios
The Age – Page: Online : 23-Mar-23

The Media, Entertainment & Arts Alliance’s members at the ABC will not proceed with industrial action on Wednesday after the union reached an in-principle agreement with the public broadcaster for a new workplace deal. Cassie Derrick from the MEAA has praised the direct intervention of ABC MD David Anderson, and she emphasises that the dispute had not just been about pay. ABC employees will receive a pay rise of 11 per cent over three years, and a one-off bonus of $1,500. The ABC has also agreed to undertake an audit of the gender and cultural diversity pay gap, and implement a new framework for career progression. However, members of the Community & Public Sector Union at the ABC still intend to go on strike for two hours.

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AUSTRALIAN BROADCASTING CORPORATION, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, COMMUNITY AND PUBLIC SECTOR UNION

Chalmers eases fears: banks are safe

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Original article by Michael Read
The Australian Financial Review – Page: 9 : 15-Mar-23

Treasurer Jim Chalmers has downplayed concerns about the potential implications of Silicon Valley Bank’s collapse for Australian banks. He says the federal government, the Treasury and regulators are monitoring the situation and the potential impact on Australia’s financial system. Chalmers has emphasised that the nation’s banks are well-capitalised and have high levels of liquidity. The fallout from SVB’s collapse has prompted a global selldown of bank shares, while many investors now expect the Reserve Bank to leave the cash rate on hold in April.

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AUSTRALIA. DEPT OF THE TREASURY, SILICON VALLEY BANK, RESERVE BANK OF AUSTRALIA

FFI bids to develop hydrogen plant in South Australia

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Original article by Angela Macdonald-Smith, Simon Evans
The Australian Financial Review – Page: 15 : 15-Mar-23

Potential developers of a ‘green’ hydrogen hub in South Australia were given a deadline of Tuesday at 5pm to submit formal expressions of interest to the state government. Fortescue Future Industries is believed to have submitted a bid for the project, to which the state government will contribute $593m. A spokesman for FFI has declined to comment on whether Fortescue Metals Group’s clean energy arm lodged a bid. However, the spokesman says FFI believes that South Australia can become a leader in renewable energy production.

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FORTESCUE FUTURE INDUSTRIES PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG

Roy Morgan Business Confidence slumps 10.6 points to 95.8 in February after the RBA raises interest rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 15-Mar-23

In February 2023, Roy Morgan Business Confidence was 95.8 (down 10.6pts since January) after the RBA raised interest rates for a ninth consecutive meeting in early February. The fall in Business Confidence in February reversed the increase of 10.4pts in January, and Business Confidence is now 16.8pts below the long-term average of 112.6. Now just 39.1% (down 10.2ppts of businesses expect ‘good times’ for the Australian economy over the next year, while 59.3% (up 11.1ppts) expect bad times’. Some 41.2% (down 5.5ppts) of businesses expect the business will be ‘better off’ financially this time next year (the lowest figure for this indicator since the early stages of the pandemic in March 2020) while 28.1% (up 7.3ppts) expect the business will be ‘worse off’ (the highest figure for this indicator since in March 2020). Meanwhile, 46.5% (down 1.8ppts) of businesses say the next 12 months will be a ‘good time to invest in growing the business’, while 46.2% (up 2.5ppts) said it will be a ‘bad time to invest in growing the business’.

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ROY MORGAN LIMITED