Author: roymorgansocial

Most economists got house prices wrong last year

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 29 : 4-Jan-23

Data from CoreLogic shows that national dwelling values fell by 5.3 per cent in 2022, while combined capital cities dwelling values were down 6.9 per cent. Leading economists failed to predict the downturn in the housing market; the majority had forecast at the start of the year that there would be at least modest growth in house prices during 2022. Westpac’s Bill Evans had forecast eight per cent growth, while the Commonwealth Bank had anticipated seven per cent growth. National Australia Bank’s chief economist Alan Oster had forecast that house prices would end the year flat.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD,WESTPAC BANKING CORPORATION – ASX WBC,COMMONWEALTH BANK OF AUSTRALIA – ASX CBA,NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Foxtel pays more for less in record $1.5b cricket broadcasting deal

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Original article by Sam Buckingham-Jones
The Australian Financial Review – Page: 5 : 4-Jan-23

Cricket Australia’s new seven-year broadcasting rights deal with Foxtel and Seven West Media is worth more than $1.5bn. Foxtel will pay about $980m for the broadcasting rights, which equates to nearly $140m a year. However, the Big Bash League will be reduced from 61 matches per season to just 43 under the new rights deal, which runs from 2024-25 to 2030-31. Seven in turn will pay about $65m a year, which is about 13 per cent lower than the cost of its current rights deal. Meanwhile, Ten Network owner Paramount has stated that it did not make a formal bid for the cricket rights.

CORPORATES
CRICKET AUSTRALIA,FOXTEL MANAGEMENT PTY LTD,SEVEN WEST MEDIA LIMITED – ASX SWM,SEVEN NETWORK LIMITED,TEN NETWORK HOLDINGS LIMITED,PARAMOUNT GLOBAL

ACCC calls on banks in merger probe

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Original article by Joyce Moullakis
The Australian – Page: 13 & 16 : 4-Jan-23

The Australian Competition & Consumer Commission is currently assessing the ANZ Bank’s proposed deal to acquire Suncorp Group’s banking arm. Sources have indicated that the ACCC has requested information and data from the nation’s major and regional banks as part of the process, using its compulsory powers under the Competition and Consumer Act 2010. This information is said to include bank returns, net interest margins, funding costs and market share. The ACCC is seeking submissions on the ANZ deal by 18 January, and it aims to make a final decision on the transaction in June.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,SUNCORP BANK,SUNCORP GROUP LIMITED – ASX SUN,AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

‘Safety first’: business leader backs virus testing for China

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Original article by Georgie Moore
The Australian Financial Review – Page: 2 : 4-Jan-23

Former Australia-China Council chairman Warwick Smith has expressed support for the federal government’s move to impose COVID-19 testing requirements on travellers from China. Smith does not expect it to have any impact on the ability of Australian companies to do business in China, amid signs of improving relations between the two nations. He adds that other countries are adopting similar measures. Meanwhile, the Opposition has questioned the government’s decision to ignore the advice of Chief Medical Officer Paul Kelly, who does not believe that the new testing requirements are necessary.

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AUSTRALIA-CHINA COUNCIL,AUSTRALIA. DEPT OF HEALTH

China’s Covid payback threat

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Original article by Greg Brown,Will Glasgow
The Australian – Page: 1 & 2 : 4-Jan-23

A growing number of countries will require travellers from China to undergo pre-flight testing for COVID-19. However, Chinese authorities believe that such measures are not necessary, and foreign ministry spokeswoman Mao Ning has warned that the nation will take reciprocal action against countries that impose testing requirements that apply only to travellers from China. Meanwhile, the federal government has released more details of its new rules for travellers from China, which take effect from Thursday. Amongst other things, they will have to test negative for the coronavirus 48 hours before departure, and people who use a rapid antigen test must have it administered and supervised by a medical practitioner.

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New mining boss plots further evolution

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Original article by Nick Evans
The Australian – Page: 13 & 16 : 4-Jan-23

Lawrie Conway has formally succeeded Jake Klein as MD of Evolution Mining, although the latter will remain at the gold miner in the role of executive chairman. Conway joined Evolution’s board in 2011, having previously worked for BHP and Newcrest Mining. He was appointed to the role of chief financial officer in 2014, and Evolution subsequently capitalised on a sharp downturn in the gold price to make a series of acquisitions that catapulted it into the ranks of mid-tier gold producers. Evolution’s internal growth plan will be Conway’s immediate priority; however, further acquisitions could also be on the agenda, as he expects global gold miners to divest some assets in coming years.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN,BHP GROUP LIMITED – ASX BHP,NEWCREST MINING LIMITED – ASX NCM

Jury’s out on where to get best profit growth this year

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Original article by Alex Gluyas
The Australian Financial Review – Page: 12 & 16 : 4-Jan-23

The S&P/ASX 200 shed 5.5 per cent in 2022, ending the year at 7,038.7 points. Data from Bloomberg shows that energy, utilities and materials were the only sectors that posted gains for the calendar year. UBS equity strategist Richard Schellbach expects the benchmark index to end 2023 at 7,250 points, while AMP forecasts that it will finish the year at 7,600. In contrast, Credit Suisse expects the S&P/ASX 200 to retreat in 2023, ending the year at just 6,700.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX,BLOOMBERG LP,UBS HOLDINGS PTY LTD,AMP LIMITED – ASX AMP,CREDIT SUISSE (AUSTRALIA) LIMITED

Albanese plan has dealt a blow to east coast gas supply

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: Online : 23-Dec-22

APPEA CEO Samantha McCulloch has warned that the federal government’s intervention in the energy market will deter future investment and affect gas supply on the east coast. She adds that Senex Energy’s decision to put a $1bn expansion of its Surat Basin projects on hold is exactly what the industry warned about when the government moved to impose gas price caps. However, the intervention has been defended by Energy Minister Chris Bowen, who argues that Australian industries would have collapsed in 2023 if Labor had taken no action.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, SENEX ENERGY LIMITED, AUSTRALIA. DEPT OF CLIMATE CHANGE, ENERGY, THE ENVIRONMENT AND WATER

RBA’s rapid rate rises questioned by parliament

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Original article by Ronald Mizen
The Australian Financial Review – Page: Online : 23-Dec-22

The House of Representatives’ economics committee has been reviewing the Reserve Bank of Australia, with its report being issued on 22 December. The committee has noted that the RBA is not solely responsible for bringing down inflation, with the committee observing that community and business expectations about inflation also have an influence; the committee stated the RBA needs to take these expectation into account both when setting interest rates and when signalling its monetary policy intentions. The committee stated it expects the RBA to analyse where demand inflation is strongest and what impact interest rate rises were having.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, RESERVE BANK OF AUSTRALIA

‘Ice thaws, but slowly’: Experts optimistic on China trade

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Original article by Gus McCubbing
The Australian Financial Review – Page: Online : 23-Dec-22

Warwick Smith believes that Foreign Minister Penny Wong’s meeting with her Chinese counterpart Wang Yi will result in an easing of the $20 billion worth of trade sanctions that China imposed in Australia in 2020. Smith, who is the chairman of the Business Council of Australia’s global engagement committee, has described Wong as a "consummate diplomat". Taiwan-based Australian National University political analyst Wen-Ti Sung said he agrees with Wong’s comment that, in terms of trade, the "ice thaws, but slowly", while former Chinese diplomat Han Yang thinks Australia will have to make policy concessions to secure the release of Cheng Lei and Yang Hengjun, who are currently detained in China.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN NATIONAL UNIVERSITY