Author: roymorgansocial

Results so far are a shot in the arm for investors

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Original article by David Rogers
The Australian – Page: 23 : 20-Aug-20

The S&P/ASX 200 has gained two per cent since the start of the August reporting season. Investors have responded positively to earning results, dividend payouts and outlook guidance, as well as a rally in the S&P 500 and the continued strength of commodity prices. Indeed, dividend announcements were a common factor among many stocks that outperformed on 19 August; likewise, a lack of dividend payments contributed to some stocks being sold down.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX

Joel Fitzgibbon warns of ALP split

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Original article by Greg Brown, Geoff Chambers
The Australian – Page: 1 & 2 : 20-Aug-20

Labor frontbencher Joel Fitzgibbon has expressed concern that the party could eventually split due to the growing divide between its traditional working-class and socially-progressive supporters. The shadow resources and agriculture minister has suggested that two separate Labor parties that are focused on cities and regional communities respectively could eventually govern in a coalition arrangement. Meanwhile, shadow treasurer Jim Chalmers will use a speech on 20 August to urge Labor to re-engage with traditional supporters who shunned the party at the 2019 federal election.

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AUSTRALIAN LABOR PARTY

New Zealand PM Jacinda Ardern maintains crushing lead over new National leader Judith Collins

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Original article by Roy Morgan
Market Research Update – Page: Online : 10-Aug-20

In July support for Prime Minister Jacinda Ardern’s Labour Party was at 53.5% (down 1% since June), but still more than double the support for the National Party on 26.5% (down 0.5%), with just over a month to go before the New Zealand election in mid-September. If an election were held today Labour could govern without the help of either New Zealand First or the Greens. Interviewing for this survey in July encompassed the period before and after Judith Collins became the new leader of National in mid-July after Todd Muller’s shock resignation after less than two months in the role. The early indications are that the new leader has had a negligible impact on support for National although a full month of interviewing in August will provide a clearer picture in the run-up to the election. The latest New Zealand Roy Morgan Poll on voting intention was conducted by telephone – both landline and mobile – with a NZ-wide cross-section of 899 electors during July.

CORPORATES
ROY MORGAN LIMITED, LABOUR PARTY (NEW ZEALAND), GREEN PARTY OF AOTEAROA NEW ZEALAND, NATIONAL PARTY OF NEW ZEALAND, NEW ZEALAND FIRST PARTY, NEW ZEALAND. DEPT OF THE PRIME MINISTER AND CABINET

330,000 jobs at risk in retail, building

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Original article by Adam Creighton, Richard Ferguson
The Australian – Page: 5 : 10-Aug-20

McKinsey has warned that a second wave of coronavirus-induced job losses could affect between 270,000 and 640,000 Australian workers by March. The consulting firm expects sectors such as retailing and construction to be hardest hit as government support measures are scaled back. McKinsey forecasts that an additional 215,000 jobs could be lost in the retail sector by March, on top of the 42,000 that were shed in the June quarter; the construction sector in turn faces the loss of up to 205,000 jobs by March, having shed 46,000 jobs in the three months to June.

CORPORATES
McKINSEY AND COMPANY

Don’t vote down Bain out of spite: unionist

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Original article by Robyn Ironside
The Australian – Page: 15 : 10-Aug-20

Virgin Australia CEO Paul Scurrah said recently that it would retrench a third of its workforce to help it return to profit and to survive the COVID-19 pandemic. Australian Licensed Aircraft Engineers Association secretary Steve Purvinas says he is concerned to hear talk that some of those who will lose their job have indicated they plan to vote against the airline’s deal with Bain Capital. He contends a ‘no’ vote would amount to spite, while Purvinas says backing an alternative proposal to Bain’s that has been put forward by bondholders would not help employees.

CORPORATES
VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AUSTRALIAN LICENSED AIRCRAFT ENGINEERS’ ASSOCIATION, BAIN CAPITAL LLC

Could Disney’s wish upon a Star be coming here?

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Original article by Max Mason
The Australian Financial Review – Page: 30 : 10-Aug-20

Walt Disney Company has yet to disclose whether its new subscription video-on-demand service will be launched in Australia. Disney has chosen the Star brand for the streaming service, which will be launched in non-US markets. It had been widely tipped to launch Hulu internationally, but Disney CEO Bob Chapek notes that Hulu has limited brand awareness outside the US. Star will complement the existing Disney+ streaming service, and will feature general entertainment content from Disney subsidiaries such as ABC Studios, Fox Television and 20th Century Studios.

CORPORATES
WALT DISNEY COMPANY, DISNEY+, ABC STUDIOS, FOX TELEVISION STATIONS INCORPORATED, 20TH CENTURY STUDIOS INCORPORATED

JobKeeper could be expanded to deal with further coronavirus outbreaks

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Original article by Jennifer Duke
The Sydney Morning Herald – Page: Online : 10-Aug-20

The JobKeeper wage subsidy scheme is now expected to cost $101bn in total, after the federal government agreed to extend it beyond September at a lower rate. Finance Minister Mathias Cormann has emphasised the need to gradually phase out government support, although he has not ruled out further extending the scheme beyond March if the pandemic worsens. Labor contends that the government needs a plan to boost employment rather than focusing on the JobKeeper and JobSeeker schemes.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY

Rio in Pilbara royalties scandal

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Original article by Nick Evans
The Weekend Australian – Page: 19 & 22 : 8-Aug-20

Rio Tinto has advised directors of the Gumala Aboriginal Corporation that royalties from the Yandicoogina iron ore mine in the Pilbara have been underpaid for a number of years. The resources giant has paid the GAC some $40m plus interest to cover the underpayments, but the GAC is said to have requested a full audit of Rio Tinto’s royalty payments and access to the underlying data that it uses to calculate regular payments. The Yandicoogina land use agreement was signed in 1997.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GUMALA ABORIGINAL CORPORATION

CBA investors brace for lower payout

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Original article by Cliona O’Dowd
The Australian – Page: 15 : 10-Aug-20

The consensus of analysts is that the Commonwealth Bank of Australia’s 2019-20 cash earnings will be 10 per cent lower than previously, at $7.6bn. UBS expects the coronavirus pandemic to prompt CBA to increase its impairment charges for the second half to $1.9bn, which includes a $1.5bn COVID-related provision that the bank announced earlier in the year. Meanwhile, UBS forecasts that CBA shareholders will receive a final dividend of $0.95 per share, which would be in line with the Australian Prudential Regulation Authority’s revised guidance.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, UBS HOLDINGS PTY LTD

Virus kills 17 Victorians, state to spend extra $60m on mental health

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Original article by Stephen Lunn, Tessa Akerman
The Australian – Page: 1 & 5 : 10-Aug-20

Victoria reported 394 new coronavirus cases on 9 August, which is the state’s lowest daily total since 29 July. This followed 466 new cases on the previous day. However, Victoria’s death toll from the respiratory illness has risen by 17 and now stands at 210, while the national death toll is 295. Meanwhile, the state government will allocate an additional $60m for mental health funding. New figures show that there has been a sharp increase in use of mental health services in the state over the last six weeks, particularly among those under the age of 18.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET