Author: roymorgansocial

Inflation Expectations rebound in July to 3.4% as COVID-19 returns

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

In July, Australians expected inflation of 3.4% annually over the next two years, up 0.2% points on the record low in June. Inflation Expectations are down 0.7% points on a year ago. For much of Australia the month of July began with hope that the COVID-19 pandemic was successfully being dealt with, but as the month progressed the virus re-emerged. This was particularly evident in Melbourne which progressively introduced new restrictions throughout the month. Sydney also experienced renewed outbreaks during the month, with restrictions being re-imposed to limit gathering sizes at certain venues. With this in mind the increase in Inflation Expectations in July were driven by increases in Australia’s largest cities of Sydney (up 0.1% to 3.4%), Melbourne (up 0.6% to 3.4%) and Brisbane (up 0.1% to 3.5%). Inflation Expectations are split significantly on gender lines, with women expecting annual inflation of 4% over the next two years while men expect inflation of only 2.8%. Roy Morgan CEO Michele Levine says the rebound in Inflation Expectations in July follows three successive declines from April to June, and is the largest monthly increase in the measure so far in 2020.

CORPORATES
ROY MORGAN LIMITED

News Corp’s advertising revenue falls over 50% in fourth quarter, as company posts US$1.5bn loss

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Original article by Vivienne Kelly
Mumbrella – Page: Online : 10-Aug-20

News Corporation has posted a loss of $US401m for the June quarter, compared with a loss of just $42m for the previous corresponding period. Its loss for the year to 30 June totalled $US1.545bn, following a profit of $US228m for the previous year. Advertising revenue fell 51.6 per cent in the quarter and 19.9 per cent for the year, and news media revenue was down 41 per cent in the quarter and 18 per cent for the year. The financial results for Dow Jones have been disclosed separately for the first time; the publisher of ‘The Wall Street Journal’ has posted lower revenue for the quarter, but full-year revenue rose by three per cent to $US1.6n. In Australia, the subscriber base of Foxtel – including the Kayo and Binge streaming services – fell 12 per cent to 2.777 million in 2019-20.

CORPORATES
NEWS CORPORATION – ASX NWS

Tax reform pushed onto the states

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 27-Jul-20

New South Wales Treasurer Dominic Perrottet has been leading a push for tax reform, including the goods and services tax, payroll tax and stamp duties. The federal government wants its NSW counterpart to outline clear proposals for tax reform, amid doubts as to whether Perrottet has much support within the state government for his proposals. Prime Minister Scott Morrison has previously stated that the federal government will not consider tax reform proposals unless there is agreement among the states, while Federal Liberal MP Jason Falinski contends that the worst taxes are state-based and can be changed without any involvement at federal level.

CORPORATES
NEW SOUTH WALES. THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Miners urged to resist dividends

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Original article by Nick Evans
The Australian – Page: 15 : 27-Jul-20

Scott Grimley of EY says Australian mining companies should reinvest in their business using ‘windfall’ profits from the rising price of gold and iron ore. He cites the need to invest in technological innovations in particular, noting that a report from EY in 2019 concluded that implementing new technologies could boost productivity by 9-23 per cent. Grimley has emphasised the importance of growth as the economy recovers from the coronavirus pandemic.

CORPORATES
ERNST AND YOUNG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Thatcher claim fighting words to Labor, ACTU

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Original article by Joe Kelly
The Australian – Page: 4 : 27-Jul-20

Australian Chamber of Commerce & Industry CEO James Pearson has backed a push to extend temporary changes to the Fair Work Act for employers that will not be eligible for the JobKeeper scheme after September. He has urged Labor and the ACTU to support extending the emergency measures, which allow bosses to vary the hours an employee works and the duties they perform. Shadow treasurer Jim Chalmers has expressed concern that the federal government wants to adopt an industrial relation policy similar to that of former British prime minister Margaret Thatcher.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIAN LABOR PARTY, ACTU

Victoria in grip of death and dismay

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Original article by John Ferguson, Joe Kelly
The Australian – Page: 1 & 5 : 27-Jul-20

Victorian Premier Daniel Andrews has not ruled out extending the stage-three lockdown after the state recorded 459 new coronavirus cases and 10 deaths from the respiratory illness on 26 July; this followed 357 new cases and five deaths on the previous day. Andrews has urged Melbourne residents to comply with social distancing rules and wear face masks in public. There are now 4,233 active cases in Victoria; 228 are receiving treatment in hospital, including 42 in intensive care. The state’s death toll has risen to 71, and 155 people have died nationwide. New South Wales has recorded 14 new coronavirus cases.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET

Reform ‘won’t fix defamation’

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Original article by Chris Merritt
The Australian – Page: 19 : 27-Jul-20

Minter Ellison partner Peter Bartlett has questioned whether the proposed new defence for public interest journalism will be effective. It is based on a British provision that requires a journalist to prove that they reasonably believed that the publication of a statement was in the public interest. Bartlett warns that if the new defence is interpreted in the same way as the British defence, it is likely to have a similar impact as the existing defence of statutory qualified privilege, which has not been successfully used by the media. The Council of Attorneys-General will approve a model defamation bill on 27 July.

CORPORATES
MINTER ELLISON, AUSTRALIA. COUNCIL OF ATTORNEY-GENERAL

Highest minimum wage rate to hurt recovery

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Original article by Adam Creighton
The Australian – Page: 1 & 4 : 27-Jul-20

Data from the OECD shows that Australia has the world’s highest minimum wage, at $12.60 per hour when measured in purchasing-power adjusted US dollars. Australian Industry Group CEO Innes Willox says the data refutes arguments that the nation’s minimum wage is too low; he warns that its high level will ensure that younger people and those with limited skills will face longer periods of unemployment and underemployment. Willox adds that the minimum wage has increased by 8.5 per cent since 2017, with the Fair Work Commission approving a 1.75 per cent rise in June.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIA. FAIR WORK COMMISSION

Pandemic pressure for super mergers

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 17 : 27-Jul-20

The balanced options of Equipsuper and Catholic Super achieved positive returns in 2019-20, despite the impact of the coronavirus pandemic. The two funds merged in 2019, and boast a combined $26bn worth of funds under management. Scott Cameron, the CEO of the Equipsuper -Catholic Super, says his target is still to have $50bn of funds under management within five years. He has flagged another merger deal within months, and expects COVID-19 to lead to further consolidation in the super sector.

CORPORATES
EQUIPSUPER PTY LTD, CATHOLIC SUPER

AMP culture rife with bullying: staff

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Original article by Michael Roddan
The Australian Financial Review – Page: 13 & 17 : 27-Jul-20

AMP has the worst rating of any major financial services company in terms of being a place to work, according to workplace rating website Glassdoor. AMP has been in the headlines as a result of staff uproar over the promotion of Boe Pahari to the role of AMP Capital CEO despite having received a $500,000 penalty after the firm settled a sexual harassment claim against him by a female subordinate in 2017. Comments made on Glassdoor by current and former AMP employees suggest its workforce culture is ‘rife’ with bullying and intimidation by senior managers.

CORPORATES
AMP LIMITED – ASX AMP, GLASSDOOR INCORPORATED, AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, CHALLENGER LIMITED – ASX CGF, SUNCORP GROUP LIMITED – ASX SUN, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ