Author: roymorgansocial

Taste of deflation as CPI plunges

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Original article by Sarah Turner
The Australian Financial Review – Page: 6 : 27-Jul-20

The economic impact of COVID-19 will be reflected in the consumer price index data for the June quarter, which will be released on 29 July. The consensus forecast is for a two per cent fall in the quarter and an 0.5 per cent decline in the year to June. However. Westpac economists expect the CPI to have declined by 2.4 per cent for the quarter and 0.9 per cent over the year. The coronavirus lockdown reduced demand for a range of goods and services in the three months to June, including petrol and travel.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC

L-NP (51.5%) increases lead over ALP (48.5%) in mid-July as second wave of COVID-19 hits Victoria

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Jul-20

Roy Morgan CEO Michele Levine explains: "The L-NP Government (51.5%, up 1% since June) leads the ALP (48.5%) in mid-July as a new wave of COVID-19 has forced the Melbourne metropolitan area back into lockdown. Roy Morgan Government Confidence Rating is down 9.5pts to 114.5 nationally from a month ago, but has fallen by a significant 16pts to only 104 in Victoria as other States have closed their borders to Victorians and the outbreak threatens the national economic recovery. In response the Federal Government has extended JobKeeper and JobSeeker until March 2021, however this has led to the forecast Federal Budget deficit blowing out to a record $186 billion for 2020/21."

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

Miners should be at the top of their game with soaring gold price, says Evolution’s Klein

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Original article by Nick Evans, Lachlan Moffet Gray
The Australian – Page: 16 : 24-Jul-20

Evolution Mining has advised that its gold production increased by 31.8 per cent in the June quarter, to 218,104 ounces. Evolution’s gold output for 2019-20 totalled 746,463 ounces, at an all-in sustaining cost of $956 per ounce at its Australian mines. Executive chairman Jake Klein expects the gold price to remain high in the medium-term, citing factors such as the federal government’s stimulus measures. Rival gold producer Northern Star Resources has reported output of 267,361 ounces for the June quarter, at an average realised gold price of $2,487 an ounce.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST

AAA rating defies $184b deficit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 24-Jul-20

The Australian economy will contract by 2.25 per cent in 2020-21, according to forecasts in the federal government’s economic update. The nation’s official unemployment rate is in turn projected to rise from 7.4 per cent at present to 9.25 per cent by the end of the year. Treasury has also forecast a Budget deficit of $85.5bn for 2019-20, rising to around $184.5bn in 2020-21. Meanwhile, the nation’s gross debt is slated to top $851.9bn in 2020-21. Moody’s and S&P have indicated that the economic update will have no impact on Australia’s triple-A credit rating.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

China iron ore drive delivers $9bn boost

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Original article by Geoff Chambers
The Australian – Page: 4 : 24-Jul-20

Finance Minister Mathias Cormann says the federal government has maintained "cautious and conservative assumptions" regarding the outlook for the iron ore price. The steel input is trading at around $US110 per tonne, but the government now expects it to be fetching $US55 a tonne by the end of 2020. It had forecast in December that the iron ore price would fall to $US55 by the end of June. Cormann stresses that the resources sector has been a major contributor to the domestic economy’s resilience during the coronavirus pandemic.

CORPORATES
AUSTRALIA. DEPT OF FINANCE

Jobless could reach 1.4 million by Christmas

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Original article by Matthew Cranston
The Australian Financial Review – Page: 7 : 24-Jul-20

The federal government’s economic update shows that the official unemployment rate is forecast to fall to around 8.75 per cent by June 2021. However, the Treasury notes that the measured unemployment rate could be up to 10.75 per cent by December if employers choose to give existing staff extra hours of work rather than hiring additional staff. This would lift the number of people who are unemployed to about 1.4 million. Meanwhile, wages are now expected to grow by just 1.75 per cent in 2019-20 and 1.25 per cent in 2020-21, compared with a forecast of 2.5 per cent growth in the mid-year update in December.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Bushfires royal commission granted another two months to file report

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Original article by
The New Daily – Page: Online : 24-Jul-20

The Royal Commission into National Natural Disaster Arrangements has been given until 28 October to present its final report, representing a two-month extension. Emergency Management Minister David Littleproud said commission chair Mark Binskin had sought the extension because the impact of COVID-19 had made it hard for some stakeholders to provide it with information in a timely manner. Littleproud has also announced that the federal government will allocate $88.1 million in funding over 10 years for additional research into bushfires and natural hazards.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO NATIONAL NATURAL DISASTER ARRANGEMENTS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Frydenberg backs wider IR changes

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Original article by Ewin Hannan
The Australian – Page: 5 : 24-Jul-20

Treasurer Josh Frydenberg identified industrial relations reform as a key priority for the federal government after releasing the economic update on 23 July. He will push for temporary changes to the Fair Work Act to be extended to include businesses that will no longer be eligible for the JobKeeper wage subsidy at the end of September. Australian Industry Group CEO Innes Willox has backed the proposal, but ACTU president Michele O’Neil contends that the more flexible workplace arrangements should not be available to businesses that are no longer struggling.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, THE AUSTRALIAN INDUSTRY GROUP, ACTU

Ten confirms exit from Supercars, leaving Seven in pole position

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Original article by Max Mason
The Australian Financial Review – Page: 22 : 24-Jul-20

The Ten Network’s director of sport production Adam Cush has advised that it will relinquish the Supercars’ free-to-air broadcasting rights at the end of 2020. Ten and pay-TV group Foxtel secured a six-year rights deal in 2013 which commenced in 2015. Ten indicated earlier in 2020 that it may not seek to renew the rights deal. Seven West Media previously held the free-to-air broadcasting rights, but its push to reduce costs means it may be unwilling to pay too much for the Supercars rights.

CORPORATES
TEN NETWORK HOLDINGS LIMITED, V8 SUPERCARS AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM

Early access to super extended, Treasury reveals

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Original article by Adrian Flores
My Business – Page: Online : 24-Jul-20

The federal government has extended the deadline for people wanting to apply for the early release of up to $10,000 from their superannuation fund from 24 September to 31 December. The government has also advised that the COVID-19 SME Guarantee Scheme has been extended to loans written until 30 June 2021, and that the Supporting Apprentices and Trainees wage subsidy has been extended for an additional six months to 31 March 2021, as well as being broadened to cover medium-sized businesses from 1 July.

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