Author: roymorgansocial

Australia relaxed over China’s changes to iron ore export rules, but war of words goes on

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Original article by Ben Doherty
The Guardian Australia – Page: Online : 22-May-20

BHP and Fortescue Metals Group have welcomed China’s decision to relax its inspection rules for iron ore shipments. From 1 June, customs officials will only inspect batches of iron ore if this is requested by the importer or trader; all shipments were previously subject to mandatory inspection on arrival in China. Minerals Council of Australia CEO Tania Constable says the new customs procedures recognise the high quality of Australian iron ore. However, the Chinese media has warned that growing trade tensions could potentially hit Australia’s iron ore exports. Australia supplies 62 per cent of China’s iron ore.

CORPORATES
BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, MINERALS COUNCIL OF AUSTRALIA

Towering infernos of cash

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Original article by Brad Norington, Ben Wilmot
The Australian – Page: 1 & 4 : 22-May-20

Citigroup has forecast that the value of office buildings in Australia’s major CBDs could fall by more than 15 per cent in the wake of the coronavirus pandemic. Demand for centralised office space is likely to fall if the shift to working from home is sustained once the crisis abates. This in turn could put downward pressure on office rents. Meanwhile, JLL has forecast that the total amount of vacant office space across the nation’s CBDs will rise from 1.46 million square metres prior to the pandemic to about 1.88 million square metres by the end of 2020.

CORPORATES
CITIGROUP PTY LTD, JONES LANG LASALLE AUSTRALIA PTY LTD

Lowe urges banks to lend again

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Original article by David Rogers
The Australian – Page: 13 & 17 : 22-May-20

Reserve Bank governor Philip Lowe has praised the resilience of Australia’s financial system and said that it is well-placed to ride out the coronavirus pandemic. Lowe has also told a Financial Services Institute webcast that banks should utilise the capital and liquidity buffers that they have built up over the last decade and continue to lend during the pandemic. Lowe also repeated his view that the prospect of negative interest rates in Australia is unlikely.

CORPORATES
RESERVE BANK OF AUSTRALIA, FINANCIAL SERVICES INSTITUTE OF AUSTRALASIA

Australian guinea pigs step up for virus trial

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Original article by Natasha Robinson
The Australian Financial Review – Page: 1 & 5 : 20-May-20

Australia-based Q-Pharm will shortly commence a phase one clinical trial of a coronavirus vaccine that is being developed by US biopharmaceutical group Novavax. Some 131 people in Melbourne and Brisbane have volunteered to participate in the clinical trial. Q-Pharm will also undertake phase 1 clinical trials of a potential vaccine that being developed by the University of Queensland. Meanwhile, the Walter & Eliza Hall Institute of Medical Research will commence a clinical trial of antimalarial drug hydroxychloroquine.

CORPORATES
Q-PHARM PTY LTD, UNIVERSITY OF QUEENSLAND, WALTER AND ELIZA HALL INSTITUTE OF MEDICAL RESEARCH

Coalition eyes Australian economic sovereignty with boost to manufacturing

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Original article by Paul Karp
The Guardian Australia – Page: Online : 20-May-20

Federal Industry Minister Karen Andrews will use a National Press Club speech on 20 May to call for Australia to ramp up local manufacturing in the post-coronavirus environment. She will argue that factors such as domestic manufacturing, a lower company tax rate and an increase in natural gas supply are crucial to the nation’s economic sovereignty. Andrews will also emphasis the need for projects to be approved more quickly.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, SCIENCE, ENERGY AND RESOURCES

Santos warns of sovereign risk in energy sector

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Original article by Perry Williams
The Australian – Page: 16 : 20-May-20

Santos CEO Kevin Gallagher has stressed the need for Australia to create the ‘right investment environment’ to attract new capital in the post-coronavirus world. He has urged governments to ensure a free market environment for the nation’s energy producers so they are globally competitive. Gallagher has also expressed concern that increased sovereign risk in Australia has contributed to moves by major international producers to divest their local assets.

CORPORATES
SANTOS LIMITED – ASX STO

Cheap gas to power recovery

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 20-May-20

Ensuring that the east coast has access to affordable gas will be part of the federal government’s strategy to boost the economy in the wake of the pandemic. The National COVID-19 Co-ordination Commission is looking at a range of options for reducing the domestic price of gas; chairman Nev Power says these could include building a pipeline from Western Australia’s offshore gas fields to Moomba in South Australia. He adds that another option could be to relocate energy-intensive manufacturing to WA, where gas prices are lower due to a domestic gas reserve.

CORPORATES
AUSTRALIA. NATIONAL COVID-19 COORDINATION COMMISSION

Iron ore rally tempts marginal miners back

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 20-May-20

Shares in Australian iron ore producers rallied on 19 May, as the price of the steel input approaches $US100 a tonne. The iron ore price has gained about 17 per cent since the end of April, boosting the prospects of marginal iron ore projects as well as the major producers. Nathan River Resources recently received regulatory approval to resume mining at its Roper Bar project in the Northern Territory. It is expected to shortly commence exports of about one million tonnes of iron ore.

CORPORATES
NATHAN RIVER RESOURCES

World Health Assembly agrees to independent inquiry and global strategy to fight COVID-19

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

The World Health Assembly has formally adopted a resolution calling for an impartial and independent review into the global response to the coronavirus pandemic. There was unanimous support among the World Health Organization’s member nations for the push to hold an inquiry, which had been led by Australia and the European Union. Health Minister Greg Hunt and Foreign Affairs Minister Marise Payne have welcomed the passing of the resolution.

CORPORATES
WORLD HEALTH ASSEMBLY, WORLD HEALTH ORGANIZATION, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

China knew barley dumping claims were false

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Original article by Andrew Taylor, Brad Thompson
The Australian Financial Review – Page: 1 & 6 : 20-May-20

The federal government will hold crisis talks with barley growers on 20 May following China’s imposition of a punitive tariff, but Trade Minister Simon Birmingham says the nation will not retaliate with a trade war. The government is likely to take the matter to the World Trade Organisation, although it remains hopeful of resolving the dispute bilaterally. Meanwhile, it has been revealed that the government’s submission to China’s Commerce Ministry noted that China International Chamber of Commerce officials had admitted that there was no evidence to support claims of dumping by Australian barley producers.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, WORLD TRADE ORGANIZATION, CHINA. MINISTRY OF COMMERCE, CHINA INTERNATIONAL CHAMBER OF COMMERCE