Author: roymorgansocial

Full steel ahead for Fortescue as China draws down ore stockpiles

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 6-May-20

Fortescue Metals Group CEO Elizabeth Gaines expects demand for iron ore to remain strong due to China’s urbanisation policy. China produced 234.5 million tonnes of crude steel in the March quarter, which is 1.2 per cent higher than the same period in 2019. Gaines says that any additional economic stimulus in China would further boost demand for steel, and therefore iron ore. Meanwhile, Gaines is confident that Fortescue’s application to increase its export capacity at Port Hedland by 20 per cent will be approved.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG

ANZ-Roy Morgan Consumer Confidence increases for fifth straight week, up 4.5pts to 89.5

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-May-20

ANZ-Roy Morgan Australian Consumer Confidence rose 5.3% to 89.5 in the week to 3 May. Now 23% (up 4ppts) of Australians say their families are ‘better off’ financially than this time last year, while 39% (down 1ppt) say their families are ‘worse off’ financially. Meanwhile, 36% (up 6ppts) of Australians expect their family to be ‘better off’ financially this time next year, and 21% (down 1ppt) expect to be ‘worse off’ financially. However, just 8% (up 2ppts) expect ‘good times’ for the Australian economy over the next 12 months, while 48% (unchanged) expect ‘bad times’. In addition, 29% (up 4ppts) of Australians say now is a ‘good time to buy’ major household items, while 45% (up 7ppts) say now is a ‘bad time to buy’. The four-week moving average for ‘inflation expectations’ fell 0.3ppt to 3.4%. The weekly reading fell to 3.2% from 3.6%.

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ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

For the record as Australia entered shutdown in March, Mortgage Stress was close to a record low

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-May-20

New research from Roy Morgan shows that an estimated 828,000 mortgage holders (18.2%) were in ‘mortgage stress’ as Australia entered shutdown in March. This is a significant improvement on those considered to be in mortgage stress 12 months ago, and is the second-lowest level of mortgage stress in over a decade. In the three months to March 2020, 18.2% of mortgage holders (828,000) were ‘At Risk’, down from 21.5% (903,000) in March 2019. Over the same period those ‘Extremely at Risk’ also decreased from 14.5% (594,000) to 12.6% (559,000). However, the number ‘Extremely at Risk’ hit a low of only 425,000 (10.7%) in October, following an RBA interest rate cut, and has since increased. These are the latest findings from Roy Morgan’s Single Source Survey, based on in-depth interviews conducted with 50,000 Australians each year including over 10,000 owner-occupied mortgage-holders.

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ROY MORGAN LIMITED

Business Council backs Gary Banks on critical IR reform

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 5-May-20

There has been a mixed response to a call by former Productivity Commission chairman Gary Banks to make industrial relations reform a priority in the wake of the pandemic. Business Council of Australia CEO Jennifer Westacott supports his proposal to revisit the recommendations of the PC’s 2014 inquiry into the IR system, particularly those regarding the Fair Work Act’s ‘better-off-overall test’. However, University of Melbourne labour economist Jeff Borland has questioned the benefits of major IR changes, while the ACTU also opposes any such reforms.

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BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, UNIVERSITY OF MELBOURNE, ACTU

Back to school, except Victoria and Tasmania

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Original article by Robert Bolton
The Australian Financial Review – Page: 7 : 5-May-20

Queensland Premier Annastacia Palaszczuk has announced students will start returning to school on 11 May, with all years to be back by 25 May. The New South Wales government is adopting a staggered return of its students, with NSW Premier Gladys Berejiklian hoping this will mean that most students will be back at school by the end of May. This leaves Tasmania and Victoria as the only states resisting federal government advice to return to face-to-face teaching, although Independent Schools of Victoria CEO Michelle Green notes Victoria’s chief health officer will review his current advice on May 11.

CORPORATES
QUEENSLAND. DEPT OF THE PREMIER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, INDEPENDENT SCHOOLS VICTORIA INCORPORATED

Infected patients mingled with others at death home

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Original article by Kieran Gair, Natasha Robinson
The Australian – Page: 1 & 4 : 5-May-20

The Newmarch House aged-care facility in western Sydney continues to attract scrutiny over its handling of a coronavirus outbreak. Amongst other things, questions have been raised as to why residents who have been not been diagnosed with the virus were allowed to remain in a wing of the facility with those who have been infected, and why the infected residents have not been moved to the nearby Nepean Hospital. Some 37 residents have been infected with the virus and 15 have died, while 26 staff members of the Anglicare-operated facility have contracted the respiratory illness.

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ANGLICARE AUSTRALIA

Class action threat against travel providers over coronavirus vouchers

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Original article by Alison Xiao
abc.net au – Page: Online : 5-May-20

Slater & Gordon has announced plans for a class action against travel providers over the treatment of customers during the COVID-19 pandemic. Andrew Paull from Slater & Gordon claims travel providers have pressured customers into accepting limited travel vouchers as a result of cancellations caused by the pandemic, when in fact customers were entitled for a full cash refund. The Australian Competition & Consumer Commission has received over 6,000 complaints from customers of travel companies regarding cancellation fees and refund policies.

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT

Put reform on fast track: Westpac

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Original article by Joyce Moullakis
The Australian – Page: 13 & 17 : 5-May-20

Westpac has reported cash earnings of $993m for the first half of 2019-20, which is 70 per cent lower than previously. As previously flagged, the half-year result was marred by impairment charges totalling $2.23bn, including some $1.6bn for coronavirus-related loan losses. Westpac has deferred a decision on the payment of an interim dividend, while CEO Peter King has urged the national cabinet to move quickly to restart the economy when the pandemic abates. He has forecast a V-shaped economic recovery in 2021.

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WESTPAC BANKING CORPORATION – ASX WBC

Ad spend back 10.6% in March, but newspaper bookings soar 30.2% in response to COVID-19

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Original article by Brittney Rigby
Mumbrella – Page: Online : 5-May-20

The media agency-funded advertising expenditure market fell by 10.6 per cent in March, according to Standard Media Index, although newspaper bookings rose 30.2 per cent in response to COVID-19. The full extent of the impact of COVID-19 on advertising expenditure and marketing budgets is yet to be seen, and SMI AUNZ managing director Jane Ractliffe is tipping a decline of around 30 per cent in media agency bookings in April for both Australia and New Zealand.

CORPORATES
SMI MEDIA INCORPORATED

Ardern invited to PM’s bubble

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Original article by Graham Richardson, Rosie Lewis
The Australian – Page: 1 & 4 : 5-May-20

New Zealand Prime Minister Jacinda Ardern will join Australia’s national cabinet meeting on 5 May via a video link. The meeting will discuss a proposal to allow people to travel between the two countries without needing to be quarantined for 14 days. Ardern says that her country would have more to gain economically from resuming trans-Tasman travel; Australia accounted for 17.1 per cent of New Zealand’s exports in 2016. New Zealand recently eased its coronavirus lockdown restrictions, and further restrictions are expected to be lifted shortly.

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NEW ZEALAND. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET