Author: roymorgansocial

Right as rain: Evolution sticks to guidance

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 24-Apr-20

Evolution Mining has advised that its gold production fell by three per cent to 165,502 ounces in the March quarter, while it still expects full-year output of about 725,000 ounces. This excludes the contribution of the Red Lake mine in Canada, which it acquired from Newmont Goldcorp. Meanwhile, Evolution has indicated that concerns about water supply at the Cowal mine in drought-affected New South Wales have eased due to recent rainfall and the completion of a water pipeline upgrade.

CORPORATES
EVOLUTION MINING LIMITED – ASX EVN, NEWMONT GOLDCORP CORPORATION

Cambridge Analytica scandal: Watchdog given green light to pursue Facebook

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Original article by Leo Shanahan
The Australian – Page: Online : 24-Apr-20

The Federal Court has given the Australian Information & Privacy Commissioner the go-ahead to serve legal documents on Facebook Incorporated and Facebook Ireland. The Information Commissioner is targeting Facebook over claims that the personal data of more than 300,000 Australians was breached as part of the Cambridge Analytica scandal. Facebook is facing possible fines of over $1 billion under Australian privacy laws; it has already been fined $5 billion by US regulators.

CORPORATES
FACEBOOK INCORPORATED, FACEBOOK IRELAND, CAMBRIDGE ANALYTICA LLC, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. OFFICE OF THE AUSTRALIAN INFORMATION COMMISSIONER

Hopes of V-shaped recovery likely to be dashed

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Original article by David Rogers
The Australian – Page: 20 : 24-Apr-20

The global sharemarket has recovered about 50 per cent of the losses incurred in the sell-off during February and March. However, a further V-shaped recovery for equities is likely to be dependent on the global economy being restarted quickly. A V-shaped economic recovery is also unlikely, according to economists. Josh Williamson of Citigroup expects Australia’s economic growth to fall by 5.8 per cent in 2019-20, before rebounding by 6.1 per cent in 2020-21. However, he does not expect the economy to return to pre-virus growth levels until late 2021.

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CITIGROUP PTY LTD

Porter seeks Hawke-style accord with unions to spark a recovery

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Original article by Rosie Lewis, Greg Brown, Olivia Caisley
The Australian – Page: 4 : 23-Apr-20

Council of Small Business Organisations CEO Peter Strong has called for the industrial awards system to be abolished, while Australian Industry Group CEO Innes Willox says awards should be retained but simplified. Industrial Relations Minister Christian Porter has signalled that workplace reform will be on the federal government’s agenda. He hopes to build on recent good relations with ACTU secretary Sally McManus to have constructive discussions with union leaders regarding workplace reforms aimed at creating jobs and boosting wages when the coronavirus abates.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, THE AUSTRALIAN INDUSTRY GROUP, ACTU

Stimulus package a big mistake, says Abbott’s former economist

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Original article by Adam Creighton
The Australian – Page: 6 : 23-Apr-20

The necessity of the federal government’s $194bn coronavirus stimulus package has been questioned by Andrew Stone, the chief economist of former prime minister Tony Abbott. Stone argues that the stimulus package – and the national lockdown – should be progressively wound back, given that the virus outbreak has not been as severe in Australia as had been feared. He has also criticised economists who have signed an open letter cautioning the federal government against easing lockdown restrictions too soon.

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Oil crash threatens to sink industry

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Original article by Perry Williams
The Australian – Page: 13 & 20 : 23-Apr-20

Shares in Australian oil and gas producers were sold down on 22 April, as the global oil glut and falling demand continued to weigh on the crude oil price. The price of Brent crude oil reached a low of US15.98 a barrel, and Citigroup expects it to fall below $US10. The firm expects Brent to average $US17 a barrel during the June quarter. Coal-seam gas industry executive Richard Cottee says a significant production cut may be needed to boost the crude oil price.

CORPORATES
CITIGROUP PTY LTD

Tax system doesn’t support recovery

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Original article by John Kehoe, Patrick Durkin
The Australian Financial Review – Page: 6 : 23-Apr-20

Former Treasury secretary Ken Henry has backed calls by Reserve Bank of Australia governor Philip Lowe for an overhaul of the tax system when the pandemic is contained. Henry led a review of the tax system in 2010, and he contends that its findings and recommendations are still relevant. Amongst other things, Henry advocates replacing the GST, payroll taxes and some state-based taxes with a new tax on business cash flow. He has also proposed phasing out stamp duties in favour of a land tax system.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Air travel could struggle to take off again

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Original article by Hans van Leeuwen
The Australian Financial Review – Page: 11 : 23-Apr-20

The International Air Transport Association has warned that Australia’s aviation industry could take some time to recover when coronavirus restrictions are eased. The IATA notes that a rebound in business confidence after the number of new infections declined in late February saw domestic air travel in China quickly return to about 45 per cent of its previous level. The IATA’s chief economist Brian Pearce notes that in contrast, Australia’s domestic flights have not yet resumed despite the fact that the nation’s rate of infection has slowed considerably.

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INTERNATIONAL AIR TRANSPORT ASSOCIATION

US keeps eye on Australia’s big tech rules

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Original article by Jacob Greber
The Australian Financial Review – Page: 10 : 23-Apr-20

The US media industry has welcomed the Australian government’s move to require technology companies to pay news publishers for their content. Digital Content Next CEO Jason Kint says the mandatory code of conduct shows that the government recognises the significance of the problem and its impact on traditional media companies. News Media Alliance CEO David Chavern adds that there is growing concern across the political spectrum regarding the impact of digital platforms. The US Congress is also monitoring efforts in Australia and elsewhere to reign in the digital giants.

CORPORATES
DIGITAL CONTENT NEXT, NEWS MEDIA ALLIANCE, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Panic buying could put GDP in positive territory for March

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Original article by Matthew Cranston, Simon Evans
The Australian Financial Review – Page: 7 : 23-Apr-20

Data from the Australian Bureau of Statistics shows that retail turnover increased by 8.2 per cent in March, driven by panic buying in response to the coronavirus. Sales of canned food, medicinal products and cleaning goods were particularly strong in March, with turnover rising by 50 per cent month-on-month. Josh Williamson of Citigroup warns that retail turnover is likely to fall sharply in April, due to the impact of lockdowns and social distancing rules. David Plank of the ANZ Bank says the sales boost in March could potentially result positive GDP growth for the first quarter of 2020.

CORPORATES
AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, CITIGROUP PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ