Author: roymorgansocial

Clock ticking on debt-laden Seven as lenders make plans

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Original article by Lilly Vitorovich, Perry Williams, Bridget Carter
The Australian – Page: 19 : 13-Apr-20

Seven West Media’s $541m debt equates to 2.4 times its underlying earnings. CEO James Warburton is seeking to reduce costs in response to the coronavirus-induced downturn in the advertising market, but there are concerns that Seven’s lenders may opt to on-sell their debt; any buyers of this debt could potentially call in their loans or gain control of Seven via a debt-for-equity swap. Seven’s outlook has been complicated by uncertainty regarding the future of its $40m deal to sell Pacific Magazines to Bauer Media.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PACIFIC MAGAZINES PTY LTD, BAUER MEDIA AUSTRALIA PTY LTD

Jobless rise to hit 10pc: Treasury

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Original article by Phillip Coorey, James Fernyhough
The Australian Financial Review – Page: 1 & 6 : 14-Apr-20

The Treasury estimates that the coronavirus pandemic will see unemployment peak at 10 per cent in the June quarter, compared with an official jobless rate of just 5.1 per cent in February. It would be the first time Australia has recorded double-digit unemployment since April 1994. The Treasury’s analysis also concludes that unemployment would have risen to around 15 per cent without the federal government’s JobKeeper scheme. Former AMP CEO Andrew Mohl is among the business leaders who have called for lockdown measures to be progressively wound back, noting that the restrictions are costing the economy some $550m per day in lost GDP.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AMP LIMITED – ASX AMP

We may be over-reacting to an unremarkable virus

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Original article by Adam Creighton
The Australian – Page: 10 : 14-Apr-20

Australia’s low death toll from the coronavirus and the nation’s comparatively low infection rate suggests that the lockdown measures may have been an over-reaction. Dire forecasts of hospitals being swamped with patients needing ventilators have not materialised, while government debt and the unemployment rate will rise sharply due to the coronavirus response. Indeed, a Roy Morgan survey for March found that the jobless rate is likely to double. Maintaining the lockdown for six months is unsustainable, and attention must soon turn to restarting the economy.

CORPORATES
ROY MORGAN LIMITED

Coronavirus JobKeeper package passes Parliament after Labor amendments fail

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Original article by Matthew Doran
abc.net.au – Page: Online : 9-Apr-20

More than 730,000 businesses have registered with the Australian Taxation Office to access the federal government’s wage subsidy scheme. A special sitting of parliament has passed the JobKeeper legislation, with eligible businesses to receive $1,500 per fortnight for each worker they continue to employ during the pandemic. Labor backed the legislation despite failing in its push for the scheme to be expanded to include casual workers who have been with their employer for less than a year and temporary visa holders.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIAN LABOR PARTY

Coronavirus data due within weeks to reveal Australia’s path out of health crisis

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Original article by Sophie Scott, Nick Sas
abc.net.au – Page: Online : 9-Apr-20

Chief Medical Officer Brendan Murphy recently said that Australia’s progress on containing the coronavirus will become clearer within a week or so, as people returning from overseas are skewing the infection data at present. Health experts state that more data on the rate of community transmission will be needed before any decisions are made about relaxing the coronavirus restrictions. Health Minister Greg Hunt says the nation will be able to commence lifting the restrictions once the rate of community transmission is under control, although he warns that the restrictions are unlikely to be eased for some time.

CORPORATES
AUSTRALIA. OFFICE OF THE CHIEF MEDICAL OFFICER, AUSTRALIA. DEPT OF HEALTH

Now for start of on-shoring era: Liveris

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Original article by Jacob Greber
The Australian Financial Review – Page: 13 : 9-Apr-20

The coronavirus pandemic has prompted renewed scrutiny of Australia’s dependence on imports for essential goods such as medical equipment. Manufacturing now accounts for six per cent of the domestic economy, compared with about 40 per cent in the 1970s. Business leader Andrew Liveris says Australia needs to increase local manufacturing, but he stresses that the focus should be on high-end sectors such as health and technology.

CORPORATES
DOW CHEMICAL COMPANY

Extra leave bid for frontline staff

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Original article by Ewin Hannan
The Australian – Page: 6 : 9-Apr-20

The ACTU will push for eight industry awards to be amended to provide workers in the health, aged care, pharmacy and disability sectors with paid pandemic leave. The peak union body contends that such workers should also be entitled to paid leave more than once, as they are generally at greater risk of both being exposed to the coronavirus and having to self-isolate for 14 days. The Fair Work Commission has ruled that workers who are covered by some awards are entitled to two weeks of unpaid pandemic leave. It will consider the ACTU’s proposal to provide frontline workers with paid pandemic leave.

CORPORATES
ACTU, AUSTRALIA. FAIR WORK COMMISSION

Seven takes Bauer to court over mags deal

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Original article by Lilly Vitorovich
The Australian – Page: 15 : 9-Apr-20

Seven West Media has stated that Bauer Media’s contract to buy Pacific Magazines is unconditional following recent regulatory approval for the $40m deal. Seven has launched court action to ensure that Bauer completes the deal. There has been speculation that Germany-based Bauer could withdraw from the Australian market following its decision to shut down its New Zealand arm. Seven in turn has flagged the possibility of further asset sales to reduce its $541m debt.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, PACIFIC MAGAZINES PTY LTD, BAUER MEDIA AUSTRALIA PTY LTD, BAUER MEDIA KG

Coronavirus data shows job advertisements in freefall

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Original article by Catherine Hanrahan
abc.net.au – Page: Online : 9-Apr-20

Data from job listings group Seek shows that the number of job advertisements has declined by 65 per cent year-on-year due to the coronavirus pandemic. New South Wales has recorded a 72 per cent fall in job listings, ahead of Victoria with a 67 per cent decline. The sport and recreation sector has been the hardest hit, recording a 98 per cent decline in job advertisements. In contrast, job ads in the mining, resources and energy sector have fallen by just 30 per cent.

CORPORATES
SEEK LIMITED – ASX SEK

Foxtel’s tough week as 200 jobs go

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Original article by Leo Shanahan
The Australian – Page: 15 : 9-Apr-20

Pay-TV group Foxtel has responded to the coronavirus-induced downturn in advertising revenue by retrenching 200 employees. CEO Patrick Delany has told staff that the pandemic has forced the company to accelerate a "transformation" of its business due to digital disruption. A further 140 employees who work in its sports production division have been stood down until the end of June; Delaney notes that it is uncertain as to when live sporting events will resume. He adds that Foxtel is not eligible for the federal government’s JobKeeper wage subsidy scheme at present.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, FOX SPORTS AUSTRALIA PTY LTD, KAYO SPORTS