Author: roymorgansocial

Investors back Rio payout cut for climate

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 2-Mar-20

Camille Simeon of Aberdeen Standard Investments says mining companies such as Rio Tinto needs to consider the short-term financial costs of taking action on climate change compared with the long-term cost of inaction. She warns that miners may incur higher costs of capital, stranded assets, reduced demand and lower shareholder returns if they fail to reduce carbon emissions. Ross Illingworth of Kingfisher Capital Partners has praised Rio Tinto CEO Jean-Sebastien Jacques for asking shareholders whether they are willing to accept lower dividends in return for faster progress on reducing emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ABERDEEN STANDARD INVESTMENTS AUSTRALIA LIMITED, KINGFISHER CAPITAL PARTNERS

Virus strikes: first Aussie dies

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Original article by Geoff Chambers, Richard Ferguson, Sarah Elks, Victoria Laurie, Lachlan Moffet Gray
The Australian – Page: 1 & 6 : 2-Mar-20

The global death toll from the coronavirus outbreak has risen to 3,001, and more than 87,000 people worldwide have been diagnosed with the respiratory illness. Meanwhile, Australia has recorded its first death from the virus, with 78-year-old James Kwan passing away after contracting it on the ‘Diamond Princess’ cruise ship. A total of 28 Australians have now been diagnosed with the coronavirus, including several who had visited Iran. Federal cabinet’s national security committee will meet in coming days to review the effectiveness of the government’s plan for dealing with a pandemic.

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Rio zeroes in on lithium but copper may be next

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 2-Mar-20

Rio Tinto has not made any major acquisitions under current CEO Jean-Sebastien Jacques. However, it has looked at more than 200 opportunities over the last three years, while its low level of debt means it is well-placed to pursue deals. Bold Baatar, the head of Rio Tinto’s energy and minerals division, says lithium has been its focus in terms of potential acquisitions. He adds that Rio Tinto is interested in other metals that are used in vehicle batteries, such as copper and high purity nickel.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Chinese economy takes a record hit

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Original article by Will Glasgow, Geoff Chambers
The Australian – Page: 1 & 6 : 2-Mar-20

The impact of the coronavirus on China’s manufacturing sector has been highlighted by the nation’s latest purchasing managers index data. The index fell from 50 to just 35.7 in January, and it is now below the levels recorded at the height of the global financial crisis. The virus outbreak resulted in the temporary closure of factories across China, and while some have resumed production, many remained closed. China’s economic growth slowed to 6.1 per cent in 2019.

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Streaming lifts Foxtel’s sports subs to record

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 28-Feb-20

Foxtel CEO Patrick Delany has defended the pay-TV group’s Kayo Sports streaming service, after its subscriber base declined in the December quarter. He argues that four of the five major sports in Australia end their seasons in September, so Kayo can expect to have fewer subscribers in a period when cricket is the only major sport. The media group’s sports subscriber base has risen to a record level when measured across its traditional broadcast, Foxtel Now and Kayo services.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, KAYO SPORTS, FOXTEL NOW

House prices set for double-digit growth: AMP

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Original article by Euan Black
The New Daily – Page: Online : 28-Feb-20

AMP Capital has forecast 10 per cent growth in house prices nationally in 2020, but growth is expected to slow to around five per cent in 2021. Senior economist Diana Mousina says factors such as the interest rate cuts in 2019 and the potential for further monetary policy easing in 2020 should offset any impact that rising household debt levels and tighter lending standards may have on house prices.

CORPORATES
AMP CAPITAL INVESTORS LIMITED

Investors rush to safe havens as stocks slide, dollar dives in coronavirus rout

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Original article by David Rogers
The Australian – Page: 17 & 26 : 28-Feb-20

The Australian sharemarket has fallen by seven per cent since reaching a record high of 7,197.2 points on 20 February, slashing its capitalisation by $150bn. The benchmark S&P/ASX 200 reached an intra-day low of 6,630.5 points on 27 February, its lowest level in three months, while the Australian dollar tested an 11-year low. Mikhail Sprogis of Goldman Sachs has forecast that the gold price will top $US1,800 an ounce in the next 12 months, amid a flight to safe-haven investments.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, THE GOLDMAN SACHS GROUP INCORPORATED

Relief for Lynas as licence renewed amid Malaysian turmoil

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Original article by Brad Thompson
The Australian Financial Review – Page: 21 : 28-Feb-20

Rare earths producer Lynas Corporation expects to meet the conditions imposed by the Malaysian government in renewing its operating licence for another three years. They include a deadline of mid-2023 to begin extracting low-level radioactive material from rare earths at a cracking and leaching plant in Western Australia, rather than undertaking the initial processing in Malaysia. Lynas must also commence work on developing a permanent disposal facility for radioactive waste in Malaysia within 12 months.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC

APRA probes bank, insurer virus plans

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Original article by Michael Roddan
The Australian – Page: 17 & 26 : 28-Feb-20

The Australian Prudential Regulation Authority has not updated its guidelines on pandemics since 2013, but the coronavirus outbreak has prompted it to activate Prudential Practice Guide CPG 233 – Pandemic Planning. APRA has asked financial institutions such as banks, insurers and superannuation funds to demonstrate that they are sufficiently prepared for a global pandemic. Westpac has responded to the outbreak by imposing a ban on employees travelling to China for business purposes, while AMP is requiring some employees in coronavirus epicentres to work from home.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP

Global pandemic upon us: PM

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 6 : 28-Feb-20

The coronavirus outbreak has not yet been declared a global pandemic by the World Health Organization, but the federal government believes it is only a matter of time. Only 23 Australians have contracted the virus to date, and eight of them were on the cruise ship ‘Diamond Princess’; however, Prime Minister Scott Morrison says the nation needs to prepare for a pandemic. The government has advised that it will provide ‘targeted’ financial assistance to sectors that have been affected by the coronavirus, such as education, tourism, exporters and small business. This may further jeopardise the prospect of a Budget surplus for 2019-20.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET