Author: roymorgansocial

Rio shareholders want dividends and climate action

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 28-Feb-20

Rio Tinto has released a report which notes that some of its investments aimed at reducing carbon emissions will generate returns that are below its typical thresholds. The resources giant has set a net zero emissions target of 2050, and CEO Jean-Sebastien Jacques says this is likely to include the use of carbon offsets. He has used an investor briefing in London to raise the question of whether shareholders are willing to accept lower dividend payouts in return for faster progress on reducing emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Coronavirus to hit budget and income growth

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Original article by Matthew Cranston
The Australian Financial Review – Page: 5 : 28-Feb-20

Modelling by Deloitte Access Economics suggests that the coronavirus could see growth in national income fall from 6.4 per cent to just two per cent in the first half of 2020. This would have a $5.9bn impact on the domestic economy, with the tourism and education sectors being particularly hard hit. Meanwhile, economists have downgraded their GDP growth forecasts for the December quarter after data showed that there was a 2.8 per cent decline in capital expenditure during the period. Economists had expected growth of 0.5 per cent.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD

Everyone will get the virus

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Original article by Geoff Chambers, Natasha Robinson
The Australian – Page: 1 & 6 : 28-Feb-20

The global death toll from the coronavirus outbreak has risen to 2,814, and more than 82,000 people worldwide have been diagnosed with the respiratory illness. The federal government has responded to the growing crisis by extending its ban on direct travel from mainland China for another week, while it recently activated an emergency response plan. Meanwhile, Professor Ian Mackay from the University of Queensland doubts that the coronavirus can be contained and warns that it will most likely become endemic. He adds that most people will become infected with the coronavirus at some stage, and for most people the symptoms will be no worse than a bad head cold.

CORPORATES
UNIVERSITY OF QUEENSLAND

ABC won’t appeal Federal Court ruling that found AFP raids on public broadcaster valid

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Original article by
abc.net.au – Page: Online : 28-Feb-20

ABC MD David Anderson has advised that the public broadcaster will not contest the Federal Court’s recent decision to dismiss its challenge to the validity of police raids on its Sydney offices in mid-2019. The court found that the Australian Federal Police’s warrant to search the ABC’s premises was valid, and it ordered the broadcaster to pay costs. Anderson has described the ruling as a "blow to media freedom", adding that it has implications for journalists and the public’s right to know.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN FEDERAL POLICE, FEDERAL COURT OF AUSTRALIA

Market sinking in a sea of red

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Original article by David Rogers
The Australian – Page: 17 & 27 : 27-Feb-20

The Australian sharemarket has shed 6.3 per cent since reaching a record high of 7,197.2 points on 20 February, slashing its capitalisation by $136bn. Richard Coppleson of Bell Potter believes that a further sell-off is likely amid growing concern about the spread of the coronavirus beyond mainland China. Wall Street and Asian sharemarkets have also retreated, while the Australian dollar fell to an 11-year low in local trading on 26 February.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED

Nine to give sport, movies the chop

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 27-Feb-20

Nine Entertainment Company has reported a 2019-20 interim net profit of $101.9m, which is 41 per cent lower than previously. The result was marred by write-downs totalling $75.2m. The Nine Network’s underlying earnings fell by 36 per cent to $103.5m and revenue was six per cent lower at $531.2m, while earnings from its digital and publishing assets rose by seven per cent to $46.7m. Nine CEO Hugh Marks has flagged cost cuts of $100m at the Nine Network over the next three years.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED

China will act quickly to spur economy: Rio

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 22 : 27-Feb-20

Rio Tinto has reported underlying earnings of $US10.37bn ($15.77bn) for 2019. The result was bolstered by a strong rise in the iron ore price; the group’s average received price was 37 per cent higher than in 2018. Meanwhile, Rio Tinto has warned that both the Chinese and global economies will be adversely affected by the coronavirus outbreak in the March quarter. However, CEO Jean-Sebastien Jacques expects the Chinese government to pursue stimulus measures, which will in turn boost demand for commodities. Shareholders will receive a final dividend of $US2.31 per share.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Airlines set for worst since GFC

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Original article by Lucas Baird
The Australian Financial Review – Page: 19 : 27-Feb-20

CAPA-Centre for Aviation chairman Peter Harbison says the coronavirus will have a major impact on the global aviation sector if it is not contained quickly. He warns that if the virus outbreak becomes a pandemic, it will have the biggest impact on aviation since the global financial crisis. The International Air Transport Association estimates that the coronavirus will reduce the earnings of Asia-Pacific airlines by $US27.8bn in 2020.

CORPORATES
CAPA – CENTRE FOR AVIATION, INTERNATIONAL AIR TRANSPORT ASSOCIATION

Slowing sales hit Woolies earnings

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Original article by Eli Greenblat
The Australian – Page: 19 : 27-Feb-20

Woolworths has posted a 2019-20 interim net profit of $887m, which is 7.7 per cent lower than previously. The retail giant’s half-year accounts included an $80m hit from its wage underpayments scandal. Woolworths has advised that its wage remediation costs have blown out to $315m, plus $80 million in interest payments. Meanwhile, CEO Brad Banducci notes that the group’s sales have been impacted by the coronavirus, particularly in suburbs that have a high proportion of Asian consumers and students from China.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW

Virus, fires: 1.5 million visitors lost

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Original article by Richard Ferguson
The Australian – Page: 1 & 8 : 27-Feb-20

A draft report from Deloitte Access Economics has highlighted the impact of the summer bushfires and the coronavirus outbreak on the Australian economy. The tourism industry is expected to be particularly hard hit, with the number of international visitors forecast to decline by 10-15 per cent in 2020. Adele Labine-Romain of Deloitte Access Economics warns that the coronavirus will have an impact across the economy unless it is contained quickly. Meanwhile, the federal government will shortly decide whether to extend its travel ban on visitors from mainland China; the ban could potentially be extended to countries such as Japan and South Korea.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD