Author: roymorgansocial

RBA keeps faith in the economy

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Original article by David Rogers
The Australian – Page: 17 & 24 : 5-Feb-20

Financial markets still expect the Reserve Bank of Australia to reduce the cash rate by June, after it left rates unchanged at 0.75 per cent on 4 February. The general consensus of economists is that the cash rate will remain on hold in March. Meanwhile, economists had expected the RBA to downgrade its economic growth forecasts for 2020 and 2021 in the wake of the bushfires and the coronavirus crisis, but these have been left at 2.75 per cent and 3 per cent respectively. The central bank also expects the unemployment rate to remain at around 5.1 per cent in 2020, before easing to less than five per cent in 2021.

CORPORATES
RESERVE BANK OF AUSTRALIA

Chinese conglomerate isolates 20 workers at Pilbara iron ore mine

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Original article by Brad Thompson
The Australian Financial Review – Page: Online : 5-Feb-20

Twenty workers at Citic Pacific’s Sino Iron magnetite project in Western Australia have been placed in quarantine for 14 days, due to concern about the coronavirus. The Chinese company says the move to isolate the workers is a precautionary measure, as they had visited China since 17 January. The company adds that the health and wellbeing of its employees and contractors is its main priority.

CORPORATES
CITIC LIMITED, SINO IRON PTY LTD, MINERALOGY PTY LTD

Act on climate change or face investor backlash, McKinsey warns CEOs

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Original article by Elouise Fowler
The Australian Financial Review – Page: 16 : 5-Feb-20

McKinsey & Company has released a report which argues that although the mining sector has started taking action to reduce carbon emissions, more needs to be done. The report notes amongst other things that the mining industry’s greenhouse gas reduction targets are still generally well below those required under the Paris climate agreement. The global consultant also says mining companies need to take more action with regard to Scope 3 emissions.

CORPORATES
McKINSEY AND COMPANY

Despite everything ANZ-Roy Morgan Consumer Confidence virtually unchanged at 108.5

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Original article by Roy Morgan
Market Research Update – Page: Online : 5-Feb-20

ANZ-Roy Morgan Australian Consumer Confidence edged 0.5% higher to 108.5 in the week ended 2 February, reversing the previous week’s decline. However, it remains well below average. Overall financial conditions were little changed, with offsetting moves in current and future finances. Current economic conditions gained 2.1%, while future economic conditions declined 2.5%. The ‘Time to buy a major household item’ subindex gained 2.7%, following a decline of 2.4% previously. The four-week moving average of inflation expectations was up by 0.1ppt to 4.0%; the weekly reading rose to 4.2%, its highest level since early September.

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

Worker safety the top priority, says mine boss

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Original article by Sarah Elks
The Australian – Page: 5 : 3-Feb-20

BHP Mitsubishi Alliance executive James Palmer says health and safety is the mining company’s top priority. He was commenting on an internal document regarding an accident at one of its coal mines in Queensland, in which a bulldozer operator nearly drowned when his machine overturned in a water-filled pit. Investigators had queried why the pit was not emptied before work began; according to the document, there was an internal mandate to keep trucks running in order to meet production targets. Palmer says that what was presented in the document is not how things are presented in the company’s safety messages. Eight workers have died in Queensland quarries and coalmines in the past 18 months.

CORPORATES
BM ALLIANCE COAL OPERATIONS PTY LTD, BHP GROUP LIMITED – ASX BHP, MITSUBISHI CORPORATION

Rio faces new Scope 3 carbon emissions push

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Original article by Peter Ker
The Australian Financial Review – Page: 19 : 3-Feb-20

Market Forces will put a resolution to Rio Tinto shareholders which calls for the resources group to set targets for its so-called Scope 3 carbon emissions. More than 100 shareholders have expressed support for the resolution, and a similar resolution in 2019 was backed by over six per cent of Rio Tinto’s shareholders. Rival iron ore miners BHP and Vale have committed to setting targets for reducing their Scope 3 emissions.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MARKET FORCES, FRIENDS OF THE EARTH, BHP GROUP LIMITED – ASX BHP, VALE SA

Virus crisis could cost nation $13bn

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Original article by Geoff Chambers
The Australian – Page: 1 & 6 : 3-Feb-20

Treasurer Josh Frydenberg has conceded that events that are beyond the federal government’s control will have a significant impact on the domestic economy. Some estimates suggest that the coronavirus could potentially reduce economic activity by up to $13bn in the first half of 2020, with the tourism and education export sectors to be particularly hard hit. The coronavirus could also jeopardise the government’s revenue projections in its mid-year Budget update, due to its potential effect on the prices of commodities such as iron ore and coal.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, MINERALS COUNCIL OF AUSTRALIA, BHP GROUP LIMITED – ASX BHP

Government waives $1000 evacuation fee

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Original article by Richard Ferguson, Robyn Ironside
The Australian – Page: 6 : 3-Feb-20

Treasurer Josh Frydenberg has advised that Australian citizens who are evacuated from Wuhan will not be charged up to $1,000 for their flight. He says the Department of Foreign Affairs had provided the government with incorrect advice with regard to the costs associated with ‘assisted departures’. However, Home Affairs Minister Peter Dutton had previously stated that it is "commonsense" for the government to recoup some of the costs of the chartered Qantas flight. More than 200 of the 600 registered Australian citizens in Wuhan are expected to be evacuated to Christmas Island, where they will be quarantined for 14 days.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF HOME AFFAIRS, QANTAS AIRWAYS LIMITED – ASX QAN

Employers push for Fair Work review

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 9 : 3-Feb-20

The Australian Mines & Metals Association has called for a review of the Fair Work Commission, as well as the appointment of seven new commissioners over the next year. AMMA CEO Steve Knott has outlined a number of concerns about the FWC in a letter to Industrial Relations Minister Christian Porter. They include the lengthy delays in approving workplace agreements and claims that the allocation of full bench cases tends to favour Labor appointees.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

Coronavirus: First victim dies outside China

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Original article by Jonathan Cheng, Feliz Solomon
The Australian – Page: 6 : 3-Feb-20

Chinese authorities have confirmed that the nation’s death toll from the coronavirus has risen to 304, while 14,380 people have been diagnosed with the virus. Meanwhile, the Philippines government has advised that a 44-year-old man has died from the coronavirus at a hospital in Manila. He is one of two people in the Philippines who have contracted the illness; both had arrived in the country from Wuhan on 21 January. At least 150 people in 24 countries have now fallen ill with the coronavirus, including 12 in Australia.

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