Author: roymorgansocial

Consensus shifts to April cut after NAB relents

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Original article by Sarah Turner
The Australian Financial Review – Page: 30 : 31-Jan-20

The futures market is currently pricing in a 10.4 per cent chance that the Reserve Bank of Australia will reduce the cash rate on 4 February, compared with a 53 per cent chance in mid-January. National Australia Bank’s chief economist Alan Oster previously expected a rate cut in February, and while he still believes that the RBA should so, he says the next rate cut is now likely to be in April. The other major banks also expect an official interest rate cut in April.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA

PM strikes $2b gas deal with NSW

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-Jan-20

Prime Minister Scott Morrison and New South Wales Premier Gladys Berejiklian will release details of a $2 billion energy deal on 31 January. Under the agreement, NSW must find an extra 70 petajoules of gas per year for the east coast market, in return for the federal government underwriting new non-coal power generation, constructing new interconnectors and making funding available for carbon emissions reduction projects. The most likely way in which the NSW government will make available the extra 70 petajoules of gas is by approving Santos’s Narrabri coal seam gas project.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, SANTOS LIMITED – ASX STO

Virus evac deal with Beijing close

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Original article by Charlie Peel, Richard Ferguson
The Australian – Page: 1 & 6 : 31-Jan-20

The federal government is believed to be close to securing a deal with its Chinese counterpart to evacuate Australian citizens from Wuhan. The government intends to place evacuees in quarantine on Christmas Island for 14 days and require them to pay up to $1,000 for their flight. Home Affairs Minister Peter Dutton says it is ‘normal procedure’ for evacuees to pay their costs. Meanwhile, a ninth case of the coronavirus has been confirmed in Australia; the virus has now claimed 170 lives and infected more than 7,700 people globally.

CORPORATES
AUSTRALIA. DEPT OF HOME AFFAIRS

Pressure grows on Premier to act on CityLink tolling threat

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Original article by Timna Jacks, Benjamin Preiss
The Age – Page: Online : 31-Jan-20

Victorian Premier Daniel Andrews says he could re-examine Transurban’s City Link tolling deal as a result of the West Gate Tunnel dispute. Project builders CPB Contractors and John Holland have threatened to walk away from the project if Transurban does not come up with more money to deal with contaminated soil. As part of the funding agreement for the project, Andrews agreed that tolling for CityLink would be extended for a further 10 years to 2045, with tolls to rise by 4.25 per cent each year.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET, TRANSURBAN GROUP LIMITED – ASX TCL, CPB CONTRACTORS PTY LTD, JOHN HOLLAND PTY LTD

Aussie Broadband maintains top position in ISP satisfaction ratings

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jan-20

Aussie Broadband is the winner of Roy Morgan’s Internet Service Provider (ISP) of the Month Award for November 2019, with a customer satisfaction rating of 92%. The achievement marks Aussie Broadband’s third win in the Customer Satisfaction Awards in 2019. Aussie Broadband is well ahead of a trio of TPG Telecom brands including Internode (79%), TPG (79%) and iiNet (77%), with the Vocus Communications-owned iPrimus on 78%, ahead of Belong (76%). Telstra and Optus follow on 72%, a full 20% behind the category satisfaction leader. The ratings are drawn from the Roy Morgan Single Source survey, derived from in-depth personal interviews with over 1,000 Australians each week face-to-face in their homes.

CORPORATES
ROY MORGAN LIMITED, AUSSIE BROADBAND PTY LTD, INTERNODE SYSTEMS PTY LTD, TPG INTERNET PTY LTD, IINET LIMITED, TPG TELECOM LIMITED – ASX TPM, IPRIMUS, VOCUS GROUP LIMITED – ASX VOC, BELONG PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD

Rate cut chances tumble on inflation rise

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Original article by Adam Creighton
The Australian – Page: 2 : 30-Jan-20

Official data shows that headline inflation rose 0.7 per cent in the December quarter, compared with 0.5 per cent in the three months to September. The annual inflation rate rose to 1.8 per cent. Factors such as higher prices for fruit, meat and petrol contributed to the increase in the inflation rate. Ben Udy of Capital Economics says the CPI data should ensure that the Reserve Bank of Australia leaves the cash rate on hold in February. The central bank expects core inflation to rise to 1.8 per cent by the end of 2020.

CORPORATES
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS

IPO drought expected to continue into the new year

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Original article by Michael Bleby
The Australian Financial Review – Page: 18 : 30-Jan-20

Research by HLB Mann Judd shows that 28 companies with a market capitalisation of less than $100m listed on the Australian sharemarket in 2019, compared with 72 in 2018. In total, just 62 companies debuted on the local bourse in 2019, collectively raising $6.91bn. The downturn in IPO activity has carried over into 2020, and HLB Mann Judd partner Nicholas Guest says many owners of high-growth businesses are likely to seek private equity backing rather than an IPO in the current environment.

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HLB MANN JUDD

PM stays course on coal, climate

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Original article by Geoff Chambers, Greg Brown
The Australian – Page: 1 & 6 : 30-Jan-20

Prime Minister Scott Morrison has used a National Press Club speech to reiterate the federal government’s commitment to its 2030 target for reducing carbon emissions by 26-28 per cent. He noted that the Paris Agreement allows developing countries to continue increasing their carbon emissions, and stressed the need to address the ‘climate gap’ between nations. Morrison also defended Australia’s coal export trade, arguing that if it is shut down coal buyers will merely seek alternative sources of coal that may be of lower quality.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PRESS CLUB (AUSTRALIA)

From virus city to island refuge

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Original article by Richard Ferguson, Robyn Ironside
The Australian – Page: 1 & 7 : 30-Jan-20

The federal government has requested permission from its Chinese counterpart to evacuate Australian citizens from Wuhan. Prime Minister Scott Morrison has stressed that only one chartered flight from Australia may be permitted to land in Wuhan, while he has defended the government over criticism of its slow response to repatriating citizens who are in the quarantined city. The government intends to place evacuees in quarantine on Christmas Island for up to 14 days. Seven cases of the coronavirus has now been confirmed in Australia; more than 6,000 people worldwide have contracted the virus, which has claimed 132 lives to date.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Price expectations much higher for Young Parents than Young Couples with no children

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jan-20

Australians as a whole expect prices to increase by 4% annually over the next two years, according to Roy Morgan surveys conducted in December. This is a slight increase of 0.1% on expectations in November, but down 0.2% on a year ago. Comparing price expectations by Household Life-Cycle shows that Young Parents expect prices to increase by 4.5% annually over the next two years – higher expectations than that of any other household type. In contrast, Young Couples who have no children expect price increases of only 3.3% per year. Most Household Life-Cycle segments cluster in the middle between these two, around the national average of 4%. Mid-Life Families (4.1%) and Young Singles (4.1%) are slightly higher, Older Households (4%) are right on the national average and Mid-Life Households (3.9%) are slightly below it.

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ROY MORGAN LIMITED