Author: roymorgansocial

Technology is the key to climate policy

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Original article by John Kehoe, Andrew Tillett
The Australian Financial Review – Page: 3 : 14-Jan-20

Prime Minister Scott Morrison has indicated a slight shift in the federal government’s approach to climate change in the wake of the bushfires crisis. This follows community angst about the apparent link between climate change and the hotter and drier summer weather that contributed to the crisis. The government sees investments in low-emissions technology as the best way to cut carbon emissions and meet its 2030 carbon emissions targets, and it may not need to use Kyoto carryover credits to reach these targets.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Banks to bear cost of blazes: Morgan Stanley

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 16 : 14-Jan-20

Morgan Stanley has warned that the bushfires crisis will have a direct financial cost on Australian banks, including an increase in insurance claims and loan losses. S&P expects loan arrears to increase in the wake of the bushfires, although rival ratings agency Moody’s says the proportion of loans that are affected by the bushfires is likely to be relatively small. Morgan Stanley adds that factors such as the impact of the bushfires on retail spending will have the biggest impact on bank earnings.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, S&P GLOBAL RATINGS, MOODY’S INVESTORS SERVICE INCORPORATED

Climate threatens ratings: Moody’s

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Original article by David Rogers
The Australian – Page: 13 & 16 : 14-Jan-20

A report from Moody’s Investors Service has concluded that the bushfire crisis will reduce GDP growth by less than 0.1 per cent. The ratings agency adds that the federal and state governments have sufficient fiscal buffers to cope with the current crisis, but it warns that an increase in climate change-related natural disasters in the future could negatively affect their credit ratings. Meanwhile, Anthony Walker of S&P says the federal government’s return to a Budget surplus may be delayed by the bushfire emergency, although he adds that this would be unlikely to have any effect on Australia’s credit rating.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

ASIC puts insurers on notice over bushfires

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Original article by Max Maddison, Joyce Moullakis
The Australian – Page: 13 & 14 : 10-Jan-20

Suncorp has estimated that its bushfire claims for the current financial year have cost between $315 million and $345 million to date. Around 9,000 bushfire insurance claims have been made across New South Wales, Victoria, Queensland and South Australia since September, while the Australian Securities & Investments Commission has urged insurers to deal with bushfire claims fairly and efficiently. ASIC has warned consumers to be on the lookout for fraudulent tradespeople and repairers offering to help them with insurance claims.

CORPORATES
SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA

High Court to hear sick leave appeal

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Original article by Michael Pelly
The Australian Financial Review – Page: 8 : 10-Jan-20

The High Court has granted Mondelez International special leave to appeal against a 2019 Full Federal Court ruling in regard to the payment of sick leave to workers at its Cadbury plant in Tasmania. Amanda Banfield, Mondelez’s president for Australia and New Zealand, had stated that the Federal Court’s ruling meant that employees working the same hours on different rosters would be eligible for different leave amounts. Mondelez’s appeal has the backing of the federal government.

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MONDELEZ AUSTRALIA (FOODS) LIMITED, HIGH COURT OF AUSTRALIA, FEDERAL COURT OF AUSTRALIA, CADBURY AUSTRALIA LIMITED

Ore exports drive trade surplus

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Original article by Patrick Commins
The Australian – Page: 1 & 2 : 10-Jan-20

Official data shows that Australia recorded a trade surplus of $5.8bn for November, after the surplus for the previous month was downwardly revised to $4.1bn. The data also shows that resource exports increased by 0.9 per cent in November and by three per cent year-on-year; the monthly figure was bolstered by a 2.1 per cent rise in iron ore exports and one per cent growth in coal shipments. The total value of goods and services exports increased by two per cent to $40.9bn, while the value of imports was down three per cent at $35.1bn.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

RBA says no to Facebook’s new currency

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Original article by Matthew Cranston
The Australian Financial Review – Page: 3 : 10-Jan-20

Facebook’s proposed Libra cryptocurrency should not be allowed to proceed in Australia without major regulation, according to the Reserve Bank of Australia. The RBA expressed this view in a submission to the Senate Select Committee on Financial Technology and Regulatory Technology, with the RBA querying whether there would be much demand for Libra from consumers. The RBA stated Australians were already well served by a range of inexpensive and efficient real-time payment methods.

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FACEBOOK INCORPORATED, RESERVE BANK OF AUSTRALIA

Bushfires stoke recession fears as World Bank sounds alarm over debt

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Original article by Euan Black
The New Daily – Page: Online : 10-Jan-20

Shane Oliver of AMP Capital warns that the bushfires could reduce GDP growth by 0.4 per cent in the March quarter. He says this will be primarily due to the impact of the fires on agriculture, tourism, consumer confidence and consumer spending. Martin North of Digital Finance Analytics adds that the bushfires could reduce national economic output by up to $36bn over coming years. He has also warned of the potential for a macroeconomic recession in the near-term. The bushfires have already had an impact on consumer sentiment, with the ANZ-Roy Morgan Australian Consumer Confidence Index falling by 1.7 per cent.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, DIGITAL FINANCE ANALYTICS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN LIMITED, WORLD BANK

Forrest calls for $500m recovery fund

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Original article by Julie-anne Sprague
The Australian Financial Review – Page: 4 : 10-Jan-20

The Minderoo Foundation of Andrew and Nicola Forrest will donate $70m to bushfire relief programs and research into improving Australia’s resilience to bushfires. The Forrests will contribute $10m to a bushfire recovery fund, while another $10m will be used to send Western Australian specialists to assist with the recovery effort. The balance will be invested in a project that will aim to mitigate the impact of future bushfires. Andrew Forrest has also proposed the creation of a $500m global fund for this purpose. He says a number of factors have contributed to the nation’s devastating bushfire season, including climate change and arson.

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MINDEROO FOUNDATION, FORTESCUE METALS GROUP LIMITED – ASX FMG

PM courts states for fire inquiry

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 10-Jan-20

Prime Minister Scott Morrison has emphasised that a national inquiry into the bushfire crisis will only go ahead if it has the support of state governments. He has also told Coalition MPs that it could take the form of a royal commission or a judicial inquiry. Meanwhile, some Liberal backbenchers contend that the Coalition will need to revise its climate change policy in the wake of the bushfire disaster. Morrison has defended the government’s record on climate change, stating that carbon emissions have fallen by 50 million tonnes a year on average since the Coalition took office in 2013.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY