Author: roymorgansocial

BHP seeks delay in Brazil class action case

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Original article by Liz Main
The Australian Financial Review – Page: 21 : 27-Nov-19

BHP has asked the Federal Court to postpone a shareholder class action until criminal charges against past and present executives are resolved. Brazilian prosecutors charged eight BHP executives with a range of offences – including intentional homicide – in the wake of the Samarco iron ore tailings dam disaster in 2015. Shareholders subsequently launched a class action against BHP to recover the loss in value of their shares following the disaster. The outcome of the criminal charges is unlikely to be known for at least two years.

CORPORATES
BHP GROUP LIMITED – ASX BHP, SAMARCO MINERACAO SA, FEDERAL COURT OF AUSTRALIA, VALE SA

‘QE will do nothing’: fundies back infrastructure spending

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Original article by Robert Guy
The Australian Financial Review – Page: 28 : 27-Nov-19

Quay Global Investors portfolio manager Chris Bedingfield contends that the Reserve Bank of Australia should not implement quantitative easing. He argues that the federal government should instead prioritise increased spending on infrastructure, noting that this will create jobs in the short-term and boost productivity in the long-term. Sarah Shaw of 4D Infrastructure also advocates investing in infrastructure to stimulate the economy.

CORPORATES
QUAY GLOBAL INVESTORS PTY LTD, 4D INFRASTRUCTURE PTY LTD, RESERVE BANK OF AUSTRALIA, BENNELONG FUNDS MANAGEMENT PTY LTD

Rinehart prepares for Roy Hill ore boost

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Original article by Nick Evans
The Australian – Page: Online : 27-Nov-19

A wet-high intensity magnetic separation plant at Gina Rinehart’s Roy Hill iron ore mine in the Pilbara will increase its production by 4-5 million tonnes a year. This will put the project on track to lift its annual export capacity to 60 million tonnes. The plant is slated to be fully operational by mid-2020 and will extend the life of the Roy Hill project by allowing more iron ore to be recovered from wet tailings and blended with lower-grade ore.

CORPORATES
ROY HILL HOLDINGS PTY LTD, HANCOCK PROSPECTING PTY LTD, MARUBENI CORPORATION, POSCO, CHINA STEEL CORPORATION

Powershop’s high satisfaction rating means customers less likely to switch power provider

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Nov-19

Powershop has won the Roy Morgan Electricity Provider of the Month Award for October 2019, with a customer satisfaction rating of 80%. It was followed by Momentum Energy (73%), Red Energy (73%), Lumo Energy (69%) and Alinta Energy (69%). Powershop’s leading rating means its customers are less likely to switch to a competitor. Grouping electricity customers into ‘satisfied’ and ‘dissatisfied’ shows clear differences in the likelihood of them switching providers. A much larger proportion of dissatisfied customers (24%) said they were likely to switch providers compared with satisfied customers (7.5%), while more of the satisfied customers (73%) said they were unlikely to switch than dissatisfied customers (58.3%). Roy Morgan CEO Michele Levine says Powershop’s satisfaction rating is a strong result, given the ongoing political and media attention surrounding electricity providers. These customer satisfaction ratings have been drawn from the Roy Morgan Single Source survey, derived from in-depth face-to-face interviews with over 1,000 Australians each week in their homes.

CORPORATES
ROY MORGAN LIMITED, POWERSHOP AUSTRALIA PTY LTD, MOMENTUM ENERGY PTY LTD, RED ENERGY PTY LTD, LUMO ENERGY AUSTRALIA PTY LTD, ALINTA ENERGY (AUSTRALIA) PTY LTD

Westpac’s Austrac scandal differs from other institutions

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Original article by Robert Gottliebsen
The Australian – Page: 29 : 26-Nov-19

Westpac’s scandal is completely different to scandals that cost the jobs of top executives at the Commonwealth Bank, National Australia Bank and AMP in recent years. Westpac chairman Lindsay Maxsted says that the board had no prior warning of Austrac’s legal action or the specific nature of its allegations. However, Austrac alleges that Westpac was aware of concerns about payments linked to child exploitation as far back as 2013. The question arises as to whether CEO Brian Hartzer was aware of these concerns and withheld this from the board.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP

JB Hi-Fi tunes in to smaller stores

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 26-Nov-19

Consumer electronics retailer JB Hi-Fi will open its first ‘Express’ store in Melbourne’s Southbank precinct on 26 November. CEO Richard Murray says the 68sq m store will target cash and carry buyers who want to make small purchases. JB Hi-Fi is capitalising on the growing trend toward small-format retail stores, with plans to open more stores in airports and office towers that are similar in size to the 250sq outlet at Sydney Airport’s international terminal. Murray says JB Hi-Fi is looking at opening additional stores at airports.

CORPORATES
JB HI-FI LIMITED – ASX JBH, COLES GROUP LIMITED – ASX COL, WOOLWORTHS GROUP LIMITED – ASX WOW, DAVID JONES LIMITED

Farmer revolt over China Mengniu’s Lion Dairy bid

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Original article by Sue Mitchell, John Kehoe
The Australian Financial Review – Page: 1 & 16 : 26-Nov-19

Some federal politicians have expressed concern about China Mengniu Dairy Company’s proposed acquisition of milk processor Lion Dairy & Drinks. Labor senator Kim Carr says the $600m deal should be subject to a number of conditions to ensure that jobs and processing facilities in regional areas are protected. Nationals MP Barnaby Joyce is concerned about China’s "creeping acquisition" of dairy-related assets in Australia, while independent MP Andrew Wilkie says ownership of Australia’s leading brands is becoming increasingly concentrated. Farmers say the deal should be conditional on a floor price for the farm gate price of milk.

CORPORATES
LION-DAIRY AND DRINKS PTY LTD, CHINA MENGNIU DAIRY COMPANY LIMITED, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, KIRIN HOLDINGS COMPANY LIMITED, DAIRY CONNECT LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, SAPUTO INCORPORATED

Bauer ready to sack magazine luminaries

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Original article by Lilly Vitorovich
The Australian – Page: 19 : 26-Nov-19

The Australian Competition & Consumer Commission will shortly rule on Bauer Media’s proposed acquisition of Pacific Magazines. Bauer is said to be identifying roles that will be duplicated if the merger is approved, with a view to downsizing the combined workforce. Bauer CEO Brendon Hill has declined to comment. There has been speculation that Bauer may sell its magazines business to private equity firm Mercury Capital.

CORPORATES
BAUER MEDIA AUSTRALIA PTY LTD, PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, MERCURY CAPITAL PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Spy claim for asylum draws wary response

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Original article by Phillip Coorey, Andrew Tillett
The Australian Financial Review – Page: 4 : 26-Nov-19

Prime Minister Scott Morrison says allegations about China’s attempts to interfere in federal politics are "deeply disturbing and troubling". However, he has stressed the need to wait until ASIO concludes an investigation into the claims that Chinese intelligence services offered to fund the federal election campaign of Melbourne car dealer Bo Zhao. A separate claim by Wang Liqiang about Chinese interference in federal politics is also under scrutiny. China has refuted his claim to have been a member of its military intelligence service. Wang is seeking asylum in Australia.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIA. DEPT OF HOME AFFAIRS

Local bourse is ready to test record highs

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Original article by David Rogers
The Australian – Page: 28 : 26-Nov-19

The benchmark S&P/ASX 200 index has gained 19 per cent so in 2019, and it is just two per cent shy of the record high of 6,875.5 points in late July. A number of factors could see the local bourse reach a new peak, including a resolution to the US-China trade war and the potential for policy stimulus in December’s mid-year fiscal and economic outlook. However, the federal government is unlikely to pursue stimulus measures before the May 2020 Budget, as it continues to focus on a surplus.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD