Author: roymorgansocial

Setka exit deepens Labor rift

roymorgansocial Leave a comment

Original article by Phillip Coorey, David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 24-Oct-19

The federal government’s hopes of passing the Ensuring Integrity Bill have been boosted by John Setka’s refusal to step down as Victorian secretary of the Construction, Forestry, Maritime, Mining & Energy Union. Setka’s resignation from the Labor party on 23 October has pre-empted an upcoming meeting of its national executive, which had been expected to expel him from the party. However, independent senator Jacqui Lambie maintains that she will back the legislation unless Setka also resigns from his CFMMEU role. Setka’s resignation has been welcomed by Labor leader Anthony Albanese, who led the push to have him expelled.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY

Rio sharpens axe as costs hit aluminium smelters

roymorgansocial Leave a comment

Original article by Brad Thompson
The Australian Financial Review – Page: 17 & 22 : 24-Oct-19

Rio Tinto has advised that its Tiwai Point aluminium smelter is under review and could be shut down because high energy costs and the low price of aluminium mean that it is currently not profitable. Rio Tinto has a 79.36 per cent stake in the smelter, which employs about 1,000 people. The future of Rio Tinto’s smelters in Tasmania, Queensland and New South Wales is also uncertain, as is Alcoa’s Portland smelter in Victoria.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALCOA INCORPORATED, PACIFIC ALUMINIUM PTY LTD, SUMITOMO CHEMICAL COMPANY LIMITED, MERIDIAN ENERGY LIMITED – ASX MEZ, AUSTRALIAN ALUMINIUM COUNCIL LIMITED

House prices regain a third of downturn losses

roymorgansocial Leave a comment

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 24-Oct-19

Data from Domain Holdings shows that house prices in Sydney increased by 4.8 per cent in the September quarter. Nicola Powell of Domain says the median house price in the New South Wales capital rose by $49,000 over the period, after falling by around $167,000 during the 18-month property market downturn. House prices in Melbourne gained 4.1 per cent over the quarter, but house and apartment prices fell in Brisbane, Adelaide and Canberra.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, CORELOGIC AUSTRALIA PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Big banks chop 200 branches in cost-cutting drive

roymorgansocial Leave a comment

Original article by Cliona O’Dowd
The Australian – Page: 21 : 24-Oct-19

Data from the Australian Prudential Regulation Authority shows that the nation’s four major banks closed 207 branches during 2018-19, and 750 since 2014. Westpac has closed 333 branches in the last five years, including those of its subsidiaries, ahead of ANZ Bank with 190. A Westpac spokesman has defended the closures, noting that less than two per cent of banking transactions are now undertaken in its branches. More than 1,000 ATMs nationwide have also been scrapped in the last year.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, FINANCE SECTOR UNION

Union role expected in new IR laws

roymorgansocial Leave a comment

Original article by Phillip Coorey, David Marin-Guzman
The Australian Financial Review – Page: 9 : 23-Oct-19

Industrial Relations Minister Christian Porter has confirmed that lifetime workplace agreements for greenfield projects will be part of the federal government’s proposed overhaul of workplace laws. Labor is likely to support the move, given that Porter is expected to endorse lifetime agreements that are negotiated between unions and employers. However, unions have reservations about the proposal.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, AUSTRALIAN LABOR PARTY

Business splits on 12pc super

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 6 : 23-Oct-19

The Australian Chamber of Commerce & Industry’s chief economist Ross Lambie says any further increase in the superannuation guarantee should be dependent on an increase in productivity. Australian Industry Group CEO Innes Willox supports the long-term goal of lifting the super guarantee to 12 per cent; however, he is open to further delaying the rise, citing factors such as the cost to businesses and the need for real wages to increase. AustralianSuper CEO Ian Silk argues that the increase in the super guarantee has been legislated, and it has already been delayed twice.

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIANSUPER PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, ACTU, MASTER BUILDERS AUSTRALIA INCORPORATED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIAN HOTELS ASSOCIATION, HOST-PLUS, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN RETAILERS ASSOCIATION, MASTER ELECTRICIANS AUSTRALIA PTY LTD

Global risks high, but Fed will avert recession

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 25 : 23-Oct-19

Northern Trust’s chief economist Carl Tannenbaum expects the US Federal Reserve to reduce official interest rates in late October. Financial markets anticipate more monetary policy easing, but Tannenbaum says the Federal Reserve will put further rate cuts on hold. He is also confident that interest rate cuts will enable the US economy from going into recession. Tannenbaum has also questioned whether the Australian government should still be focusing on returning the Budget to surplus in an environment of low interest rates and a slowing Chinese economy.

CORPORATES
NORTHERN TRUST CORPORATION, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Asset rule has banks with $13bn shortfall

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 21 : 23-Oct-19

Macquarie’s Victor German expects the Reserve Bank of New Zealand to increase the tier-1 capital requirements for Australian banks’ NZ subsidiaries to 16 per cent, as it has previously flagged. German says Westpac, ANZ and National Australia Bank will be hardest hit by the move, estimating that their combined capital shortfall will be around $13bn. However, the Commonwealth Bank’s capital impost is likely to be smaller than Macquarie had previously expected, which could allow it to return up to $3.5bn to shareholders.

CORPORATES
RESERVE BANK OF NEW ZEALAND, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG

Labor draws link to press freedom fight

roymorgansocial Leave a comment

Original article by Andrew Tillett
The Australian Financial Review – Page: 4 : 23-Oct-19

The issue of press freedom continued to attract scrutiny in federal parliament on 22 October, with Prime Minister Scott Morrison stating that people should only be prosecuted if they have broken the law. It followed his previous statement that journalists should not be prosecuted on the whim of a politician. Meanwhile, Labor leader Anthony Albanese has sought to link the government’s refusal to answer questions about Senate estimates hearings to the media industry’s Right to Know campaign.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, RIGHT TO KNOW COALITION, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Rio eyes US lithium market with pilot plant

roymorgansocial Leave a comment

Original article by Nick Evans
The Australian – Page: 19 : 23-Oct-19

Rio Tinto has approved the development of a $US10m ($14.6m) pilot plant that will produce lithium from waste rock at its borate operations in the US. Rio Tinto executive Bold Baatar says the company could potentially become the largest producer of battery-grade lithium in the US. Rio Tinto may invest $US50m in a full-scale processing plant if the trials are successful, producing about 5,000 tonnes of lithium carbonate equivalent each year.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALBERMARLE CORPORATION, KIDMAN RESOURCES LIMITED, WESFARMERS LIMITED – ASX WES, IONEER LIMITED – ASX INR