Author: roymorgansocial

Dark clouds over construction

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Original article by Michael Roddan
The Australian – Page: 2 : 29-Aug-19

Westpac economist Andrew Hanlan has warned that the downturn in Australia’s construction sector will have weighed on GDP growth in the June quarter. The latest GDP data will be released in early September, and analysts have forecast that the economy grew by just 1.2 per cent in the year to June, which would be its lowest rate of growth since the global financial crisis. Official data shows that construction activity fell by 3.8 per cent in the June quarter, including a 5.1 per cent decline in residential construction.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BUREAU OF STATISTICS, IFM INVESTORS PTY LTD, JP MORGAN AUSTRALIA LIMITED, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA

Grow business or be swamped: SEEK boss

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Original article by Damon Kitney, Joyce Moullakis
The Australian – Page: 2 : 29-Aug-19

SEEK CEO Andrew Bassat­ and Macquarie Group CEO Shemara Wikramanayak have backed a recent call by Treasurer Josh Frydenberg for Australian companies to lift productivity by reinvesting in their business rather than returning capital to shareholders. Bassat says Australian companies will be less competitive internationally if their level of capital investment continues to lag that of their global peers. However, Boral CEO Mike Kane is amongst the business leaders who have rejected Frydenberg’s comments.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, SEEK LIMITED – ASX SEK, MACQUARIE GROUP LIMITED – ASX MQG, BORAL LIMITED – ASX BLD, FORTESCUE METALS GROUP LIMITED – ASX FMG

OZ confident of bouncing back from trade war hit

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Original article by Peter Ker
The Australian Financial Review – Page: 21 : 29-Aug-19

Copper and gold producer OZ Minerals has posted a 2019 interim net profit of $43.9m, which is 65 per cent lower than previously. The result was marred by factors such as a fall in the copper price, lower sales volumes and increased investment in exploration. OZ has ramped up investment in its Carrapateena mine, which is slated to commence production of copper concentrate in the final quarter of 2019. OZ shareholders will receive an interim dividend of $0.08 per share.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, SANDFIRE RESOURCES NL – ASX SFR

Double-digit growth for Sydney, Melbourne

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Original article by Nila Sweeney
The Australian Financial Review – Page: 33 : 29-Aug-19

SQM Research is upbeat about the residential property market, forecasting that Sydney house prices will increase by two per cent in the September 2019 quarter and four per cent in the December quarter. Data from SQM shows that asking prices in Sydney have risen by 5.6 per cent since the federal election in May. SQM MD Louis Christopher believes there is the potential for the residential market in Sydney and Melbourne to record double-digit growth in 2020.

CORPORATES
SQM RESEARCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, SELECT RESIDENTIAL PROPERTY GROUP, CATE BAKOS PROPERTY

Rising numbers of Australians looking at Electric and Hybrid vehicles for their next set of wheels

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Original article by Roy Morgan
Market Research Update – Page: Online : 29-Aug-19

New data from Roy Morgan shows that 1,383,000 Australians aged 14+ are looking to drive a hybrid vehicle, and 537,000 are intending on driving an electric vehicle, as their next car (either new or used). The number of Australians looking to drive a hybrid car as their next vehicle has increased by 341,000 since June 2018, and the number of consumers intending to drive an electric vehicle has increased by 125,000. When looking specifically at those intending to purchase an electric vehicle within the next four years, some 92,000 Australians intend on purchasing a used electric vehicle, up from 53,000 as of June 2018 (an increase of 39,000). However, the opposite trend was apparent for those looking to purchase a new electric vehicle within four years. As of June 2019, a total of 49,000 Australians were looking to buy a new electric vehicle, compared with 57,000 as of June 2018 (a decrease of 8,000). These are the latest findings from the Roy Morgan Single Source survey, derived from in-depth face-to-face interviews with 1,000 Australians each week and over 50,000 each year.

CORPORATES
ROY MORGAN LIMITED

Electric car transition unstoppable: Labor

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Original article by Richard Ferguson
The Australian – Page: 2 : 28-Aug-19

The federal government will contribute $15m to the cost of building 48 electric vehicle charging stations in the eastern states. Meanwhile, shadow energy minister Mark Butler has doubled down on his recent comments regarding Labor’s election policy on electric vehicles, stating that the transition to electric cars is "unstoppable". Butler has maintained that Labor’s target for electric vehicles to account for 50 per cent of new car sales by 2030 was ambitious but "very sensible".

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN LABOR PARTY, ABMARC

Proposed tax reforms a betrayal of small business

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Original article by Robert Gottliebsen
The Australian – Page: 25 : 28-Aug-19

Treasurer Josh Frydenberg has stressed the need for incentives for businesses to invest by reducing taxes and red tape. However, the federal government’s actions are in fact contrary to its stated intentions. Amongst other things, the Coalition proposes to make directors personally liable for their company’s GST payments and empower the Australian Taxation Office to freeze GST refunds. Likewise, the government wants to introduce criminal penalties for making cash payments of $10,000 or more to any company that has an Australian Business Number. While these measures have the worthy aim of cracking down on phoenix companies and the cash economy, the government’s approach to their implementation has been a complete disaster and could ensure its loss at the next election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Economic socialism cost Labor

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 28-Aug-19

Labor has come under intense scrutiny following its federal election loss on 18 May. Finance Minister Mathias Cormann has attributed the election defeat to Labor’s adoption of socialist economics, which prompted voters to overlook the Coalition’s own shortcomings. Cormann has also used a Sydney Institute speech to argue that Labor won the 2007 election because Kevin Rudd persuaded voters that he was an economic conservative in the same mould as John Howard, but Labor subsequently re-embraced the socialist left under treasurer Wayne Swan.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, SYDNEY INSTITUTE

S&P gives AMP thumbs down over bad news

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Original article by James Frost
The Australian Financial Review – Page: 19 : 28-Aug-19

The credit rating of wealth manager AMP has been downgraded from ‘A-‘ to ‘BBB+’ by S&P Global Ratings. The long-term issuer credit rating of AMP Bank and AMP Life have also been downgraded by one notch apiece. S&P has indicated that the ratings downgrade was primarily due to the recent deal to sell AMP Life to Resolution Life, which will have an impact on AMP’s group credit profile. S&P also said it may review AMP’s credit rating if the deal does not proceed, although this may not result in an upgrade.

CORPORATES
AMP LIMITED – ASX AMP, AMP LIFE LIMITED, AMP BANK LIMITED, S&P GLOBAL RATINGS, RESOLUTION LIFE GROUP LIMITED

Northern Star buys explorer, eyes Superpit

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 28-Aug-19

Gold miner Northern Star Resources has posted a 2018-19 net profit of $154.7m, down from $194.1m previously, while EBITDA was eight per cent higher at $479.7m. Meanwhile, Northern Star Resources has offered $0.33 per share to take full control of Echo Resources, in which it has a 21.7 per cent stake. Echo’s assets include the Yandal gold project in Western Australia and the Bronzewing processing plant. Northern Star Resources has also indicated that it may be open to bidding for the Kalgoorlie Superpit.

CORPORATES
NORTHERN STAR RESOURCES LIMITED – ASX NST, ECHO RESOURCES LIMITED – ASX EAR, BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION