Author: roymorgansocial

Negative gearing a $1.5bn turn-off

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Original article by Olivia Caisley
The Australian – Page: 4 : 1-Aug-19

Research undertaken by Deloitte Access Economics on behalf of the Property Council of Australia suggests that Labor’s proposed negative gearing reforms would have slashed the nation’s GDP by about $1.5bn. It is also estimated that the policy would have resulted in the loss of 7,800 construction industry jobs and cost the sector around $766m. A separate survey of voters in 16 marginal electorates has found that 34 per cent indicated that Labor’s negative gearing and capital gains tax reforms were a key reason why they did not vote for the party at the 18 May election.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Fed cut lifts pressure on RBA board

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Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 1-Aug-19

Economists suggest that better-than-expected inflation data for the June quarter will prompt the Reserve Bank of Australia to leave official interest rates on hold in August. The consumer price index rose 0.6 per cent during the quarter and 1.6 per cent year-on-year. However, inflation remains well below the RBA’s target range of 2-3 per cent, and further monetary policy easing is possible later in 2019 if the unemployment rate does not fall. The US Federal Reserve’s August interest rate cut may also force the RBA to act before the end of the year.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Iron ore floods Rio Tinto with cash

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Original article by Nick Evans
The Australian – Page: 19 : 1-Aug-19

Macquarie Group forecasts that Rio Tinto will report after-tax earnings of $US5.7bn for the first half of 2019, and EBITDA of $US10.9bn. The investment bank adds that iron ore is likely to account for more than 80 per cent of Rio Tinto’s earnings for the half-year, following a strong rise in the price of the steel input. Macquarie analysts also expect Rio Tinto to announce an interim dividend of $US1.76 per share, which is in line with the consensus forecast of about $US1.78 per share. Some analysts suggest that a special dividend is also possible.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, ALUMINIUM CORPORATION OF CHINA LIMITED

Head & Shoulders shakes off shampoo competition

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Original article by Roy Morgan
The Australian Financial Review – Page: Online : 1-Aug-19

A Roy Morgan Single Source survey shows that more than 15.7 million Australians aged 14+ bought shampoo in an average six months in the year to March 2019. Head & Shoulders is bought by 16.4% of shampoo buyers, up 1.9% points from four years ago. Alberto is now bought by 13.8% of shampoo buyers (up 1.2% points since 2015), TRESemme is up 1.2% points to 13.6%, Pantene is up 0.7% points to 12.8% and Dove is up 1.7% points to 6.6%. Meanwhile, Procter & Gamble is the leading manufacturer of shampoo brands in Australia, with nearly a third of shampoo buyers (32.4%) purchasing one of their brands such as Head & Shoulders, Pantene and Herbal Essences (Clairol). Men comprise over three-fifths of all Head & Shoulders shampoo buyers, while Alberto is the leading shampoo brand for women.

CORPORATES
ROY MORGAN LIMITED, PROCTER AND GAMBLE AUSTRALIA PTY LTD

Share surge welcome but devil’s in the detail

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Original article by David Rogers
The Australian – Page: 27 : 1-Aug-19

The Australian sharemarket gained 21 per cent in the first seven months of 2019, its best start to a calendar year since 1991. However, Jason Steed of JP Morgan still expects the benchmark S&P/ASX 200 to be trading at around 6,300 points at the end of 2019. He notes that although forward earning-per-share estimates have been revised upwards, this is primarily due to the mining sector. Meanwhile, Tony Brennan of Citigroup says the prospect of further official interest rate cuts could see the ASX 200 reach his firm’s mid-2020 target of 7,000 points.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, CITIGROUP PTY LTD

Calls to further limit cash payments

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 31-Jul-19

Business owners who accept large cash payments would face a fine of $25,000 and jail terms of up to two years as part of the federal government’s crackdown on the cash economy. Cash payments will be restricted to $10,000 under the reforms announced in the 2018 Budget. However, KPMG tax partner Grant Wardell-Johnson says the government should consider lowering the threshold over time, suggesting that a limit of $5,000 or even just $2,000 may be appropriate. Tony Greco of the Institute of Public Accountants agrees that reducing the threshold may be justified.

CORPORATES
KPMG AUDIT PLC, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, RESERVE BANK OF AUSTRALIA

Shorten to soldier on after disappointing poll defeat

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Original article by Richard Ferguson
The Australian – Page: 5 : 31-Jul-19

Former Labor leader Bill Shorten has ruled out quitting politics, saying he is committed to holding the federal government to account. Shorten says Labor’s shock election defeat in May was "very disappointing" personally, for the nation and for Labor voters. Shorten, who has had a low profile since stepping down as Labor leader, adds that he does not want to pre-empt the party’s review of its election campaign.

CORPORATES
AUSTRALIAN LABOR PARTY

Insurers to be barred from using unfair contracts in new legislation

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Original article by James Fernyhough
The Australian Financial Review – Page: 4 : 31-Jul-19

Labor is expected to support the Coalition’s proposal to subject insurers to the same rules with regard to unfair contract terms as other financial services providers. The final report of the Hayne royal commission recommended abolishing the exemption, which arose because insurers are regulated by the Insurance Contracts Act. In contrast, rules on unfair contract terms are covered by the ASIC Act. The Australian Competition & Consumer Commission has also made a number of recommendations for changes to the regulatory regime for insurers.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Good news for exports with iron ore set to enjoy another bountiful year

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Original article by Samantha Bailey
The Australian – Page: 25 : 31-Jul-19

Credit rating agency Moody’s Investors Service expects that supply constraints will ensure that the price of iron ore remains high during the rest of 2019 and in 2020. Moody’s has cited factors such as the impact of a tailings dam collapse in Brazil in January and Cyclone Veronica in Western Australia for its revised forecast. The firm had previously expected the iron ore market to be in surplus in 2019.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

NBL season on a roll in joint TV rights deal

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Original article by John Stensholt
The Australian Financial Review – Page: 19 : 31-Jul-19

The National Basketball League has struck a broadcasting rights deal with ESPN and public broadcaster SBS, which will replace Fox Sports and the Nine Network as its broadcast partners. However, the NBL will receive a share of the TV networks’ advertising revenue in lieu of a broadcasting rights fee. The two-year deal provides for 67 NBL matches to be shown on the SBS Viceland channel, while live streams of every match in the NBL season will be available via the SBS-on-demand service.

CORPORATES
NATIONAL BASKETBALL LEAGUE, ESPN SPORTS AUSTRALIA PTY LTD, ESPN INCORPORATED, SPECIAL BROADCASTING SERVICE (SBS), FOX SPORTS AUSTRALIA PTY LTD, NINE NETWORK AUSTRALIA LIMITED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NATIONAL BASKETBALL ASSOCIATION, BASKETBALL AUSTRALIA