Author: roymorgansocial

Housing loan growth at decade low as squeeze hits

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 7 : 12-Jul-19

Data from the Australian Bureau of Statistics shows that housing finance approvals declined by 2.4 per cent in May 2019 and 20.9 per cent in the year to May. Lending to owner occupiers was down 2.7 per cent in May and 18 per cent over the year, while lending to investors fell by 1.7 per cent and 27.8 per cent respectively. However, the monthly figures also show that there was 0.8 per cent growth in housing finance for owner-occupiers who were buying their first home.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS HOLDINGS PTY LTD, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, COUNCIL OF FINANCIAL REGULATORS

RBA chief backs Frydenberg plan

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Original article by Richard Ferguson, Rachel Baxendale
The Australian – Page: 1 & 2 : 12-Jul-19

Reserve Bank of Australia governor Philip Lowe says he is in full agreement with Treasurer Josh Frydenberg’s view that the Australian economy remains sound. Lowe and Frydenberg met for two hours in Melbourne on 11 July. Lowe said after the meeting that it was a "remarkable achievement" that more Australians have a job now than at any previous time in the country’s history, while shadow treasurer Jim Chalmers claimed that Frydenberg is letting the RBA do nearly all of the heavy lifting.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC

Fed chair prepares ground for July rate cut

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Original article by Nick Timiraos
The Australian – Page: 27 : 12-Jul-19

Wall Street and the yield on 10-year US government bonds rose on 11 July after Federal Reserve chairman Jerome Powell indicated that the cash rate is likely to be reduced at the end of the month. Powell has told the US Congress that trade tensions and concerns about the global economy continue to weigh on the US economic outlook, while the inflation rate may remain weak for some time. Financial markets have priced in a rate of at least 25 basis points when the central bank meets on 30-31 July.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD

Whitehaven boss hints at hefty dividends for shareholders

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Original article by Peter Ker
The Australian Financial Review – Page: 15 & 18 : 12-Jul-19

Whitehaven Coal will post underlying earnings of $567.6m for 2018-19, according to the consensus forecast of analysts polled by Bloomberg. It would be the group’s second successive record profit, with Whitehaven benefiting from the premium at which its thermal coal has traded compared with the benchmark price. MD Paul Flynn has given indications that Whitehaven will maintain its dividend payout ratio, although some analysts suggest that it may be prudent to retain some cash given its plans to develop the Vickery and Winchester South mines.

CORPORATES
WHITEHALL ASSOCIATES, SHAW AND PARTNERS LIMITED, BLOOMBERG LP, FARALLON CAPITAL PTY LTD

Culture to cost big three banks $500m

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Original article by James Fernyhough, James Thomson
The Australian Financial Review – Page: 1 & 21 : 12-Jul-19

The Australian Prudential Regulation Authority has imposed additional capital requirements on Westpac, the ANZ Bank and National Australia Bank following its review of their culture, governance and accountability self-assessments. They will have to set aside an extra $500m of capital until their customer remediation programs are completed and they have addressed all of the issues that emerged in their self-assessments. The increased capital requirements will have a slight impact on the three banks’ common equity tier 1 capital ratios.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Hanson flirts with Labor, warns PM

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Original article by Rosie Lewis
The Australian – Page: 2 : 11-Jul-19

One Nation leader Pauline Hanson says she has a much better working relationship with Anthony Albanese than she had with former Labor leader Bill Shorten. Hanson says she is "cautious" of all major political parties, but adds that it is important talk to all sides of politics to ensure the best legislative outcomes. Hanson also says she has had no "meaningful engagement" with Prime Minister Scott Morrison since the federal election, but adds that he should not disregard her as she intends to contest the next election.

CORPORATES
ONE NATION PARTY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Australian workers not saving enough to handle a job loss

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Original article by Killian Plastow
The New Daily – Page: Online : 11-Jul-19

Research by Finder shows that 5.9 million Australian workers have insufficient savings to support themselves for more than a month if they lost their job. The survey also found that 2.1 million Australians would be unable to financially support themselves for more than a week. Separate research by Roy Morgan shows that Australians have an average of six months’ worth of savings, although the median is about 0.8 months, or 24 days. CEO Michele Levine says people on low incomes would be hardest hit by a sudden job loss, as they are less likely to have savings.

CORPORATES
FINDER.COM.AU, ROY MORGAN LIMITED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Road map for recognition

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Original article by Greg Brown
The Australian – Page: 1 & 6 : 11-Jul-19

Ken Wyatt, Minister for Indigenous Australians, has told the National Press Club that the federal government intends to establish an indigenous voice to parliament. Wyatt also said he will push ahead with separate plans for a referendum to recognise indigenous people in the Constitution, and that he will seek to develop a model that will have the support of all sides of politics and the general public. Linda Burney, the shadow minister for indigenous Australians, says Labor is of the view that the indigenous voice should be enshrined in the Constitution.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Inflation Expectations down to 3.8% in June as RBA cuts rates

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Original article by Roy Morgan
Market Research Update – Page: Online : 11-Jul-19

Australians aged +14 expect inflation of 3.8% per year over the next two years, according to the Roy Morgan Inflation Expectations Index for June 2019. This is down 0.3% on May and down 0.7% on June 2018. Inflation Expectations have decreased around Australia in June, and are down compared to a year ago, led by declines for both employed and unemployed Australians as well as across different occupations and employment categories. Analysis by voting intentions shows that Inflation Expectations for L-NP supporters fell 0.1% to 3.3% in June, while Inflation Expectations for ALP supporters dropped by 0.3% to 3.7%. Inflation Expectations for Greens supporters were unchanged at 3.6%. June Inflation Expectations are based on personally interviewing a nationwide representative sample of 3,984 Australians aged 14+ face-to -face in their own homes.

CORPORATES
ROY MORGAN LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Fels laments lack of bank competition

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Original article by Adam Creighton
The Australian – Page: 2 : 11-Jul-19

Former Australian Competition & Consumer Commission chairman Allan Fels has expressed concern about the four major banks’ domination of the nation’s home loans market. He says competition in Australia’s banking sector has declined substantially since the global financial crisis. He also notes that there is now very little difference between the "big four" banks and that it is relatively easy for them to co-ordinate their actions without breaching cartel laws.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RESERVE BANK OF AUSTRALIA, ST GEORGE BANK LIMITED, BANKWEST, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY