Author: roymorgansocial

Facebook digital currency to challenge the banks

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 20 : 19-Jun-19

Social media giant Facebook has outlined plans to directly compete with financial services providers such as banks and the online payments sector. It aims to offer digital wallet and cryptocurrency products in the first half of 2020. Facebook is a founding member of the Libra Association, which will manage the Libra cryptocurrency, while its digital wallet will be called Calibra. Facebook’s plans can be expected to attract close scrutiny from Australian and international regulators, given the company’s data breach scandal in 2018.

CORPORATES
FACEBOOK INCORPORATED, LIBRA ASSOCIATION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA, ANDREESSEN HOROWITZ, UNION SQUARE VENTURES, RIBBIT CAPITAL, ALIPAY, TENCENT HOLDINGS LIMITED, AFTERPAY TOUCH GROUP LIMITED – ASX APT, ZIP CO LIMITED – ASX Z1P, APPLE INCORPORATED, GOOGLE INCORPORATED, OFX GROUP LIMITED – ASX OFX, TRANSFERWISE, MASTERCARD INTERNATIONAL INCORPORATED, VISA INTERNATIONAL, PAYPAL INCORPORATED, EBAY INCORPORATED, UBER TECHNOLOGIES INCORPORATED, SPOTIFY LIMITED, VODAFONE GROUP PLC, INTERNATIONAL MONETARY FUND

Labor flags opposing legislated tax cuts

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

Tom Kennedy of JP Morgan estimates that the third stage of the federal government’s income tax cuts package would boost GDP by about 0.6 per cent from 2024. The stage three tax cuts are worth about $137bn in total, including $42bn worth of tax relief that has already been legislated. However, there is believed to be growing support within Labor to oppose the unlegislated component of the stage three tax cuts and to repeal the legislated component – which is slated to take effect in 2024-25 – if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, JP MORGAN AUSTRALIA LIMITED

RBA signals more rate cuts needed

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Original article by David Rogers
The Australian – Page: 17 & 24 : 19-Jun-19

The minutes from the Reserve Bank of Australia’s monthly board meeting show that it expects to further reduce official interest rates in coming months. Gareth Aird of the Commonwealth Bank anticipates rate cuts in August and November, when the central bank updates the economic forecasts in its quarterly monetary policy statements. Tom Kennedy of JP Morgan also expects a rate cut in August, although he says July remains a possibility.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, JP MORGAN AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S 500 INDEX, MSCI WORLD INDEX, UNITED STATES. FEDERAL RESERVE BOARD

Search narrows for new NAB boss

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Original article by Joyce Moullakis
The Australian – Page: 21 : 19-Jun-19

National Australia Bank has declined to comment on progress regarding its search for a successor to former CEO Andrew Thorburn. However, sources have indicated that the shortlist of candidates has been trimmed and NAB has commenced a detailed assessment of internal candidates, who include Mike Baird and Anthony Healy. Thorburn stepped down in the wake of the Hayne royal commission, while NAB chairman Ken Henry will depart when a new CEO is appointed.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RUSSELL REYNOLDS ASSOCIATES INCORPORATED, MEDIBANK PRIVATE LIMITED – ASX MPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF SCOTLAND GROUP PLC, BANK OF IRELAND PLC, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP

ANZ-Roy Morgan Consumer Confidence slips to 114.2

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

ANZ-Roy Morgan Australian Consumer Confidence fell 0.3% to 114.2 in the week ended 16 June. Households’ views towards current financial conditions rose 3.9%, while views towards future financial conditions were up 0.2%. The rise has bought both indices back above their long-term averages. However, consumers’ views toward current economic conditions fell 2.3% and views toward future economic conditions were down 1.9%. The ‘time to buy a household item’ index fell 1.2%.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Tax cuts no handout to the rich

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Original article by Phillip Coorey, Tom McIlroy
The Australian Financial Review – Page: 1 & 4 : 18-Jun-19

Finance Minister Mathias Cormann contends that the third stage of the federal government’s income tax package will merely address the issue of bracket creep, rather than benefiting people on high incomes. Analysis of the impact of the tax cuts supports his view; it suggests that high-income earners’ tax liability in 2024-25 will increase by roughly the same percentage as growth in their wages if the full tax package is passed. However, their tax liability would significantly exceed wages growth if the reforms do not proceed. The Coalition is likely to require the support of Senate crossbenchers to pass the tax bill.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Media chiefs want urgent action on press freedom

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Original article by Max Mason
The Australian Financial Review – Page: 2 : 18-Jun-19

Nine Entertainment Company CEO Hugh Marks, News Corp Australasia executive chairman Michael Miller and ABC MD David Anderson will jointly address the National Press Club on 26 June. They will discuss the fallout from the Australian Federal Police’s media raids, and press the case for legislative reforms to provide greater protection for journalists and whistleblowers. The federal government is under pressure to hold a parliamentary inquiry into press freedom, but the media industry believes that changes to national security laws should be the priority.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN FEDERAL POLICE, AUSTRALIAN LABOR PARTY, ALLIANCE FOR JOURNALISTS’ FREEDOM

Big banks weather deposit storm

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Original article by James Frost
The Australian Financial Review – Page: 16 : 18-Jun-19

Westpac and the ANZ Bank elected not to pass on the full extent of the recent cut in official interest rates to their mortgage loan customers. As a result, they have not yet made changes to their deposit rates for retail customers, which is good news for customers who use interest from their accounts to help bolster their income. However, banks cannot maintain a gap between their mortgage rates and their deposit rates for too long, as this impacts on their bottom line.

CORPORATES
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, RESERVE BANK OF AUSTRALIA, ISELECT LIMITED – ASX ISU, MACQUARIE BANK LIMITED – ASX MBL

Australian government bonds forecast to fall below 1pc

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 & 16 : 18-Jun-19

The yield on 10-year Australian government bonds recovered slightly to 1.39 per cent on 17 June, after falling to a record low of 1.37 per cent in the previous week. Concern about the global economic outlook is weighing on bond yields worldwide, and Sally Auld of JP Morgan says the current bearish environment could see Australia’s 10-year bond yield fall below one per cent by the end of 2019. Steve Miller of Grant Samuel Funds Management says the expectation of further official interest cuts is putting downward pressure on local bond yields.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, GRANT SAMUEL FUNDS MANAGEMENT PTY LTD, ARDEA INVESTMENT MANAGEMENT PTY LTD, RESERVE BANK OF AUSTRALIA

Warning of reform or forgo $1.5 trillion windfall

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Original article by Sid Maher
The Australian – Page: 1 & 2 : 18-Jun-19

The 2019 Australian National Outlook report highlights the economic benefits from pursuing economic, social and environmental reform over coming decades, and the likely cost of failing to undertake reform. The two-year study concludes that a wide-ranging reform agenda could see the Australian economy grow to between $5.5trn and $5.6trn by 2060; conversely, the economy would grow to just $4.1trn without such reform. The report also warns that in a worst-case scenario, the digital divide could see the unemployment rate could peak at 20 per cent by 2040 and then average 10 per cent in future years.

CORPORATES
CSIRO, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB