Author: roymorgansocial

Woolies to cut specials to restore price trust

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 24 : 31-May-19

Grocery giant Woolworths has joined rival Coles in admitting that it is too dependent on price discounting to boost sales growth. Woolworths’ Peter McNamara says the weekly price discounts strategy is adversely affecting consumers’ trust in prices over the long-term. Like Coles, Woolworths is shifting its focus to an ‘everyday low price’ model rather than large prices discounts that are offered for one week only. Ben Gilbert of UBS expects Australia’s food and liquor market to record sales growth of around four per cent in 2019 and 2020.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, WOOLWORTHS SUPERMARKETS, COLES GROUP LIMITED – ASX COL, UBS HOLDINGS PTY LTD, AUSTRALIAN FOOD AND GROCERY COUNCIL

Record low bond yields turn off investors

roymorgansocial Leave a comment

Original article by Jonathan Shapiro, Sarah Turner
The Australian Financial Review – Page: 31 : 31-May-19

The yield on 10-year Australian governments rose to 1.53 per cent on 30 May, having fallen below the official interest rate in the previous trading session. Factor such as the prospect of a rate cut in June and the US-China trade war have weighed on the local bond market, with international fixed income investors now looking at higher-yielding asset classes. Bond managers caution that yields may continue to fall, noting that bonds in countries such as Japan and Germany currently have negative yields.

CORPORATES
JANUS HENDERSON GROUP PLC – ASX JHG, COLCHESTER GLOBAL INVESTORS LIMITED, RESERVE BANK OF AUSTRALIA

No joy yet for housing construction

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 34 : 31-May-19

Building approvals fell by 4.7 per cent month-on-month in April in seasonally adjusted terms, while detached dwelling approvals declined for a third month to their lowest level in nearly six years. Callum Pickering from jobs site Indeed says the fall in approvals indicates that construction activity is likely to continue to decline over the next 12 months, although National Australia Bank economist Kaixin Owyong notes that non-residential approvals increased by 16 per cent in April.

CORPORATES
INDEED INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MASTER BUILDERS AUSTRALIA INCORPORATED

New squeeze on big banks

roymorgansocial Leave a comment

Original article by James Frost
The Australian Financial Review – Page: 1 & 20 : 31-May-19

The Australian Prudential Regulation Authority is expected to soon announce that smaller banks will have to hold less capital in terms of supporting their mortgage lending. This will enable them to offer cheaper home loans and higher deposit rates, making them more competitive with the larger banks. APRA’s announcement will follow shortly after the Reserve Bank’s June meeting, when it is widely expected to reduce official interest rates to 1.25 per cent.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, SUNCORP GROUP LIMITED – ASX SUN, CITIGROUP PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

Minimum wage will rise 3 per cent to $740.80 a week on Fair Work ruling

roymorgansocial Leave a comment

Original article by Stephanie Chalmers
abc.net au – Page: Online : 31-May-19

The ACTU has described the Fair Work Commission’s decision to increase the minimum wage by three per cent as a "win" for low-paid workers. The minimum wage will be increased to $19.49 an hour, or $740.80 per week, but the peak union body says it is still not a living wage. The ACTU had sought a six per cent increase in the minimum wage, after it rose by 3.5 per cent in 2018. The latest Wage Price Index data shows that annual growth in wages is currently about 2.3 per cent.

CORPORATES
ACTU, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA

Coles reviews promotions as waste hits $10b

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 18 : 30-May-19

Grocery giant Coles has conceded that it is still heavily reliant on price discounting as a key driver of sales growth rather than the ‘every day low prices’ model that it has been pursuing for a decade. Nielsen estimates that discounting costs Australian grocery retailers about $51m a year; this includes "wastage" of about $10.1bn on the discounting of goods that consumers would have bought at the full price. Coles intends to review its discounting strategy, with the aim of scaling it back over a period of time.

CORPORATES
COLES GROUP LIMITED – ASX COLCOLES SUPERMARKETS AUSTRALIA PTY LTDTHE NIELSEN COMPANY (AUSTRALIA) PTY LTDAUSTRALIAN FOOD AND GROCERY COUNCILWESFARMERS LIMITED – ASX WESWOOLWORTHS GROUP LIMITED – ASX WOWCITIGROUP PTY LTD

RBA could cut to 0.5 per cent

roymorgansocial Leave a comment

Original article by Sarah TurnerMatthew Cranston
The Australian Financial Review – Page: 1 & 8 : 30-May-19

Financial markets have priced in an 86 per cent chance that the Reserve Bank of Australia will reduce the cash rate by 25 basis points in June, for the first time since August 2016. Aberdeen Standard Investments’ Jason Kururangi and mortgage broker Ben Kingsley argue that banks should pass most if not all of the likely reduction on to customers. Meanwhile, Sally Auld of JPMorgan forecasts that the RBA will ease monetary policy four times by mid-2020, reducing the cash rate to 0.5 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIAABERDEEN STANDARD INVESTMENTS AUSTRALIA LIMITEDJP MORGAN AUSTRALIA LIMITEDRATECITY PTY LTDCOMMONWEALTH BANK OF AUSTRALIA – ASX CBAWESTPAC BANKING CORPORATION – ASX WBCAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZMORGAN STANLEY AUSTRALIA LIMITEDBANK OF AMERICA AUSTRALIA LIMITEDMERRILL LYNCH (AUSTRALIA) PTY LTDRESERVE BANK OF NEW ZEALANDLOAN DOLPHIN

LNG exporters tell Coalition to back off

roymorgansocial Leave a comment

Original article by Perry Williams
The Australian – Page: 20 : 30-May-19

Australian Petroleum Production & Exploration Association CEO Andrew McConville says the federal government should avoid further intervention in the east coast gas market. The government’s Australian Domestic Gas Security Mechanism has helped to put downward pressure on gas prices, and large industrial gas users have called for further intervention.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITEDAUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCESANTOS LIMITED – ASX STOORIGIN ENERGY LIMITED – ASX ORGROYAL DUTCH SHELL PLC

ALP to miners: give us millions or risk tax hike

roymorgansocial Leave a comment

Original article by Michael McKennaPerry Williams
The Australian – Page: 6 : 30-May-19

Queensland Treasurer Jackie Trad has indicated that coal royalties will not be increased in the state’s June 2019 Budget. However, she has not ruled out an increase in royalties if coal producers fail to contribute to the state government’s proposed community infrastructure fund. Trad has stressed that industry contributions to the fund are "completely voluntary". The government will contribute $30m to the fund, and it hopes the coal industry will pitch in with a further $70m.

CORPORATES
QUEENSLAND. TREASURYQUEENSLAND RESOURCES COUNCIL LIMITEDAUSTRALIAN LABOR PARTYADANI MINING PTY LTDLIBERAL-NATIONAL PARTY OF QUEENSLAND

D-day for new minimum wage

roymorgansocial Leave a comment

Original article by Ewin Hannan
The Australian – Page: 2 : 30-May-19

The Fair Work Commission will announce its decision in the annual minimum wage case on 30 May. The ACTU lobbied for a six per cent increase in the minimum wage, although employers’ group used their submissions to the FWC to argue for a wage increase that is in line with the inflation rate. Meanwhile, Restaurant & Catering Australia called for no increase in the minimum wage. The new wage rate for 2.2 million workers will take effect on 1 July, when the next round of penalty rate cuts are also due to take effect.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSIONACTUAUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRYTHE AUSTRALIAN INDUSTRY GROUPRESTAURANT AND CATERING INDUSTRY ASSOCIATION OF AUSTRALIA INCORPORATED