Rate cut will be little help, says Westpac

Original article by James Eyers, James Frost
The Australian Financial Review – Page: 1 & 17 : 7-May-19

The futures market has priced in a 38 per cent chance that the Reserve Bank will reduce the cash rate on 7 May. Westpac CEO Brian Hartzer warns that a rate cut will have limited impact on economic growth and consumer spending, given that the cash rate is already at a historic low. He argues that government spending has been a key driver of economic growth, but the political debates needs to have a greater focus on measures that will drive private sector growth and investment. Shadow treasurer Chris Bowen says the fact that interest rates could potentially fall further demonstrates the "real concern" about the economy under the Coalition.

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RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, JP MORGAN AUSTRALIA LIMITED, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, CLIME ASSET MANAGEMENT PTY LTD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Morrison and Shorten, take note: Trump shows what enterprising tax settings can do for jobs

Original article by Robert Gottliebsen
The Australian – Page: 33 : 7-May-19

Between 2019 and 2025, the cumulative tax bill of people earning more than $200,000 a year will be more than $33,000 higher under Labor than the Coalition, according to a tax calculator on Self-Employed Australia’s website. Low-income earners who receive $15,000 worth of franking credits each year would also be worse off under Labor. The tax policies of Australia’s major political parties are in contrast to the personal and company tax cuts of US President Donald Trump. Some 263,000 jobs were created in the US in April and the unemployment rate fell to its lowest level since December 1969, while there has been average hourly earnings growth of 3.2 per cent over the last year.

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AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, SELF-EMPLOYED AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Westpac profit plunges 22pc as costs mount

Original article by James Frost, James Eyers
The Australian Financial Review – Page: 13 & 16 : 7-May-19

Westpac has posted a 2018-19 interim net profit of $3.296bn, which is 22 per cent lower than previously. The result was marred by provisions of $617m associated with Westpac’s customer remediation program. Westpac’s costs increased by one per cent to $5.04bn, although costs fell by three per cent when compensation and restructuring costs are excluded. Meanwhile, net income was down 10 per cent at $9.979bn for the half-year. CEO Brian Hartzer expects house prices to bottom in late 2019 or early 2020.

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WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WATERMARK FUNDS MANAGEMENT PTY LTD, CLIME ASSET MANAGEMENT PTY LTD, BT FINANCIAL GROUP PTY LTD, WESTPAC NEW ZEALAND LIMITED, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

No end to Labor’s $60 billion spendathon

Original article by John Kehoe
The Australian Financial Review – Page: 1 & 6 : 7-May-19

Labor has made spending commitments in excess of $60 billion during the federal election campaign, according to a newspaper analysis of its spending announcements. Labor’s spending promises include $22 billion for infrastructure projects and community facilities, and $16.2 billion for climate change and energy. Treasurer Josh Frydenberg told the treasurers’ debate on 6 May that taxpayers would be the ones paying for Labor’s higher spending, while Labor will need to convince the Senate to pass the tax measures that it will need to implement in order to pay for its spending.

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AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

New ABC boss warns job cuts inevitable

Original article by Andrew White
The Australian – Page: 2 : 7-May-19

The ABC’s MD David Anderson says the public broadcaster will need to retrench workers and reduce its services due to the Coalition’s funding freeze. He adds that cost efficiencies will be necessary even if the three-year freeze were to be scrapped. Anderson was recently confirmed as the permanent successor to former MD Michelle Guthrie. He had been acting MD since her sacking. Meanwhile, Anderson rejects suggestions of bias at the ABC.

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AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BROADCASTING CORPORATION

Three weeks locked at ALP 51% cf. L-NP 49% – Palmer "jumps" 1.5%

Original article by Roy Morgan
Market Research Update – Page: Online : 7-May-19

For the third straight week the two major parties are locked in a tight contest with a slight edge to the ALP 51% cf. L-NP 49% on a two party preferred basis, according to a face-to-face Roy Morgan Poll conducted over the weekend of May 4/5, 2019 with a representative cross-section of 826 Australian electors. Primary support for both major parties fell this week, but there was no change to the close overall two-party preferred result. The L-NP now has a primary vote of 38.5% (down 1%) and is clearly ahead of the ALP on 34% (down 2%) while Greens support is up 1.5% to 11%. Support for One Nation is up 1.5% to 4% while support for Clive Palmer’s United Australia Party is up 1.5% to 3.5%. Support for Independents/Others is down 1.5% to 9%. The Roy Morgan Government Confidence Rating has declined by 2.5pts to 99 with slightly more Australians saying Australia is ‘heading in the wrong direction’ than ‘heading in the right direction’. Roy Morgan CEO Michele Levine says both major parties require a small swing to claim a workable majority of 77 seats in the expanded 151 seat Parliament, and with the tight nature of the race it could again be independents and minor party candidates who decide who will be Prime Minister after next week’s election.

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MORGAN POLL, ROY MORGAN LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, ONE NATION PARTY, UNITED AUSTRALIA PARTY

Senators reject ALP tax grab

Original article by Simon Benson, Michael McKenna, Joe Kelly
The Australian – Page: 1 & 4 : 7-May-19

Key upper house crossbenchers have rejected claims by shadow treasurer Chris Bowen that Labor will have a mandate for tax reform if it wins the federal election. Centre Alliance senator Stirling Griff contends that Labor will only have a mandate if it gains a majority in the Senate. Griff opposes Labor’s proposal to abolish cash refunds for excess dividend imputation credits, although he says Centre Alliance may be willing to negotiate regarding changes to the negative gearing regime. One Nation leader Pauline Hanson also opposes the franking credit reforms.

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AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, UNITED AUSTRALIA PARTY, AUSTRALIAN GREENS, AUSTRALIAN CONSERVATIVES

Three weeks locked at ALP 51% cf. L-NP 49% – Palmer “jumps” 1.5%

For the third straight week the two major parties are locked in a tight contest with a slight edge to the ALP 51% cf. L-NP 49% on a two party preferred basis according to a face-to-face Roy Morgan Poll conducted over the weekend of May 4/5, 2019 with a representative cross-section of 826 Australian electors.

The close nature of the tussle between the ALP and L-NP is now raising the possibility Australia will be left with another ‘hung’ Parliament after next week’s Federal Election.

Primary Voting Intention

Primary support for both major parties fell this week with support increasing for minor parties including Clive Palmer’s United Australia Party (UAP), the Greens as well as Pauline Hanson’s One Nation but there was no change to the close overall two-party preferred result with just over a week to go until Election Day – May 18, 2019.

The L-NP now has a primary vote of 38.5% (down 1%) and is clearly ahead of the ALP on 34% (down 2%) while Greens support is up 1.5% to 11%. Support for One Nation is up 1.5% to 4% while support for Clive Palmer’s United Australia Party is up 1.5% to 3.5%. Support for Independents/Others is down 1.5% to 9%.

Roy Morgan Government Confidence Rating has declined by 2.5pts to 99 this week with slightly more Australians say Australia is ‘heading in the wrong direction’ than ‘heading in the right direction’.

Michele Levine, CEO, Roy Morgan says:

“The Federal Election has ‘tightened’ during the campaign with the two major parties now locked in a near dead-heat for three straight weeks since mid-April. The ALP on 51% maintains a narrow two-party preferred edge over the L-NP on 49% but with just over a week to go the prospect is rising of Australia electing another ‘hung’ Parliament with neither major party able to form a majority.

“Both parties require a small swing to claim a workable majority of 77 seats in the expanded 151 seat Parliament and with the tight nature of the race it could again be independents and minor party candidates including Dr. Kerryn Phelps, Andrew Wilkie, Bob Katter of Katter’s Australian Party, Adam Bandt of the Greens and perhaps Rob Oakeshott in country NSW who may again decide who will be Prime Minister after next week’s election.

“’Troubles’ engulfing Other parties’ candidates appear to have helped Clive Palmer’s United Australia Party with a late boost in support approaching the election particularly in Queensland Country – combined support for UAP, One Nation, Katter’s Party and the Conservatives is now clearly over 25%. The rise in support for these minor parties in Queensland Country is set to cost the ALP their only seat in regional Queensland – and may lose some in Brisbane.”

 

Electors were asked: “At the Federal election for the House of Representatives on May 18 – which party will receive your first preference?? and “Generally speaking, do you feel that things in Australia are heading in the right direction or would you say things are seriously heading in the wrong direction?”

This Roy Morgan Poll on Federal voting intention and Roy Morgan Government Confidence was conducted via face-to-face interviewing last weekend. Roy Morgan interviewed 826 Australian electors aged 18+ on the weekends of May 4/5, 2019. 4.5% of electors can’t say who they support.

For comments or more information about Roy Morgan data, please contact:

Contact Office Mobile
Gary Morgan: +61 3 9224 5213 +61 411 129 094
Michele Levine: +61 3 9224 5215 +61 411 129 093

AMP Capital’s Oliver the economist of choice for media mentions

Original article by Eli Greenblat
The Australian – Page: Online : 6-May-19

AMP Capital chief economist Shane Oliver was mentioned more than 2,500 times in metropolitan newspapers and online news sites over the period from April 2018 to March 2019, according to media monitoring company Streem. Oliver, who is also AMP Capital’s chief strategist, received more than twice as many mentions as Craig James from Commsec (1041), while REA Group’s Nerida Consisbee was the third-most mentioned economist, with 959 mentions.

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AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH SECURITIES LIMITED, REA GROUP LIMITED – ASX REA

WA rules out importing radioactive waste from Malaysia

Original article by Paul Garvey
The Australian – Page: Online : 6-May-19

Western Australian Mines Minister Bill Johnston says the WA government will not allow mine waste from overseas to be imported into the state. Lynas currently processes rare earth from its Mount Weld mine in WA at a plant in Malaysia, but some local critics of the plant have called for the waste that it produces, which is slightly radioactive, to be shipped back to Australia. Lynas is currently the subject of a $1.5 billion takeover bid from Wesfarmers, which Lynas has rejected.

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WESTERN AUSTRALIA. DEPT OF MINES, INDUSTRY REGULATION AND SAFETY, LYNAS CORPORATION LIMITED – ASX LYC, WESFARMERS LIMITED – ASX WES