Author: roymorgansocial

ANZ to cut $1bn in search of growth

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Original article by Joyce Moullakis
The Australian – Page: 17 & 22 : 2-May-19

The ANZ Bank has posted a 2018-19 interim cash profit of $3.56bn, which is two per cent higher than previously. The result for the six months to 31 March included provision for $175m worth of remediation charges. CEO Shayne Elliott has flagged further cost-cutting measures in coming years, although he has downplayed talk of further staff cuts and branch closures. Meanwhile, Elliott says the banking sector’s mortgage loan repayment buffer of 7.25 per cent should be revised, given that the cash rate is just 1.5 per cent at present.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, TRIBECA INVESTMENT PARTNERS PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Return to radio: Trioli to replace Faine

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Original article by Lilly Vitorovich
The Australian – Page: 2 : 2-May-19

ABC TV presenter Virginia Trioli says it was "impossible" for her to reject an offer to succeed Jon Faine as the host of the public broadcaster’s morning radio program in Melbourne. Trioli has been co-host of the ABC’s ‘News Breakfast’ show since 2008, having previously been a radio presenter. There had been speculation that she could replace Tony Jones as host of ‘Q&A’. A spokeswoman for the ABC says no announcements are pending with regard to other unfilled air-on roles at the broadcaster.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, RADIO NATIONAL, NINE NETWORK AUSTRALIA LIMITED

Cost of living climbs for pensioners

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Original article by Matthew Cranston
The Australian Financial Review – Page: 2 : 2-May-19

Data from the Australian Bureau of Statistics shows that there was no increase in the cost of living for wage and salary earners during the March quarter, although there has been a year-on-year increase of 1.4 per cent. The figures also show that the cost of living for age pension recipients rose by 0.3 per cent during the March quarter, although the cost of living for self-funded retirees fell by 0.2 per cent. Labor has contended that prices are rising at at time when wages growth is stagnant.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Rio fast-tracks copper in hunt for growth

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Original article by Nick Evans
The Australian – Page: 20 : 2-May-19

Resources group Rio Tinto has signalled that it will ramp up its capital investment in coming years. Rio executive Stephen McIntosh has told a conference that its capital expenditure has risen above depreciation levels again, after falling in 2016 following the completion of iron ore expansion projects. McIntosh says a priority for Rio Tinto will be to determine the extent of the copper resources at its Winu discovery in Western Australia.

CORPORATES
RIO TINTO LIMITED – ASX RIO, ALUMINIUM CORPORATION OF CHINA LIMITED

Price carbon cuts? Yes you can

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Original article by Simon Benson
The Australian Financial Review – Page: 1 & 4 : 2-May-19

Independent modelling has concluded that GDP growth could be reduced by a cumulative $264bn by 2030 if Labor’s carbon emissions reduction policy includes unlimited access to international carbon credits. This could rise to around $1.2bn if the use of foreign carbon credits is restricted or banned. The modelling is outlined in a new report by former bureaucrat Brian Fisher, which will be released on 2 May. Labor’s climate change spokesman Mark Butler has previously argued that its emissions reduction policy cannot be costed.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF AGRICULTURAL AND RESOURCE ECONOMICS AND SCIENCES, INTERGOVERNMENTAL PANEL ON CLIMATE CHANGE, AUSTRALIAN GREENS

Nine close to selling Fairfax events business

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Original article by Carrie LaFrenz
The Australian Financial Review – Page: 20 : 2-May-19

Nine Entertainment Company is slated to receive final bids for Fairfax Media’s events business within days. Nine CEO Hugh Marks expects a deal to offload the business to be completed shortly. However, he has cautioned that Nine is unlikely to secure a deal to sell Fairfax’s New Zealand division by the end of June. Nine recently secured a deal to sell Fairfax’s portfolio of regional newspapers for $125m. Marks has reiterated Nine’s previous guidance for earnings growth of at least 10 per cent in 2018-19.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, STUFF LIMITED, MACQUARIE MEDIA LIMITED – ASX MRN, METRO MEDIA PUBLISHING PTY LTD, STAN ENTERTAINMENT PTY LTD, WALT DISNEY COMPANY

Big four reap gains and reward contrarians

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Original article by David Rogers
The Australian – Page: 28 : 2-May-19

The S&P/ASX 200 Banks Index has gained nearly 15 per cent since late December, following a sell-off in the wake of the misconduct exposed by the Hayne royal commission. Tony Brennan of Citigroup says bank stocks still represent a buying opportunity for investors, even though the sector continues to face headwinds. Meanwhile, JP Morgan notes that banks’ revenue may come under pressure if the cash rate is reduced more than once in coming months.

CORPORATES
STANDARD AND POOR’S ASX 200 BANKS INDEX, STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED

Keep RBA’s rate trigger away from politics

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Original article by Perry Williams, Joyce Moullakis
The Australian – Page: 17 & 22 : 2-May-19

APA Group’s Mick McCormack has weighed into the debate on the outlook for monetary policy, saying the Reserve Bank should not reduce the cash rate in May. He argues that a rate cut during an election campaign would "inevitably" become politicised. ANZ Bank CEO Shayne Elliott also believes that an interest rate cut is needed in May, and a number of economists have forecast a rate cut. However, financial markets have priced in a 44 per cent chance of a rate cut at the central bank’s monthly board meeting.

CORPORATES
APA GROUP – ASX APA, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED, RBC CAPITAL MARKETS, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED, TD SECURITIES, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, NOMURA AUSTRALIA LIMITED

Labor two-faced on coal

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Original article by Mark Ludlow, Luke Housego
The Australian Financial Review – Page: 1 & 6 : 1-May-19

The Queensland Government’s stance on Adani’s proposed Carmichael thermal coal mine is under scrutiny after it approved an expansion of Yancoal’s Cameby Downs mine, as well as several metallurgical coal mines. The government has been accused of double standards by Steve Smyth, the state president of the Construction, Forestry, Maritime, Mining & Energy Union. Adani CEO Lucas Dow in turn has accused the state government of hypocrisy for taking out newspaper advertisements promoting its support for resources projects while continuing to stall on approving the Carmichael mine.

CORPORATES
ADANI MINING PTY LTD, YANCOAL AUSTRALIA LIMITED – ASX YAL, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN LABOR PARTY, WHITEHAVEN COAL LIMITED – ASX WHC, PEMBROKE RESOURCES PTY LTD, MACKAY CONVEYOR EQUIPMENT, QUEENSLAND RESOURCES COUNCIL LIMITED, LIBERAL-NATIONAL PARTY OF QUEENSLAND

Aged care next for a pay rise from taxpayers

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Original article by Ewin Hannan
The Australian – Page: 4 : 1-May-19

Opposition Leader Bill Shorten says Labor has no plans to extend its taxpayer-funded pay rise for childcare workers to other low-paid sectors. He says the policy takes into account the "unique" status of childcare workers. However, Council on the Ageing CEO Ian Yates says increasing the wages of aged-care staff should also be a priority for Labor if it wins the election, noting that they are also underpaid and undertrained. Shorten has signalled that Labor could look at wage increases for these workers after the aged-care royal commission delivers its final report in April 2020.

CORPORATES
AUSTRALIAN LABOR PARTY, COUNCIL ON THE AGEING, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. ROYAL COMMISSION INTO AGED CARE QUALITY AND SAFETY