Author: roymorgansocial

Feast of double-digit super returns is over

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Original article by James Kirby
The Australian – Page: 26 : 17-Apr-19

New data shows that both balanced and growth superannuation funds achieved a return of just 0.8 per cent in March. The low returns mean super funds may struggle to deliver strong returns for the financial year, after global financial market volatility weighed on returns in the December quarter. Super funds have returned an average of just 3.2 per cent so far in 2018-19, and balanced funds are now unlikely to maintain their recent track record of double-digit returns for the full year.

CORPORATES
SUPERRATINGS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA

Reserve Bank ready to cut rates

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Original article by David Rogers
The Australian – Page: 19 & 26 : 17-Apr-19

The minutes of the Reserve Bank of Australia’s monthly board meeting indicate that the central bank still expects gradual progress in lifting the inflation rate to its target range and reducing the unemployment rate. However, the minutes show that the RBA would be prepared to reduce the cash rate if inflation remains low and unemployment increases. The Australian dollar fell to a two-week low of $US0.714 in local trading in response to the release of the RBA’s minutes.

CORPORATES
RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, JP MORGAN AUSTRALIA LIMITED

CBA underpays 8000 staff after HR tech system failure

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Original article by James Eyers
The Australian Financial Review – Page: 18 : 17-Apr-19

The Commonwealth Bank of Australia has advised that current and former employees have received some $4.8m in back pay to date, including interest. Problems with the bank’s human resources technology systems resulted in about 8,000 employees being underpaid. Julia Angrisano, the national secretary of the Finance Sector Union, says the bank and its Bankwest subsidiary may ultimately have to repay between $10m and $15m, although CBA believes that the final figure will be much lower. Some employees are also believed to have been paid at below-award rates.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANKWEST, FINANCE SECTOR UNION

Rio cuts iron ore production guidance as port problem lingers

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Original article by Brad Thompson
The Australian Financial Review – Page: 17 : 17-Apr-19

Rio Tinto has advised that its iron ore production in the Pilbara is likely to be within the range of 333 million to 343 million tonnes in 2019. This compares with previous guidance of 338 million to 350 million tonnes. The downgrade follows disruptions caused by Cyclone Veronica and fires at two separate screening plants. Peter O’Connor of Shaw & Partners says the impact of these disruptions on Rio Tinto’s output should be offset by higher iron ore prices.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED

Santos makes major gas discovery off WA

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 17-Apr-19

Santos has had promising results from a drilling program at its Corvus-2 well in the WA-45-R permit, which it acquired via the takeover of Quadrant Energy. Wood Mackenzie has suggested that the Corvus-2 discovery may hold 2.5 trillion cubic feet of gas and 25 million barrels of condensates. Meanwhile, Oil Search has reported revenue of $US398.1m for the March quarter, which is 21 per cent lower than the three months to December. Production fell by three per cent, to 7.25 million barrels of oil equivalent.

CORPORATES
SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, WOOD MACKENZIE

ANZ-Roy Morgan Australian Consumer Confidence up to 115.3

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Apr-19

ANZ-Roy Morgan Australian Consumer Confidence rose 1.9% to 115.3 in the week ended 14 April. This reaffirms our prognosis that the post-Budget dip in consumer confidence was likely noise. Households’ views towards current financial conditions rose 2.1%, after three consecutive falls, while views towards future financial conditions inched up 0.1%. Consumers’ views toward current economic conditions rose 4.2%, to the highest level for this year; views towards future economic conditions rose 1.5%. The ‘time to buy a household item’ index was up 1.7%.

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

Record 1.3 million landlords cash in on negative gearing as shake-up looms

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Original article by Ben Butler, Michael Roddan
The Australian – Page: 19 & 26 : 17-Apr-19

Data from the Australian Taxation Office shows that the number of property investors who use negative gearing rose from 631,000 to about 1.3 million between 2000 and 2017. In contrast, the number of investors who broke even or made a profit rose from 532,000 to around 856,000. The figures also show that the proportion of investors who are aged 60+ rose from around 15 per cent to about 23.5 per cent. Robert Deutsch of the Tax Institute does not expect Labor’s proposed negative gearing reforms to have much effect on housing prices.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, AUSTRALIAN LABOR PARTY, BIS OXFORD ECONOMICS PTY LTD, UNIVERSITY OF NEW SOUTH WALES

Shorten’s $34b super gaffe

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Original article by Andrew Tillett, Tom McIlroy
The Australian Financial Review – Page: 1 & 6 : 17-Apr-19

Opposition Leader Bill Shorten used a press conference on 16 April to state that Labor will not increase existing taxes on superannuation or introduce new taxes if it wins the federal election. Shadow finance minister Jim Chalmers later clarified Shorten’s comments, stating that he meant there will be no changes to super policy apart from those that have been previously announced. Labor has in fact previously announced four proposed changes to super policy. The Coalition has estimated that these reforms could increase tax revenue by about $34bn over a decade.

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

Real unemployment jumps to 10.9% as Australians prepare to vote in election

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Apr-19

The latest data for the Roy Morgan employment series shows that 12,158,000 Australians were employed in March 2019, down 216,000 over the past year. The fall in employment was driven by a significant decrease in part-time employment of 203,000 over the past year (to 4,228,000); full-time employment was virtually unchanged, down by 13,000 (to 7,930,000). The figures also show that 1,491,000 Australians (10.9% of the workforce) were unemployed in March, up 281,000 on a year ago, and the unemployment rate was up by 2%. In addition, 1,321,000 Australians (9.7% of the workforce) were under-employed, working part-time and looking for more work, a decrease of 41,000 in a year (down 0.3%). In total, a record high 2,812,000 Australians (20.6% of the workforce) were either unemployed or under-employed in March, an increase of 240,000 in a year (up 1.7%). Roy Morgan’s real unemployment figure of 10.9% for March is significantly higher than the current ABS estimate for February of 4.9%. Roy Morgan CEO Michele Levine says the disappointing employment figures suggest the real problem facing the Morrison Government has been an inability to solve Australia’s continuing problem of high unemployment and under-employment. Roy Morgan has consistently shown over 2 million Australians looking for work (unemployed) or looking for more work (under-employed) since the L-NP Government was first elected in September 2013 and that problem remains a large one to this day.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIAN BUREAU OF STATISTICS, MORGAN POLL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

White Collar wipeout

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Original article by Robert Gottliebsen
The Australian – Page: 27 : 17-Apr-19

Media reports have suggested that the Commonwealth Bank and ANZ are looking to retrench up to 25 per cent of their staff. Rival banks will also need to reduce wage costs in order to remain competitive. Meanwhile, new technologies such as artificial intelligence and block chain will result in much bigger job cuts over the next decade, and in a wide range of sectors. The public service offers the greatest potential for major staff cuts, but unions will resist any such move. With fewer job opportunities in the future, more Australians will need to start their own business; in this context, the federal government’s move to establish a small business tax tribunal that is independent of the Australian Taxation Office is to be welcomed.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN TAXATION OFFICE, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ACTU