Author: roymorgansocial

RBNZ could end big four’s NZ super profits

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Original article by Sarah Turner
The Australian Financial Review – Page: 21 : 1-Mar-19

New Zealand has traditionally been a cash cow for Australia’s major banks, but experts warn that profit growth could be dampened by the Reserve Bank of New Zealand’s proposal to increase their capital requirements. Westpac has warned that any move to impose higher capital buffers could push up interest rates on loans and result in a downturn in deposit rates. The RBNZ has downplayed concerns that it proposal may prompt Australian banks to exit the NZ market.

CORPORATES
RESERVE BANK OF NEW ZEALAND, WESTPAC BANKING CORPORATION – ASX WBC, NEW ZEALAND INITIATIVE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED

Will Rio take the plunge into M&A?

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto has signalled that it is open to acquisitions, but CEO Jean-Sebastien Jacques stresses that any deals must create value for shareholders. Ben Cleary of Tribeca Investment Partners has identified copper miner SolGold as a prime target for Rio Tinto, and he says other potential targets could include OZ Minerals and Freeport-McMoran. Glyn Lawcock of UBS cautions that the wrong acquisition could undo much of the progress Rio Tinto has made in restoring investors’ confidence in recent years.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TRIBECA INVESTMENT PARTNERS PTY LTD, SOLGOLD PLC, OZ MINERALS LIMITED – ASX OZL, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM

Jacques to get modest pay rise of 2.5pc

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Original article by Brad Thompson
The Australian Financial Review – Page: 19 : 1-Mar-19

Rio Tinto’s annual report shows that CEO Jean-Sebastien Jacques received total remuneration of Stg4.29m in 2018, compared with Stg3.82m in 2017. His base salary will increase by 2.5 per cent to Stg1.138m from the start of March. Meanwhile, Rio Tinto’s remuneration committee has advised that the payment of bonuses to former CEO Sam Walsh will again be deferred pending the outcome of an investigation into the Simandau scandal.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG

Call for rethink on work sex claims

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Original article by Ewin Hannan
The Australian – Page: 2 : 28-Feb-19

The ACTU and the Australian Council of Social Service are among the groups that have urged changes to the Fair Work Act to allow complaints about sexual harassment in the workplace to be heard by the Fair Work Commission. The joint submission to the national inquiry into workplace sexual harassment contends that the current system is flawed and can result in complainants being victimised again when their case heard in court.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, FEDERATION OF COMMUNITY LEGAL CENTRES

OZ sets sights on long-term payoff

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 28-Feb-19

OZ Minerals has posted a 2018 net profit of $222.4m, which is 3.8 per cent lower than previously, although revenue was up 9.2 per cent at $1.12bn. Shareholders will receive a final dividend of $0.15 per share, but OZ has opted against paying a special dividend to finance growth projects such as the Carrapateena copper mine in South Australia. CEO Andrew Cole has also indicated that OZ will not proceed with a concentrate treatment plant in SA as it does not "stack up" at present.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, AVANCO RESOURCES LIMITED, JP MORGAN AUSTRALIA LIMITED

PM’s energy free-for-all bid criticised

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Original article by Ben Potter
The Australian Financial Review – Page: 5 : 28-Feb-19

The federal government has announced $3.5bn worth of funding for initiatives in the energy sector in recent days. Prime Minister Scott Morrison announced on 27 February that the government will underwrite three Tasmanian pumped hydro projects in 2021 if feasibility studies conclude that they are economically viable. However, several energy industry executives have criticised the government, accusing it of political ‘pork barrelling’ ahead of the election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SNOWY HYDRO LIMITED, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN LABOR PARTY

Big four may mull NZ exit due to capital call

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Original article by Sarah Turner
The Australian Financial Review – Page: 19 : 28-Feb-19

Brian Johnson of CLSA and Jonathan Mott of UBS have warned that Australia’s four major banks could seek to divest their New Zealand subsidiaries if the nation’s central bank presses ahead with plans to increase their capital requirements. However, the Reserve Bank of New Zealand has downplayed such suggestions, arguing that the nation’s banks are among the most profitable in the world. Mott does not expect the RBNZ to back down on its proposal.

CORPORATES
RESERVE BANK OF NEW ZEALAND, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD

Shipping victims win huge payouts

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Original article by Simon Benson
The Australian – Page: 1 & 2 : 28-Feb-19

Teekay Shipping has confirmed that it has retrenched the last crewmembers of two bulk carriers that had been chartered to ship iron ore from BHP’s mines in the Pilbara to BlueScope’s Port Kembla steelworks. Teekay is believed to have paid 51 workers more than $9m in redundancy payments on 7 February, with each worker receiving an average of $176,000. The ships were the last two iron ore vessels operating in Australian waters that were manned by local crews. Labor has flagged plans to re-regulate the shipping industry to protect local jobs.

CORPORATES
TEEKAY SHIPPING CORPORATION, BHP GROUP LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, MARITIME UNION OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, THE AUSTRALIAN INSTITUTE OF MARINE AND POWER ENGINEERS, AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA

BCA has had a gutful of politics

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 28-Feb-19

Business Council of Australia CEO Jennifer Westacott has urged both sides of federal politics to cease their attacks on the business sector and focus on policies to stimulate the economy and wages. She is particularly critical of the government’s proposal to force energy companies to divest assets if they fail to reduce electricity prices, arguing that it will deter investment in Australia and will doing little to provide price relief. Westacott has also criticised Labor’s proposed banking industry reforms in response to the Hayne royal commission.

CORPORATES
BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Facebook’s olive branch to publishers

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Original article by Max Mason
The Australian Financial Review – Page: 21 : 28-Feb-19

Social media giant Facebook is set to launch its Facebook Journalism Project News Accelerator in Australia, in partnership with the Walkley Foundation. The initiative is aimed at assisting media companies to increase their revenue from social media, and it follows the Australian Competition & Consumer Commission’s landmark inquiry into digital platforms. Facebook will also provide funding for a pilot program aimed at improving the media literacy skills of high school students.

CORPORATES
FACEBOOK INCORPORATED, FACEBOOK AUSTRALIA PTY LTD, WALKLEY FOUNDATION FOR JOURNALISM, ALLIANCE FOR JOURNALISTS’ FREEDOM, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED, THINK TV, AUSTRALIAN ASSOCIATION OF NATIONAL ADVERTISERS