Author: roymorgansocial

Housing slide threatens surplus hopes

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Original article by Michael Roddan
The Australian – Page: 2 : 28-Feb-19

Data from the Australian Bureau of Statistics shows that construction activity fell by a higher-than-expected 3.1 per cent nationwide in the December quarter, with housing construction falling by 3.6 per cent. The decline in construction work is likely to weigh on GDP growth for the quarter, which may in turn affect economic forecasts in the federal government’s April 2019 Budget. Growth forecasts had already been scaled back in the mid-year Budget update.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY, UBS HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH SECURITIES LIMITED, JP MORGAN AUSTRALIA LIMITED

Buttrose move clears way for new ABC MD

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Original article by Max Mason
The Australian Financial Review – Page: 4 : 28-Feb-19

Media industry veteran Ita Buttrose has declined to comment on reports that she is set to succeed Justin Milne as the ABC’s chair. However, former ABC presenter Quentin Dempster says a new chair should not be appointed until the Senate concludes its inquiry into allegations of political interference at the public broadcaster. Centre for Media Transition director Peter Fray says Buttrose’s expected appointment means the ABC’s acting MD David Anderson is likely to be given the role permanently.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, CENTRE FOR MEDIA TRANSITION, WALKLEY FOUNDATION FOR JOURNALISM, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Rio splashes cash with $19bn payday

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Original article by Paul Garvey
The Australian – Page: 17 & 20 : 28-Feb-19

Rio Tinto has posted a 2018 underlying net profit of $US8.8bn, which is two per cent higher than previously, while net earnings rose by 56 per cent to $US13.6bn. The full-year result was bolstered by the proceeds of asset sales and an increase in copper production. Rio Tinto shareholders will receive a full-year return of $US13.5bn, which includes share buybacks, a final dividend of $US1.80 per share and a special dividend of $US2.43. Meanwhile, CEO Jean-Sebastien Jacques notes that there are signs of a slowdown in global economic growth.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SHAW AND PARTNERS LIMITED, BARCLAYS BANK PLC

Sims wants to hit companies in the share price for misconduct

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Original article by Andrew White, Perry Williams
The Australian – Page: 19 & 23 : 27-Feb-19

Australian Competition & Consumer Commission chairman Rod Sims has outlined the competition watchdog’s priorities for 2019. They include greater scrutiny of advertising services on digital media platforms, customer loyalty schemes that collect and use data, and consumer protection guarantees for large household items. Sims also says he hopes courts will use consumer penalty laws passed in 2018 to impose fines for corporate misconduct that are sufficient to have a material effect on a company’s share price.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG, CITIGROUP PTY LTD, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

Santos CEO comes out firing on Narrabri

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 4 : 27-Feb-19

New South Wales Opposition Leader Michael Daley says Labor will block Santos’s proposed Narrabri coal seam gas project if it wins the state election on 23 March. He has warned that the $3bn project presents an "unacceptable risk" to water resources, farming and indigenous communities. Santos CEO Kevin Gallagher has stressed that protecting the environment and water resources is a priority for the oil and gas group. He adds that failure to develop the state’s gas resources will result in higher gas and electricity prices, as well as the loss of manufacturing jobs and investment in the state.

CORPORATES
SANTOS LIMITED – ASX STO, AUSTRALIAN LABOR PARTY, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, CREDIT SUISSE (AUSTRALIA) LIMITED

ANZ-Roy Morgan Australian Consumer Confidence down to 114.1

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Original article by Roy Morgan
Market Research Update – Page: Online : 27-Feb-19

ANZ-Roy Morgan Australian Consumer Confidence fell 1.0% to 114.1 in the week ended 24 February, retracing the previous week’s gain, although it remains above the long-run average by some margin. Households’ views towards current financial conditions fell 0.9%, while views toward future financial conditions declined 5.3%. However, this only took the latter down to around the long-run average. Consumers’ views toward current economic conditions fell 1.6%, but future economic conditions gained 0.5%. The ‘time to buy a household item’ index moved higher for the second week, gaining 2.9%.

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

PM pumps hydro before coal power

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Original article by Phillip Coorey, Ben Potter
The Australian Financial Review – Page: 1 & 6 : 27-Feb-19

Power industry executives have questioned the merits of the Snowy Hydro expansion program, arguing that it may deter alternative investment in new power generation capacity before Snowy 2.0 is completed. Some have also suggested that a nuclear power station or up to six coal-fired power stations could have been built for the same cost as the Snowy upgrade, which is slated to be between $3.8bn and $4.5bn in total. Meanwhile, Prime Minister Scott Morrison has indicated that the federal government may underwrite a pumped hydro project in Tasmania.

CORPORATES
SNOWY HYDRO LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, SUNSET POWER INTERNATIONAL, AUSTRALIA. DEPT OF FINANCE, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ENERGYAUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TRANSGRID, AUSNET SERVICES LIMITED – ASX AST, AUSTRALIAN LABOR PARTY

Gas shortage to hit within three years

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Original article by Perry Williams
The Australian – Page: 19 & 22 : 27-Feb-19

EnergyQuest has forecast that states on the east coast of Australia will experience a shortage of gas by 2022, and they will have insufficient gas to meet peak demand by 2026. The consultancy has also warned that while Queensland will be able to increase supply to the east coast in the near-term, the state’s own production will begin to decline from 2025. EnergyQuest CEO Graeme Bethune says the expected shortfall means importing LNG is likely to be the best option. The looming gas shortage is also forecast to result in gas prices remaining high over the long-term.

CORPORATES
ENERGYQUEST PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, SANTOS LIMITED – ASX STO, CREDIT SUISSE (AUSTRALIA) LIMITED

Bid on Newmont frees Kalgoorlie sale

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Original article by Jacob Greber
The Australian Financial Review – Page: 10 : 27-Feb-19

Kerry Smith of Haywood Securities says the super pit gold mine in Western Australia is among the assets that could be sold if Barrick Gold’s takeover bid for Newmont Mining Corporation succeeds. Analysts have suggested that Newcrest Mining could be among the potential buyers of the super pit, and media reports in Canada have claimed that Barrick has recently held talks with Newcrest regarding asset sales in Australia.

CORPORATES
BARRICK GOLD CORPORATION, NEWMONT MINING CORPORATION, NEWCREST MINING LIMITED – ASX NCM, HAYWOOD SECURITIES, JP MORGAN AND COMPANY INCORPORATED, RANDGOLD RESOURCES LIMITED, GOLDCORP INCORPORATED, RENAISSANCE MACRO

Industry super wins $11b from retail

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Original article by Joanna Mather
The Australian Financial Review – Page: 8 : 27-Feb-19

Data from the Australian Prudential Regulation Authority show that retail superannuation funds’ outflows totalled $10.9bn in 2018, compared with just $3.5bn in 2017. Industry funds benefited from the bearish sentiment toward retail funds. AustralianSuper’s funds under management rose by 17 per cent to $140bn, lifting its market share to 5.7 per cent. AMP, which was highly criticised by the Hayne royal commission, remains the nation’s largest retail super fund. It boasts some $123bn worth of funds under management, although its market share has fallen below five per cent.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIANSUPER PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, INDUSTRY SUPER AUSTRALIA PTY LTD