Author: roymorgansocial

Super changes to cost AMP $30m annually

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Original article by Misa Han
The Australian Financial Review – Page: 19 : 19-Feb-19

Embattled wealth manager AMP has advised that the federal government’s superannuation reforms will reduce its operating earnings by about $10m in 2019 and up to $30m in 2020. The reforms will allow the Australian Taxation Office to consolidate super accounts that are inactive or have low balances. AMP estimates that the reforms will affect about 370,000 of its super accounts. The bill has been passed by the Senate with the Greens’ support, although it has yet to be passed by the lower house.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN GREENS, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Free TV calls for tax breaks for news production to curtail Google, Facebook

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Original article by Lilly Vitorovich
The Australian – Page: Online : 19-Feb-19

Free TV Australia CEO Bridget Fair has urged the Australian Competition & Consumer Commission to develop new regulations for digital platforms in the wake of its landmark inquiry into the sector. Amongst other things, Free TV suggests that digital platforms could be subject to undertakings to ensure that media companies are fairly paid for their content. The lobby group has also proposed the introduction of a tax offset for the production of local news and journalistic content.

CORPORATES
FREE TV AUSTRALIA LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, GOOGLE INCORPORATED, FACEBOOK INCORPORATED

Westpac cops flak after flat quarterly post

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Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 19-Feb-19

Westpac has reported a statutory net profit of $1.95bn and a cash profit of $2.04bn for the December 2018 quarter. Both figures were largely unchanged from the two previous quarters. Westpac has also advised that its net interest margin rose during the quarter, while there was an increase in both secured and unsecured mortgage delinquencies. Meanwhile, the Australian Securities & Investments Commission will appeal a Federal Court ruling that a marketing campaign by Westpac’s BT arm between 2014 and 2016 did not breach its financial services licence.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT FINANCIAL GROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Thermal coal prices set to rebound this year

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

New figures from the Australian Bureau of Statistics show that the value of the nation’s coal exports rose to a record $66.2bn in 2018. Meanwhile, Viktor Tanevski of Wood Mackenzie forecasts that demand for bituminous thermal coal in the Asia-Pacific region will rise by three million tonnes in 2019. He also expects the price of high-energy Australian thermal coal to recover to $US98 per tonne after testing the $US88 level earlier in 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, WOOD MACKENZIE, MACH ENERGY, GLENCORE PLC, RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32

Earnings hit tipped for BHP

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

BHP will post a net profit of $US3.9bn for the first half of 2018-19, according to the consensus forecast of analysts. This compares with $US4.1bn for the previous corresponding period. EBITDA is tipped to fall from $US12.8bn to $US10.6bn, although an expected strong rise in the petroleum division’s EBITDA will help offset the underperformance elsewhere in BHP’s portfolio. Meanwhile, BHP’s interim dividend is expected to fall from $US0.55 per share to $US0.53, although the downturn in the Australian dollar will boost the dividend payout of local investors.

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

Last weekend’s Roy Morgan ‘face-to-face poll’ shows: ALP 52.5%, L-NP 47.5%. L-NP jump 3% on 2PP after ALP vote to loosen border protection laws

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An Australia-wide Roy Morgan face-to-face poll conducted over the weekend (February 16/17, 2019) with a cross-section of 851 Australian electors shows the ALP 52.5% cf. L-NP 47.5% on a two-party preferred basis.

This shows a 3% swing to the L-NP following the ALP’s decision to support a loosening of Australia’s border protection laws by backing a ‘Medivac Law’ allowing for the transfer of refugees and asylum seekers already on Manus Island or Nauru to Australia for medical reasons given the recommendation of two doctors. The Home Affairs Minister then has a right to reject the transfer however the Minister’s decision is itself subject to further review.

The L-NP primary vote is now 37% (up 2.5%) overtaking the ALP primary vote which has fallen 1.5% to 34.5%. Support for the Greens is down 1% to 11.5% while support for One Nation has increased 0.5% to 3.5%. Support for Clive Palmer’s UAP is unchanged at 1% while support for Independents/Others is down 0.5% to 12.5%.

Gary Morgan, Executive Chairman Roy Morgan, says:

“The results of last weekend’s Roy Morgan poll show the issue of border protection is a major strength for the L-NP however a lot can happen between now and when the Federal Election is due in May.”

Roy Morgan Poll, conducted February 16/17, 2019 – Australia-wide cross-section of 851 Australian electors.

Roy Morgan Poll, conducted February 2/3 & 9/10, 2019 – Australia-wide cross-section of 1,673 Australian electors.

Morrison’s Tampa moment

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Original article by Rosie Lewis, Joe Kelly, Primrose Riordan, Paige Taylor
The Australian – Page: 1 & 5 : 18-Feb-19

Prime Minister Scott Morrison has highlighted the federal government’s border protection policies in a newspaper article which is targeted at migrant communities. In addition, Morrison has recorded a two-minute video clip aimed at people-smugglers, in which he stresses that the passage of the medivac legislation will not affect Australia’s tough stance on asylum-seekers. The video will be broadcast in 15 languages on YouTube. Meanwhile, Labor has criticised the government’s decision to re-open the detention centre on Christmas Island.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

PM heads off revolt by Nationals

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 18-Feb-19

The National Party is very unhappy over the federal government’s shelving of legislation that would allow the forced divestment of energy companies’ assets. It is understood that some Nationals MPs were prepared to cross the floor of the House of Representatives and vote against the government on small business legislation. The government has moved to placate the Nationals by agreeing to support amendments to the legislation that will make it easier for smaller businesses to sue larger companies. The government has also indicated that it will support a Labor/Greens motion calling for a royal commission into the treatment of the disabled.

CORPORATES
NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AGL ENERGY LIMITED – ASX AGL

‘Time to pounce’: Investors rush to beat change

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Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 9 : 18-Feb-19

Real estate investors are preparing to acquire established properties in the event that Labor wins the upcoming federal election. Labor intends to abolish negative gearing on established properties, although it will still allow it for newly-built homes. However, any such changes would be unlikely to take effect until 1 July 2020. Victor Kumar of Right Property Group says he would expect to see a big increase in sales of established properties in the period between the election and when any legislation takes effect.

CORPORATES
AUSTRALIAN LABOR PARTY, RIGHT PROPERTY GROUP

South32 warns of strike risk if ALP wins poll

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Original article by Brad Thompson
The Australian Financial Review – Page: 13 & 18 : 18-Feb-19

South32 CEO Graham Kerr is concerned that Labor’s workplace reform agenda could lead to increased industrial action, particularly in the resources sector. He says the outcome of the upcoming federal election could affect business confidence for at least 12 months. Kerr notes that stability of supply is a major priority for buyers of Australia’s metallurgical coal buyers. He adds that if supply is disrupted they will source coal elsewhere, and it is very hard to regain a customer’s trust once it has been lost. Employers’ groups are also concerned about any move to reinstate industry-wide bargaining.

CORPORATES
SOUTH32 LIMITED – ASX S32, AUSTRALIAN LABOR PARTY, THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, AUSTRALIA. REGISTERED ORGANISATIONS COMMISSION, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, TAHMOOR COAL PTY LTD, CENTENNIAL COAL COMPANY LIMITED, WOLLONGONG COAL LIMITED – ASX WLC, PEABODY ENERGY AUSTRALIA COAL PTY LTD, PORT KEMBLA COAL TERMINAL LIMITED