Author: roymorgansocial

Labor says PM squibbed on Hayne

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

Opposition Leader Bill Shorten has called for federal parliament to sit for an additional two weeks in March to allow some of the financial services royal commission’s recommendations to be enacted before the election. Meanwhile, Labor claims that the government has not fully committed to implementing 14 of the 76 recommendations outlined in the inquiry’s final report. Both Prime Minister Scott Morrison and predecessor Malcolm Turnbull have conceded that the inquiry should have begun much earlier.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN CONSUMERS’ ASSOCIATION

King coal now tops export earners

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Original article by Paul Garvey
The Australian – Page: 24 : 6-Feb-19

Data from the Australian Bureau of Statistics shows that the nation’s minerals and energy exports rose to a record $193bn in 2018. The value of coal exports topped $66.2bn, surpassing iron ore as Australia’s biggest export earner for the first time. Mining companies benefited from a rally in thermal and coking coal prices in 2018. However, prices have since fallen, while the iron ore price has rallied in 2019.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, SOUTH32 LIMITED – ASX S32, MINERALS COUNCIL OF AUSTRALIA

Banks surge after royal pardon

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Original article by David Rogers, Richard Gluyas
The Australian – Page: 19 & 23 : 6-Feb-19

Jon Mott of UBS has described the final report of the financial services royal commission as a "clear win" for Australia’s banks, saying its recommendations did not meet market expectations. Investors agreed, with shares in the banks and wealth managers AMP and IOOF Holdings rallying on 5 February. Brian Johnson of CLSA says bank stocks could rise further, as the market had priced in more onerous recommendations by commissioner Kenneth Hayne.

CORPORATES
UBS HOLDINGS PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CLSA AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, IOOF HOLDINGS LIMITED – ASX IFL, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, MORTGAGE CHOICE LIMITED – ASX MOC, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Miners soar as gold and iron ore prices rise

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Original article by Paul Garvey
The Australian – Page: 24 : 6-Feb-19

Peter O’Connor of Shaw & Partners notes that Australian mining stocks have gained 17 per cent since 20 December. Shares in Fortescue Metals Group, BHP and Rio Tinto rallied on 5 February, after the spot price of iron ore for delivery to the port of Qingdao in China rose above $US81 per tonne. Analysts note that the market’s response to the latest iron ore tailings dam disaster in Brazil has been markedly different to the Samarco tragedy in 2015, when commodity prices had already been retreating.

CORPORATES
SHAW AND PARTNERS LIMITED, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ARGONAUT SECURITIES PTY LTD

Next rates move still up, RBA insists

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Original article by David Rogers, James Glynn
The Australian – Page: 19 & 28 : 6-Feb-19

The Reserve Bank of Australia has downgraded its forecast for economic growth in 2019 from 3.25 per cent to around three per cent, after leaving the cash rate unchanged at 1.5 per cent. The central bank has also advised that it now expects the unemployment rate to fall to around 4.75 per cent over the next several years, while it forecasts an underlying inflation rate of two per cent in 2019. Analysts expect official interest rates to remain on hold for some time.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK, AUSTRALIAN BUREAU OF STATISTICS

ANZ-Roy Morgan Australian Consumer Confidence up to 118.1

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-Feb-19

ANZ-Roy Morgan Australian Consumer Confidence rose 1.4% to 118.1 in the week ended 3 February, moving higher for the second week in a row. The gain has brought the index close to its highest level since early December. Households’ views towards current financial conditions rose 3.2%, and views towards future financial conditions gained 1.3%. Consumers’ views toward current and future economic conditions gained 0.9% and 1.4% respectively. The ‘time to buy a household item’ sub-index fell 0.3%, to its lowest level since October.

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

Don’t forget tech-savvy Boomers, brands told

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Original article by Max Mason
The Australian Financial Review – Page: 14 : 5-Feb-19

A new report from consulting firm Ernst & Young has urged brands not to ignore Baby Boomers when it comes to their targeting of consumers. Jenny Young from EY notes that Baby Boomers account for 25 per cent of the population, and that 20 per cent of them spend at least 20 hours online each week. Young says media and entertainment companies need to broaden their customer strategies to ensure that they are not missing out on what she says is a large market segment. EY has also found that consumers are happy to give personal data to brands and media companies so long as it is kept securely and so long as it is used to improve their customer experience.

CORPORATES
ERNST AND YOUNG, MILKEN INSTITUTE

LNG import plans pushed back to 2020

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 14 : 5-Feb-19

AGL Energy’s proposed import terminal at Crib Point in Victoria and Australian Industrial Energy’s planned LNG import terminal at Port Kembla in New South Wales are among five LNG import terminals flagged for Australia. However, Saul Kavonic of Credit Suisse says none of the five may be approved by the end of 2019. Labor’s energy spokesman Mark Butler says it has not ruled out LNG import terminals if it wins the upcoming election, while Australian Workers’ Union national secretary Daniel Walton has spoken out against importing LNG.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN INDUSTRIAL ENERGY PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, CREDIT SUISSE (AUSTRALIA) LIMITED

E-health record in need of overhaul

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Original article by Supratim Adhikari
The Australian – Page: 23 : 5-Feb-19

Head and neck surgeon Elizabeth Sigston does not believe that there should be any sharing of people’s medical records. Sigston says the $2 billion My Health Record system remains riddled with complexity, and she is very concerned about the proposed Data Sharing and Release Act, warning that it has the potential to override the Privacy Act. She says the risks associated with sharing data is most acute when it comes to genomic data, which the MHR is able to store. John Sutton of Armstrong Legal says there is no need for MHR data to be shared with third parties.

CORPORATES
ARMSTRONG LEGAL, AUSTRALIA. DEPT OF HEALTH

Franking plan violates fair go tax principles: retirees

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Original article by Tim Boyd
The Australian Financial Review – Page: 5 : 5-Feb-19

Retiree Bernard Shea has told a parliamentary committee that Labor’s proposal to abolish cash refunds for excess dividend imputation credits is in violation of "the pillars and basic principles of taxation". The inquiry was being held at the Merimbula RSL on the New South Wales south coast, with most submissions coming from retirees who are against the changes. Retiree Jon Gaul claimed that he would lose $6,000 a year if Labor’s policy is enacted, while Shea said the policy discriminates against self-managed superannuation funds.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, INSTITUTE OF PUBLIC ACCOUNTANTS LIMITED