Author: roymorgansocial

Criminal cases will take a decade to resolve

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Original article by Ben Butler
The Australian – Page: 5 : 5-Feb-19

The banking royal commission’s final report has recommended criminal charges against two unnamed financial institutions over the fee-for-no-service scandal. Commissioner Kenneth Hayne has also indicated that the Australian Securities & Investments Commission is considering charges against a third, while 15 financial institutions have been referred to ASIC and the Australian Prudential Regulation Authority for further investigation. Professor Dimity Kingsford Smith from the University of New South Wales says it may take up to 10 years for all of the proposed criminal proceedings to be completed.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, UNIVERSITY OF NEW SOUTH WALES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AMP LIMITED – ASX AMP, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, ALLIANZ AUSTRALIA LIMITED, TAL HOLDINGS, YOUI PTY LTD

Parties gear up for bank-bashing poll

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Original article by Ben Packham, Joe Kelly
The Australian – Page: 6 : 5-Feb-19

Treasurer Josh Frydenberg has indicated that the federal government will "act on" all 76 recommendations of the financial services royal commission’s final report. However, the limited number of scheduled parliamentary sittings prior to the election means the government will not have much scope to pursue legislative reforms in its current term in office. Shadow treasurer Chris Bowen says Labor will embrace all of commissioner Kenneth Hayne’s recommendation, and he has invited the Coalition to open a dialogue with Labor about reforms that can be implemented before the election.

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

Apartment approvals hit four-year low

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Original article by Michael Bleby
The Australian Financial Review – Page: 4 : 5-Feb-19

Official figures show that just 53,590 units in apartment towers of at least four storeys were approved in 2018, which is about 12 per cent lower than 2017. The number of approvals for stand-alone dwellings fell slightly, to 119,668. Overall, a total of 212,316 apartments, houses and townhouses were approved in 2018, which is the lowest level in four years. JLL has forecast that just 16,000 apartments will be completed across Australia in 2019.

CORPORATES
JONES LANG LASALLE AUSTRALIA PTY LTD, BIS OXFORD ECONOMICS PTY LTD

NAB singled out for most Hayne pain

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Original article by James Thomson
The Australian Financial Review – Page: W1 & W4 : 5-Feb-19

Key executives of National Australia Bank have been criticised in the financial services royal commission’s final report, including CEO Andrew Thorburn and chairman Ken Hendry. Commissioner Kenneth Hayne says the appearances of Thorburn and Henry before the inquiry raised questions as whether NAB had learnt from its past mistakes with regard to the fee-for-no-service scandal. However, Hayne noted that the evidence of Commonwealth Bank CEO Matt Comyn and ANZ counterpart Shayne Elliott showed that they understand the challenges that their banks face.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Activist sees end of BHP dual-list

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Original article by Paul Garvey
The Australian – Page: 19 : 5-Feb-19

Activist hedge fund Elliott Management argues that BHP’s $529m settlement of a tax dispute in November has strengthened the case for the abolition of its dual-listed structure. Elliott CEO Paul Singer believes that such a move would have broad support among BHP shareholders in the wake of the deal with the Australian Taxation Office regarding its Singapore marketing hub. However, British shareholders may be reluctant to support scrapping the dual listing, which could potentially result in BHP’s removal from the FTSE 100.

CORPORATES
BHP GROUP LIMITED – ASX BHP, ELLIOTT MANAGEMENT CORPORATION, AUSTRALIAN TAXATION OFFICE, FTSE 100 INDEX, FEDERAL COURT OF AUSTRALIA, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC

Less bad outcome a relief for banks

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Original article by David Rogers
The Australian – Page: 21 : 5-Feb-19

There is general consensus among equity analysts and portfolio managers that the final report of the financial services royal commission has not been as harsh on the banking sector as it could have been. Shares in the major banks and AMP are expected to rise when trading resumes on 5 February, although listed mortgage brokers are likely to face a sell-off after the inquiry recommended that brokers’ commissions paid by lenders be phased out in favour of ones paid by borrowers.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NOMURA AUSTRALIA LIMITED, BELL DIRECT, TRIBECA INVESTMENT PARTNERS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG

Strike laws like apartheid: union boss

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Original article by Rachel Baxendale
The Australian – Page: 1 & 2 : 4-Feb-19

ACTU secretary Sally McManus claims that Australia has the most restrictive strike laws among developed nations. In a 100-page essay published by Melbourne University Press, she also likens Australia’s strike laws to the apartheid system in South Africa, the British Raj and racial segregation in the US. McManus also defends her 2017 comments in which she said it is acceptable to break unjust laws, while she criticises the trade union royal commission, privatisation and executive bonuses.

CORPORATES
ACTU, MELBOURNE UNIVERSITY PRESS, UNIVERSITY OF MEDICINE AND DENTISTRY OF NEW JERSEY, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

Labor mulls NBN write-down trigger

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Original article by John Kehoe, Max Mason
The Australian Financial Review – Page: 1 & 10 : 4-Feb-19

The Opposition’s communications spokeswoman Michelle Rowland says Labor has no plans at this stage to sell the NBN should it win the upcoming federal election. However, she says Labor has not ruled out a write-down of the NBN’s value. Such a strategy would reduce the NBN’s financial targets, which would allow it to reduce broadband wholesale charges to telcos such as Telstra and Optus, which in turn would potentially lead to lower prices for consumers.

CORPORATES
AUSTRALIAN LABOR PARTY, NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, VODAFONE AUSTRALIA LIMITED, TPG TELECOM LIMITED – ASX TPM, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, GILBERT AND TOBIN LAWYERS, TELSYTE PTY LTD, AUSTRALIA. DEPT OF FINANCE

Iron ore surge predicted to be temporary

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Original article by Timothy Moore
The Australian Financial Review – Page: 23 : 4-Feb-19

The spot price of iron ore rose above $US85 per tonne in the wake of the latest tailings dam disaster in Brazil. Goldman Sachs and Fitch Ratings are among the firms that have upgraded their iron ore price forecasts, and Capital Economics has suggested that it could peak at around $US100 per tonne. Meanwhile, Liberum Research still expects the iron ore price to retreat to $US50/tonne in 2019 and around $US40/tonne in 2020.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, FITCH RATINGS LIMITED, CAPITAL ECONOMICS LIMITED, LIBERUM RESEARCH, VALE SA, FASTMARKETS MB

Private equity funds size up regional titles

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Original article by Lilly Vitorovich
The Australian – Page: 24 : 4-Feb-19

Allegro Funds, Anchorage Capital and Platinum Equity are said to be the leading contenders to acquire Nine Entertainment Company’s portfolio of regional newspapers, which it inherited via the merger with Fairfax Media. Independent expert Grant Samuel had valued Fairfax’s Australian Community Media division at $100m to $120m in 2018, and the business generates EBITDA of around $52m a year. Nine is also believed to be looking to sell Fairfax’s New Zealand business, Stuff.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED, AUSTRALIAN COMMUNITY MEDIA, ALLEGRO FUNDS PTY LTD, ANCHORAGE CAPITAL PARTNERS PTY LTD, PLATINUM EQUITY HOLDINGS, STUFF LIMITED, RURAL PRESS LIMITED, APOLLO GLOBAL MANAGEMENT LLC, MACQUARIE CAPITAL PTY LTD, TPG CAPITAL LP, GRANT SAMUEL AND ASSOCIATES PTY LTD, JEFFERIES AND COMPANY, HT&E LIMITED – ASX HT1, NZME LIMITED – ASX NZM, MACQUARIE MEDIA LIMITED – ASX MRN