Author: roymorgansocial

Origin buoyed by record Australia Pacific LNG sales

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 23 : 1-Feb-19

Origin Energy has advised that its share of revenue from the Australia Pacific LNG project rose by 45 per cent year-on-year in the December quarter, to $740.9m. Origin received net cash distributions of $393 million from the project during the first half of 2018-19, compared with its guidance of $375m-$395m. Meanwhile, Origin’s domestic electricity and gas sales volumes fell by eight per cent and 21 per cent respectively quarter-on-quarter.

CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA PACIFIC LNG LIMITED, JP MORGAN AUSTRALIA LIMITED, RBC CAPITAL MARKETS, AGL ENERGY LIMITED – ASX AGL, SHANDONG ORDER GAS COMPANY LIMITED

Fed puts the brakes on interest rates

roymorgansocial Leave a comment

Original article by Nick Timiraos
The Australian – Page: 28 : 1-Feb-19

Wall Street rallied and US bond yields fell after the Federal Reserve left the cash rate on hold at its first monetary policy meeting for 2019 and signalled that further rate rises are off the agenda in the near-term. The central bank had increased the federal funds rate in December and flagged two rate rises in 2019. Federal Reserve chairman Jerome Powell has identified a number of potential risks to the US economy that contributed to the decision to announce an interest rate pause.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, GRANT THORNTON INTERNATIONAL

Supermarkets increase dominance in fresh food

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 1-Feb-19

Australia’s total fresh food market (comprising meat, bread, deli, fruit, vegetables and seafood) now has an annual retail value of $38.8bn. Supermarkets currently hold 71.4% of this market, up from 69.0% 12 months ago and representing a continuation of a long-term trend. Woolworths has increased its lead over Coles in the 12 months to September 2018, with a market share gain in fresh food of 1.0% points (to 27.4%), compared to a gain of 0.6% points for Coles (to 24.6%). Aldi showed the second biggest gain, being up 0.8% points to 9.8%, leaving it in third place and well ahead of IGA on 6.0%. Of the smaller fresh food retailers, butchers showed the biggest decline, down 1.1% points to 7.0%, followed by fruit shops, down 0.7% points to 6.7%. These are some of the latest findings from Roy Morgan’s ‘Supermarket & Fresh Food Currency Report-September 2018’, which is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including detailed questionnaires of over 12,000 grocery buyers.

CORPORATES
ROY MORGAN LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS SUPERMARKETS, ALDI STORES SUPERMARKETS PTY LTD, IGA

Hayne plan: trust, credit, competition

roymorgansocial Leave a comment

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

Treasurer Josh Frydenberg has indicated that restoring consumers’ trust in banks will be a key focus of the federal government’s response to the final report of the financial services royal commission. He says the government will also aim to ensure that there is competition in the sector and that consumers and businesses continue to have access to credit. Meanwhile, shadow treasurer Chris Bowen says a Labor government would establish a taskforce to implement the inquiry’s recommendations, claiming that only Labor can restore the public’s trust in financial services providers.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD

China demand to drive earnings: Fortescue

roymorgansocial Leave a comment

Original article by Perry Williams
The Australian – Page: 24 : 1-Feb-19

Fortescue Metals Group has advised that its iron ore shipments for the December 2018 quarter totalled 42.5 million tonnes, an increase of five per cent year-on-year. The result included its first shipments of the higher-grade West Pilbara Fines. Meanwhile, Fortescue expects its earnings to be boosted by renewed demand for lower-grade iron ore among Chinese steel mills. The pure-play miner also says it is too soon to determine the likely impact of the latest tailings dam collapse in Brazil on the iron ore price.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, VALE SA

Satisfaction with banks improving

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 1-Feb-19

New results from Roy Morgan shows that customer satisfaction with Australia’s banks rose to 78.2% in the six months to December 2018, compared with 78.1% in the six months to November. This in turn was up from 78.0% in October. These two positive months are in contrast to the nine months of declines up to October during the Royal Commission, with satisfaction showing a decline of 3.2% points over this period. Satisfaction with banks remains above the long-term average of 74.3% calculated since 2001 and well up on the 58.7% in January 2001. Of the 10 largest consumer banks, only ING (up 4.1% points) and Bendigo Bank (up 0.5% points) have shown increased satisfaction from prior to the commencement of the Royal Commission. The CBA retains its position of having the highest satisfaction among the big four with 77.1%, ahead of NAB (75.0%), ANZ (74.2%) and Westpac (72.0%). Roy Morgan’s ‘Customer Satisfaction-Consumer Banking in Australia’ is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 4,000 bank customers per month.

CORPORATES
ROY MORGAN LIMITED, ING BANK (AUSTRALIA) LIMITED, BENDIGO BANK, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Dam disaster fuels surge in iron ore price

roymorgansocial Leave a comment

Original article by Perry Williams
The Australian – Page: 17 & 20 : 31-Jan-19

Goldman Sachs has upgraded its 2019 forecast for iron ore after the price of the steel input rose 4.4 per cent to $US78.50 ($109) a tonne in response to another tailings dam disaster in Brazil. Goldman Sachs now has a price forecast of $US65 per tonne, compared with $US60 previously. The federal government’s mid-year budget update had forecast that the iron ore price would average $US55 per tonne in 2019. Vale has indicated that its annual iron ore production could be cut by up to 40 million tonnes due to the dam collapse. This would equate to about 10 per cent of its annual output.

CORPORATES
VALE SA, THE GOLDMAN SACHS GROUP INCORPORATED, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SHAW AND PARTNERS LIMITED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MACQUARIE GROUP LIMITED – ASX MQG, TUV SUD

Tech experts opt out of My Health system

roymorgansocial Leave a comment

Original article by Bo Seo
The Australian Financial Review – Page: 5 : 31-Jan-19

Australians must choose whether to opt out of the federal government’s controversial My Health Record system by 31 January. Data security and privacy concerns have prompted a number of people in the technology sector to opt out of the system, including Freelancer CEO and founder Matt Barrie, who says the government has done an "abysmal job" of protecting Australians’ privacy. Cyber security expert Vijay Varadharajan has also chosen to opt out, although Cyber Security Research Centre CEO Rachael Falk has opted in.

CORPORATES
FREELANCER LIMITED – ASX FLN, CYBER SECURITY RESEARCH CENTRE, AIRTREE VENTURES PTY LTD, MICROSOFT CORPORATION, UNIVERSITY OF NEW SOUTH WALES, UNIVERSITY OF NEWCASTLE

Stockland, Mirvac and Lendlease face settlement risk

roymorgansocial Leave a comment

Original article by Ben Wilmot, Samantha Bailey
The Australian – Page: 17 & 23 : 31-Jan-19

UBS says settlement risk could be a problem for Mirvac, Lendlease and Stockland in coming years as a result of the downturn in Australia’s apartment market. US believes that Mirvac is most vulnerable to settlement risk; however, such concerns have been downplayed by the head of Mirvac’s residential division, Stuart Penklis. Meanwhile, Dominic Lambrinos of Chifley Securities says some developers could be forced to sell development sites at a discount.

CORPORATES
UBS HOLDINGS PTY LTD, MIRVAC GROUP – ASX MGR, LEND LEASE GROUP LIMITED – ASX LLC, STOCKLAND – ASX SGP, CHIFLEY SECURITIES, CORELOGIC AUSTRALIA PTY LTD, AMP LIMITED – ASX AMP, CREDIT SUISSE (AUSTRALIA) LIMITED

Banks not to blame for house slump

roymorgansocial Leave a comment

Original article by James Frost, James Thomson
The Australian Financial Review – Page: 1 & 8 : 31-Jan-19

Westpac CEO Brian Hartzer has refuted suggestions that the bank has become more averse to approving loans as a result of the financial services royal commission. He says Westpac’s loan approval rates remain unchanged, and it is simply that fewer people are applying for loans. He also refutes claims that banks are responsible for the recent decline in house prices, arguing that it is merely an "orderly adjustment" to the housing price cycle. Hartzer adds that further regulation of lenders could prompt more customers to switch to so-called shadow banks.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION