Author: roymorgansocial

Next rates move will be up: RBA’s Harper

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Original article by James Glynn
The Australian – Page: 24 : 30-Jan-19

Reserve Bank of Australia board member Ian Harper has downplayed suggestions that the central bank could further reduce the cash rate. He says the strength of the domestic economy means that interest rates will rise, but stresses that this is his personal view. Meanwhile, Harper adds that there are no indications as yet that the downturn in residential property prices has prompted consumers to reduce their spending. Financial markets have priced in a better-than-even chance that the RBA will reduce the cash rate during 2019.

CORPORATES
RESERVE BANK OF AUSTRALIA, MELBOURNE BUSINESS SCHOOL, COMMONWEALTH SECURITIES LIMITED

Widows, elderly caught by shares crackdown

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Original article by Tom McIlroy
The Australian Financial Review – Page: 9 : 30-Jan-19

Professor Sinclair Davidson has concluded that Labor’s proposal to abolish cash refunds for excess dividend imputation credits would have the biggest impact on self-managed superannuation funds and self-funded retirees. His analysis also shows that women account for 56 per cent of people who receive cash refunds under the existing scheme, and 68 per cent of them are over the age of 60. In addition, 47 per cent are single or widowed. Labor estimates that its policy would boost government revenue by $55.7bn over 10 years.

CORPORATES
AUSTRALIAN LABOR PARTY, RMIT UNIVERSITY, INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN TAXPAYERS’ ALLIANCE PTY LTD, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY

US, China ignite hi-tech row

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Original article by Glenda Korporaal, Primrose Riordan
The Australian – Page: 1 & 9 : 30-Jan-19

The Chinese Government claims that US charges against Huawei and chief financial officer Meng Wanzhou are politically ­motivated. Amongst other things, the US has accused them of breaching US trade sanctions against Iran, money-laundering and stealing trade secrets. The Lowy Institute’s Richard McGregor says the charges could have an impact on Australia’s future relationship with China, while Defence Minister ­Christopher Pyne says the US should focus on issues such as the South China Sea. The US and China will shortly commence trade talks in Washington.

CORPORATES
HUAWEI TECHNOLOGIES COMPANY LIMITED, LOWY INSTITUTE FOR INTERNATIONAL POLICY, AUSTRALIA. DEPT OF DEFENCE, UNITED STATES. DEPT OF JUSTICE, AUSTRALIA. DEPT OF HOME AFFAIRS, TPG TELECOM LIMITED – ASX TPM, T-MOBILE USA INCORPORATED, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, UNITED STATES. DEPT OF HOMELAND SECURITY, UNITED STATES. DEPT OF COMMERCE, ZTE CORPORATION

PM’s tax-break move a win for small business

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Original article by Michael Roddan, Greg Brown
The Australian – Page: 2 : 30-Jan-19

The federal government has extended a tax break for small businesses, in a move which Prime Minister Scott Morrison says will benefit more than three million small businesses with annual turnover of up to $10m. The threshold for the small business instant asset write-off has been increased to $25,000, as part of the government’s strategy to gain the support of small business owners ahead of the election. The government has also committed to creating an additional 1.25 million jobs over five years if it wins the election.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, DELOITTE ACCESS ECONOMICS PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF DEFENCE

Storm clouds gathering after a promising start

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Original article by David Rogers
The Australian – Page: 24 : 30-Jan-19

Australia’s benchmark S&P/ASX 200 has gained more than four per cent so far in 2019, putting it on track to achieve its best performance in the month of January in five years. However, the local market could face a number of headwinds in the near-term, including the outlook for US interest rates and trade negotiations between the US and China. There is growing speculation that the Federal Reserve will pause its monetary policy tightening in 2019, and the exact timing of the next move in the cash rate remains uncertain.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, PEPPERSTONE GROUP LIMITED, JP MORGAN AND COMPANY INCORPORATED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HUAWEI TECHNOLOGIES COMPANY LIMITED

Aussies give stamp of approval to Australian-made goods

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jan-19

A Roy Morgan Single Source survey shows that 90% of Australians aged 14+ say they are more likely to buy products made in Australia, up from 88% four years ago. The survey, which was conducted in the 12 months to September 2018, also shows that 60% of Australians are more likely to buy products made in New Zealand, up 7% points from 2014. Likewise, 54% of Australians are more likely to buy products made in Canada, up from 45% four years ago. However, just 34% of Australians said they’d be more likely to buy products made in China, down 1% point from four years ago. Roy Morgan CEO Michele Levine says that although the number of Australians who are more likely to buy a product that is ‘made in Australia’ is very high across all age groups, those in Generation X (92%) and Baby Boomers (91%) are more likely to prefer Australian-made products than other generations.

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ROY MORGAN LIMITED

Vicinity write-down hints at retail cycle’s turn: Citi

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 32 : 29-Jan-19

Shopping centre landlord Vicinity Centres advised in the week ending 25 January that it had reduced the value of its portfolio by $37 million. Although the write-down represented only a 0.2 per cent reduction in the value of Vicinity’s portfolio, Citi analysts have heralded it as being "symbolically significant" in a research note. Citi has stated that retail is its least preferred property option, and that recent news regarding the retail property sector suggests that conditions are declining more quickly than had previously been thought.

CORPORATES
VICINITY CENTRES – ASX VCX, CITIGROUP PTY LTD, SCENTRE GROUP – ASX SCG, GOODMAN GROUP – ASX GMG

Google rejects check on search algorithms

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Original article by Paul Smith
The Australian Financial Review – Page: 19 & 22 : 29-Jan-19

The Australian Competition & Consumer Commission has previously proposed that an external regulator monitor the algorithms used by Google and Facebook. Both companies have expressed concerns about the proposal, with Google Australia and New Zealand Managing Director Mel Silva saying such a move could make its algorithms open to manipulation. The recommendation regarding algorithms was one of a number put forward by the ACCC following its review into digital platforms; Silva says its recommendation to establish a digital platforms ombudsman has merit.

CORPORATES
GOOGLE AUSTRALIA PTY LTD, FACEBOOK AUSTRALIA PTY LTD, UNLOCKD PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Households may have to pay more to ease power crunches

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Original article by Ben Potter, Angela Macdonald-Smith
The Australian Financial Review – Page: 10 : 29-Jan-19

The Grattan Institute’s energy program director Tony Wood has cautioned against an overreaction to the recent rolling power blackouts that impacted South Australia and Victoria. Charging consumers more to use air conditioners during extreme heat has been put forward as one solution to the problem of matching demand with supply during such weather conditions, as has simplifying the regulatory test for new transmission links.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, TRANSGRID, SPARK INFRASTRUCTURE GROUP – ASX SKI, ENERGYAUSTRALIA PTY LTD, SCHNEIDER AUSTRALIA

PM pledges more jobs, no debt

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 29-Jan-19

Prime Minister Scott Morrison will use a speech in Brisbane on 29 January to commit the Coalition to creating an additional 1.25 million jobs over five years if it wins the 2019 federal election. He will note that the Coalition has created more than 1.2 million jobs since it won the 2013 election. Morrison will also indicate that his government will aim to clear Australia’s net debt within a decade. It currently stands at $351.9bn, or 18.2 per cent of GDP. The mid-year Budget update had forecast that net debt will fall to 1.5 per cent of GDP in 2028-29.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA