Author: roymorgansocial

Baird defends NAB interest rate hike

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Original article by Joyce Moullakis
The Australian – Page: 15 & 16 : 25-Jan-19

Sally Tindall of RateCity expects other major banks to increase their mortgage interest rates after National Australia Bank announced a rise in its rates for owner-occupiers and investors. NAB has indicated that a rise in wholesale funding costs was the main driver of the rate hike, but chief customer officer Mike Baird notes that it is the first increase in its standard variable interest rate since March 2017. NAB chose to leave its mortgage rates on hold when other banks lifted theirs in September.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RATECITY PTY LTD, BANK OF QUEENSLAND LIMITED – ASX BOQ, VIRGIN MONEY (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

OZ says copper won’t be hit by slowdown

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Original article by Simon Evans
The Australian Financial Review – Page: 19 : 25-Jan-19

OZ Minerals CEO Andrew Cole is confident that strong demand for copper and the lack of major new discoveries means the copper price will ride out any downturn in the global economy. Meanwhile, production at OZ Minerals’ Carrapateena mine in South Australia is scheduled to begin in the final quarter of 2019, and Cole says it should reach full production within 18 months. He is also optimistic that the Prominent Hill mine’s will remain in production beyond 2030, when it is currently slated to close.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, ANGLO AMERICAN PLC, VALE SA, MMX MINERACAO E METALICOS SA

Polly Waffle to make a comeback after success of Violet Crumble

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Original article by Simon Evans
The Australian Financial Review – Page: 3 : 25-Jan-19

Adelaide-based Robern Menz has bought the iconic Australian brand Polly Waffle from Nestle and will relaunch the popular chocolate bar, which was discontinued in 2009. Robern Menz previously bought the Violet Crumble brand from Nestle in 2018, in a deal that has boosted sales turnover by 35 per cent. Phil Sims, the CEO of Robern Menz, says the company is focusing on niche strategies in order to compete with global confectionery groups.

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ROBERN MENZ GROUP, NESTLE SA

Budget risks in pensioner pork

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Original article by John Kehoe
The Australian Financial Review – Page: 3 : 25-Jan-19

Speculation that the federal government may give pensioners and families on low incomes a one-off cash payment prior to the election has prompted suggestions of ‘pork barrelling’. Some observers have likened it to the strategy of former prime minister John Howard ahead of the 2007 election, which he lost. Chris Richardson of Deloitte Access Economics says a low jobless rate and a strong economy means such largesse is not necessary, while Opposition Leader Bill Shorten says the government is now in election mode.

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

RBA will ignore gloom and stay a growth hawk

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Original article by James Glynn
The Australian – Page: 23 : 25-Jan-19

The Reserve Bank of Australia is tipped to scale back its economic growth forecasts for 2019 and 2020, after GDP growth was just 2.8 per cent year-on-year in the December 2018 quarter. The RBA had previously forecast growth of 3.5 per cent for 2018. However, the central bank is expected to maintain its hawkish stance, given that the unemployment rate eased in December. The strong labour market also means an increase in the cash rate is more likely than a cut.

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RESERVE BANK OF AUSTRALIA

Aussie tipped to dive 15pc this year

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Original article by Timothy Moore
The Australian Financial Review – Page: 31 : 25-Jan-19

Capital Economics has downgraded its forecast for the Australian dollar in 2019. The firm has warned that the currency could test $US0.60 and remain at around this level in 2020. It had previously expected the currency to trade at about $US0.65 in 2019 and $US0.70 in the following year. Capital Economics is also bearish about the outlook for Australia’s key export commodities, iron ore and coal, while it expects official interest rate cuts in 2019.

CORPORATES
CAPITAL ECONOMICS LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Hacking risks higher under open banking

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 24-Jan-19

The Australian Banking Association has expressed concern that theft of personal data and email scams will become rife under the federal government’s open banking regime. Open banking is slated to begin on 1 February 2020, with a pilot program to commence in July 2019. The ABA’s submission to the Treasury’s draft report on open banking has called for the terms of reference for the pilot program to include an assessment of the potential privacy risks.

CORPORATES
AUSTRALIAN BANKING ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Dividend credit refunds distort economic system

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Original article by Michael Roddan
The Australian – Page: 19 & 26 : 24-Jan-19

Professor Kevin Davis from the University of Melbourne has expressed support for Labor’s plan to abolish cash refunds for excess dividend imputation credits. He says that dividend imputation was intended to prevent the double taxation of corporate profits, and providing franking credit refunds for investors who do not pay tax has resulted in a "significant economic distortion". Meanwhile, the University of Sydney’s Andrew Ainsworth says retail investors may be engaging in short-term trading to receive franking credit refunds.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF SYDNEY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, GRATTAN INSTITUTE, RESERVE BANK OF AUSTRALIA

ALP locks in shipping fleet

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Original article by Primrose Riordan
The Australian – Page: 1 & 4 : 24-Jan-19

The Maritime Union of Australia’s national secretary Paddy Crumlin says Labor is likely to pursue coastal shipping reforms if it wins the 2019 federal election. He expects Labor to mandate that cargo ships operating between the nation’s ports must be Australian-flagged, with local crews who are subject to Australian conditions of employment. Minerals Council of Australia CEO Tania Constable says that such restrictions would lead to higher costs for businesses and consumers.

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MARITIME UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MINERALS COUNCIL OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, BHP GROUP LIMITED – ASX BHP, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT, INTERNATIONAL ENERGY AGENCY

No change to hourly pay gap in 10 years

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Original article by David Uren
The Australian – Page: 2 : 24-Jan-19

The Australian Bureau of Statistics has released a report which concludes that the average hourly pay of women is still 11 per cent lower than their male peers. The report shows that the gender pay gap is widest in the health sector, at 25 per cent, despite the fact that women account for nearly 80 per cent of workers in the sector. In contrast, sectors such as manufacturing, hospitality and the public service are among those with the narrowest gender pay gap.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS