Author: roymorgansocial

Apartment prices to come under pressure

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Original article by Michael Bleby
The Australian Financial Review – Page: 6 : 7-Jan-19

BIS Oxford Economics estimates that 17,000 additional high-rise apartments will hit the Melbourne market in 2019, compared with 13,500 in 2018. Likewise, some 26,300 apartments in Sydney are expected to be completed in 2019, down from 28,000 in the previous year. The large number of apartments coming onto the market is expected to put further pressure on prices, while Angie Zigomanis of BIS notes that there may also be an increase in vacancy rates and a corresponding fall in rents.

CORPORATES
BIS OXFORD ECONOMICS PTY LTD, CORELOGIC AUSTRALIA PTY LTD, WORLD CLASS LAND (AUSTRALIA) PTY LTD, ASPIAL CORPORATION LIMITED

Red light flashing over fuel security

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Original article by Primrose Riordan
The Australian – Page: 1 & 4 : 7-Jan-19

There is growing concern about Australia’s limited onshore fuel stockpiles, with experts warning that it is less prepared than other developed nations for an international crisis that would affect fuel supplies. Data from the Department of Energy shows that Australia’s petrol stockpile would last 22 days, while the diesel fuel supply would be exhausted in just 17 days. In contrast, the International Energy Agency recommends that nations have a fuel stockpile equivalent to 90 days. The federal government has been criticised for delaying a review of Australia’s fuel stockpiles.

CORPORATES
AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, INTERNATIONAL ENERGY AGENCY, LIBERAL PARTY OF AUSTRALIA, DEAKIN UNIVERSITY, AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIA. DEPT OF DEFENCE

Senator bills for rally trip, admits he’s doomed

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Original article by Ben Packham, Richard Ferguson
The Australian – Page: 1 & 2 : 7-Jan-19

Independent senator Fraser ­Anning has defended his taxpayer-funded trip to attend an anti-immigration rally in Melbourne. Fraser says the trip was official parliamentary business, as the violent crimes committed by people of African appearance in Melbourne are now being replicated in his home state of Queensland. However, Anning concedes that he has little chance of retaining his seat at the next election. Both sides of politics have condemned the racially-motivated rally at St Kilda beach, while some federal MPs have criticised Anning for attending the event.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, ONE NATION PARTY, AUSTRALIAN LABOR PARTY

Yancoal moves on Hunter mines

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Original article by Eric Johnston
The Australian – Page: 15 : 7-Jan-19

A group of Chinese lenders assumed ownership of the Ashton, Austar and Donaldson coal mines in the Hunter Valley in February 2016, after Yancoal Australia secured a debt funding deal. Yancoal remained operator of the mines, and its Chinese parent Yankuang Group has advised that one of the bond holders has exercised a put option to sell its bonds to Yankuang. Yancoal has indicated that the move is unlikely to have any significant implications for it.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, YANKUANG CORPORATION GROUP LIMITED, BANK OF CHINA GROUP, INDUSTRIAL BANK COMPANY LIMITED, BOHAI HARVEST RST (SHANHAI) EQUITY INVESTMENT MANAGEMENT COMPANY LIMITED

No cost surge as Pilbara’s big three plan builds

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 7-Jan-19

NRW Holdings CEO Jules Pemberton says the current iron ore mine construction activity in the Pilbara is different to the boom of 2011-2013. He notes that the new mines being developed by BHP, Rio Tinto and Fortescue Metals Group are to replace existing mines rather than to expand output. Pemberton adds that there are also no signs of an increase in labour costs or a skills shortage in the Pilbara. NRW was recently awarded a $57m contract for work on Fortescue’s Eliwana iron ore mine; the mining and civil contractor is also undertaking work on BHP’s South Flank mine.

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NRW HOLDINGS LIMITED – ASX NWH, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOLDING CONTRACTORS PTY LTD

Pacific making all the write moves

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Original article by Lilly Vitorovich
The Australian – Page: 13 & 14 : 7-Jan-19

Seven West Media’s Pacific Magazines division posted EBIT of $9.6m in 2017-18, and it reduced costs by $32.2m. Pacific Magazines CEO Gereurd Roberts is upbeat about the outlook for its portfolio of titles, noting that it is the market leader in every category in which it has a presence. He adds that content is the priority for Pacific Magazines, while it aims to expand its digital business. Gereurd has also flagged the launch of a new monthly magazine in late January.

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PACIFIC MAGAZINES PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, BAUER MEDIA AUSTRALIA PTY LTD

Calls for Setka to be kicked out of ALP

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Original article by Tom McIlroy
The Australian Financial Review – Page: 5 : 4-Jan-19

Construction, Forestry, Maritime, Mining & Energy Union official John Setka will appear on court on 9 January after police were called to his home on 26 December. Industrial Relations Minister Kelly O’Dwyer says the police charges mean that Setka should be expelled from the Australian Labor Party and step down from his role at the CFMMEU. Setka in turn has asked the media to respect his family’s privacy following the domestic incident.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, MELBOURNE MAGISTRATES’ COURT

Greens’ Basin bill bad for climate

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Original article by Richard Ferguson
The Australian – Page: 2 : 4-Jan-19

The Mineral Council of Australia has warned that a proposed ban on thermal coal production in Queensland’s Galilee Basin would force Asian countries to buy lower-quality coal from developing countries. The MCA argues that this could in turn result in higher global carbon emissions. In addition, it has questioned the constitutional validity of such a ban. The Australian Greens’ bill to ban thermal coal production in the Galilee Basin is also opposed by the Queensland division of the Construction, Forestry, Maritime, Mining & Energy Union.

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MINERALS COUNCIL OF AUSTRALIA, AUSTRALIAN GREENS, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, QUEENSLAND RESOURCES COUNCIL LIMITED, ADANI MINING PTY LTD

UBS, Macquarie top of the dealmaking charts

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 27 : 4-Jan-19

Data from Dealogic shows that UBS displaced Macquarie as Australia’s highest-earning investment bank in 2018, with revenue of $US219m. It was followed by Macquarie with revenue of $US146m and JP Morgan ($US108m). UBS was also the top revenue-earner in terms of mergers and acquisitions activity, handling some $US752m worth of deals in Australasia. JP Morgan generated the most revenue among investment banks globally, at $US6.9bn.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, JP MORGAN AUSTRALIA LIMITED, JP MORGAN AND COMPANY INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF CHINA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, WESTPAC BANKING CORPORATION – ASX WBC, THE GOLDMAN SACHS GROUP INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, EVERCORE PARTNERS, MOELIS AND COMPANY, CENTERVIEW

Directorships now a risky business

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Original article by James Frost
The Australian Financial Review – Page: 4 : 4-Jan-19

Business executives say there is a growing reluctance to take on board seats due to heightened financial and reputational risk in the wake of corporate scandals and revelations of misconduct in the financial services sector. CSL non-executive director Christine O’Reilly says personal liability has become a key concern for many company directors. She stresses the importance of undertaking due diligence on a company before accepting a directorship. Hugh Morgan notes that a director’s reputation can be tainted by a scandal of which they were not aware.

CORPORATES
CSL LIMITED – ASX CSL, WESTERN MINING CORPORATION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, RESERVE BANK OF AUSTRALIA, TRANSURBAN GROUP LIMITED – ASX TCL, MEDIBANK PRIVATE LIMITED – ASX MPL, STOCKLAND – ASX SGP, ENERGYAUSTRALIA PTY LTD, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, AMP LIMITED – ASX AMP, SORRENTO SAILING CLUB