Author: roymorgansocial

ISIS threat alive, allies warn as Trump pulls out

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Original article by Cameron Stewart, Paul Maley
The Australian – Page: 1 & 7 : 21-Dec-18

Liberal senator Jim Molan says President Donald Trump has made a serious mistake in deciding to withdraw all remaining US troops from Syria. Australia was one of few allies of the US to be informed of the decision before it was formally announced. Britain’s Defence Minister Tobias Ellwood has also expressed concern about the decision, warning that Islamic State is still a threat despite Trump’s claims that it has been defeated in Syria. The withdrawal of US troops from Syria had been part of Trump’s 2016 presidential election campaign platform.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, LIBERAL PARTY OF AUSTRALIA, GREAT BRITAIN. MINISTRY OF DEFENCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. DEPT OF DEFENSE, AUSTRALIA. DEPT OF DEFENCE, LOWY INSTITUTE FOR INTERNATIONAL POLICY

Private sector wage rises hit two-year high

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Original article by Ewin Hannan
The Australian – Page: 2 : 21-Dec-18

The federal government has released data showing that there was an average pay rise of three per cent for new enterprise agreements struck in the private sector during the September quarter. However, the average pay rise for existing private-sector agreements was just 2.7 per cent. The number of private-sector workers who are covered by enterprise agreements fell by 90,000 during the quarter. Meanwhile, the average pay rise for public sector workers was 3.4 per cent in the quarter.

CORPORATES
AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, ACTU

Part-time workers drive jobs spike

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Original article by John Kehoe
The Australian Financial Review – Page: 5 : 21-Dec-18

Official data shows that the Australian economy added 37,000 jobs in November, with a 43,400-strong increase in part-time jobs offsetting the loss of 6,400 full-time positions during the month. The data shows that full- and part-time jobs have grown by 180,200 and 105,500 respectively over the last year. Meanwhile, Australia’s official unemployment rate rose from five per cent to 5.1 per cent in November, while the labour market participation rate increased by 0.2 per cent to 65.7 per cent.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CAPITAL ECONOMICS LIMITED, COMMONWEALTH SECURITIES LIMITED, INDEED INCORPORATED, RESERVE BANK OF AUSTRALIA

Fed rate hike roils global markets

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Original article by David Rogers
The Australian – Page: 15 & 21 : 21-Dec-18

Australia’s benchmark S&P/ASX 200 has shed 9.2 per cent so far in 2018, and 11 per cent during the current quarter. The local market’s 1.3 per cent fall on 20 December was accompanied by large falls across Asia, while the Australian dollar reached a low of $US.7086 and the yield on 10-year Australian bonds fell to 2.3 per cent. Financial markets believe that the US Federal Reserve made a policy mistake in signalling further monetary policy tightening over the next few years and it may have to reduce interest rates within two years.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, PEPPERSTONE FINANCIAL PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, NIKKEI 225 INDEX, STANDARD AND POOR’S 500 INDEX, BLOOMBERG LP, OANDA AUSTRALIA PTY LTD, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, WAM CAPITAL LIMITED – ASX WAM, MORNINGSTAR PTY LTD, PLATYPUS ASSET MANAGEMENT PTY LTD, ECP ASSET MANAGEMENT PTY LTD, HYPERION ASSET MANAGEMENT LIMITED

Goldman hits at doomsday savings chatter

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Original article by Tim Boyd
The Australian Financial Review – Page: 12 : 21-Dec-18

Andrew Boak and Tom Kennedy have differing views on whether low savings rates are a sign that Australian consumers are optimistic. Boak, who is Goldman Sachs’ chief economist in Australia, believes that low saving rates show that consumers are using their savings to spend, and it reflects a sense of optimism. However, Kennedy, who is JP Morgan’s global fixed income strategist, says if consumers were feeling that optimistic this would also be reflected in similar moves in credit card debt and short-term debit items.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED, NOMURA AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

Super boss says NAB vote puts all boards to the test

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Original article by Richard Gluyas
The Australian – Page: 15 & 19 : 21-Dec-18

AustralianSuper CEO Ian Silk says the resounding rejection of National Australia Bank’s remuneration report shows that shareholders expect executives to be subject to long-term performance targets. NAB, Westpac and ANZ incurred large protest votes under the "two strikes" regime at their 2018 AGMs, prompting them to commit to reviewing their remuneration schemes. NAB chairman Ken Henry has acknowledged that the bank’s single variable pay structure is problematic and may need to be revised.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIANSUPER PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, OWNERSHIP MATTERS PTY LTD

Feds slap down NSW over net zero emissions

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Original article by Ben Potter, Simon Evans
The Australian Financial Review – Page: 1 & 8 : 20-Dec-18

Tensions between the federal government and its New South Wales counterpart have deepened following the Council of Australian Governments’ Energy Council meeting on 19 December. Federal Energy Minister Angus Taylor used a procedural rule to block a motion to develop a national pathway to net zero emissions by 2050. The motion was put forward by NSW Climate and Energy Minister Don Harwin and had the support of many state and territory energy ministers. Harwin says he will continue to push for his proposal.

CORPORATES
COUNCIL OF AUSTRALIAN GOVERNMENTS, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, NEW SOUTH WALES. DEPT OF PLANNING AND ENVIRONMENT, SOUTH AUSTRALIA. DEPT FOR TRANSPORT, ENERGY AND INFRASTRUCTURE, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIA. ENERGY SECURITY BOARD, QUEENSLAND. DEPT OF ENERGY AND WATER SUPPLY

NAB reels from exec pay revolt

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Original article by Richard Gluyas
The Australian – Page: 13 & 16 : 20-Dec-18

National Australia Bank’s remuneration report was rejected by a record 88.4 per cent of shareholders at its AGM on 19 December, while 64.1 per cent also opposed a reward shares package for CEO Andrew Thorburn. Chairman Ken Henry told shareholders that NAB will review its remuneration scheme and expressed confidence that Thorburn will remain at the helm to oversee the final two years of the bank’s restructuring program. ANZ Bank also face a board spill in 2019 after 33.8 per cent of shareholders voted against its remuneration report.

CORPORATES
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, HUMAN GROUP

Labor’s wage bargaining plans a risk to exports

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 1 & 4 : 20-Dec-18

Tom Reid of the Australian Mines & Metals Association has warned that a shift to industry-wide enterprise bargaining could undermine the competitiveness and sustainability of the nation’s resources sector. Labor proposes to restrict industry-wide bargaining to sectors that have low wages, although unions advocate extending it to other sectors of the economy. Meanwhile, Australian Retailers Association CEO Russell Zimmerman says industry-wide bargaining may be a viable alternative to the costly enterprise bargaining process for small retailers.

CORPORATES
AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), AUSTRALIAN LABOR PARTY, AUSTRALIAN RETAILERS ASSOCIATION, ACTU, ESSO AUSTRALIA PTY LTD, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, MARITIME UNION OF AUSTRALIA, BUSINESS COUNCIL OF AUSTRALIA

RBA to cut its 3.25pc growth forecast, economists say

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Original article by Tim Boyd
The Australian Financial Review – Page: 6 : 20-Dec-18

Janu Chan of St George Bank is among the economists who expect the Reserve Bank of Australia to scale back its economic growth forecast of 3.25 per cent for 2018-19 at its first board meeting in 2019. This follows lower-than-expected GDP growth for the September quarter. The central bank’s monetary policy meeting in February will take into account the latest inflation and employment data.

CORPORATES
RESERVE BANK OF AUSTRALIA, ST GEORGE BANK LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ