Author: roymorgansocial

One-year delay likely for negative gearing changes

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 6-Dec-18

It is unlikely that Labor would be able to legislate its proposed negative gearing reforms in time for the start of the 2019-20 financial year if it wins the next federal election. The poll is tipped to be held on 11 or 18 May 2019, which would give a Labor government just six weeks to enact its reforms for them to take effect on 1 July. This means the reforms would most likely take effect in July 2020, although a Labor source has raised the possibility that the legislation could be backdated if it is passed after 1 July.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY

Divestment powers put on fast track

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 6-Dec-18

Australia Energy Council CEO Sarah McNamara has flagged a possible legal challenge to the federal government’s legislation to force the divestment of energy assets. McNamara says there is still uncertainty regarding the constitutional validity of the bill, despite a compromise which will require the Federal Court to approve any application for asset sales. The bill is expected to be passed by the lower house after four crossbenchers backed a motion for it to be debated and voted upon before parliament rises for the year.

CORPORATES
AUSTRALIAN ENERGY COUNCIL, FEDERAL COURT OF AUSTRALIA, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

With numbers like these, the only way is down for RBA

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Original article by Adam Creighton
The Australian – Page: 2 : 6-Dec-18

The lower-than-expected GDP growth for both the September quarter and the year to September should be sufficient to ensure further easing of monetary policy. The Reserve Bank has consistently maintained that the cash rate is more likely to rise rather than fall, but a rate cut now seems more probable. However, the record level of household debt means a rate cut may have little impact on the economy or put much downward pressure on mortgage interest rates.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

AMP CEO De Ferrari won’t get a new life insurance deal

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Original article by Misa Han
The Australian Financial Review – Page: 15 : 6-Dec-18

Merlon Capital is among the AMP shareholders that oppose the sale of its life insurance business. However, AMP CEO Francesco De Ferrari says the $3.3bn deal will proceed, arguing that the wealth manager lacks the global scale to compete with much larger international rivals in the life insurance sector. De Ferrari has also expressed support for AMP’s vertically integrated business model, but says this will be unwound if the final report of the financial services commission recommends it.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, CREDIT SUISSE AG, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERLON CAPITAL PARTNERS PTY LTD

Weak wages a threat to Xmas sales

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Original article by John Kehoe, Sue Mitchell
The Australian Financial Review – Page: 1 & 8 : 6-Dec-18

The latest GDP data shows that the Australian economy expanded by just 0.3 per cent in the September quarter, compared with economists’ expectations of 0.6 per cent growth. Economists have attributed the fall in consumer spending to low wages growth and raised concerns about the outlook for retail sales during the Christmas trading period. Recent research by the Australian Retailers Association and Roy Morgan found that Christmas spending will increase by 2.9 per cent in 2018. The GDP data may affect the timing of any change in official interest rates, but the federal government still expects to post a Budget surplus in 2019-20.

CORPORATES
AUSTRALIAN RETAILERS ASSOCIATION, ROY MORGAN LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MJ BALE, HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, RETAIL APPAREL GROUP PTY LTD, CITIBANK PTY LTD

Banks receive the most gripes at new complaints authority

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Original article by Elouise Fowler
The Australian Financial Review – Page: 18 : 6-Dec-18

The Australian Financial Complaints Authority has received some 6,522 complaints from consumers and small business owners since it was established on 1 November. Banks were the source of 2,367 complaints during AFCA’s first month of operation, ahead of insurers with 1,159 complaints. AFCA replaced the Financial Ombudsman Service, the Credit & Investment Ombudsman and the Superannuation Complaints Tribunal.

CORPORATES
AUSTRALIAN FINANCIAL COMPLAINTS AUTHORITY, FINANCIAL OMBUDSMAN SERVICE LIMITED, CREDIT AND INVESTMENT OMBUDSMAN, AUSTRALIA. SUPERANNUATION COMPLAINTS TRIBUNAL

BHP retreats from contract mining

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Original article by Matthew Stevens
The Sydney Morning Herald – Page: 30 : 6-Dec-18

The BHP Mitsubishi Alliance abandoned the direct employment model for workers at its Queensland coal mines in 2015. Contract labour now accounts for about 60 per cent of the work undertaken at BMA’s coal mines. However, the BHP Group-led joint venture has advised that it will directly employ 350 workers at the Daunia and Cavel Ridge mines in the Bowen Basin. BMA’s move may indicate that union influence at its Queensland coal mines is declining, and the new model is likely to be rolled out at BMA’s other mines in the state.

CORPORATES
BHP GROUP LIMITED – ASX BHP, BM ALLIANCE COAL OPERATIONS PTY LTD, MITSUBISHI CORPORATION, DOWNER EDI LIMITED – ASX DOW, AUSTRALIAN LABOR PARTY, WORKPAC PTY LTD, CHANDLER MACLEOD GROUP LIMITED, HAYS PERSONNEL SERVICES (AUSTRALIA) PTY LTD, CORE STAFF, LINKED GROUP, MONADELPHOUS GROUP LIMITED – ASX MND, ONE KEY RESOURCES PTY LTD

Macquarie Media shares jump as Nine confirms mop-up talks

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Original article by Lilly Vitorovich, Bridget Carter
The Australian – Page: 19 : 6-Dec-18

Nine Entertainment Company has advised that it has held preliminary talks about moving to full ownership of Macquarie Media when the merger with Fairfax Media is completed. The enlarged Nine will have a 54.5 per cent stake in the radio stations owner, ahead of advertising industry veteran John Singleton with a 32 per cent stake. Shares in Macquarie rose 12.6 per cent to $2.06 on 5 December. Media reports have suggested that Nine is likely to offer around $2 per share for Macquarie.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, MACQUARIE MEDIA LIMITED – ASX MRN, WILSON ASSET MANAGEMENT, HADIAC PTY LTD, 2GB, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, STAN ENTERTAINMENT PTY LTD, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, 9NOW

Barnaby backs unions on casuals

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Original article by Ewin Hannan
The Australian – Page: 2 : 5-Dec-18

A parliamentary committee has expressed concern about the growing use of casual labour in Australia’s mining industry. The committee has supported the union movement’s proposal to allow casual mining workers to become permanent employees after a certain period of employment. Industrial Relations Minister Kelly O’Dwyer says the federal government will consider the committee’s recommendations. Australian Mines & Metals Association CEO Steve Knott argues that many employees prefer the increased flexibility and higher wages offered by casual work.

CORPORATES
AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON INDUSTRY, INNOVATION, SCIENCE AND RESOURCES, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED), LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ACTU

House prices to dive 10pc more: Ellerston

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 27 : 5-Dec-18

Brett Gillespie of Ellerston Capital is bearish about the outlook for Australia’s residential property market, forecasting that house prices will eventually fall by an additional 10 per cent. He adds that this could occur much more rapidly if Labor wins the 2019 federal election and implements its proposed changes to the negative gearing regime. Gillespie says a 4-5 per cent fall in house prices would be necessary to 4 to 5 per cent to offset the impact of the negative gearing reforms.

CORPORATES
ELLERSTON CAPITAL PTY LTD, AUSTRALIAN LABOR PARTY, CORELOGIC AUSTRALIA PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD