Author: roymorgansocial

Moore claims Macquarie pay model is better than the majors

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Original article by Joyce Moullakis
The Australian – Page: 24 : 23-Nov-18

Macquarie Group CEO Nicholas Moore has told the banking royal commission that its remuneration model is superior to those used by Australia’s major banks. Moore said its model provides more accountability, and that profit share is more powerful than bonuses. Commenting on the issue of the commissions paid to mortgage brokers, Moore said he would be reluctant to see them abolish and replaced with a flat fee, as consumers might be reluctant to pay the latter.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, KPMG AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Coles steps out alone to mixed reviews

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Original article by Sue Mitchell
The Australian Financial Review – Page: 24 : 23-Nov-18

Macquarie and Goldman Sachs have contrasting views on the prospects of Coles following the food and liquor retailer’s demerger from Wesfarmers. Macquarie has a "neutral" recommendation on Coles stock and a 12-month price target of $13.48, while Goldman Sachs rates it as a "buy" with a 12-month target of $14.80. Both Macquarie and Goldman Sachs believe that Coles can lift its earnings by boosting sales from fresh food and private label products. Macquarie also believes that Wesfarmers now has up to $10 billion to spend on possible acquisitions.

CORPORATES
COLES GROUP LIMITED – ASX COL, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, KAUFLAND STIFTUNG & CO KG, AMAZON.COM INCORPORATED

House prices could fall 20pc: ANZ

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Original article by Turi Condon
The Australian – Page: 27 : 23-Nov-18

The ANZ Bank is bearish about the outlook for the residential property market in Melbourne and Sydney, forecasting that house prices will fall by 15-20 per cent from their peak. ANZ expects increased lending restrictions to weigh on the property market, while other potential headwinds include the federal election due in 2019 and the final report of the financial services royal commission. ANZ also expects official interest rates to remain on hold until 2020.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE SECURITIES PTY LTD

Strategy will shut four coal plants

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Original article by Matthew Denholm
The Australian – Page: 6 : 23-Nov-18

Minerals Council of Australia CEO Tania Constable says Labor must explain how it will guarantee a reliable base-load power supply under its policy of a renewable energy target of 50 per cent by 2030. She has warned that the policy could force four coal-fired power stations in Victoria, New South Wales, South Australia and Queensland to be shut down well before the 2030 target date, in addition to the Liddell plant in NSW. She adds that this would result in a big rise in electricity prices.

CORPORATES
MINERALS COUNCIL OF AUSTRALIA, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, ELECTRICAL TRADES UNION

Twiggy’s hydrogen kickstart

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Original article by Mark Ludlow
The Australian Financial Review – Page: 5 : 23-Nov-18

Fortescue Metals Group chairman Andrew Forrest says the iron ore miner is keen to be involved in the development of hydrogen as a low-emissions fuel. Fortescue and the CSIRO have signed a $20 million agreement to develop and commercialise CSIRO technology that extracts pure hydrogen from ammonia. Mercedes-Benz, Honda, Hyundai and Toyota are all developing hydrogen-powered cars. Forrest has described hydrogen fuel as an "energy revolution".

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, CSIRO, MERCEDES-BENZ AG, HONDA MOTOR CORPORATION, HYUNDAI MOTOR COMPANY LIMITED, TOYOTA MOTOR CORPORATION, TESLA INCORPORATED

Competition heats up in vehicle servicing as national fleet becomes more reliable

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Nov-18

The proportion of Australian drivers requiring their main vehicle to be serviced or repaired three or more times a year has declined from 30.5% to just 18.4% in the past 11 years, according to Roy Morgan’s latest vehicle servicing survey data. As vehicles become more reliable, the percentage of drivers requiring two or fewer services or repairs a year has correspondingly increased from 69.5% to 81.6% over the same period. Motorists continue to show a preference for dealer-run service centres when their vehicle is new or near-new, with a tendency to shift to local garage service centres as the vehicle ages. This transition is most pronounced at the five-year mark, when many factory warranties or lease-hold agreements expire. The latest auto servicing data is collected as part of Roy Morgan’s Single Source survey, via in-depth, personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including 12,295 who rated their satisfaction level with various kinds of service centres.

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ROY MORGAN LIMITED

ASIC antithesis of tough attitude

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Original article by James Eyers, James Frost
The Australian Financial Review – Page: 14 : 23-Nov-18

Australian Securities & Investments Commission chairman James Shipton appeared before the royal commission on 22 November. He conceded that ASIC should have taken steps against National Australia Bank’s home loan "introducer" program some years ago. He was also queried about a July email in which it was suggested that NAB should only be required to make a "community benefit payment" as penalty for the program; Shipton stated that the views expressed in the email were not his.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BT FINANCIAL GROUP PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Law and Order is major issue for tomorrow’s Victorian State Election

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Original article by Gary Morgan
Market Research Update – Page: Online : 23-Nov-18

Over the closing days of the Victorian State election both major parties have campaigned on Law and Order. However a major difference was highlighted in Wednesday night’s Frankston Leaders’ debate on how to treat those given bail who then break a bail condition. Liberal Leader Matthew Guy would immediately put them in jail whereas Premier Daniel Andrews would not, as doing so would mean Victoria would need to build so many more jails it would be at the expense of more schools and more hospitals. A large 82% of Victorian electors agree with Matthew Guy – break bail, go to jail – according to a special SMS Morgan Poll conducted yesterday (Thursday). The Morgan Poll showed the ALP and L-NP support improving over the last week to about 35% with the Greens, Other parties and Independents comprising the remaining 30%. The high vote for Greens, Other parties and Independents means the Victorian State election is set to be decided on their preferences.

CORPORATES
MORGAN POLL, ROY MORGAN LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, AUSTRALIAN GREENS, VICTORIA. DEPT OF PREMIER AND CABINET

Debt to double to $60 billion as Labor drops cap

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Original article by Patrick Durkin
The Australian Financial Review – Page: 9 : 23-Nov-18

The Victorian Government’s election costings show that the state’s debt ceiling will blow out to 12 per cent of gross state product as a result of its infrastructure spending program, which will be partially funded via debt. Treasurer Tim Pallas had previously sought to cap state debt at around $30bn, or less than six per cent of gross state product. Labor has also advised that the state’s Budget surplus for 2019-20 is projected to be $1.7bn, compared with expectations of a $2.3bn surplus in 2018-19. The Coalition intends to retain the existing debt ceiling and will seek to reduce the state’s debt by $1.1bn over four years if it wins the state election.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, NATIONAL PARTY OF AUSTRALIA, VICTORIA. DEPT OF TREASURY AND FINANCE, MELBOURNE WATER CORPORATION

New era as Coles breaks free

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Original article by Eli Greenblat, Sarah-Jane Tasker
The Australian – Page: 17 & 20 : 22-Nov-18

Shares in Coles Group closed at $12.75 on 21 November, after the stock listed at $12.49 following its demerger from Wesfarmers. Coles has a market capitalisation of about $16bn, ranking it among Australia’s 20 largest listed companies. Alphinity Investment Management’s Bruce Smith expects some volatility in Coles’ share price in the near-term, as investors decide whether to buy into the stock or sell their holdings. Vertium Asset Management’s Jason Teh adds that Coles has a higher level of higher investment risk than grocery rival Woolworths.

CORPORATES
COLES GROUP LIMITED – ASX COL, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, VERTIUM ASSET MANAGEMENT PTY LTD, WOOLWORTHS GROUP LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, AMAZON.COM INCORPORATED, SOUTH32 LIMITED – ASX S32, SUNCORP GROUP LIMITED – ASX SUN, ARISTOCRAT LEISURE LIMITED – ASX ALL