Author: roymorgansocial

NAB withheld size of fee scandal from ASIC for 11 months

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Original article by Joanna Mather
The Australian Financial Review – Page: 2 : 22-Aug-18

Australian financial services providers could be forced to repay clients more than $1bn over the fee-for-no-service scandal. The Australian Securities & Investments Commission’s deputy chairman Peter Kell has told the banking royal commission that just $260m has been refunded to date. Meanwhile, National Australia Bank informed ASIC in early November 2016 that clients affected by the scandal were owed $34.6m, but ASIC contends that NAB was aware of the extent of these liabilities some 11 months earlier. ASIC’s first report on the scandal had estimated that NAB owed just $12m.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP

Senate set to dump company cuts

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Original article by Rosie Lewis
The Australian – Page: 6 : 22-Aug-18

The company tax cuts package is likely to be rejected by the Senate, despite the Federal Government’s move to exclude the four major banks from the lower tax rate. One Nation leader Pauline Hanson has signalled that she will not support the bill, including the amendment to exclude the big four banks. Meanwhile, Finance Minister Mathias Cormann has told crossbenchers that the tax rate for large companies will need to be reduced at some point, to ensure that Australia is globally competitive.

CORPORATES
ONE NATION PARTY, AUSTRALIA. DEPT OF FINANCE, CENTRE ALLIANCE, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Warning over gas glut: Oil Search

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Original article by Andrew White
The Australian – Page: 23 : 22-Aug-18

Oil Search has posted a 2018 interim net profit of $US79.2m ($107.7m), which is 39 per cent lower than previously. Production fell by 31 per cent to 10.24 million barrels of oil equivalent after its Papua New Guinea operations were disrupted by an earthquake in February. Oil Search expects full-year output of 24 million to 26 million boe. Meanwhile, CEO Peter Botten has questioned whether all four of the proposed LNG import terminals in the eastern states would be economically viable.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, AGL ENERGY LIMITED – ASX AGL, FORTESCUE METALS GROUP LIMITED – ASX FMG, EXXONMOBIL CORPORATION

Turmoil slashes $20bn from ASX

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Original article by David Rogers
The Australian – Page: 19 & 27 : 22-Aug-18

Political uncertainty is expected to continue to weigh on the Australian sharemarket, which recorded its largest single-day fall in five months on 21 August. The Australian dollar also fell sharply in the wake of the leadership spill, before recovering late in local trading. Analysts note that investors are concerned that the Coalition’s lack of unity could ensure that Labor wins the next election, which could in turn have negative implications for financial markets and the economy.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIAN LABOR PARTY, WAM CAPITAL LIMITED – ASX WAM, BELL POTTER SECURITIES LIMITED, PENGANA CAPITAL GROUP LIMITED – ASX PCG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, INFIGEN ENERGY LIMITED – ASX IFN, BHP BILLITON LIMITED – ASX BHP, SOUTH32 LIMITED – ASX S32, REA GROUP LIMITED – ASX REA, MIRVAC GROUP – ASX MGR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, MYER HOLDINGS LIMITED – ASX MYR, WESFARMERS LIMITED – ASX WES, WOOLWORTHS GROUP LIMITED – ASX WOW

BHP frees cash for shareholders

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Original article by Matt Chambers
The Australian – Page: 19 & 23 : 22-Aug-18

BHP Billiton has posted a 2017-18 underlying profit of $US8.93bn, which is 33 per cent higher than previously. The resources giant boasted free cash flow of $US12.5bn for the financial year, and it expects to return about $US20bn to shareholders in 2018-19, including the proceeds from the recent sale of its shale assets in the US. Shareholders will receive a full-year dividend of $US1.18 per share for 2017-18, including a record final dividend of $US0.63.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PENDAL GROUP LIMITED – ASX PDL, RIO TINTO LIMITED – ASX RIO

Google makes its case for news publishers to thrive

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 22-Aug-18

The internet as a whole rather than Google specifically has hurt the business model of traditional media companies, according to the technology giant’s vice-president of news, Richard Gingras. He says the Google News Initiative demonstrates the company’s commitment to publishers and quality journalism. Gingras adds that Google’s core businesses of web search and advertising technology are highly dependent on the internet’s "ecosystem" continuing to feature quality content.

CORPORATES
GOOGLE INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, FACEBOOK INCORPORATED, SEEK LIMITED – ASX SEK, REA GROUP LIMITED – ASX REA, DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHA, FAIRFAX MEDIA LIMITED – ASX FXJ, CARSALES.COM LIMITED – ASX CAR

Malcolm Turnbull hangs on with 48-35 leadership ballot win over Peter Dutton, reshuffle on the cards

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Original article by Louise Yaxley
abc.net.au – Page: Online : 22-Aug-18

Nine federal government frontbenchers have offered to resign in the wake of the leadership spill, including Greg Hunt, Steve Ciobo and Michael Keenan. However, Prime Minister Malcolm Turnbull has only accepted the resignation of Home Affairs Minister Peter Dutton, although Turnbull has indicated that he asked Dutton to remain in his portfolio. Dutton in turn says he contested the leadership because he believed that he has the best chance of winning the next election. Dutton added that he felt that it would not be appropriate for him to remain in cabinet.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF HOME AFFAIRS, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF HUMAN SERVICES

Seven West open to closer News Corp ties

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Original article by Max Mason
The Australian Financial Review – Page: 19 : 22-Aug-18

Seven West Media has posted a 2017-18 net profit of $135.8m, following a $744.3m loss in the previous financial year. Revenue was 3.2 per cent lower at $1.6bn and underlying EBIT fell 9.9 per cent to $235.6m, while Seven forecasts growth in underlying EBIT of 5-10 per cent in 2018-19. CEO Tim Worner says Seven may seek to strengthen its commercial partnerships or forge new deals in the wake of Nine Entertainment’s proposed merger with Fairfax Media. He notes that Seven already has an alliance with News Corp, but he has downplayed suggestions of a merger.

CORPORATES
SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, YAHOO!7 COMMUNICATIONS AUSTRALIA PTY LTD, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, PRIME MEDIA GROUP LIMITED – ASX PRT

ANZ-Roy Morgan Consumer Confidence falls to 114.1

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Aug-18

ANZ-Roy Morgan Australian Consumer Confidence fell 3.5% to 114.1 in the week ended 19 August, its third straight weekly fall. Households’ views towards current financial conditions fell 1.3%, following a 1.0% fall in the week prior, and sentiment towards future financial conditions fell 7.6% to its lowest level in a year. Consumers also continued to be less optimistic about current economic conditions – their assessment declined another 0.8%, the third consecutive weekly fall. Views towards future economic conditions tumbled 5.3%, following a modest decline of 0.3% in the previous week. The "time to buy a household item" subindex slipped another 1.5% to 129.3, compared with a long-term average of 134.0.

CORPORATES
ROY MORGAN LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Industry funds demand banks and super split

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Original article by Michael Roddan
The Australian – Page: 17 & 27 : 21-Aug-18

Industry Super Australia chairman Peter Collins says the banking royal commission’s revelations regarding retail superannuation funds warrant the separation of super from banking. Collins says those who thought that industry super funds might fare badly under the commission’s scrutiny got it wrong. He says the commission has shown that the industry funds sector was right to run its controversial "fox and henhouse" advertising campaign, which claimed that the $600 billion pool of default savings would be at risk if the government allowed the banks to access it.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF FINANCE, HOST-PLUS, LIBERAL PARTY OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE INVESTMENTS LIMITED, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIANSUPER PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB