Author: roymorgansocial

Macquarie exits trailing commissions

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Original article by James Kirby
The Australian – Page: 22 : 4-Jul-18

Macquarie Group’s decision to scrap trailing commissions for financial advisers has been welcomed by Bernie Ripoli, who played a key role in the Future of Financial Advice reforms. However, so-called grandfathered commissions are still widely used in the financial services sector four years after the FoFA reforms. There is speculation that the banking royal commission will recommend the abolition of trailing commissions. Ripoli says other banks could potentially opt to voluntarily scrap them.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, SAS GROUP CONSULTING

ASIC calls for crackdown on card sharks

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Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 4-Jul-18

A review of the credit card industry by the Australian Securities & Investment Commission has found that many consumers are finding it hard to repay their debt. ASIC deputy chair Peter Kell says relatively few card issuers actively take action to address such problems. In addition to being in arrears, many consumers have been issued with credit cards that are inappropriate for their needs. ASIC has proposed new rules whereby a consumer’s credit card debt would be restricted to their capacity to repay it within three years.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, LATITUDE GROUP, AMERICAN EXERGEN CORPORATION, MACQUARIE GROUP LIMITED – ASX MQG

Rio nears sale of Grasberg mine stake

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Original article by Matt Chambers
The Australian – Page: 23 : 4-Jul-18

Rio Tinto is believed to have reached agreement on a deal to sell its stake in Indonesia’s Grasberg copper and gold mine to the state-owned Indonesia Asahan Aluminium. The Indonesian Government must still strike a deal with the mine’s operator, Freeport McMoran, as part of its push to take a minimum stake of 51 per cent in the project. Rio Tinto may gain around $US3.5bn from the sale of its interest in the mine, and the proceeds are tipped to be returned to shareholders via a buyback or increased dividend payout.

CORPORATES
RIO TINTO LIMITED – ASX RIO, PT INDONESIA ASAHAN ALUMINIUM PERSERO, FREEPORT-McMORAN COPPER AND GOLD INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, INDONESIA. DEPT OF STATE-OWNED CORPORATIONS

Media probe pledge to protect journalism

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Original article by Dana McCauley
The Australian – Page: 19 & 23 : 4-Jul-18

Australian Competition & Consumer Commission chairman Rod Sims says Facebook and Google are "clear competitors" to traditional media companies with regard to advertising revenue. He has told a conference in Sydney that the ACCC’s investigation into digital platforms will examine whether their growing share of ad revenue is having an impact on quality journalism in the publishing and broadcasting sector. Digital companies’ collection and use of consumer data will also be scrutinised by the inquiry.

CORPORATES
FACEBOOK INCORPORATED, GOOGLE INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CAMBRIDGE ANALYTICA LLC, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Abbott call: pull out of Paris deal

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Original article by Joe Kelly
The Australian – Page: 1 & 6 : 4-Jul-18

Former prime minister Tony Abbott says Australia should withdraw from the Paris Agreement on climate change, arguing that it would be the best way to preserve jobs and keep electricity prices down. Meanwhile, the National Party wants its proposed $A5bn government energy fund to be used to finance the construction of at least three new baseload power stations and to both increase the capacity and extend the operational life of existing power stations.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, LIBERAL-NATIONAL PARTY OF QUEENSLAND, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY

Backing for new Domain chief

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Original article by Darren Davidson
The Australian – Page: 23 : 4-Jul-18

Domain Holdings’ shares closed 0.63 per cent lower at $3.15 on 3 July, after the property listings group advised that Google Australia MD Jason ­Pellegrino will succeed Antony Catalano as CEO. Pellegrino will be paid $1.2m a year in his new role, plus a $500,000 sign-on bonus and $2m worth of Domain shares. Institutional investors are largely positive about his appointment, although some note his lack of experience in the real estate sector.

CORPORATES
DOMAIN HOLDINGS AUSTRALIA LIMITED – ASX DHG, FAIRFAX MEDIA LIMITED – ASX FXJ, GOOGLE AUSTRALIA PTY LTD, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, LEGG MASON ASSET MANAGEMENT AUSTRALIA LIMITED, WILSON ASSET MANAGEMENT

Baby Boomers love TV news while Millennials & Gen Z surf the net

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Jul-18

A Roy Morgan Single Source survey has found that more than 90% of Australians aged 14+ watch TV in an average week, equivalent to over 18.5 million potential consumers. Over 16.5 million (81.8%) watch Commercial TV on an average day, while a further 6.4 million (31.8%) watch Pay TV/Subscription Video-on-Demand in an average week. Analysis shows that 88.4% of Pre-Boomers and 75.3% of Baby Boomers (75.3%) agree that they "always watch the news on TV to keep me up-to-date" compared to 52.1% of Generation X, 33.5% of Millennials and 27.2% of Generation Z. However, this trend is reversed when it comes to multi-tasking while watching TV: 65.2% of Generation Z and 60.1% of Millennials agree with the statement "I like to surf the net while watching TV". This compares to 43.4% of Generation X, 18.4% of Baby Boomers and just 8% of Pre-Boomers.

CORPORATES
ROY MORGAN LIMITED

RBA holds rates firm, defying global trend

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Original article by Adam Creighton
The Australian – Page: 19 & 27 : 4-Jul-18

Financial markets have priced in little chance of monetary policy tightening by April 2019 after the Reserve Bank of Australia left the cash rate unchanged at 1.5 per cent on 3 July. Economists note that the wording of the statement issued by governor Philip Lowe was largely similar to the previous month. Lowe reiterated that progress in reducing the unemployment rate and lifting inflation to the RBA’s target range of 2-3 per cent is likely to be gradual. He also noted the potential for a trade war to impact on global economic growth

CORPORATES
RESERVE BANK OF AUSTRALIA, BANK FOR INTERNATIONAL SETTLEMENTS, AUSTRALIAN BUREAU OF STATISTICS, HSBC AUSTRALIA HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC

ANZ-Roy Morgan Consumer Confidence consolidates to 120.4

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Jul-18

ANZ-Roy Morgan Australian Consumer Confidence fell 0.8% to 120.4 in the week ended 1 July. Consumers’ views towards current financial conditions rose 2.8% to 109.7, the highest in six weeks. Sentiment around future financial conditions edged up 0.2% following a 6.5% fall previously. Consumers’ views towards current economic conditions fell 6.6%, more than unwinding the previous week’s 5.0% gain. Views towards future economic conditions were down 2.5%, after remaining unchanged the prior week. Despite this, both sub-indices sit above their long-term average. The "time to buy a household item" sub-index rose 1.5%, partially recovering from the 2.3% fall previously.

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

Surge in video streaming on NBN

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 3-Jul-18

Data from NBN Co shows that video streaming, web browsing and virtual ­private networks account for the bulk of traffic on the national broadband network. The average household with an NBN connection now downloads 200 gigabytes per month, compared with just 70GB per month three years ago. Labor has declined to comment on whether it still intends to roll out fibre-to-the-premises technology nationwide if it wins the next federal election.

CORPORATES
NBN CO LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NETFLIX INCORPORATED