Author: roymorgansocial

Stand-alone Coles to turn up dial on capex

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 26 : 8-Jun-18

Coles has indicated plans to boost capital expenditure after it is demerged from Wesfarmers, in part because the food and liquor retailer needs to refurbish stores. Coles may need to raise capital in order to finance its expenditure plans, depending on the amount of debt that Wesfarmers decides to leave it with. Coles MD John Durkan says he anticipates that the total Australian grocery market will grow by around three per cent a year.

CORPORATES
COLES GROUP LIMITED, COLES SUPERMARKETS AUSTRALIA PTY LTD, WESFARMERS LIMITED – ASX WES, METCASH LIMITED – ASX MTS, WAVESTONE CAPITAL PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, AMAZON.COM INCORPORATED, BUNNINGS GROUP LIMITED

Treasury overstated cost of tax cuts

roymorgansocial Leave a comment

Original article by Adam Creighton
The Australian – Page: 2 : 8-Jun-18

Australian Taxpayers Alliance director John Humphreys estimates that the Federal Government’s income tax cuts will cost about $A78bn over 10 years, compared with Treasury’s forecast of $A144bn. The government estimates that the third stage of the tax package will cost $41.6bn, but Humphreys’ analysis suggests that it will cost just $A3.5bn. Humphreys and other experts argue that Treasury’s forecasts do not take into account the fact that more people are likely to enter the workforce or increase the number of hours they work as a result of the tax cuts.

CORPORATES
AUSTRALIAN TAXPAYERS’ ALLIANCE PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, UNIVERSITY OF MELBOURNE, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY, UNIVERSITY OF QUEENSLAND, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Call to cut red tape in bid to hasten projects

roymorgansocial Leave a comment

Original article by Joe Kelly
The Australian – Page: 2 : 8-Jun-18

A new report from the Institute of Public Affairs advocates a range of measures aimed at reducing the compliance burden for the business sector. The report’s co-author, Daniel Wild, says the annual cost of red tape is $A176bn and a major overhaul of the regulatory regime is necessary. Amongst other things, the IPA report calls for sweeping changes to the approvals process for major projects and people who want to start their own business.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED

Fears as problem loans increase

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 23 : 8-Jun-18

There was an increase in the number of borrowers falling behind on their mortgage repayments in the six months to March. This suggests that there are still "tail risks" within the housing sector, despite efforts by the Australian Prudential Regulation Authority to crack down on riskier types of loans. Standard & Poor’s has stated that banks may tighten their lending standards as a result of the banking royal commission, and that this may make it harder for households that are trying to refinance their mortgage.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, STANDARD AND POOR’S (AUSTRALIA) PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

AMP hit with fourth class action

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 23 : 8-Jun-18

Slater & Gordon is the latest law firm to formally file a class action lawsuit against wealth manager AMP in the wake of revelations that it charged clients for services that were not provided. Three other law firms have filed class actions to date, while Maurice Blackburn has yet to do so. Meanwhile, Kieren Chidgey of UBS estimates that financial planners who are affiliated with AMP and ANZ Bank are currently the least qualified to meet the new minimum education requirements for the sector that take effect in 2019.

CORPORATES
AMP LIMITED – ASX AMP, SLATER AND GORDON LIMITED – ASX SGH, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, QUINN EMANUEL URQUHART AND SULLIVAN LP, SHINE LAWYERS, PHI FINNEY McDONALD PTY LTD, SUPREME COURT OF NEW SOUTH WALES, FEDERAL COURT OF AUSTRALIA, BELL POTTER SECURITIES LIMITED

Rio revs up driverless truck plan

roymorgansocial Leave a comment

Original article by Matt Chambers, Cliona O’Dowd
The Australian – Page: 19 & 22 : 8-Jun-18

Rio Tinto employs about 12,000 people at its iron ore operations in the Pilbara, and its automation program is not expected to have any net effect on job numbers. An internal briefing from late 2016 flagged the loss of about 850 jobs over four years as a result of initiatives such as its AutoHaul project. However, Rio Tinto has advised that the figures have since been revised to take into account the retraining and redeployment of existing staff and the need to hire additional employees for new mining projects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, THE MELBOURNE MINING CLUB, ALPHABETA, NATIONAL ENERGY RESOURCES AUSTRALIA, METS IGNITED

Banks to remain a drag on bourse, says brokers

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 30 : 8-Jun-18

Shares in Australian banks could come under further downward pressure in coming weeks as a result of tax-loss selling before the end of the financial year. David Cassidy of UBS warns that there is little prospect of a rebound in banks’ earnings in the near-term, and investors should retain "underweight" positions with regard to the sector. Richard Wiles of Morgan Stanley is also bearish about the sector, and recently downgraded share price targets for the sector by an average of seven per cent.

CORPORATES
UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, RETAIL FOOD GROUP LIMITED – ASX RFG, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, PERPETUAL LIMITED – ASX PPT, MYER HOLDINGS LIMITED – ASX MYR, ISENTIA GROUP LIMITED – ASX ISD, AMP LIMITED – ASX AMP, QBE INSURANCE (INTERNATIONAL) LIMITED, EUROPEAN CENTRAL BANK, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX

Fortescue derails MinRes bid for Atlas

roymorgansocial Leave a comment

Original article by Paul Garvey
The Australian – Page: 19 & 22 : 8-Jun-18

Fortescue Metals Group has paid $A0.04 per share for a 15 per cent stake in Atlas Iron. The pure-play iron ore miner also has an economic interest in about 4.9 per cent of Atlas’s shares via a cash-settled swap, effectively giving it a stake of 19.9 per cent. CEO Elizabeth Gaines has also advised that Fortescue will not support the proposed scheme of arrangement between Atlas and suitor Mineral Resources at present, although it remains open to doing so. Atlas shares closed 12 per cent lower at $A0.028 on 7 June. Haoma Mining sold its iron ore rights at the Mt Webber Dalton deposit to Atlas in April 2012.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, ARGONAUT SECURITIES PTY LTD, FOSTER STOCKBROKING PTY LTD, AWE LIMITED, MITSUI AND COMPANY LIMITED, HAOMA MINING NL

Foreign spy threat to by-elections

roymorgansocial Leave a comment

Original article by Simon Benson
The Australian – Page: 1 & 4 : 8-Jun-18

The joint committee on intelligence and security has made 60 recommendations in its report on the Federal Government’s Espionage and Foreign Interference Bill. Attorney-General Christian Porter says the committee should also report immediately on the Foreign Influence and Transparency Scheme Bill. He argues that both bills must be passed by Parliament prior to the five by-elections on 28 July, to ensure that the outcome of the polls is not affected by the actions of foreign agents. He says the threat of foreign interference has increased in recent months.

CORPORATES
AUSTRALIA. JOINT PARLIAMENTARY COMMITTEE ON INTELLIGENCE AND SECURITY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, COMMUNIST PARTY (CHINA)

BHP’s US shale gets low-ball bid

roymorgansocial Leave a comment

Original article by Matt Chambers
The Australian – Page: 20 : 7-Jun-18

A Bloomberg News report has suggested that BHP Billiton is seeking at least $US10bn for its US shale oil and gas assets if they are sold as a package, and up to $US13bn if they are broken up. However, the report claims that the initial offers have been within the range of $US7bn to $US9bn. Peter O’Connor of Shaw & Partners stresses that first-round bids are typically low and will be increased when final bids are submitted. Some analysts expect the recent rise in the crude oil price to boost the sale price of the shale assets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, BLOOMBERG LP, SHAW AND PARTNERS LIMITED, UBS HOLDINGS PTY LTD, ELLIOTT MANAGEMENT CORPORATION, PETROHAWK ENERGY CORPORATION, BP PLC, CHEVRON CORPORATION, ROYAL DUTCH SHELL PLC, THE BLACKSTONE GROUP LP