Author: roymorgansocial

PM tax plan in turmoil

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Original article by David Crowe, Eryk Bagshaw
The Age – Page: 1 : 23-May-18

The Federal Government’s corporate tax cuts package will be part of its policy agenda at the next election, according to Finance Minister Mathias Cormann. However, some Liberal MPs are concerned that the tax package could affect the Coalition’s prospects for re-election, while others have conceded that it has little chance of being passed by the Senate. Business leaders want the government to persist with the tax package, warning that shelving it would adversely affect six million "mum and dad” investors.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, ONE NATION PARTY, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED

Rio warns Oyu Tolgoi a test case for investment in Mongolia

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Original article by Peter Ker
The Australian Financial Review – Page: 15 : 23-May-18

Rio Tinto executive Arnaud Soirat says the Mongolian Government must not seek changes to the 2009 investment agreement regarding the Oyu Tolgoi mine. He says the international business community will view the $US5.3bn expansion of the copper and gold mine as a "test case" for future investment in Mongolia. The nation’s deputy mining minister, Zagdjav Deleg, stated in March that the government could potentially move to full ownership of the mine if the investment agreement was found to have been secured as a result of corruption.

CORPORATES
RIO TINTO LIMITED – ASX RIO, OYU TOLGOI LLC, MONGOLIA. MINISTRY OF MINERAL RESOURCES AND ENERGY, TURQUOISE HILL RESOURCES LIMITED

Labor open to union demands, rejects strike bid

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Original article by Ewin Hannan
The Australian – Page: 2 : 23-May-18

Shadow workplace relations minister Brendan O’Connor has indicated that Labor will consider a proposal for rules governing unions’ right to enter workplaces to be relaxed. The Construction, Forestry, Maritime, Mining & Energy Union’s Victorian secretary John Setka has also called for Labor to make changes to the provisions of the Fair Work Act with regard to protected industrial action, although O’Connor says this will not be on the party’s agenda.

CORPORATES
AUSTRALIAN LABOR PARTY, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, ACTU, AUSTRALIA. FAIR WORK COMMISSION

Westpac filled forms with false details

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Original article by Ben Butler, Elizabeth Redman
The Australian – Page: 17 & 21 : 23-May-18

Westpac’s loan practices continued to attract scrutiny by the banking royal commission on 22 May, in the wake of revelations regarding the bank’s handling of a case in which a blind woman had acted as a guarantor. Westpac executive Alastair Welsh told the inquiry that the bank’s employees have been known to enter false information into loan documentation. He also conceded that the procedures Westpac follows in assessing whether a guarantor is likely to gain any financial benefit are more "form than substance".

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, FINANCIAL OMBUDSMAN SERVICE LIMITED, NEW SOUTH WALES LEGAL AID COMMISSION

Santos rejects $14.5bn Harbour bid

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Original article by Matt Chambers, Scott Murdoch
The Australian – Page: 17 & 22 : 23-May-18

Santos has terminated discussions with Harbour Energy after its board deemed that the suitor’s "best and final" offer of $US5.21 ($A6.95) per share did not reflect the oil and gas group’s full value. The deal would have required approval by 75 per cent of Santos shareholders, as well as the Foreign Investment Review Board. It is believed that Santos CEO Kevin Gallagher and most of its board supported the deal, but chairman Keith Spence is said to have opposed it from the outset. Santos shares closed $A0.08 higher at $A6.44 on 22 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

MP’s China donor bombshell

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 23-May-18

Liberal MP Andrew Hastie has used parliamentary privilege to name property developer Chau Chak Wing as a suspect in the payment of bribes to a United Nations official in 2013. He said Chau is the individual that the FBI has given the code-name of "CC-3" in the bribery case. Chau has denied any involvement in the plot, and lawyer Mark O’Brien has stated that the FBI gave his client a pseudonym to protect his reputation, as he had never been a suspect. Chau, who has made substantial donations to both of Australia’s major political parties, has also denied that he has ever been a member of China’s Communist Party.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, UNITED NATIONS, COMMUNIST PARTY (CHINA), FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION

Wage woes a boon for investors, says Tevfik

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Original article by David Rogers
The Australian – Page: 27 : 23-May-18

The S&P/ASX 200 has fallen by an average of 4.3 per cent during May and June over the last decade, and the current trend suggests that it will be trading at around 5,724.8 points by the end of June. However, Hasan Tevfik of Credit Suisse still expects it to reach 6,500 points by the end of 2018. He says corporate profit margins – and in turn share prices – should benefit from expectations that wages growth will remain subdued. Lack of growth in wages will also affect the timing of any rise in official interest rates, which Credit Suisse does not expect until about mid-2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, VICINITY CENTRES – ASX VCX

Coles and Woolworths continue to gain share in fresh fruit and vegetable market

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

Woolworths and Coles had a combined share of 51.3% of Australia’s fresh fruit and vegetable market in the year to March 2018, according to a Roy Morgan Single Source survey. The combined market share of other retail outlets (including Aldi, IGA, fruit shops, markets and other supermarkets) was 48.7%. Woolworths’ share of the $A18bn market was 27.4%, up 1.3% points, although Coles’ market share has fallen 0.7% to 23.9%. Aldi’s share of the fresh fruit and vegetable market is up 0.6% to 10.1%; it seems set to overtake fruit shops, which currently account for 15.8% of the market.

CORPORATES
ROY MORGAN LIMITED, WOOLWORTHS GROUP LIMITED – ASX WOW, COLES GROUP LIMITED, ALDI STORES SUPERMARKETS PTY LTD

ANZ-Roy Morgan Consumer Confidence on six week streak

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

ANZ-Roy Morgan Australian Consumer Confidence rose 0.7% to 121.6 in the week ended 20 May, to its highest level in 15 weeks. Households’ views towards current financial conditions rose 2.0% to110.1, the highest in 12 weeks. Views towards future financial conditions were up a modest 0.6%, following a 1.4% rise the previous week. Both subindices remain above their long-term averages. Sentiment around current economic conditions showed no change after a solid 2.4% increase in the previous week. However, views towards future economic conditions eased 1.9%, partially unwinding the previous week’s 3.7% rise. The "time to buy a household item" subindex rose 2.6%.

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

States suffer as PM’s pet projects prosper

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Original article by David Uren
The Australian – Page: 2 : 22-May-18

Federal grants to the states for infrastructure projects have declined to their lowest point since 2013-14. Prime Minister Malcolm Turnbull has stated that the federal government should not be seen as an ATM for the states and territories on infrastructure, with his government preferring to put money in projects in which it has direct equity, such as Western Sydney Airport. Adrian Dwyer, the CEO of Infrastructure Partnerships Australia, contends that there is a considerable difference between direct and equity funding. He says more infrastructure spending is needed to address congestion in Australia’s cities.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, INFRASTRUCTURE PARTNERSHIPS AUSTRALIA, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT