Author: roymorgansocial

Coalition achieves million jobs vow

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Original article by Adam Creighton
The Australian – Page: 6 : 18-May-18

Official data shows that Australia’s unemployment rate rose from 5.5 per cent to a nine-month high of 5.6 per cent in April. Some 23,000 jobs were created in April, and the economy has added 1.014 million jobs since the Coalition won office in September 2013. Former prime minister Tony Abbott had made an election commitment to generate one million new jobs during the first five years of a Coalition government. Tom Kennedy of JP Morgan notes that the construction and healthcare sectors accounted for more than 50 per cent of the jobs created during 2017.

CORPORATES
JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BUREAU OF STATISTICS, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

PRRT changes may be leverage on One Nation

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Original article by Phillip Coorey, Angela Macdonald-Smith
The Australian Financial Review – Page: 3 : 18-May-18

The Federal Government requires the support of at least one additional Senate crossbencher for its company tax package. Proposed changes to the Petroleum Resources Rent Tax were absent from the May 2018 Budget, and sources have confirmed that this was partially to provide the government with a bargaining tool amid concerns that One Nation may back down on its support for the tax cuts. The changes to the PRRT would only affect future oil and gas projects, but industry players want the reforms to be enacted before the next election in case Labor wins and opts to subject existing projects to the new regime.

CORPORATES
ONE NATION PARTY

Kidman powers up with Tesla lithium deal

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Original article by Paul Garvey
The Australian – Page: 19 & 30 : 18-May-18

Kidman Resources has advised that it has secured electric car maker Tesla as a foundation client for its proposed lithium hydroxide processing plant in Western Australia. Growing interest in electric cars has created strong demand for commodities like lithium and cobalt that are used in their batteries. Kidman has indicated that its initial deal with Tesla will run for three years, with the option for two three-year extensions.

CORPORATES
KIDMAN RESOURCES LIMITED – ASX KDR, TESLA INCORPORATED, SOCIEDAD QUIMICA Y MINERA SA, PILBARA MINERALS LIMITED – ASX PLS, GREAT WALL AUTOMOBILE HOLDINGS, BMW AG, VOLKSWAGEN AG, MERCEDES-BENZ AG

Setka tells Shorten: loosen strike laws

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Original article by Ewin Hannan, Troy Bramston
The Australian – Page: 1 & 6 : 18-May-18

The Construction, Forestry, Maritime, Mining & Energy Union’s Victorian secretary John Setka has urged Labor to make changes to the Fair Work Act if it wins the next federal election. Amongst other things, he has called for rules governing protected industrial action and unions’ right to enter workplaces to be relaxed. Setka has also criticised former Labor prime ministers Kevin Rudd and Julia Gillard over their policies on industrial relations. Meanwhile, Michele O’Neil is tipped to succeed Ged Kearney as president of the ACTU. O’Neil is the national secretary of the textiles union, which is part of the CFMMEU.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ACTU, TEXTILE, CLOTHING AND FOOTWEAR UNION OF AUSTRALIA, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN FEDERAL POLICE, VICTORIA POLICE, VICTORIA. DIRECTOR OF PUBLIC PROSECUTIONS

Westfield takeover secures all-clear

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Original article by Ben Wilmot
The Australian – Page: 22 : 18-May-18

Unibail-Rodamco’s shareholders have endorsed the European group’s $A30bn takeover of Westfield Corporation, with some 94 per cent of votes cast supporting the deal. The transaction must still be approved by Westfield shareholders, and Winston Sammut of Folkestone Maxim Asset Management says this is likely to be a formality given that proxy advisers support it. Unibail-Rodamco’s secondary listing on the Australian sharemarket is slated for 31 May.

CORPORATES
WESTFIELD CORPORATION – ASX WFD, UNIBAIL-RODAMCO, UNIBAIL-RODAMCO-WESTFIELD – ASX URW, FOLKESTONE MAXIM ASSET MANAGEMENT LIMITED, APN PROPERTY GROUP LIMITED – ASX APD, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 A-REIT INDEX

ASIC chair vows tougher action

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Original article by Andrew White
The Australian – Page: 19 & 30 : 18-May-18

Australian ­Securities & Investments Commission chairman James Shipton has confirmed that he is seeking additional funding from the Federal Government, after it backtracked on a decision to reduce ASIC’s budget. Shipton also says ASIC will fully utilise the new powers that it has been granted by the government, with the financial services sector to be a particular focus. He says the actions of financial services providers have created a "trust deficit", and the sector must work hard to overcome this.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AMP LIMITED – ASX AMP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Field wide open as VRC spruiks media rights

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Original article by Max Mason
The Australian Financial Review – Page: 28 : 18-May-18

Victoria Racing Club hopes to use a new broadcasting rights deal for the Melbourne Cup carnival to attract more people to Flemington Racecourse for the event, arguing that it is more than just about horse racing. The VRC has not issued a tender for the four-day carnival since Seven West Media gained the rights in 2002. VRC CEO Neil Wilson says it is open to deals with more than one partner, including a sub-licensing arrangement.

CORPORATES
VICTORIA RACING CLUB LIMITED, THE LEXUS MELBOURNE CUP, SEVEN WEST MEDIA LIMITED – ASX SWM, TWITTER INCORPORATED

Santos shares slip as Harbour stands firm

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 18-May-18

Analysts differ on the merits of Harbour Energy’s bid for Santos, after the suitor submitted a binding offer for the oil and gas group. Harbour Energy has formally offered $US4.98 per share, which equates to about $A6.63 per share and is the same price as it had initially proposed. James Byrne of Citigroup and Andrew Hodge of Macquarie Equities expect Santos directors to reject the bid, although the Hayberry Global Fund’s Matthew Blumberg says the bid is "probably fair". Santos shares closed 1.9 per cent lower at $A6.20 on 17 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, CITIGROUP PTY LTD, MACQUARIE EQUITIES LIMITED, HAYBERRY GLOBAL FUND, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, EIG GLOBAL ENERGY PARTNERS, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Surging bond yields to test stock bulls’ mettle

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

The yield on US 10-year government bonds peaked at a new seven-year high of 3.12 per cent in Asian trading on 17 May. Given the low level of sharemarket volatility at present, there is the potential for a correction, as was the case in February when the bond yield rose to 2.9 per cent. A growing number of market watchers are advising investors to retain overweight positions with regard to equities in the current environment, while Ric Deverell of Macquarie Group expects the 10-year bond yield to rise toward four per cent in the medium-term.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, STANDARD AND POOR’S 500 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AND COMPANY INCORPORATED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, TREASURY WINE ESTATES LIMITED – ASX TWE, BRAMBLES LIMITED – ASX BXB, CSL LIMITED – ASX CSL, BLOOMBERG LP, EUROPEAN CENTRAL BANK

No deal on takeover, says Santos

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 18 : 17-May-18

Santos has downplayed media reports which suggested that Harbour Energy has struck a deal with two Chinese investors in the oil and gas group. Santos has indicated that the incorrect media reports were based on a mistranslation of ENN Holdings’ Shanghai Stock Exchange announcement. ENN and Hony Capital have a combined stake of 15.1 per cent in Santos. Harbour Energy has yet to make a formal offer for Santos, although it has undertaken due diligence.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, SHANGHAI STOCK EXCHANGE, WOOD MACKENZIE, MORGAN STANLEY AND COMPANY INCORPORATED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED