Author: roymorgansocial

Forrest joins Bishop in China media attack

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Original article by Brad Thompson
The Australian Financial Review – Page: 15 : 16-May-18

Fortescue Metals Group has exported more than one billion tonnes of iron ore since its inaugural shipment to a Chinese customer in May 2008. Fortescue founder Andrew Forrest has marked the 10th anniversary by criticising the Australian media’s coverage of China. He was especially scathing of the print media’s on the negative aspects of Australia’s relationship with China. Meanwhile, Forrest said Fortescue is progressing with its expansion into South America, as well as plans to diversify into other minerals.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, SHANGHAI BAOSTEEL GROUP CORPORATION

Wilson warns on rotten AMP

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Original article by Sarah Turner
The Australian Financial Review – Page: 13 & 26 : 16-May-18

Fund manager Geoff Wilson says former AMP employees have told him that its financial planning division is completely "rotten" and the banking royal commission’s revelations of misconduct are just the beginning. Wilson says the scandals at AMP have made it difficult to value the stock, and there may not be a price at which it constitutes a "buy". There is speculation that the royal commission may result in stricter regulation of the financial services sector, but Antipodes Partners’ Graham Hay cautions against any action that may actually reduce competition.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, ANTIPODES PARTNERS

Workplace ombudsman fights for second term, despite critics

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Original article by Ewin Hannan
The Australian – Page: 6 : 16-May-18

The federal government has advertised the position of Fair Work Ombudsman, but incumbent Natalie James is keen to continue in the role. She says the FWO has secured record penalties during her initial five-year term, which expires in July. Labor’s Brendan O’Connor says the role of FWO should be given to someone whose priority is combatting the exploitation of workers, rather than an "anti-worker warrior". James was appointed by the former Labor government.

CORPORATES
AUSTRALIA. FAIR WORK OMBUDSMAN, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF JOBS AND SMALL BUSINESS, ACTU, AUSTRALIAN MINES AND METALS ASSOCIATION (INCORPORATED)

Retirees to fund Labor cash spree

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Original article by Simon Benson, Joe Kelly
The Australian – Page: 1 & 4 : 16-May-18

It is estimated that the Federal Opposition’s tax plan would raise almost $A30bn in additional revenue over the four years to 2021-22. Labor’s proposal to scrap cash refund for excess dividend imputation credits, which primarily affects self-fund retirees, would account for $A10.7bn of this revenue, according to the Treasury and the Parliamentary Budget Office. Shadow treasurer Chris Bowen will use a speech on 15 May to emphasise that the bulk of the extra revenue will be used to reduce debt and the Budget deficit. Labor also intends to match the Coalition’s revised target of 2019-20 for achieving a surplus.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PRESS CLUB (AUSTRALIA)

Leave tax cuts alone, Hinch tells Shorten

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Original article by Joe Kelly
The Australian – Page: 4 : 16-May-18

The tax rate for companies with turnover of up to $A50m is slated to be reduced to 27.5 per cent on 1 July, as part of the Federal Government’s enterprise tax plan. Opposition Leader Bill Shorten has committed to supporting tax cuts for businesses with turnover of up to $A2m, although Labor is believed to be open to raising this threshold to $A10m. Senate crossbencher Derryn Hinch says Labor should not seek to reverse the legislated tax cuts if it wins the next election.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, MASTER GROCERS’ AUSTRALIA PTY LTD, IGA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Lowest paid lose out to tax creep

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 1 & 6 : 16-May-18

The Australian Industry Group argues that many low-income workers would not benefit from the ACTU’s proposed 7.2 per cent increase in the minimum wage. Due to "bracket creep", a 2.1 per cent increase in the minimum wage would result in such workers being taxed at 32.5 per cent rather than 19 per cent. AiGroup says the Fair Work Commission should take into account the fact that employers would face increased costs under the ACTU’s proposal while there would be little gain for many workers. The AiGroup has called for a 1.8 per cent increase in the minimum wage.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, ACTU, AUSTRALIA. FAIR WORK COMMISSION, GRATTAN INSTITUTE

Top pickers reveal their favourite stocks

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Original article by Sarah Turner
The Australian Financial Review – Page: 27 : 16-May-18

Fund managers attending the Future Generation Investment Forum in Sydney have identified their preferred Australian and international stocks. Regal Funds Management’s Philip King likes Qantas, saying it is the cheapest stock in the ASX 100. Mastermyne and Freedom Foods are the top picks for Ben Griffiths of Eley Griffiths Group, while McPherson’s is the preferred stock of Centennial Asset Management’s Matthew Kidman. Wilson Asset Management’s Catriona Burns and Magellan Financial Group’s Domenico Giuliano favour US-listed Sensata Technologies and Facebook respectively.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, QANTAS AIRWAYS LIMITED – ASX QAN, STANDARD AND POOR’S ASX 100 INDEX, MASTERMYNE GROUP LIMITED – ASX MYE, FREEDOM FOODS GROUP LIMITED – ASX FNP, ELEY GRIFFITHS GROUP PTY LTD, McPHERSON’S LIMITED – ASX MCP, CENTENNIAL ASSET MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, SENSATA TECHNOLOGIES INCORPORATED, FACEBOOK INCORPORATED, GOOGLE INCORPORATED, SANDON CAPITAL INVESTMENTS LIMITED – ASX SNC, SPICERS LIMITED – ASX SRS, COOPER INVESTORS PTY LTD, LIFESTYLE COMMUNITIES LIMITED – ASX LIC, TEXAS INSTRUMENTS INCORPORATED, JETSTAR AIRLINES PTY LTD, QANTAS FREQUENT FLYER LIMITED

Bearish key reversal flags more falls ahead

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Original article by David Rogers
The Australian – Page: 24 : 16-May-18

The Australian sharemarket closed at a four-day low on 15 May, after falling just short of its highest level in 10 years. The bourse has gained 1.9 per cent so far in May, but recent history suggests that a further pullback is possible as it has shed an average of 4.3 per cent during May and June over the last decade. A number of factors could weigh on the market in coming days; most of the major banks are set to begin trading ex-dividend, while shares in oil producers are falling despite a rally in the crude oil price.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, BHP BILLITON LIMITED – ASX BHP, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, MORGAN STANLEY AUSTRALIA LIMITED

ANZ-Roy Morgan Consumer Confidence continues to recover post-Budget

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Original article by Roy Morgan
Market Research Update – Page: Online : 16-May-18

ANZ-Roy Morgan Australian Consumer Confidence rose 1.0% to 120.8 in the week ended 13 May, to its highest level in 14 weeks. The details were broadly positive, with four out of five subindices posting gains. Households’ views toward current financial conditions rose 0.7%, largely recovering from the 0.8% fall previously. Views towards future financial conditions rose 1.4%, partially reversing the 3.2% fall previously. Both subindices remain above their long term averages. Sentiment around current economic conditions rose 2.4% to 113.2, the highest level in 14 weeks. At the same time, views towards future economic conditions rose 3.7% to 117.5, the highest level in 15 weeks. However, the "time to buy a household item" subindex fell 2.7%, partially undoing the 5.0% gain in the previous week.

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

Emissions jump underestimated

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Original article by Kyle Mackey-Laws
The Canberra Times – Page: 5 : 15-May-18

Australia’s greenhouse gas emissions rose by 1.5 per cent in 2017, the third year in a row that emissions have increased. Bill Hare of Climate Analytics says Australia will struggle to meet its 2030 Paris climate pledge if the upward trend continues. The electricity sector reduced its emissions by 3.1 per cent in 2017, with the Hazelwood coal-fired power plant having closed in March. Labor’s climate spokesman Mark Butler says the accuracy of the federal government’s land clearing data is increasingly being questioned, with data on emissions from land use having indicated "inexplicable reductions" in emissions for some time.

CORPORATES
CLIMATE ANALYTICS, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, THE WILDERNESS SOCIETY, AUSTRALIAN CONSERVATION FOUNDATION INCORPORATED