K62 Finance

Banks reject Turnbull demand

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Original article by Phillip Coorey, Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 4-Aug-16

Prime Minister Malcolm Turnbull has criticised the major banks for failing to reduce their interest rates by the full 25 basis point reduction in the cash rate on 2 August 2016. Turnbull says the banks have a "social licence" and their CEOs should explain why the rate cut was not passed on to their customers in full. ANZ Bank CEO Shayne Elliott has conceded that banks should do more to explain their decisions on interest rates, but notes that wholesale funding costs are rising and the banks will be subject to new capital requirements.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN BANKERS’ ASSOCIATION

ANZ-Roy Morgan Australian Consumer Confidence picks up steam ahead of the RBA meeting – up 2.5pts to 118.0

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-Aug-16

ANZ-Roy Morgan Australian Consumer Confidence has risen by 2.2 per cent to 118.0 in the week ending 31 July 2016, with the improvement in confidence being broadly based. Increasing speculation of a rate cut at this week’s RBA meeting was likely a key driver of confidence. In addition, the buoyancy of the equity market – with the Australian share market recording its best July in six years – was also key in supporting household sentiment. Consumers’ views of their current finances rose by 6.8 per cent, and households’ views of the economic outlook in the next 12 months rose by 3.7 per cent.

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

Gary Morgan on Consumer Confidence and the RBA’s decision to drop Australian interest rates to 1.5%

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Original article by Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 3-Aug-16

The August interest rate cut by the RBA shows that finally the RBA has acknowledged Australia’s massive under-employment problem that has been persistently ignored (8.3% – 1.079 million, in June, according to the latest Roy Morgan employment estimates). In addition, it’s time policymakers recognised the true extent of unemployment in Australia (9.6% in June – 1.247 million – according to the latest Roy Morgan real unemployment estimate). To provide an effective stimulus to the economy the RBA should immediately cut Australian interest rates to 0.5% – the same as in the comparable economies of the US & UK and as we have been calling for the RBA to do for more than two years. Reducing interest rates will have the most positive impact on the Australian economy when the banks start lending to more businesses rather than just households – particularly as this week’s ANZ-Roy Morgan Consumer Confidence shows Australians are growing increasingly confident – now at 118.0 (up 2.5pts this week). By providing increased finance and credit to businesses the Australian economy will grow strongly and more jobs will be created for the over 2 million Australians either unemployed or under-employed

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

Westpac aims for 20pc Asian managers

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Original article by Misa Han
The Australian Financial Review – Page: 5 : 29-Jul-16

Westpac CEO Brian Hartzer wants the bank to have greater diversity among its staff. The bank aims to raise the ratio of its executives with an Asian background from 13 per cent to 20 per cent. Hartzer says it is primarily a business issue, although social justice is also important to him. Race discrimination commissioner Tim Soutphommasane suggests that businesses should aim for 10 per cent of their senior executives to have a non-European background.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

ANZ says credit card late fees won’t rise after court win

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Original article by James Eyers
The Australian Financial Review – Page: 2 : 28-Jul-16

Andrew Watson of law firm Maurice Blackburn has warned that banks may increase their credit card late payment fees after the High Court dismissed a class action case. Watson says the Federal Government should step in to protect consumers from unfair fee increases, but the ANZ Bank says such intervention is unnecessary as the court has ruled that its fees are fair. The bank has also ruled out increasing its late payment fees, which it had reduced in 2009. The class action commenced in 2010.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MAURICE BLACKBURN PTY LTD, HIGH COURT OF AUSTRALIA, IMF BENTHAM LIMITED – ASX IMF, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNIVERSITY OF NEW SOUTH WALES

ANZ-Roy Morgan Australian Consumer Confidence ticks up to 115.5 (up 0.6pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Jul-16

ANZ-Roy Morgan Australian Consumer Confidence has risen by 0.5 per cent to 115.5 in the week ending 24 July 2016. Lower financial market volatility and buoyant equity markets are likely the main factors behind the improvement. Consumers’ views of their current finances fell two per cent, but households’ views of the economic outlook in the next 12 months rose by 1.5 per cent.

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

ANZ-Roy Morgan Australian Consumer Confidence edges lower to 114.9 (down 0.3pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 20-Jul-16

ANZ-Roy Morgan Australian Consumer Confidence has fallen for the fourth week in a row, down 0.3 per cent to 114.9 in the week ending 17 July 2016. The headline index is now 3.3 per cent lower than four weeks ago. Consumers’ views of their current finances edged 0.2 per cent higher last week, while consumers’ views of the economic outlook in the next 12 months rose by 3.1 per cent.

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

ANZ-Roy Morgan New Zealand Consumer Confidence slips to 118.2 in July (down 0.7pts)

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

The ANZ-Roy Morgan New Zealand Consumer Confidence Index has fallen from 118.9 to 118.2 in July 2016. However, it is holding in at levels of elevation, and in line with its historical average. In seasonally adjusted terms confidence rose from 118 to 119, the second monthly rise in a row. The Current Conditions and Future Conditions indices were both down by a small amount, but they were up marginally in seasonally adjusted terms.

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

Only extreme event will trigger RBA QE

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Original article by Mark Mulligan
The Australian Financial Review – Page: 3 : 18-Jul-16

Perpetual Investment’s Matt Sherwood says geopolitical tensions would not be a sufficient reason for the Reserve Bank of Australia to implement quantitative easing. He argues that such measures would only be necessary if there were a major crisis such as the collapse of the Chinese economy. The RBA has developed a strategy for implementing quantitative easing, and Sherwood says this demonstrates that the central bank wants to be more prepared than it was at the onset of the global financial crisis in 2008.

CORPORATES
RESERVE BANK OF AUSTRALIA, PERPETUAL INVESTMENTS, UNITED STATES-CHINA JOINT COMMISSION ON COMMERCE AND TRADE, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

Moody’s issues bleak outlook for banks

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 19 : 15-Jul-16

Australian banks are likely to experience pressure on their profit margins because of low interest rates. Frank Mirenzi of Moody’s states in a report released on 14 July 2016 that household debt has increased as a result of rising house prices and low income growth. At present, the big four banks have an "Aa2" rating from Moody’s and an "AA-" rating from Standard & Poor’s.

CORPORATES
MOODY’S INVESTORS SERVICE INCORPORATED, STANDARD AND POOR’S CORPORATION, RESERVE BANK OF AUSTRALIA, HSBC BANK PLC, WELLS FARGO AND COMPANY, BNY MELLON ASSET MANAGEMENT AUSTRALIA LIMITED