K62 Finance

‘Unconscionable’ NAB sued by ASIC over alleged rate rigging

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 2 : 8-Jun-16

Opposition Leader Bill Shorten says the latest development in the scandal over manipulation of the bank bill swap rate demonstrates the need for a royal commission into the banking sector. The Australian Securities & Investments Commission will allege in the Federal Court that National Australia Bank manipulated the BBSW in 50 separate transactions from mid-2010 to late-2012. ASIC has previously launched legal action against Westpac and the ANZ Bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN GREENS, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

August cut tipped, but central bank headed for a pause

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Original article by Vesna Poljak
The Australian Financial Review – Page: 24 : 8-Jun-16

Inflation data to be released in late July 2016 may influence the Reserve Bank of Australia’s next move on interest rates, after the central bank left the cash rate on hold on 7 June. A survey by Bloomberg shows that most economists expect the cash rate to be 1.5 per cent by the June 2017 quarter. Jamieson Coote Bonds co-founder Charlie Jamieson expects a rate cut in August, adding that it may then opt to keep the cash rate on hold.

CORPORATES
RESERVE BANK OF AUSTRALIA, JAMIESONCOOTEBONDS PTY LTD, BLOOMBERG LP

NAB set to face claims of rate-rigging

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Original article by Sarah Thompson, Jemima Whyte, Anthony Macdonald
The Australian Financial Review – Page: 17 & 22 : 3-Jun-16

The Australian Securities & Investments Commission has a narrow time-frame to decide whether to pursue legal action against National Australia Bank for manipulating the bank bill swap rate. The alleged conduct occurred on 6 June 2010, which means ASIC must commence legal proceedings within days under the statute of limitations. Westpac and ANZ Bank have already been the subject of ASIC action over such conduct, while several investment banks have agreed to enforceable undertakings.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Economists say growth stunner won’t stop RBA rate cut

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Original article by Jessica Sier
The Australian Financial Review – Page: 32 : 2-Jun-16

Deutsche Bank’s Adam Boyton says inflation will be a bigger influence on the Reserve Bank of Australia’s monetary policy deliberations than GDP data. New figures show that the economy expanded by a higher-than-expected 1.1 per cent in the March 2016 quarter, with year-on-year growth of 3.1 per cent. There is general consensus among economists that there will be at least one more interest rate cut in 2016, although Craig James of CommSec cautions that this could put more upward pressure on house prices.

CORPORATES
DEUTSCHE BANK AG. RESERVE BANK OF AUSTRALIA. COMMONWEALTH SECURITIES LIMITED. AUSTRALIAN BUREAU OF STATISTICS. NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

ANZ-Roy Morgan Australian Consumer Confidence – Consumers cringe as confidence drops to 113.2

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 2.2 per cent to 113.2 in the week ended 29 May 2016, partially reversing the 3.6 per cent increase over the previous four weeks. Confidence remains just above its long-run average (+0.4 per cent). The fall last week was largely driven by concerns about the economic outlook. Consumers’ views towards their current finances rose 0.7 per cent, but consumers’ views towards their future finances fell 4.7 per cent.

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

Business Confidence plunges in May – down 9.1% to 111.9 following Federal Budget and Election uncertainty

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-16

A Roy Morgan Business Single Source survey has found that Australian business confidence fell by 9.1 per cent to 111.9 in May 2016. Business confidence is now at its lowest since a 2016 low of 110.6 in January. The fall in Business Confidence comes even after a slight improvement on the Australian sharemarket in May. However, the large drop in Business Confidence is likely more tied to a poorly received Federal Budget in early May and the uncertainty surrounding the upcoming Federal Election. The weakest indicators in May relate to the upcoming year, which suggests the impact of election uncertainty. Net expectations of business performance over the next 12 months have dropped to 20.6ppts (down 17.5ppts in May) and net views of whether the next 12 months will be a "good/bad time to invest" are now 12.1ppts (down 14.2ppts).

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MORGAN POLL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, DCNS SA

Morgan Stanley adds to gloom with 1pc rate tip

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 26-May-16

Investment bank Morgan Stanley has forecast that the Reserve Bank of Australia will reduce the cash rate from 1.75 per cent to just one per cent by mid-2017. Chris Nicol and Daniel Blake of Morgan Stanley expect more aggressive monetary policy easing due to factors such as the need to reduce the value of the Australian dollar. They note that banks in particular will be adversely affected by a much lower cash rate, although there is likely to be a minimal impact on consumer stocks.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

Overvalued Aussie dollar could dive below US50c, warns ANZ

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Original article by Mark Mulligan
The Australian Financial Review – Page: 34 : 26-May-16

The Australian dollar is currently trading above $US0.71, but Daniel Been of the ANZ Bank warns that it could potentially test the $US0.50 level. While the currency has shed 35 per cent against its US counterpart over the last five years, Been says its continued resilience can be partly attributed to Australia’s "AAA" credit rating, which has led to the dollar being regarded as a safe-haven currency. He notes that factors such as Australia’s current account deficit and high government debt would not usually result in such strong support for the currency.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STRATTON STREET CAPITAL LLP, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Australian Consumer Confidence creeps higher – up 0.6pts to 115.7

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose 0.5 per cent to 115.7 in the week ended 22 May 2016. It has risen 3.6 per cent over the past four weeks. The latest increase likely reflects several factors, including last week’s jobs report (which confirmed healthy conditions in the labour market), strong auction clearance rates, the positive impact from the RBA rate cut three weeks ago and ongoing gains in equity markets since early April. Consumers’ views towards their finances in the next 12 months rose 3.4 per cent, but consumers’ views toward economic conditions in the next 12 months fell slightly.

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

Macquarie tips 1pc cash

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 20-May-16

James McIntyre of Macquarie Group says the Reserve Bank will have further ease monetary policy unless the Australian Government stimulates the economy with fiscal policy measures. He says this is unlikely, which will leave it to the central bank to put downward pressure on the dollar via rate cuts. McIntyre expects the cash rate to fall to at least one per cent.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB