K62 Finance

Westpac execs quizzed in rate-rig probe

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Original article by Leo Shanahan
The Australian – Page: 19 & 22 : 8-Mar-16

The Australian Securities & Investments Commission is believed to have interviewed about 25 Westpac employees to date as part of its investigation into allegations that banks manipulated the bank bill swap rate. The ANZ Bank is already the subject of legal action by ASIC over the scandal, while the corporate regulator is said to have identified about 120 Westpac employees and executives that it wants to interview. Westpac has stressed that it is co-operating fully with the investigation.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ALLENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FEDERAL COURT OF AUSTRALIA, CLSA AUSTRALIA PTY LTD

Citi expects bank dividends to be ‘significantly lower’

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Original article by James Chessell
The Australian Financial Review – Page: 18 : 8-Mar-16

Citi Global Markets’ Sebastien Bland has warned that hedge funds and long-only fund managers in the UK and Europe are not convinced that Australian banks’ dividend payouts are sustainable given their current capital levels. He says hedge funds believe that the banks will need to reduce their dividend payout ratios, but he adds that long-only funds expect the banks to maintain dividends via measures such as dividend reinvestment plans.

CORPORATES
CITI GLOBAL MARKETS, CITIGROUP INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, VARIANT PERCEPTION

ASIC targets more banks over rates

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 1 & 8 : 7-Mar-16

Law firm Maurice Blackburn is examining the potential for a class action against the ANZ Bank over allegations of misconduct in setting the bank bill swap. Meanwhile, the Australian Securities & Investments Commission may broaden its legal case to include the Commonwealth Bank, Westpac and National Australia Bank. ASIC launched legal action against ANZ after the bank refused to admit liability, which has thwarted attempts to reach a settlement.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAURICE BLACKBURN PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTERN SYDNEY UNIVERSITY, UNIVERSITY OF MELBOURNE

ANZ-Roy Morgan Consumer Confidence dips 3pts to 111.3

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 1-Mar-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 2.6 per cent to 111.3 in the week ended 28 February 2016. The modest recovery in confidence seen in the previous three weeks proved to be short-lived. Confidence is now back to the levels seen post the financial market volatility in January and below its long run average. The weakness in confidence this week was largely driven by consumers’ views towards the economic outlook. The subindex for the "economic outlook in the next 5 years" fell 7.2 per cent, and the subindex for "economic outlook in the next 12 months" fell 6.3 per cent.

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

Global search for Reserve boss on the cards: Costello

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Original article by James Glynn
The Australian – Page: 19 & 28 : 2-Mar-16

Reserve Bank of Australia governor Glenn Stevens will step down in September 2016, after 10 years in the role. The Federal Government may accelerate the appointment of a successor given that it is an election year. Deputy governor Philip Lowe is widely seen as the leading contender to replace Stevens, but former federal treasurer Peter Costello believes that international candidates should be considered. Martin Parkinson, David Gruen and Warwick McKibbin have been touted as potential successors to Stevens.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN NATIONAL UNIVERSITY, BANK OF ENGLAND, TD SECURITIES, MASSACHUSETTS INSTITUTE OF TECHNOLOGY, BANK OF JAPAN

Higher dollar not enough to kill RBA’s chill

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Original article by Vanessa Desloires, Mark Mulligan
The Australian Financial Review – Page: 3 : 29-Feb-16

There is general consensus among economists that the Reserve Bank will leave the cash rate unchanged at two per cent on 1 March 2016. Shane Oliver of AMP Capital is among the economists who expect an interest rate cut at some point in 2016. Meanwhile, the Commonwealth Bank’s Michael Blythe does not expect the central bank to resume "jawboning" the Australian dollar in its monetary policy statement, despite its recent rise to a seven-week high.

CORPORATES
RESERVE BANK OF AUSTRALIA, AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NOMURA AUSTRALIA LIMITED, BETASHARES CAPITAL LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD, ST GEORGE BANK LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN

Australian Roy Morgan Business Confidence rises in February bringing a halt to three months of falls

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Feb-16

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 2.7 points to 113.3 in February 2016, following a combined fall of 8.7 points over the previous three months. The stabilisation in business confidence comes after sharp falls on the Australian sharemarket early in 2016 levelled off in February. The level of business confidence in February is clearly positive for the economy overall, but below the five-year average (116.7), and the weakness of indicators related to the health of the Australian economy is a sign that confidence remains fragile and easily impacted by negative economic events.

CORPORATES
ROY MORGAN RESEARCH LIMITEDAUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINETAUSTRALIA. DEPT OF THE TREASURYAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZSTANDARD AND POOR’S ASX ALL ORDINARIES INDEXDICK SMITH HOLDINGS LIMITED – ASX DSHMASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

ANZ-Roy Morgan Australian Consumer Confidence tracking up – now at 114.3

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Feb-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.6 per cent to 114.3 in the week ended 21 February 2016. The 2.8 per cent increase over the past three weeks partially retraces the declines recorded through January. With the negative impact from the financial market volatility in early January appearing to be short-lived, confidence is now tracking higher with most sub-indexes showing an improvement. Consumer confidence in the past few weeks shows that consumers’ views towards their current personal finances and the near term economic outlook were most sensitive towards the financial market rout, falling between 6-8 per cent in the last four weeks of January. They have, however, recovered in the past three weeks, with both rising a cumulative 4.2 per cent. Overall though, households’ confidence in the economic outlook remains much weaker than their view of their own finances.

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

Australia at risk from hard landing in China

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 18-Feb-16

The Chinese economy expanded by just 6.9 per cent in 2015, and Oxford Economics forecasts a gradual slowing of economic growth over the next five years. However, Sian Fenner of Oxford Economics warns that Australia could face a recession in 2016 if the Chinese economy experiences a "hard landing". Fenner adds that in the event of a recession the Reserve Bank could reduce the cash rate to just 0.25 per cent, which would limit the extent of the economic downturn.

CORPORATES
OXFORD ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, AVIVA PLC, PEOPLE’S BANK OF CHINA, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

ANZ-Roy Morgan Australian Consumer Confidence increases to 113.6

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Original article by Gary Morgan
Market Research Update – Page: Online : 16-Feb-16

The rise in Consumer Confidence to 113.6 in the week ended 14 February 2016 comes after Prime Minister Malcolm Turnbull appeared to rule out any prospect of a GST increase to 15 per cent being taken to the Australian electorate as part of the Government’s taxation reform package. The decision to look for other means to improve the Australian taxation system has given a boost to the confidence of Australian consumers who now don’t face the prospect of higher costs for goods and services that a higher GST would bring. As school leavers return from Summer holidays the next few months will determine whether they are able to find meaningful employment in a tough economic environment and this impact on Australia’s real unemployment – now at 10.3 per cent – 1.346 million in January – will also flow through as a forward indicator to the ANZ-Roy Morgan Consumer Confidence Rating.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET