K62 Finance

NAB forced to delay Clydesdale float after ratings inquiry

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 3-Feb-16

Shares in National Australia Bank spin-off Clydesdale Bank were slated to list on the London Stock Exchange on 2 February 2016. However, NAB has postponed the float by 24 hours after an unnamed ratings agency sought information on Clydesdale’s deposit rating. The request could potentially result in Clydesdale’s credit rating being downgraded, although NAB has stressed that this would have no impact on the UK bank’s financial outlook or its cost of funding.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY AND COMPANY INCORPORATED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, JP MORGAN AND COMPANY INCORPORATED, CLIME ASSET MANAGEMENT PTY LTD

Australian Roy Morgan Business Confidence continues to drift lower in January

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Jan-16

A Roy Morgan Business Single Source survey has found that Australian business confidence fell by 3.9 points to 110.6 in January 2016, following a decline of 4.2 points in December and 0.6 points in November. The combined drop of 8.7 points (down 7.3 per cent) over the last three months is an indication that the initial increase in confidence following Malcolm Turnbull becoming Prime Minister has been outweighed by the negative local and international economic environment, which saw the ASX decline by 8.6 per cent in the first three weeks of January. Despite the negative trend in business confidence over the last three months, it is still 7.8 per cent above the level prior to the appointment of Turnbull. Business confidence is now below the five-year average of 116.8 and is a sign that confidence is very fragile and easily impacted by negative economic events.

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

ANZ-Roy Morgan Australian Consumer Confidence down for the third week in a row to 112.2

roymorgansocial Leave a comment

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

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.9 per cent to 112.2 in the week ended 24 January 2016, and is now down 3.6 per cent over the past three weeks. Consumer confidence is now below its long-run average for the first time in almost four months. The recent falls are largely a reflection of ongoing global concerns and financial market volatility. The sub-index on "economic conditions in the next 12 months" has fallen by 13.5 per cent since early December, while the sub-index on "time to buy a major household item" has fallen by 7.9 per cent over the past three weeks.

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

NAB shareholders back Clydesdale spin-off

roymorgansocial Leave a comment

Original article by Sally Rose, Clancy Yeates
The Australian Financial Review – Page: 15 & 18 : 28-Jan-16

National Australia Bank (NAB) will proceed with plans to demerge its Clydesdale Bank subsidiary in the UK, after 98 per cent of shareholders voted in favour of the deal. NAB shareholders will receive 75 per cent of Clydesdale’s shares, with the balance to be offered to institutional investors. However, the latter component of the transaction may be delayed if NAB fails to obtain a satisfactory price for the stock. NAB chairman Ken Henry says the bank’s dividend will not be affected by the sale of Clydesdale.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Rate cut in near future seen as unlikely

roymorgansocial Leave a comment

Original article by Vanessa Desloires, Jessica Sier
The Australian Financial Review – Page: 27 : 22-Jan-16

The general consensus of Australian economists is that the Reserve Bank will leave the cash rate unchanged in February 2016. Shane Oliver of AMP is the only economist out of 14 who believes that recent financial market volatility could result in an interest rate cut. He adds that the upcoming release of inflation data for the December 2015 quarter is likely to be the deciding factor. Meanwhile, the ANZ Bank’s chief economist Warren Hogan expects the cash rate to be cut in May and August.

CORPORATES
RESERVE BANK OF AUSTRALIA, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD, BLOOMBERG LP, AUSTRALIAN BUREAU OF STATISTICS, BETASHARES CAPITAL LIMITED, BANK OF CANADA, MERRILL LYNCH (AUSTRALIA) PTY LTD, RBC CAPITAL MARKETS, CITIGROUP PTY LTD

ANZ-Roy Morgan Australian Consumer Confidence down again to 113.2 (down 0.9pts)

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-Jan-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.8 per cent to 113.2 in the week ended 17 January 2016, following a 1.9 per cent fall in the previous week. Further losses on the sharemarket amid ongoing concerns about China’s economic growth prospects are likely to have weighed on consumer confidence. The sub-index on the "economic outlook in the next 12 months" fell by 7.5 per cent, and it is now is now at its lowest level since Malcolm Turnbull became Prime Minister. Meanwhile, the sub-index on "finances compared to a year ago" rose by 8.6 per cent.

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

Ratings agency predicts weaker bank profit growth in 2016

roymorgansocial Leave a comment

Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 20-Jan-16

Fitch Ratings warns that Australian banks are likely to face lower growth in earnings in 2016, citing factors such as a rise in bad loans, an increase in the cost of funding and stronger competition in the sector. However, the ratings agency notes that capital raisings in 2015 mean the four major banks are well-placed to handle any increase in bad loans.

CORPORATES
FITCH RATINGS LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, RESERVE BANK OF AUSTRALIA

RBA tipped to make cuts around mid-year

roymorgansocial Leave a comment

Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 20-Jan-16

Data from Citigroup shows that financial markets believe that the Reserve Bank of Australia is now almost certain to reduce the cash rate by 25 basis points in June 2016. There is a 20 per cent chance of a rate cut in February, and a 40 per cent chance of a rate cut in March. Factors such as the downturn in the crude oil price and the uncertain outlook for the Chinese economy are like to influence the central bank’s monetary policy deliberations. The cash rate has remained on hold since May.

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, CITIBANK PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD

NAB unveils pricing range for Clydesdale

roymorgansocial Leave a comment

Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 19-Jan-16

National Australia Bank (NAB) expects to float its British lender Clydesdale Bank in early February 2016. Volatility on global share markets has forced the Australian-listed bank to lower its price expectations for the float. NAB’s Craig Drummond says the British bank will be offered to shareholders at between Stg1.75 and Stg2.35 a share which suggests a market capitalisation of between Stg1.54 billion and Stg2.07 billion ($A3.19 billion and $A4.29 billion).

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, LONDON STOCK EXCHANGE, CREDIT SUISSE (AUSTRALIA) LIMITED

Mortgage activity falls to three-year low

roymorgansocial Leave a comment

Original article by Michael Bleby
The Australian Financial Review – Page: 33 : 19-Jan-16

CoreLogic RP Data’s Mortgage Index fell to 70.1 in the week to 17 January 2016. The index was at 99.2 a year ago. The New South Wales mortgage index recorded a sharp decline to 90.4, falling 53.2 per cent from a month earlier. A year ago, it stood at 131.6.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN FINANCE GROUP LIMITED – ASX AFG, FITCH AUSTRALIA PTY LTD, PROPELL NATIONAL VALUERS PTY LTD, WBP PROPERTY GROUP PTY LTD