K62 Finance

Westpac’s Evans says no rate cut in sight

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 30-Oct-15

HSBC’s Paul Bloxham expects a reduction in Australia’s cash rate in either November or December 2015, in the wake of lower-than-expected inflation data in the September quarter. Westpac’s chief economist Bill Evans in turn still believes that the cash rate will remain unchanged in November, noting that the Reserve Bank has ignored one-off falls in the inflation rate in the past. Andrew Ticehurst of Nomura expects the cash rate to remain on hold until February.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, NOMURA AUSTRALIA LIMITED

Fed leaves rates on hold, preps for potential December lift

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Original article by
The Age – Page: Online : 29-Oct-15

The Federal Reserve’s two-day policy meeting in late October 2015 has resulted in US interest rates being left unchanged. The central bank’s monetary policy statement noted that the US economy is expanding at a "moderate pace", while jobs growth has slowed. The statement omitted the previous month’s reference to the potential impact of global risks on the US economy. BlackRock’s Russ Koesterich says a rate cut remains possible in December.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, BLACKROCK INCORPORATED, FEDERAL RESERVE BANK OF RICHMOND, EUROPEAN CENTRAL BANK, REUTERS HOLDINGS PLC

Aussie dives as third-quarter inflation figure surprises

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Original article by Mark Mulligan
The Australian Financial Review – Page: 34 : 29-Oct-15

The Australian dollar was buying $US0.7119 late in trading on 28 October 2015, after starting the session above $US0.72. The currency fell sharply in response to official data showing that the headline and core inflation rates were lower than forecast in the September quarter, which may strengthen the case for further monetary policy easing. Paul Dales of Capital Economics says an interest rate cut is possible in November.

CORPORATES
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

ANZ-Roy Morgan Australian Consumer Confidence virtually unchanged at 113.4

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Oct-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.1 per cent to 113.4 in the week ended 25 October 2015, following a fall of two per cent in the previous week. This is somewhat surprising given further announcements of increases in variable mortgage interest rates. However, looking at the detail, consumers’ perceptions of their current finances deteriorated, suggesting that the prospect of higher mortgage repayments have hit households’ hip pocket nerve. The sub-index "finances compared to a year ago" was down 4.2 per cent, after a fall of 0.5 per cent in the previous week.

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

ASIC takes issue with NAB’s debt collection letters

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 27-Oct-15

Customers of National Australia Bank may have been misled by the bank. The Australian Securities & Investments Commission is concerned that the debt collection letters sent to borrowers contain references to Fairhalsen Collections and Brunswick Collections Services. Borrowers could be under the impression that they had received a warning from independent debt collectors, when in fact these two entities are part of the bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FAIRHALSEN COLLECTIONS, BRUNSWICK COLLECTIONS SERVICES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Bank ‘power’ to protect $30b profits

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Original article by Shaun Drummond, Patrick Commins, Clancy Yeates, Joyce Moullakis
The Australian Financial Review – Page: 1 & 8 : 26-Oct-15

Some fund managers believe that Australian bank customers rather than shareholders are likely to bear the brunt of complying with new capital requirements. Australian Prudential Regulation Authority chairman Wayne Byres recently suggested that shareholders should expect a slightly lower return as a result of the new requirements. However, all four major banks have now lifted their variable mortgage loan interest rates. Meanwhile, the major banks are poised to post a combined profit in excess of $A30bn for 2014-15.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AURORA FUNDS MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, BELL POTTER SECURITIES LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, CITIGROUP PTY LTD, CONTANGO ASSET MANAGEMENT LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, CLYDESDALE BANK PLC, MACQUARIE GROUP LIMITED – ASX MQG, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED

CBA hike undercuts Westpac

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Original article by Jonathan Shapiro, Phillip Coorey, Clancy Yeates
The Australian Financial Review – Page: 1 & 9 : 23-Oct-15

The Commonwealth Bank will increase its standard variable mortgage interest rates for owner-occupiers and property investors by 15 basis points, to 5.60 per cent and 5.87 per cent respectively. The move has been criticised by federal Treasurer Scott Morrison and Opposition Leader Bill Shorten, and follows Westpac’s recent decision to lift its home loan rates by 20 basis points. The interest rate rises are in response to new capital requirements for the banking sector.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSSIE HOME LOANS LIMITED, RESERVE BANK OF AUSTRALIA

Bank customers tipped to fix their mortgages

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 21-Oct-15

The fall in the two-year swap rate to just 1.9 per cent has prompted some smaller financial institutions to reduce their fixed mortgage interest rates in recent weeks. ME Bank’s John Caelli says the downturn in the swap rate may be due to renewed speculation about the timing of monetary policy changes in Australia and the US. Jessica Darnbrough of Mortgage Choice says more home loan borrowers may opt for a fixed interest rate in the wake of Westpac’s move to lift its variable rates.

CORPORATES
ME BANK, MORTGAGE CHOICE LIMITED – ASX MOC, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF WESTERN AUSTRALIA LIMITED, NEWCASTLE PERMANENT BUILDING SOCIETY LIMITED, HERITAGE BANK LIMITED – ASX HBS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Australian Consumer Confidence – Westpac Interest Rate Rise Chips Away Confidence

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 20-Oct-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by two per cent to 113.3 in the week ended 18 October 2015, following a bounce of 5.1 per cent in the previous week. Westpac’s decision to increase its mortgage interest rates, combined with news flow around slowing momentum in the property market, is likely to have contributed to the fall in confidence. The decline in confidence was broad-based. Of note, consumers’ views towards whether now is a "good time to buy a major household item" fell by 3.1 per cent. This sub-index is now 7.9 per cent below its long-run average.

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

Westpac shares climb after capital raising, rate increase

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Original article by Clancy Yeates
The Australian Financial Review – Page: 1 & 10 : 20-Oct-15

Shares in Westpac closed three per cent higher at $A31.34 on 19 October 2015, after being in a trading halt for almost a week. Clime Investment Management’s John Abernethy suggests that short selling in the wake of a $A3.5bn capital raising may have been the main driver of Westpac’s share price rise, rather than its move to lift mortgage interest rates by 0.2 per cent. Morningstar’s David Ellis says rival banks are likely to increase their own home loan rates.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CLIME INVESTMENT MANAGEMENT LIMITED – ASX CIW, MORNINGSTAR PTY LTD, WATERMARK FUNDS MANAGEMENT PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, ALPHINITY INVESTMENT MANAGEMENT PTY LTD