K62 Finance

Business confidence in May boosted by budget – but remains fragile

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Jun-15

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 9.1 per cent to 114.7 in May 2015. This is the highest level since January 2015 (114.9), but business confidence remains below the five-year average of 117.3 and the peak of 136.3 in October 2013. The increase in business confidence in May occurred across all components of the index, but stemmed mainly from an increase in the proportion of businesses believing that Australia will experience good economic conditions over the next 12 months.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Trade engagement push with Japan

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 9-Jun-15

Australia’s Assistant Treasurer Josh Frydenberg is visiting Japan with a delegation of financial services industry executives. Frydenberg will address a business lunch on 9 June 2015, and will argue that financial services groups in both nations should capitalise on the Japan-Australia Economic Partnership Agreement. He says the financial services industries in both countries can benefit from each other’s expertise.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, PERPETUAL LIMITED – ASX PPT, MACQUARIE INVESTMENT MANAGEMENT LIMITED, MLC LIMITED, JAPAN. OFFICE OF THE PRIME MINISTER, BANK OF JAPAN, NIKKO ASSET MANAGEMENT GROUP, TYNDALL INVESTMENT MANAGEMENT LIMITED, THE DAI-ICHI MUTUAL LIFE INSURANCE COMPANY LIMITED, TAL LIMITED, MITSUBISHI UFJ FINANCIAL GROUP INCORPORATED, AMP CAPITAL INVESTORS LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Grim GDP figures may mean further rate cuts

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Original article by Vesna Poljak
The Australian Financial Review – Page: 18 : 2-Jun-15

The general expectation of economists is that Australia recorded GDP growth of about 0.6 per cent in the March 2015 quarter. However, Citigroup has forecast real GDP growth of just 0.5 per cent, while Damien Boey of Credit Suisse says there is the potential for GDP on a nominal basis to contract in the first two quarters of calendar 2015. Boey says the GDP outlook may prompt the Reserve Bank to further reduce the cash rate in the near-term.

CORPORATES
CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL RESERVE BANK OF ATLANTA

Banks’ commercial exposure rises

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Original article by Matthew Cranston
The Australian Financial Review – Page: 38 : 1-Jun-15

The total value of Australia’s four largest banks’ commercial property portfolios increased by 6.5 per cent to $A202.3bn in the year to March 2015. This includes some $A70.3bn worth of office properties. The Reserve Bank’s latest Financial Stability Review highlighted the potential risk of revaluations in the sector, although Brian Johnson of CLSA argues that the banks’ exposure to commercial property development is the main factor to consider.

CORPORATES
RESERVE BANK OF AUSTRALIA, CLSA AUSTRALIA PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

ANZ-Roy Morgan Singapore Consumer Confidence Rose in May

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-May-15

The monthly ANZ-Roy Morgan Singapore Consumer Confidence Index rose by four points to 129.7 in May 2015. Consumer confidence is now clearly above its long-term average of 122.2. The rise was driven by greater confidence across all components of the survey. The number of respondents who said their family is "better off" financially compared with a year ago has risen by two per cent to 31 per cent. Meanwhile, the number of respondents who expect Singapore to have "good times" financially over the next 12 months has risen by two per cent to 51 per cent.

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

Stock index ‘loaded with risk’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 20 : 27-May-15

The head of Australian equities at Lazard, Rob Osborn, is concerned about the S&P/ASX 200’s weighting toward banks. The sector comprised nearly 42 per cent of the benchmark index in March 2015, and Osborn notes that one sector has had a significant weighting in the index on just two other occasions in the last 15 years – the technology boom in 2000 and the resources boom in 2008. In both instances a correction resulted in these sectors falling sharply. Meanwhile, bank stocks have fallen by nearly 10 per cent since March.

CORPORATES
LAZARD PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DAVNET LIMITED, ECORP LIMITED, NEWS CORPORATION – ASX NWS

ANZ-Roy Morgan Consumer Confidence Holds Recent Gains

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.0 per cent to 113.5 in the week ended 24 May 2015, following strong growth in the previous fortnight. Confidence has been trending above its long-run average for two continuous weeks, following a five-month run of below average growth. Confidence remains 14.3 per cent higher than the level for the same time in 2014. The sub-index for households’ finances in the next year has risen by 2.7 per cent, although the sub-index for expectations of the economic outlook in the next year fell by 5.3 per cent.

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

Westpac nabs CBA’s Cobley for top role

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Original article by James Chessell, Sarah Thompson, James Eyers
The Australian Financial Review – Page: 18 : 27-May-15

Westpac has announced that Lyn Cobley will succeed Rob Whitfield as the head of its institutional banking division. Cobley is currently the head of retail products and third-party banking at the Commonwealth Bank of Australia (CBA). She had previously worked for groups such as Barclays Capital and Citigroup, and was regarded as a potential successor to CBA CEO Ian Narev. Whitfield will step down on 10 July 2015, after nearly three decades at Westpac.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BARCLAYS CAPITAL SECURITIES LIMITED, CITIGROUP PTY LTD, ERNST AND YOUNG, TRADINGROOM PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, FAIRFAX MEDIA LIMITED – ASX FXJ, WESTPAC INSTITUTIONAL BANK, ST GEORGE BANK LIMITED

Westpac institutional banking head Rob Whitfield leaving

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Original article by James Chessell, Sarah Thompson
The Australian Financial Review – Page: 15 : 26-May-15

Westpac may appoint an external candidate to succeed the group’s head of institutional banking, Rob Whitfield, who is widely tipped to stand down. Whitfield has been in the role since 2007 and has been at Westpac since 1986. He had been in the running to succeed Gail Kelly as CEO earlier in 2015. Internal candidates to replace him are said to include Anthony Masciantonio, Rachel Slade and Terry Winder.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, WESTPAC INSTITUTIONAL BANK, ST GEORGE BANK LIMITED, LLOYDS BANKING GROUP PLC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROYAL BANK OF SCOTLAND GROUP PLC, BANK OF QUEENSLAND LIMITED – ASX BOQ, PETER LEE ASSOCIATES PTY LTD, BT FINANCIAL GROUP PTY LTD

ANZ-Roy Morgan New Zealand Consumer Confidence – Ob-La-Di Ob-La-Da

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-May-15

The ANZ-Roy Morgan New Zealand Consumer Confidence Index has fallen from 128.8 in April 2015 to 123.9 in May. This compares with a long-term average of 117.9. Stripping out seasonal noise, the index showed a three-point fall, but it remains well above historical averages. The Current Conditions Index fell from 130.3 to 124.6, while the Future Conditions Index eased from 127.8 to 123.4. Meanwhile, a net seven per cent of New Zealanders believe that they are financially better off compared with last year.

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