K62 Finance

ANZ-Roy Morgan Australian Consumer Confidence: Budget Boosts Confidence in the Economy

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 19-May-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 3.6 per cent to 114.6 in the week ended 17 May 2015, to the highest level since early November 2014. Confidence is up a cumulative 5.4 per cent over the last fortnight, suggesting a more positive reaction to the Federal Government’s Budget and the interest rate cut in May. Budget measures aimed at households and micro businesses were likely key reasons for the lift in confidence. This is in marked contrast to 2014, when a number of unpopular tightening measures saw confidence plunge to 99.3 in the weeks following the Budget.

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

Banks cut deeper into deposit rates

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Original article by Clancy Yeates
The Australian Financial Review – Page: 20 : 20-May-15

Australian banks have reduced the interest rate on some savings accounts by the full 25 basis point reduction in the cash rate in May 2015. However, some banks have reduced their mortgage interest rates by a lower margin. Michelle Hutchison of Finder.com.au notes that the majority of households do not have a mortgage, while most have savings accounts. Some banks have offered a sweetener to savers by increasing the interest rate on term deposits and accounts that offer bonus interest rates.

CORPORATES
FINDER.COM.AU, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BELL POTTER SECURITIES LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, BANK OF MELBOURNE LIMITED

Tax breaks to lift borrowing

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Original article by Clancy Yeates
The Australian Financial Review – Page: 18 : 18-May-15

The Commonwealth Bank of Australia (CBA) expects more small businesses to take out loans as a result of the Australian Government’s May 2015 Budget. CBA’s Clive van Horen says the $A5.5bn small business package should boost the confidence of small businesses and provide them with the incentive to invest in new equipment. However, TS Lim of Bell Potter says that even with the tax breaks, many small businesses will be reluctant to increase their debt.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BELL POTTER SECURITIES LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Deposits levy to hurt big credit unions’ profit

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Original article by Shaun Drummond
The Australian Financial Review – Page: 19 : 15-May-15

The Customer Owned Banking Association believes that the proposed deposits levy will reduce the annual profits of many small credit unions by around seven per cent. CUA estimates that its earnings will be cut by about six per cent, while People’s Choice Credit Union anticipates that its profit will be reduced by 5-7 per cent. The Australian Government will issue its response to the financial system inquiry before deciding whether to proceed with the levy.

CORPORATES
CUSTOMER OWNED BANKING ASSOCIATION, CREDIT UNION AUSTRALIA LIMITED, PEOPLE’S CHOICE CREDIT UNION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Want to know where the $A is going? Here’s where to look

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Original article by Philip Baker
The Australian Financial Review – Page: 24 : 15-May-15

The Australian dollar was trading at around $US0.81 on 14 May 2015, and US economic data is likely to be a major influence on its outlook in the near-term. Most of the recent data suggests that US economic growth remains subdued, and the timing of the first interest rate rise in six years will depend on the state of the economy. BetaShares CEO David Bassanese believes that US economic data will improve, which would most likely result in a rate rise in either June or September.

CORPORATES
BETASHARES CAPITAL LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD LIFE PLC, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Macquarie result wins praise and upgrades

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 18 : 12-May-15

Analysts are upbeat about the earnings outlook for Macquarie Group in fiscal 2016, after its net profit for the year to 31 March 2015 rose by 27 per cent to $A1.6bn. Data from Bloomberg shows that the consensus forecast is for a profit of $A1.79bn in fiscal 2016, and Macquarie itself expects a modest rise in earnings. CLSA has lifted its 12-month share price target to $A102, compared with Macquarie’s closing price of $A78.78 on 11 May.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, BLOOMBERG LP, CLSA AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE SECURITIES PTY LTD, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG

Westpac banks on cloud push to rein in costs

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Original article by Paul Smith
The Australian Financial Review – Page: 23 : 12-May-15

Westpac anticipates significant cost savings from a proposal to shift many of its IT systems to a hybrid cloud environment. Chief information officer Dave Curran says the banking major aims to capitalise on the efficiencies that can be derived from shifting to cloud technology. Westpac also aims to reduce its cost-to-income ratio, which rose from 41.6 per cent to 42.5 per cent in the first half of 2014-15.

CORPORATES
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, AMAZON WEB SERVICES LLC, MICROSOFT CORPORATION, GOOGLE INCORPORATED

Aussie tipped to tread water until US lifts rates

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Original article by Rose Powell
The Australian Financial Review – Page: 29 : 12-May-15

The Australian dollar was buying $US0.7893 late in trading on 11 May 2015. The currency was not unduly affected by an interest rate cut in China, while Westpac’s Robert Rennie expects it to trade at around the $US0.78 level for some time. He forecasts that it will fall to around $US0.73 by late September, while Thomas Averill of Rochford Capital does not expect further monetary policy easing in Australia.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ROCHFORD CAPITAL PTY LTD, RESERVE BANK OF AUSTRALIA, SOCIETE GENERALE SA

Lowest rate since ’60s

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 23 : 10-Apr-15

The Reserve Bank of Australia is widely tipped to reduce the cash rate by 25 basis points to two per cent in May 2015. The cash rate is already at its lowest level in five decades, but economists maintain that further rate cuts can help to stimulate the economy. The Commonwealth Bank’s Michael Workman notes that the low level of confidence is a key issue for the economy, while Shane Oliver of AMP Capital says there is potential for more rate cuts beyond May

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AMP LIMITED – ASX AMP, DELOITTE ACCESS ECONOMICS PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Economists stumped by RBA’s moves

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Original article by Vesna Poljak, Patrick Commins
The Australian Financial Review – Page: 3 : 9-Apr-15

None of the economists polled by Bloomberg News have been accurate in their forecasts for the monetary policy decisions of all three Reserve Bank of Australia board meetings so far in 2015. Several economists have, however, successfully predicted the outcome of two interest rate decisions, while five have failed to predict any. Meanwhile, the financial market’s forecasts have been right on one occasion in 2015

CORPORATES
RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, BARCLAYS BANK PLC, BT FINANCIAL GROUP PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, NOMURA AUSTRALIA LIMITED, RBC CAPITAL MARKETS, TD SECURITIES, AMP LIMITED – ASX AMP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG, HSBC AUSTRALIA HOLDINGS PTY LTD, UBS HOLDINGS PTY LTD, BANK OF ENGLAND, LABOUR PARTY (GREAT BRITAIN)