K62 Finance

Bank price bubble fear

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Original article by Patrick Commins
The Australian Financial Review – Page: 23 : 27-Feb-15

Minack Advisors’ Gerard Minack says valuations in Australia’s banking sector would be severely affected by a sharp downturn in the nation’s economy. He also warns that bank stocks could face a major bubble as investors increasingly turn to equities in search of better yields than those available from cash investments such as term deposits. The shift to equities is likely to accelerate amid expectations of further official interest rate cuts

CORPORATES
MINACK ADVISORS PTY LTD, MAPLE-BROWN ABBOTT LIMITED

ASIC used legal powers to extract NAB information

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Original article by Clancy Yeates
The Australian Financial Review – Page: 14 : 26-Feb-15

The corporate regulator is reviewing compensation paid to clients of National Australia Bank who received inappropriate financial advice. Greg Medcraft, the chairman of the Australian Securities & Investments Commission, said on 25 February 2015 that the regulator asked the bank for more information about compensation. The bank paid between $A10 million and $A15 million to aggrieved customers

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP, MACQUARIE GROUP LIMITED – ASX MQG

Franking credits entice as currency plays dry up

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Original article by Simon Evans
The Australian Financial Review – Page: 32 : 26-Feb-15

The Australian dollar was trading at about $US0.78 on 25 February 2015, compared with $US0.90 in September 2014. The weaker currency will be a boon to investors who hold shares in Australian-listed stocks that report their financial results and pay dividends in the US dollar, such as CSL, BHP Billiton and Woodside Petroleum. Matthew Ross of Goldman Sachs does not expect the currency to fall much further, and says franking credits will become a bigger issue for investors than the impact of the dollar on dividends

CORPORATES
CSL LIMITED – ASX CSL, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, RIO TINTO LIMITED – ASX RIO, OIL SEARCH LIMITED – ASX OSH, RIO TINTO PLC, TRIBECA INVESTMENT PARTNERS PTY LTD

ANZ-Roy Morgan Taiwan Consumer Confidence Bodes Well For Growth

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Feb-15

The monthly ANZ-Roy Morgan Taiwan Consumer Confidence Index increased by 1.9 points to a record high of 102.0 in February 2015. It is now well above its average of 89.1 in the previous 12 months. The number of respondents who say their families are "better off" financially than 12 months ago has risen by 0.1 per cent to 9.8 per cent. Meanwhile, the number of respondents who expect their families to be "better off" financially this time next year has risen by one per cent to 18.4 per cent

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

ANZ-Roy Morgan Hong Kong Consumer Confidence Upbeat in February

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 25-Feb-15

The ANZ-Roy Morgan Hong Kong Consumer Confidence Index increased by 2.9 points to a record high of 135.9 in February 2015. The number of respondents who say their families are "better off" financially than 12 months ago has fallen by 0.5 per cent to 37.2 per cent. Meanwhile, the number of respondents who expect their families to be "better off" financially this time next year has risen by 1.3 per cent to 43.6 per cent

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

More capital might lead to lower Westpac dividends

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Original article by James Eyers
The Australian Financial Review – Page: 14 : 24-Feb-15

Westpac has regularly increased its interim dividend by $A0.02 since the first half of 2012, but this policy might be reviewed if regulators decide to introduce new capital levels. Morgan Stanley analyst Richard Wiles says such a review would also be necessary if economic conditions deteriorate in Australia. Morgan Stanley has a share price target on the stock of $A33.00

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED

Commodity currencies ‘could fall too far’

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Original article by Vesna Poljak
The Australian Financial Review – Page: 21 : 24-Feb-15

The Australian dollar was buying $US0.7831 late in trading on 23 February 2015. Citigroup is bearish about the outlook for the currency over the next 12 months, forecasting that it will continue its downward momentum. Meanwhile, Citigroup’s Todd Elmer believes that so-called "commodity currencies" remain overvalued, but he warns of the potential for them to be oversold

CORPORATES
CITIGROUP INCORPORATED, RESERVE BANK OF AUSTRALIA, RESERVE BANK OF NEW ZEALAND, BANK OF CANADA

Big four banks have large cross-sell potential

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Feb-15

A Roy Morgan Consumer Single Source Survey has found that the "share of wallet" of each of Australia’s four major bank has increased over the last decade. The ANZ Bank’s share of wallet rose by 5.2 per cent to 28.8 per cent between January 2004 and December 2014, while the Commonwealth Bank of Australia’s share rose by 4.3 per cent to 34.2 per cent. For accounts/deposits, CBA has the highest share of their customers’ wallet with 60.3 per cent (up 7.1 per cent over the last 10 years), followed by Westpac with 55.3 per cent (up three per cent)

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Attestation: a word to make bankers tremble

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Original article by James Eyers
The Australian Financial Review – Page: 16 : 23-Feb-15

The Financial Conduct Authority in the UK is increasingly using so-called attestations to make bank executives and managers personally accountable for misconduct within the financial institution. Jonny Gordon of law firm Ashurst suggests that the Australian Securities & Investments Commission could also eventually begin using attestations

CORPORATES
GREAT BRITAIN. FINANCIAL CONDUCT AUTHORITY, ASHURST AUSTRALIA, ASHURST LLP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, YORKSHIRE BANK PLC

Calls for wider inquiry into financial planning

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Original article by Clancy Yeates, Adele Ferguson
The Australian Financial Review – Page: 13 & 16 : 23-Feb-15

The Australian Government is likely to face increased pressure to hold an inquiry in the wake of a new controversy involving financial planners. It has been revealed that 750 customers of National Australia Bank have received compensation for poor advice from its investment advisers over the last five years. Several senators have urged the Government to undertake a royal commission, while Australian Consumers’ Association spokeswoman Erin Turner says there is need for greater transparency in dealing with such scandals

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN CONSUMERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, JBWERE LIMITED, MERITUM FINANCIAL GROUP PTY LTD