K62 Finance

Telstra, Stockland and big four to benefit from rate cut

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Original article by Max Mason
The Australian Financial Review – Page: 23 : 6-Feb-15

More investors are expected to embrace equities as a result of the interest rate cut on 3 February 2015, due to low yields on government bonds and bank deposits. George Boubouras of Contango Asset Management notes that stocks such as banks, telcos, consumer staples and infrastructure typically rise in response to an interest rate cut. Healthy dividend yields means the four major banks and Telstra in particular are likely to receive continued strong support from investors

CORPORATES
CONTANGO ASSET MANAGEMENT LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, STOCKLAND – ASX SGP, DEXUS PROPERTY GROUP – ASX DXS, RESERVE BANK OF AUSTRALIA, PLATYPUS ASSET MANAGEMENT PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED

Banks douse hot property fears

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Original article by Michael Bennet
The Australian – Page: 19 : 5-Feb-15

Commonwealth Bank of Australia and Westpac Banking on 4 February 2015 joined Bank of Queensland, ME Bank and ING Direct in passing on in full the Reserve Bank of Australia’s interest rate cut of 25 basis points to mortgage borrowers. Meanwhile sector experts have rejected claims that the new all-time low rate of 2.25% will exacerbate a price "bubble" in the residential real estate market, noting that the Australian Prudential Regulation Authority is tightening the rules on home lending

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, BANK OF QUEENSLAND LIMITED – ASX BOQ, MEMBERS EQUITY BANK PTY LTD, ING DIRECT, AUSSIE HOME LOANS LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, SUNCORP GROUP LIMITED – ASX SUN, CITIBANK PTY LTD, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, MACQUARIE BANK LIMITED – ASX MBL, DEUTSCHE BANK AG

Private equity firms to retain IPO stakes

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 21 : 5-Feb-15

Private equity floats are not necessarily superior as investments to other IPOs. A report by the Australian Private Equity & Venture Capital Association and advisory firm Rothschild shows that Australian-listed companies floated by private equity firms in 2104 returned 6.6 per cent by 31 December 2014. Non-private equity floats retuned 13.7 per cent. The study was limited to floats exceeding $A100 million in raised capital. Dividends were not taken into account

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED, MONASH IVF GROUP LIMITED – ASX MVF, IPH LIMITED – ASX IPH, GENESIS ENERGY LIMITED – ASX GNE, GRIFFITHS CONSULTING, THE PAS GROUP LIMITED – ASX PGR, BURSON GROUP LIMITED – ASX BAP, NM ROTHSCHILD AND SONS (AUSTRALIA) LIMITED

Rate cut fires up shares

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Original article by Jacob Greber, Vesna Poljak
The Australian Financial Review – Page: 1 & 6 : 4-Feb-15

The Australian dollar fell to its lowest level since the global financial crisis after the Reserve Bank reduced the cash rate to 2.25 per cent on 3 February 2015. Several smaller banks have reduced their standard variable mortgage rates by the full 25 basis points, although the four major banks have yet to respond. Federal Treasurer Joe Hockey says they should do so, adding that he expects the central bank to further reduce the cash rate in coming months. Factors such as the slowing economy and weak consumer sentiment contributed to the rate cut

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API, PRICELINE PTY LTD, BANK OF QUEENSLAND LIMITED – ASX BOQ, MEMBERS EQUITY BANK PTY LTD, ING DIRECT, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, INTERNATIONAL MONETARY FUND, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, TRANSURBAN GROUP LIMITED – ASX TCL

Why CBA is a standout with investors

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Original article by Patrick Commins
The Australian Financial Review – Page: 19 : 4-Feb-15

Morgan Stanley estimates that Commonwealth Bank of Australia (CBA) shares are now trading at 15.7 times the group’s forecast earnings for 2014-15. In contrast, the stock has traded at an average of around 12.9 per cent during the last 10 years. CBA shares have risen by 5.5 per cent in the last month, closing above $A90 on 3 February 2015. Shares in the three other major banks have also rallied in 2015, but CBA is the only one with a 30 June financial year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, UBS HOLDINGS PTY LTD, MORNINGSTAR PTY LTD

Property powerhouses set the pace on price rises

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Original article by Turi Condon
The Australian – Page: 5 : 3-Feb-15

Figures from CoreLogic RP Data show that house prices in Sydney and Melbourne increased by 1.4 per cent and 2.7 per cent respectively in January 2015. The Perth, Adelaide and Darwin property markets recorded house price declines during the month. CommSec’s Craig James says the Reserve Bank will consider the state of the residential property market when deciding whether to reduce the cash rate on 3 February

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED, COMMONWEALTH SECURITIES LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MERITON APARTMENTS PTY LTD, RESERVE BANK OF AUSTRALIA

Market divided over rate cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 8 : 3-Feb-15

Opinion is divided on the likely outcome of the Reserve Bank of Australia’s board meeting on 3 February 2015. The majority of analysts polled by Bloomberg News expect the cash rate to be left at 2.5 per cent, although the futures market has priced in a 66 per cent chance of a rate cut. Former Reserve Bank governor Bernie Fraser says a rate cut should be implemented sooner rather than later. A number of the Reserve Bank’s peers have eased monetary policy in recent months

CORPORATES
RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, AUSTRALIAN NATIONAL UNIVERSITY

Bank boss stole $500,000

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Original article by Tim Clarke
The West Australian – Page: 24 : 30-Jan-15

A former bank manager at Westpac in Western Australia has pleaded guilty to defrauding a customer. He stole $A500,000 through a number of fraudulent transactions between the end of 2013 and 31 March 2014. The man used the stolen money for sports betting

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MAGISTRATES COURT OF WESTERN AUSTRALIA, DISTRICT COURT OF WESTERN AUSTRALIA, TOTALIZATOR AGENCY BOARD (WESTERN AUSTRALIA)

Dollar to stay below US80c at year end

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 22 : 30-Jan-15

The Australian dollar was fetching $US0.7858 late in trading on 29 January 2015, after peaking at $US0.8022 on the previous day. Gavin Friend of National Australia Bank expects the currency to be trading at the $US0.78 level at the end of 2015, while Richard Grace of the Commonwealth Bank has a more bearish year-end forecast of $US0.76. There is growing expectation that the Reserve Bank will reduce the cash rate on 3 February

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, SWISS NATIONAL BANK, FOREX.COM, UNITED STATES. FEDERAL RESERVE BOARD, CENTREBET INTERNATIONAL LIMITED, WESTERN UNITED LIMITED, COMMONWEALTH SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Low inflation corners RBA

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 : 29-Jan-15

Australia’s underlying inflation rate increased by 0.7 per cent in the December 2014 quarter, which was higher than expected. There was an 0.2 per cent increase in the CPI during the quarter, and 1.7 per cent year-on-year. The benign inflation data may strengthen the case for a reduction in the cash rate when the Reserve Bank board meets on 3 February 2015. The central bank may also be swayed by recent monetary policy easing in other countries, which may prompt renewed support for the Australian dollar

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS, EUROPEAN CENTRAL BANK