K62 Finance

Don’t cut rates, says ANZ chief

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Original article by Jacob Greber, James Chessell
The Australian Financial Review – Page: 1 & 6 : 28-Jan-15

ANZ Bank CEO Mike Smith says the Reserve Bank should delay any easing of monetary policy. He remains upbeat about the outlook for the Australian economy, noting that the downturn in the value of the dollar has helped to offset the economic impact of lower commodity prices. The recent interest rate cut by the Bank of Canada and the European Central Bank’s quantitative easing have heightened speculation of further rate cuts in Australia

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, BANK OF CANADA, EUROPEAN CENTRAL BANK, RESERVE BANK OF NEW ZEALAND, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, WORLD ECONOMIC FORUM, AUSTRALIAN NATIONAL UNIVERSITY

Last chance to join NAB action

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Original article by Georgia Wilkins
The Australian Financial Review – Page: 14 : 27-Jan-15

Some 40,000 people so far have agreed to participate in a class action against National Australia (NAB) over exception fees. The deadline for taking part in the class action is 27 January 2015, and NAB indicated in late 2014 that it will seek to negotiate a settlement. Nine other banks are involved in a broader class action lawsuit over their fees. It is estimated that the banks could face a total payout of up to $A240m if they lose the case

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, CITIGROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, FINANCIAL REDRESS PTY LTD, IMF BENTHAM LIMITED – ASX IMF, MAURICE BLACKBURN PTY LTD

Aussie’s tumble may slow RBA cuts

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Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 6 : 27-Jan-15

The Australian dollar reached a low of $US0.7855 on 26 January 2015, and it has lost more than four per cent of its value in just over a week. The currency’s recent decline could prompt the Reserve Bank to leave the cash rate on hold in the near-term. Central bank governor Glenn Stevens recently suggested that a fall to around the $US0.75 level would be desirable. The upcoming release of inflation data is likely to influence monetary policy

CORPORATES
RESERVE BANK OF AUSTRALIA, TD SECURITIES, UNITED STATES. FEDERAL RESERVE BOARD

Murray report to lead to more M&A activity

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Original article by Michael Bennet
The Australian – Page: 20 : 22-Jan-15

Data from Thomson Reuters shows that the value of mergers and acquisitions in Australia’s financial services sector topped $US54bn in 2014, which is 52 per cent higher than previously. Meanwhile, the value of equity capital market deals rose by 14 per cent to $US5bn. Market watchers anticipate further deal-making activity in 2015, with some citing the upcoming release of the final report of the financial system inquiry as a key factor

CORPORATES
THOMSON REUTERS PLC, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LLOYDS BANKING GROUP PLC, INVESTEC BANK (AUSTRALIA) LIMITED, GE CAPITAL AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF WESTERN AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, AXA ASIA PACIFIC HOLDINGS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, CLYDESDALE BANK PLC, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, IOOF HOLDINGS LIMITED – ASX IFL, SFG AUSTRALIA LIMITED

Rate cut likely as spending slows

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Original article by David Rogers
The Australian – Page: 19 : 22-Jan-15

There was a 2.4 per cent increase in the Westpac-Melbourne Institute index of consumer sentiment in January 2015. The index rose from 91.1 in December to 93.2 per cent in seasonally adjusted terms. Meanwhile, the ANZ-Roy Morgan Consumer Confidence Index has increased by 1.4 per cent to 113.6, although the data is not seasonally adjusted. Westpac’s chief economist Bill Evans expects the cash rate to be reduced in both February and March

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN RESEARCH LIMITED, WORLD BANK, INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA

CBA, CSL and Macquarie Group on track for $100 shares

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Original article by Simon Evans
The Australian Financial Review – Page: 22 : 22-Jan-15

Shares in CSL and the Commonwealth Bank are currently trading at about $A84. While they have recently retreated from 12-months peaks, both stocks could potentially rise to $A100. CSL previously undertook a share split after its stock rose to $A100 in late 2007. Arnhem Investment Management’s George Clapham suggests that in many cases a demerger rather than a share split may generate more value for shareholders. Macquarie Group’s shares are currently trading above $A60, and the stock is also a potential candidate to breach $A100

CORPORATES
CSL LIMITED – ASX CSL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AMCOR LIMITED – ASX AMC, ORORA LIMITED – ASX ORA, BRAMBLES LIMITED – ASX BXB, RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED, ELDERS LIMITED – ASX ELD, BERKSHIRE HATHAWAY INCORPORATED

Markets drive Macquarie to bumper $1.5bn

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Original article by Michael Bennet
The Australian – Page: 21 : 20-Jan-15

Investment banking firm Macquarie Group has again raised its 2014-15 profit forecast, for the second time in half a year, and now expects a result of up to $A1.52bn that would be close to an all-time high. The increase by between 10% and 20% is based on an improved trading environment as well as the decline in the Australian dollar foreign exchange rate. Experts note that Macquarie’s fixed-income, currencies and commodities operations perform better in times of heightened volatility. On 19 January 2015 the stock closed 5.4% higher at $A58.25

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. FEDERAL RESERVE BOARD, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, MACQUARIE SECURITIES PTY LTD

Cashed-up private equity firms on the prowl for acquisitions

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Original article by Sally Rose
The Australian Financial Review – Page: 14 : 19-Jan-15

Australian ­Private Equity & Venture Capital Association CEO Yasser El-Ansary expects local private equity firms to pursue acquisitions in 2015, after offloading many businesses in 2014. He notes that Australian private equity groups’ cash holdings now exceed $A6bn. Offshore private equity groups are also expected to target the Australian market, with falling valuations in the resources sector likely to attract the interest of firms such as Kohlberg Kravis Roberts

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED,{SPAC}KOHLBERG KRAVIS ROBERTS AND COMPANY,{SPAC}KKR AND COMPANY LP,{SPAC}TPG CAPITAL LP,{SPAC}PACIFIC EQUITY PARTNERS PTY LTD,{SPAC}QUADRANT PRIVATE EQUITY PTY LTD,{SPAC}BIS INDUSTRIES LIMITED,{SPAC}FINDEX AUSTRALIA PTY LTD,{SPAC}STANDARD AND POOR’S ASX 200 INDEX,{SPAC}DENHAM CAPITAL MANAGEMENT LP,{SPAC}PEMBROKE RESOURCES PTY LTD,{SPAC}AUCTUS MINERALS PTY LTD,{SPAC}SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO,{SPAC}ASALEO CARE LIMITED – ASX AHY,{SPAC}HOYTS CINEMAS LIMITED,{SPAC}GRIFFIN FOODS LIMITED,{SPAC}PETERS ICE CREAM,{SPAC}CAMPAIGN MONITOR PTY LTD,{SPAC}INSIGHT VENTURE PARTNERS,{SPAC}CHAMP VENTURES PTY LTD,{SPAC}SENSIS PTY LTD,{SPAC}PLATINUM EQUITY HOLDINGS,{SPAC}VELOCITY FREQUENT FLYER PTY LTD,{SPAC}AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD

Slow season spurs rate cut call

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Original article by Adam Creighton
The Australian – Page: 19 : 19-Jan-15

The latest quarterly business sentiment survey by the Australian Chamber of Commerce & Industry (ACCI), covering the final three months of calendar 2014, shows a marked deterioration. Retailers note that the pre-Christmas period was the weakest since 1992, and there is a general feeling that economic conditions will worsen and the jobless rate rise. ACCI CEO Kate Carnell is urging the Federal Government to roll out reforms, and the Reserve Bank of Australia to lower the official cash interest rate that has been left unchanged at 2.5% for 14 months

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY,{SPAC}RESERVE BANK OF AUSTRALIA

Chance of rate cuts recede

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Original article by Vesna Poljak, Joanna Heath
The Australian Financial Review – Page: 1 & 6 : 16-Jan-15

New figures show that 37,400 jobs were created in Australia during December 2014, with the unemployment rate easing to 6.1 per cent. The general consensus of economists was that about 5,000 jobs had been created. The labour market figures may weaken the case for further easing of monetary policy, with Michael Blythe of the Commonwealth Bank forecasting that the cash rate will remain unchanged in 2015. However, the ANZ Bank expects two rate cuts in the next year

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF EMPLOYMENT, AUSTRALIAN LABOR PARTY, WORLD BANK, LIBERAL-NATIONAL PARTY OF QUEENSLAND, QUEENSLAND. DEPT OF THE PREMIER AND CABINET, WATPAC LIMITED – ASX WTP, AUSTRALIAN BUREAU OF STATISTICS