K62 Finance

Vintners toast Aussie’s falling value

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Original article by Tim Binsted
The Australian Financial Review – Page: 31 : 16-Oct-14

Wirra Wirra Vineyards plans to capitalise on the recent fall in the value of the Australian dollar by increasing its export volumes to around 20 per cent in the next several years. Exports currently account for 10-15 of the South Australian wine producer’s output. Winemakers’ Federation of Australia CEO Paul Evans notes that the best outcome for the industry would be for the currency to fall to around $US0.80

CORPORATES
WIRRA WIRRA VINEYARDS, WINEMAKERS’ FEDERATION OF AUSTRALIA INCORPORATED, RABOBANK AUSTRALIA LIMITED

RBA warns: share sell-off will be violent

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Original article by Adam Creighton
The Australian – Page: 21 : 15-Oct-14

A Citi investment conference in Sydney on 14 October 2014 heard from Guy Debelle, head of financial markets at the Reserve Bank of Australia. He argued investors were showing irrational exuberance and were ignoring risk at their own peril. Debelle said the stock market volatility of recent weeks was coming unexpectedly late given factors such as rising geopolitical tensions, and an eventual selling of fixed-interest instruments globally would be "violent". He also noted that new regulations prompted by the global financial crisis had reduced the scope for liquidity

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

After the wipeout, Great Southern investors stand to lose homes

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Original article by Dennis Shanahan, Leo Shanahan
The Australian – Page: 21 : 15-Oct-14

The Supreme Court of Victoria will in late October 2014 rule on whether a settlement can be ratified that will mean Bendigo & Adelaide Bank can bring bankruptcy proceedings against investment loan borrowers. The about 47,000 customers had bought into the rural managed investment schemes of Great Southern between 2005 and 2008, and owe some $A398m. They will also claw back less than $A16 for every $A10,000 they lost in the collapse. Law firm MacPherson & Kelley, representing the investors, will gain close to $A20m

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, GREAT SOUTHERN LIMITED, MACPHERSON AND KELLEY LAWYERS PTY LTD, SUPREME COURT OF VICTORIA, TIMBERCORP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Credit card bank licences to go

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 14-Oct-14

The Australian Government has accepted the Reserve Bank’s recommendation to scrap the requirement for companies that issue credit cards to hold a bank licence. Finance Minister Mathias Cormann says the move will increase competition by attracting new entrants to the credit card market and result in lower fees for consumers and retailers. However, some experts doubt that the reforms will lead to greater competition

CORPORATES
AUSTRALIA. DEPT OF FINANCE, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED, RFI CONSULTING PTY LTD, GE CAPITAL AUSTRALIA, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, TYRO PAYMENTS, SQUARE PTY LTD, PAYVISION, AIRPLUS INTERNATIONAL

4000 ask for CBA advisory review

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Original article by Michael Bennett
The Australian – Page: 23 : 13-Oct-14

Those affected by deficient advice received from Commonwealth Financial Planning and Financial Wisdom between 2003 and 2012 have one year to ask for a formal review. Parent Commonwealth Bank of Australia (CBA) says that after three months of the offer overseen by Promontory Financial, some 4,200 clients have taken advantage of the deal. If this rate persists for the remaining nine months, fewer than 5% of all CBA financial services division customers will participate. CBA has so far made restitution to 1,100-plus people, costing a total $A52m

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, PROMONTORY FINANCIAL GROUP LLC, MACQUARIE BANK LIMITED – ASX MBL, HIGH COURT OF AUSTRALIA

Murray debate off course: Maxsted

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Original article by Richard Gluyas
The Australian – Page: 19 : 10-Oct-14

The financial system review conducted by David Murray for the Australian Government is widely expected to recommend stricter capital requirements for the banking sector, in line with global regulation efforts. However Lindsay Maxsted, chair of Westpac Banking, argues that this would be short-sighted and neglect to take into account the important role banks play in financially supporting businesses and the economy. Leading staff from the four major lenders have held talks with Murray on the issue

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, TRANSURBAN GROUP LIMITED – ASX TCL, GROUP OF TWENTY (G-20)

ANZ-Roy Morgan Consumer Confidence Bumping Along Average Levels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Oct-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.0 per cent to 112.6 in the week ended 5 October 2014. Consumer Confidence has now been broadly steady for eight consecutive weeks, sitting around its long run average. There has been a 3.7 per cent decline in households’ perceptions about their current financial situation compared with 12 months ago, and a 2.4 per fall in households’ expectations of their financial situation in 12 months’ time

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

RBA must ‘bite the bullet’ on housing and lift rates

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Original article by Christopher Joye
The Australian Financial Review – Page: 8 : 8-Oct-14

The Reserve Bank of Australia (RBA) has finally adopted the advice of "The Australian Financial Review", and started to consider macroprudential measures to rein in rampant residential real estate prices growth. Some banking leaders also want the central bank to lift the official cash interest rate from its all-time low, to signal to property buyers that the current environment cannot last. Investors appear oblivious to the fact that the increase in asset values of 7%-plus per annum must come to an end, and a dangerous "bubble" may be forming

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, RESERVE BANK OF AUSTRALIA, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS

Hockey seeks foreign funds for assets

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Original article by David Crowe
The Australian – Page: 15 : 6-Oct-14

Staff at US investment banks Bank of America Merrill Lynch, Citigroup, Morgan Stanley and JP Morgan Chase & Company will on 6 and 7 October 2014 hear from Australian Treasurer Joe Hockey. He is keen to attract major investors from the US for planned privatisation moves by state governments. The Federal Government is encouraging them to sell assets so that the funds can be reallocated to new infrastructure. Hockey will also meet with News Corporation executive chair Rupert Murdoch and Federal Reserve Bank of New York president William Dudley

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, NEWS CORPORATION – ASX NWS, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, CITIGROUP INCORPORATED, MORGAN STANLEY AND COMPANY INCORPORATED, JP MORGAN CHASE AND COMPANY, POWERLINK PTY LTD, ENERGEX LIMITED, ERGON ENERGY CORPORATION LIMITED, IFM INVESTORS PTY LTD, HASTINGS FUNDS MANAGEMENT LIMITED, CHINA MERCHANTS GROUP, TAWREED INVESTMENTS LIMITED, GROUP OF TWENTY (G-20), INTERNATIONAL MONETARY FUND, FEDERAL RESERVE BANK OF NEW YORK

Leave capital levels alone ANZ chief tells Murray

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 18 : 3-Oct-14

The final report of the inquiry into Australia’s financial system is widely tipped to include recommendations on changes to capital requirements in the banking sector. ANZ Bank CEO Mike Smith argues that the inquiry should not outline any specific capital levels, noting that the Australian Prudential Regulation Authority can already direct banks to hold a certain level of capital. Smith has also downplayed concerns about banks’ high exposure to mortgage loans

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, FINANCIAL STABILITY BOARD