K62 Finance

CBA enlists heavyweights for compo panel

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Original article by Adam Creighton
The Australian – Page: 16 : 25-Aug-14

Following a scandal over improper advice by its financial planning arm, Commonwealth Bank of Australia (CBA) has formed an Independent Review Panel for the Open Advice Review Program meant to compensate affected customers. Some 400,000 clients of Commonwealth Financial Planning and Financial Wisdom from 2003 to 2012 will benefit. CBA has sought the services of a number of class action law firms on the issue, appointed ex- judges Geoffrey ­Davies and Julie Dodds-Streeton to the panel, and recruited US-based Promontory Financial Group to monitor internal processes at the bank

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH FINANCIAL PLANNING LIMITED, FINANCIAL WISDOM LIMITED, HIGH COURT OF AUSTRALIA, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, COURT OF APPEAL (QUEENSLAND), SUPREME COURT OF VICTORIA, FEDERAL COURT OF AUSTRALIA, LAW COUNCIL OF AUSTRALIA, PROMONTORY FINANCIAL GROUP LLC, MACQUARIE GROUP LIMITED – ASX MQG, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, AMP LIMITED – ASX AMP, QUEENSLAND. PUBLIC HOSPITALS COMMISSION OF INQUIRY, QUEENSLAND. LITIGATION REFORM COMMISSION

Treasury in hunt for US assets

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Original article by Eli Greenblat
The Australian Financial Review – Page: 15 & 20 : 25-Aug-14

Treasury Wine Estates has reduced costs by $A35m since Michael Clarke became CEO earlier in 2014. Clarke says the group’s major shareholders are very supportive of plans to pursue growth via "bolt-on" acquisitions in the US. He adds that both of Treasury’s private equity suitors have also supported his growth strategy. Treasury’s 2013-14 net loss of $A100.9m was primarily due to some $A281m worth of write-downs

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, KKR AND COMPANY LP, KOHLBERG KRAVIS ROBERTS AND COMPANY, TPG CAPITAL LP, FOSTER’S GROUP LIMITED, BERINGER WINE ESTATES HOLDINGS INCORPORATED, LUCOZADE

CBA to continue march into China

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Original article by Scott Murdoch
The Australian – Page: 17 : 22-Aug-14

Simon Blair, head of international financial services at Commonwealth Bank of Australia (CBA), says its push into the Chinese market has a focus on the regions. It has launched 15 banks in such areas since 2011, the latest being Handanxian County Bank in Hebei province. CBA has full ownership of a third of the businesses, and stakes of 80% each in the remainder. The Chinese county banks have recorded 13% growth in lending and 97% in deposits during 2013-14

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HANDANXIAN COUNTY BANK

Cyclical stocks could win favour as interest rates rise

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Original article by Vesna Poljak
The Australian Financial Review – Page: 22 : 22-Aug-14

There is general consensus among economists that the Reserve Bank of Australia will eventually begin to tighten monetary policy. Graham Harman of Russell Investments notes that cyclical stocks in particular tend to benefit from an increase in interest rates. However, David Sokulsky of UBS says historical analysis shows that stocks such as infrastructure, banks and utilities have been adversely affected by a rise in interest rates

CORPORATES
RESERVE BANK OF AUSTRALIA, RUSSELL INVESTMENTS PTY LTD, UBS HOLDINGS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Murray wants banks to prepare for market correction

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Original article by James Eyers, Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 22-Aug-14

The chairman of the financial system inquiry, David Murray, notes that Australia was largely unaffected by the global financial crisis. However, he warns that the domestic banking sector must take action to be ready for an eventual correction in asset prices, which have been boosted by stimulus measures in the wake of the crisis. Murray has previously noted that it could be necessary for banks to increase their capital reserves

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, RESERVE BANK OF AUSTRALIA

RBA tells Abbott to hold nerve

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Original article by Phillip Coorey,Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 21-Aug-14

The Australian Government continues to lobby minor party and independent senators on getting $A47bn worth of May 2014 Budget measures passed. However Prime Minister Tony Abbott has scaled back his rhetoric and is no longer labelling the Budget situation a "crisis" or "emergency". Meanwhile Reserve Bank of Australia governor Glenn Stevens has backed the Government’s cuts, which he said were far from dramatic. He also noted that monetary policy alone could not keep the economy on track

CORPORATES
RESERVE BANK OF AUSTRALIA,AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET,AUSTRALIA. DEPT OF THE TREASURY,AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA,AUSTRALIAN MEDICAL ASSOCIATION LIMITED,AUSTRALIA. DEPT OF FINANCE,LIBERAL DEMOCRATIC PARTY,LIBERAL PARTY OF AUSTRALIA,AUSTRALIAN LABOR PARTY,NICK XENOPHON GROUP,DELOITTE ACCESS ECONOMICS PTY LTD

oOh!Media take two: better this time

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Original article by Jake Mitchell
The Australian Financial Review – Page: 18 : 20-Aug-14

Champ Private Equity plans to offload its controlling stake in outdoor advertising group oOh!Media via a trade sale or an IPO. The business has become the largest in its sector in Australia following its merger with Eye Corp. oOh!Media was listed on the sharemarket until 2012, and CEO Brendon Cook concedes that it was probably too small to justify being a public company at the time

CORPORATES
OOH!MEDIA PTY LTD, EYE CORP LIMITED, CHAMP PRIVATE EQUITY PTY LTD, CASTLE HARLAN AUSTRALIAN MEZZANINE PARTNERS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, MACQUARIE GROUP LIMITED – ASX MQG, HIGHBURY PARTNERSHIP PTY LTD, THE LEADING EDGE MARKET RESEARCH CONSULTANTS PTY LTD

Aldi fails to disclose tap and go charges

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Original article by Shaun Drummond
The Australian Financial Review – Page: 8 : 19-Aug-14

The Australian Securities & Investments Commission has ordered Aldi to take remedial action to display fees for contactless card transactions at the point of sale. An investigation by the corporate regulator found that Aldi had failed to disclose the fact that a surcharge of 0.5 per cent applies to payments that are made using so-called "tap and go" credit cards

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED

Hoyts Group plans roadshow to market $900m float

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Original article by Sarah Thompson, Jake Mitchell, Anthony Macdonald
The Australian Financial Review – Page: 36 : 18-Aug-14

Pacific Equity Partners will undertake an overseas roadshow to promote the proposed sharemarket float of Hoyts Group. The private equity firm paid $A440m for the cinema group in late 2007, and the IPO is expected to be worth between $A800m and $A900m. Hoyts operates 44 cinema complexes, while it also owns a DVD distribution business and the Val Morgan cinema advertising business

CORPORATES
HOYTS CINEMAS LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, VAL MORGAN AND COMPANY (AUSTRALIA) PTY LTD, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, CINIPLEX, VILLAGE ROADSHOW LIMITED – ASX VRL, AMALGAMATED HOLDINGS LIMITED – ASX AHD, DALIAN WANDA GROUP COMPANY LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FOXTEL MANAGEMENT PTY LTD

Bank rush for fixed-rate loans

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Original article by Clancy Yeates
The Australian Financial Review – Page: 20 : 18-Aug-14

The Commonwealth Bank of Australia (CBA) has matched recent moves by several rivals to reduce their most popular fixed interest rate home loans. CBA’s three-year interest rate has been reduced by 15 basis points, to 4.94 per cent, while its four-year fixed rate has been cut by 50 basis points to 5.09 per cent. CBA’s Clive van Horen notes that there has been a spike in customers opting for fixed-rate loans since its five-year rate was cut in July 2014

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, CANSTAR PTY LTD