K62 Finance

Job ads, buoyant retail raise pressure on rates

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Original article by Adam Creighton
The Australian – Page: 19 : 5-Aug-14

There is no clear consensus among economists on whether the Reserve Bank of Australia will move to lift or cut the official cash interest rate late in 2014. No change is expected at the board meeting on 5 August, but a number of economic indicators have created uncertainty about the longer-term picture. Retailing sector sales had been forecast to grow a subdued 0.3% during June, but instead rose 0.6% to $A23.2bn. It appears consumer confidence dented by the harsh federal Budget in May is starting to recover. Help-wanted advertising is also up 4% in annualised terms

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD

Start-ups key as change batters the big four

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Original article by Damon Kitney
The Australian – Page: 15 : 4-Aug-14

Consultants at Ernst & Young and KPMG warn that large companies must seek strategic alliances with small start-ups in order to safeguard against digital disruption. A major sector in need of such an approach is that of banking in Australia, and the four main lenders are already facing competition by online payments businesses such as PayPal. However Brian Hartzer, CEO Australian financial services at Westpac Banking, argues the banks can themselves behave like start-ups. Kelly Bayer Rosmarin, group executive institutional banking and markets at Commonwealth Bank of Australia, also says they have an advantage in the shape of large stores of customer data

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, PAYPAL INCORPORATED, AMAZON.COM INCORPORATED, KPMG, ERNST AND YOUNG

Banks may have to spin off trading

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Original article by John Kehoe, Jonathan Shapiro
The Australian Financial Review – Page: 1 & 10 : 4-Aug-14

Opinion is divided about the merits of restructuring banks to separate their retail and commercial banking arms from divisions such as insurance and funds management. David Murray, who is chairing the Australian Government’s inquiry into the financial system, has suggested that so-called "ring-fencing" should be examined in order to protect banks that are deemed "too big to fail". Similar laws have been introduced in the US and the UK, but Australian Bankers’ Association CEO Steve Munchenberg questions whether such reforms are needed in Australia

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, GREAT BRITAIN. DEPT OF THE TREASURY, JP MORGAN AND COMPANY INCORPORATED, AUSTRALIA. DEPT OF THE TREASURY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. FEDERAL RESERVE BOARD, MACQUARIE GROUP LIMITED – ASX MQG, SUNCORP GROUP LIMITED – ASX SUN, MOODY’S INVESTORS SERVICE INCORPORATED

Sharp end of PIN changes

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Original article by Shaun Drummond, Yolanda Redrup
The Australian Financial Review – Page: 6 : 1-Aug-14

Restaurant & Catering Australia CEO John Hart says the hospitality industry will incur higher costs due to the abolition of signatures for credit card transactions. He notes that most restaurants will need to buy additional mobile payment terminals in response to the PIN-only regime. Meanwhile, Melbourne restaurateur Eric Duong is concerned that older customers in particular may not have made the change to PINs

CORPORATES
RESTAURANT AND CATERING INDUSTRY ASSOCIATION OF AUSTRALIA INCORPORATED, MAN MO RESTAURANT, RETAIL FINANCE INTELLIGENCE PTY LTD, DAVID’S ZHOU ZHOU BAR AND ORIENTAL TEAHOUSE, TYRO PAYMENTS, PAYPAL INCORPORATED

ANZ-Roy Morgan Consumer Confidence Back Above Long-Run Average Levels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Jul-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 2.4 per cent to 116.2 in the week ended 27 July 2014. Consumer confidence has now completely retraced the sharp deterioration seen in the weeks around the Federal Government’s May 2013 Budget. While the recent improvement in confidence is an encouraging sign, ANZ’s base case remains that consumer spending growth will remain moderate in 2014, before improving in 2015 as the non-mining recovery gathers momentum

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

S&P draws line in the sand on national debt

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Original article by Adam Creighton
The Australian – Page: 21 : 30-Jul-14

Credit ratings agency Standard & Poor’s (S&P) has issued its annual ratings review for 2014, voicing some concerns about the Australian economy. It noted the reliance on China’s growth, the sizeable current account deficit and negative sentiment among investor as factors, as well as the potential for a "bubble" to emerge in the residential real estate market. S&P has also warned state and federal governments that in order to retain the nation’s "AAA" status their total net debt must not exceed 30% of GDP

CORPORATES
STANDARD AND POOR’S (AUSTRALIA) PTY LTD

Low rates spur buying spree

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: 4 : 28-Jul-14

The respective residential real estate auction clearance rates for the Sydney and Melbourne markets on the 26-27 July 2014 weekend were 76% and 57%. The national average was 70% for the week, as buyers took advantage of record low interest rates for mortgage loans. The fixed rate has been cut to below 5% for the first time by three of the four major lenders. There is also a recovery underway in the upper end of the market, indicated by news that the "Tukurua" historic mansion in the Perth beachside suburb of Cottesloe has been placed on the market

CORPORATES
HOCKING STUART PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, RICHARDSON AND WRENCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Bendigo ‘redy’ to pay through smartwatches

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Original article by Shaun Drummond, Ruth Liew
The Australian Financial Review – Page: 17 : 28-Jul-14

Bendigo & Adelaide Bank has launched a new mobile payments network that is dubbed "redy" and can be used with a Samsung smartwatch and smartphone. The technology was developed by the regional bank’s Community Telco subsidiary. The redy system uses QR codes to verify transactions, while customers also receive an online token for each redy transaction, which can be converted into cash that can be spent or donated to charity

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMUNITY TELCO AUSTRALIA PTY LTD, PAYPAL AUSTRALIA PTY LTD, SAMSUNG CORPORATION, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GOOGLE INCORPORATED

Low rates spur homeowners to clear mortgages

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 28-Jul-14

National Australia Bank (NAB) notes that many of its home loan customers are taking advantage of low interest rates to pay off their mortgage more quickly. Some 85 per cent of customers’ monthly repayments now exceed the minimum requirement. Anthony Cahill of NAB says customers are becoming more informed and prudent about understanding and managing their debt. He also downplays concerns about banks easing their lending standards, stressing that NAB assesses borrowers very closely

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Insolvencies fall but not for all

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 9 : 24-Jul-14

New Australian Securities & Investments Commission data show that the rate of insolvencies among businesses has declined 19%, to now be below that of new company incorporations. Brendon Watkins, insolvency partner at law firm Minter Ellison, says one factor is the increased vigilance on lending risk at the major banks after the global financial crisis. The assessment is backed by Australian Restructuring Insolvency & Turnaround Association CEO John Winter. However, the construction and personal services sectors still have elevated rates of insolvencies

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION|AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION|MINTER ELLISON|COMMONWEALTH BANK OF AUSTRALIA – ASX CBA|CRS WARNER KUGEL PTY LTD|AUSTRALIAN INSTITUTE OF BUILDING|COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED|KELL AND RIGBY PTY LTD|ST HILLIERS CONSTRUCTION PTY LTD|WALTON CONSTRUCTION PTY LTD|REED CONSTRUCTIONS PTY LTD|HASTIE GROUP LIMITED|SOUTHERN CROSS CONSTRUCTIONS|NATIONAL BUILDPLAN GROUP PTY LTD