K62 Finance

Rate rise firming after stronger jobs growth

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Original article by David Rogers
The Australian – Page: 17 & 28 : 20-Oct-17

A rise in official interest rates may be on the agenda in 2018 after Australia’s unemployment rate fell from 5.6 per cent to 5.5 per cent in September 2017, with a higher-than-expected 19,800 jobs being created during the month. The economy has added 317,000 jobs in the last year, which is the highest annual rate of growth since August 2005. The Reserve Bank of Australia is widely tipped to leave interest rates on hold until at least 2018.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN PHARMACEUTICAL INDUSTRIES LIMITED – ASX API

Reserve in no hurry to lift rates

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Original article by David Uren
The Australian – Page: 2 : 18-Oct-17

The minutes of the Reserve Bank of Australia’s board meeting for October suggest that the cash rate will remain at 1.5 per cent for some time. The central bank stresses that while the global trend toward monetary policy tightening is a "welcome development", it has no implications for Australian interest rates, which stayed much higher than in many nations in the wake of the global financial crisis. Meanwhile, the RBA anticipates that inflation will gradually move towards its target range.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF CANADA, BANK OF ENGLAND, EUROPEAN CENTRAL BANK

Speculation ends as ABA names ANZ’s Elliott as chairman

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Original article by James Frost
The Australian Financial Review – Page: 13 : 17-Oct-17

ANZ Bank CEO Shayne Elliott will succeed his National Australia Bank counterpart Andrew Thorburn as chairman of the Australian Bankers’ Association. The role is traditionally rotated between the CEOs of the four major banks, and Ian Narev had been expected to take up the role prior to announcing that he will step down as Commonwealth Bank CEO by mid-2018. Elliott had taken a less hostile approach to the Federal Government’s proposed bank levy than his peers earlier in 2017.

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN LABOR PARTY

Goode blasts ‘unfair’ tax on big five banks

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Original article by Eli Greenblat
The Australian – Page: 20 : 17-Oct-17

Diversified United Investments (DUI) chairman Charles Goode says the Federal Government must reconsider its proposed levy on the four major banks and Macquarie Group. He has told the listed investment company’s shareholders that the banks already pay billions of dollars in income tax, and targeting only some companies in a specific sector is unfair and discriminatory. DUI holds $A240m worth of shares in the major banks, while Australian United Investments – which is also chaired by Goode – has a $A315m exposure to the big banks.

CORPORATES
DIVERSIFIED UNITED INVESTMENT LIMITED – ASX DUI, AUSTRALIAN UNITED INVESTMENT COMPANY LIMITED – ASX AUI, MACQUARIE GROUP LIMITED – ASX MQG, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WOODSIDE PETROLEUM LIMITED – ASX WPL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, IAN POTTER FOUNDATION, FLAGSTAFF PARTNERS PTY LTD, WALLARA ASSET MANAGEMENT, RIVER CAPITAL PTY LTD, SG HISCOCK AND COMPANY LIMITED, AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED – ASX AFI

Broker rejects ASIC interest only claims

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Original article by James Frost
The Australian Financial Review – Page: 20 : 13-Oct-17

The Australian Securities & Investments Commission has suggested that borrowers who use mortgage brokers are more likely to take out interest-only loans. This has drawn a strong rebuke from Mortgage Choice, which noted that the percentage of interest-only loans it had written in September was only 16.4 per cent, down from 35.95 per cent in May. The Australian Prudential Regulation Authority has mandated that no more than 30 per cent of new loans shall be interest-only loans from September.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MORTGAGE CHOICE LIMITED – ASX MOC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bankers still dubious of amended BEAR

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Original article by James Frost. Andrew Tillett
The Australian Financial Review – Page: 19 : 12-Oct-17

There is broad support within the banking industry and the legal sector for the Federal Government’s changes to its Banking Executive Accountability Regime. Amongst other things, the Government has agreed to allow bank executives to appeal against decisions made under the proposed regime. However, there are still some concerns about the reforms, including the additional powers to be given to the Australian Prudential Regulation Authority and the application of the reforms to banks’ subsidiaries.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC. AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY. ASHURST AUSTRALIA. AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION. AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL

Westpac digs in heels over interest-only

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Original article by Michael Roddan
The Australian – Page: 17 & 20 : 12-Oct-17

Westpac CEO Brian Hartzer appeared before a parliamentary committee on 11 October. He downplayed concerns about the risks associated with interest-only mortgage loans, arguing that Westpac does not issue loans to people who lack the capacity to repay them. Hartzer added that the Reserve Bank is more concerned about the effect of future interest rate rises on household budgets than the potential impact of interest-only loans on the financial system. ANZ Bank CEO Shayne Elliott told the committee that risks associated with its interest-only loans had been identified nearly 12 months before regulatory action to curb such loans.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC. AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ. AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY. AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION. RESERVE BANK OF AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS. UBS HOLDINGS PTY LTD

Westpac takes knife to transaction fees

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 11-Oct-17

Westpac has revised its fees and charges for legacy products that pre-date online banking and reflect an era when most transactions were made in bank branches. Amongst other things, all personal transaction accounts will have a maximum account-keeping fee of $A5 a month, while Westpac will abolish transaction fees on all personal accounts. George Frazis, the head of consumer banking, says Westpac will make further changes to its fees and charges.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. HOUSE OF REPRESENTATIVES STANDING COMMITTEE ON ECONOMICS, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Admitting guilt the clincher for rate-rig case

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Original article by Jonathan Shapiro, Patrick Durkin
The Australian Financial Review – Page: 13 & 18 : 11-Oct-17

The Australian Securities & Investments Commission’s case against three of the "big four" banks over allegations that they manipulated the bank bill swap rate will be heard by the Federal Court on 23 October. Some observers believe that the parties could reach a settlement before the case begins, although this would require the banks to admit that they had engaged in unconscionable conduct. Meanwhile, stock exchange operator ASX Limited has issued new guidelines regarding bank bill trading in the wake of the BBSW scandal.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FEDERAL COURT OF AUSTRALIA, ASX LIMITED – ASX ASX, COUNCIL OF FINANCIAL REGULATORS

CBA faces investor class action

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Original article by James Frost
The Australian Financial Review – Page: 4 : 10-Oct-17

Andrew Watson of law firm Maurice Blackburn says its class action against the Commonwealth Bank could be the largest ever in Australia. The firm will seek compensation for retail and institutional investors who bought the bank’s shares between 1 July 2015 and 3 August 2017. The class action centres on the bank’s failure to make adequate disclosures regarding the money-laundering scandal. Austrac’s revelation that it was investigating the bank prompted a sharp fall in its share price.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MAURICE BLACKBURN PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, IMF BENTHAM LIMITED – ASX IMF