Rate cut may lead to riskier investing

Original article by Sarah Turner
The Australian Financial Review – Page: 31 : 13-Jun-19

Anthony Doyle of Fidelity International says Australian savers are likely to seek out higher-yielding and higher-risk investments following the Reserve Bank’s decision to reduce the cash rate to a new low of 1.25 per cent. He notes that there was a similar trend in the UK following the global financial crisis, with Britain’s cash rate reaching a low of just 25 basis points. Doyle also expects the search for yield to bolster Australia’s corporate bond market.

CORPORATES
FIDELITY INTERNATIONAL PTY LTD, RESERVE BANK OF AUSTRALIA, M&G INVESTMENT MANAGEMENT LIMITED

Rate cut to spur ASX to even greater heights

Original article by Sarah Turner
The Australian Financial Review – Page: 17 & 30 : 7-Jun-19

Australia’s benchmark S&P/ASX 200 has gained more than12 per cent so far in 2019, including a one per cent gain since the Reserve Bank reduced the cash rate on 4 June. The first interest rate cut in almost three years may provide the catalyst for further sharemarket gains, particularly given the higher yields at present from equities than bonds and cash products such as term deposits. There is also growing expectations of further monetary policy easing before the end of 2019.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, AMP CAPITAL INVESTORS LIMITED, JP MORGAN AUSTRALIA LIMITED

Boards feel the pinch on pay as Hayne fallout hits home

Original article by Eli Greenblat
The Australian – Page: Online : 4-Jun-19

A new survey shows that company secretaries in the financial services sector have received an average pay rise of 24 per cent in 2018-19. In contrast, the remuneration of directors and chairpersons in the industry have fallen by 11 per cent in the wake of the Hayne royal commission. Likewise, the remuneration of CEOs in the sector fell by 21 per cent and managing directors’ pay was cut by 10 per cent. The survey was undertaken by the Governance Institute, in partnership with McGuirk Consultants and Board Direction.

CORPORATES
GOVERNANCE INSTITUTE OF AUSTRALIA LIMITED, McGUIRK MANAGEMENT CONSULTANTS PTY LTD, BOARD DIRECTION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

ASX surge isn’t over yet, but there are dangers

Original article by David Rogers
The Australian – Page: 28 : 28-May-19

Australia’s S&P/ASX 200 has gained 14 per cent so far in 2019, closing at around 6,452 points on 27 May, and some analysts expect it to rise further. Citigroup now expects the benchmark index to top 6,700 points by the end of the year and reach the 6,850-point level by mid-2020. However, Chris Nicol of Morgan Stanley expects the local bourse to experience a ‘cooling off period’ following its recent peak at a 12-year high.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE EQUITIES LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA

AMP steps up bid to regain lost trust

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 13-May-19

AMP CEO Francesco De Ferrari has told customers in an open letter that the wealth manager is making significant changes as it seeks to regain their trust. AMP’s reputation took a battering as a result of deficiencies in its operations that were exposed by the Hayne royal commission, with its share price falling from $5.20 to $2.45 during 2018. The letter, which has been reprinted as an advertisement in a number of newspapers, notes that AMP has made fundamental changes to its operations and has bolstered its internal processes.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Property risk to credit market

Original article by Samantha Bailey
The Australian – Page: 19 : 9-May-19

Fitch Ratings’ latest quarterly survey of fixed-income investors shows that 70 per cent of respondents consider a housing market downturn to be the biggest risk to Australia’s credit market. This compares with just 29 per cent a year ago. The survey also shows that nearly all respondents anticipate a further decline in house prices, compared with 52 per cent a year ago. Meanwhile, 60 per cent of respondents expect official interest rates to be cut by up to 50 basis points over the next 12 months.

CORPORATES
FITCH RATINGS LIMITED

AMP Capital’s Oliver the economist of choice for media mentions

Original article by Eli Greenblat
The Australian – Page: Online : 6-May-19

AMP Capital chief economist Shane Oliver was mentioned more than 2,500 times in metropolitan newspapers and online news sites over the period from April 2018 to March 2019, according to media monitoring company Streem. Oliver, who is also AMP Capital’s chief strategist, received more than twice as many mentions as Craig James from Commsec (1041), while REA Group’s Nerida Consisbee was the third-most mentioned economist, with 959 mentions.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, COMMONWEALTH SECURITIES LIMITED, REA GROUP LIMITED – ASX REA

Investors wary in peak profit warning season

Original article by David Rogers
The Australian – Page: 28 : 1-May-19

Matthew Ross of Goldman Sachs anticipates an increase in profit warnings ahead of the end of the 2018-19 financial year. He adds that factors such as the federal election will make it hard for listed companies to increase earnings momentum leading into the second half of the calendar year. However, Ross notes that despite a decline in profit margins in the last 18 months, the EBIT margins of 80 per cent of companies remained above long-term averages during the first half of 2018-19.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, SEEK LIMITED – ASX SEK

Confession season to give rally a reality check

Original article by David Rogers
The Australian – Page: 27 : 30-Apr-19

The Australian sharemarket has had its best start to a calendar year since 1991, despite retreating on 29 April. However, the banks’ reporting season will be the next key test for the local bourse, along with trading updates from other listed companies. Meanwhile, the consensus forecast for growth in earnings per share in 2019 is 2.8 per cent, compared with 8.4 per cent at the same time in 2018.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, SHANGHAI COMPOSITE INDEX, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP INCORPORATED

FOMO or TINA? Stocks hit seven-month high but rocky road ahead

Original article by David Rogers
The Australian – Page: 17 & 24 : 24-Apr-19

The S&P/ASX 200 has gained 12 per cent so far in 2019, making its best start to a calendar year in two decades. The benchmark index is now trading on a 12-month price-to-earnings ratio of 15.75 times, compared with a long-term average of around 14 times. Although ‘fear of missing out’ has been a key driver of the domestic market, ‘there is no alternative’ to shares has probably also played a role in the recent rise. However, investors should also be mindful of the adage ‘sell in May and go away’.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, ALUMINA LIMITED – ASX AWC, SOUTH32 LIMITED – ASX S32, FORTESCUE METALS GROUP LIMITED – ASX FMG, UBS HOLDINGS PTY LTD, BHP GROUP LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED