K64 Auxiliary Finance and Insurance Services

Wipe-out on way as Telstra, big banks tank

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Original article by James Kirby
The Australian – Page: 24 : 17-Oct-18

The dividend yields of Australian stocks that were once regarded as bond proxies is testing seven per cent, while the dividend yield across the broader sharemarket has risen to 4.45 per cent. However, the share prices of former bond proxies such as Telstra and the major banks have fallen sharply, and the loss of sharemarket value may offset any dividend gains. An increasingly competitive telco market is weighing on Telstra, while the banks face a number of headwinds, including the prospect of increased regulation and the impact of the financial services royal commission.

CORPORATES
TELSTRA CORPORATION LIMITED – ASX TLS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, BANK OF QUEENSLAND LIMITED – ASX BOQ, TPG TELECOM LIMITED – ASX TPM, VODAFONE AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, JB HI-FI LIMITED – ASX JBH, FINANCIAL OMBUDSMAN SERVICE LIMITED, RAMS HOME LOANS PTY LTD, SUNCORP GROUP LIMITED – ASX SUN, BANKWEST, BANK OF MELBOURNE LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, LATITUDE FINANCIAL PARTNERS

Tech, financials in sea of red as world awaits US earnings

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Original article by David Rogers
The Australian – Page: 17 & 28 : 16-Oct-18

Bearish investor sentiment again weighed on Asian sharemarkets on 15 October, which followed the Australian bourse further into negative territory. Richard Coppleson of Bell Potter expects global markets to follow the historical trend for October, whereby sharp sell-offs are usually followed by a strong recovery in the final months of the year. However, he adds that the Australian sharemarket is unlikely to rebound strongly until there is evidence that Wall Street’s latest sell-off was merely a correction.

CORPORATES
BELL POTTER SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, HANG SENG INDEX, SHANGHAI COMPOSITE INDEX, NIKKEI 225 INDEX, JANUS HENDERSON GROUP PLC – ASX JHG, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, JP MORGAN AND COMPANY INCORPORATED

Investors brace for another volatile week

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Original article by Perry Williams
The Australian – Page: 19 : 15-Oct-18

Futures pricing suggests that Australian equities will fall when the local sharemarket opens on 15 October. The S&P/ASX 200 shed 4.7 per cent in the previous week, despite a modest gain on 12 October, and Shane Oliver of AMP Capital says there is a high risk of a further correction in the short-term. The Dow Jones Industrial Average also clawed back some of its losses on 12 October, after shedding 1,300 points in the previous two trading sessions.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, RESERVE BANK OF AUSTRALIA, TD SECURITIES, FARR, MILLER AND WASHINGTON LLC

Trump blames crazy Fed for rout

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Original article by Vesna Poljak, Sarah Turner, Michael Smith, Jacob Greber
The Australian Financial Review – Page: 1 & 29 : 12-Oct-18

The Nasdaq shed more than four per cent on 11 October, as global sentiment toward equities turned bearish. President Donald Trump has linked the global sell-off to the Federal Reserve’s recent decision to increase official interest rates, telling reporters that the central bank is "making a mistake" and it has "gone crazy". Simon Doyle of Schroders says US markets are likely to experience a further big fall, citing factor such as high valuations, rising interest rates and the US-China trade war.

CORPORATES
NASDAQ COMPOSITE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. FEDERAL RESERVE BOARD, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED, NETFLIX INCORPORATED, AMAZON.COM INCORPORATED, ADOBE CORPORATION, STANDARD AND POOR’S ASX 200 INDEX, HANG SENG INDEX, NIKKEI 225 INDEX, WISETECH GLOBAL LIMITED – ASX WTC, APPEN LIMITED – ASX APX, FEDERATION ASSET MANAGEMENT, MACQUARIE GROUP LIMITED – ASX MQG

Rio reverse reveals investor ire on pay

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Original article by Patrick Durkin
The Australian Financial Review – Page: 15 : 10-Oct-18

Rio Tinto has advised that it will not proceed with plans to adopt a new executive remuneration model after meetings with key shareholders indicated that it was unlikely to secure sufficient support from investors. A number of Australian-listed companies have adopted so-called hybrid remuneration structures, including Telstra, AMP and Wesfarmers. However, investors have raised concerns about the hybrid model, and the issue has attracted scrutiny by the financial services royal commission.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TELSTRA CORPORATION LIMITED – ASX TLS, AMP LIMITED – ASX AMP, WESFARMERS LIMITED – ASX WES, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, QBE INSURANCE GROUP LIMITED – ASX QBE, PERPETUAL LIMITED – ASX PPT, JB HI-FI LIMITED – ASX JBH, ISENTIA GROUP LIMITED – ASX ISD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, INSTITUTIONAL SHAREHOLDER SERVICES INCORPORATED, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Bidders are swinging hard for assets in M&A frenzy

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 10-Oct-18

Data from Dealogic shows that some $US88bn ($124bn) worth of mergers and acquisitions have been announced in Australia so far in 2018. This compares with $US89.3bn for the whole of 2017. Bankers and lawyers expect M&A activity to remain strong, with cashed-up local private equity firms competing with foreign players. Recently announced M&A transactions include KKR’s bid for MYOB and Affinity Equity Partners’ deal to buy Scottish Pacific Group.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, KKR AND COMPANY LP, MYOB GROUP LIMITED – ASX MYO, AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD, SCOTTISH PACIFIC GROUP LIMITED – ASX SCO, PACIFIC EQUITY PARTNERS PTY LTD, LIFEHEALTHCARE GROUP LIMITED, NEXTDC LIMITED – ASX NXT, ASIA PACIFIC DATA CENTRE GROUP – ASX AJD, APA GROUP – ASX APA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, TRANSURBAN GROUP LIMITED – ASX TCL, WESTCONNEX, WESTFIELD CORPORATION, MINTER ELLISON, SIRTEX MEDICAL LIMITED, CDH INVESTMENTS FUND MANAGEMENT COMPANY, GREENHILL AND COMPANY, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, WESFARMERS LIMITED – ASX WES, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, MACQUARIE CAPITAL PTY LTD

6000-point level the next test of new down leg

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Original article by David Rogers
The Australian – Page: 28 : 9-Oct-18

The Australian sharemarket’s 1.4 per cent fall on 8 October was its largest single-day loss since late March, with blue-chip stocks in particular retreating. The bearish investor sentiment also weighed on the Australian dollar, which fell to its lowest level in 2.5 years in local trading. Charting suggests that the S&P/ASX 200 could fall below 6,000 points in coming days, although the earnings outlook means it would be unlikely to remain below this level for very long.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BHP BILLITON LIMITED – ASX BHP, CSL LIMITED – ASX CSL, TELSTRA CORPORATION LIMITED – ASX TLS, ARISTOCRAT LEISURE LIMITED – ASX ALL, TREASURY WINE ESTATES LIMITED – ASX TWE, NORSK HYDRO AS, MORGAN STANLEY AUSTRALIA LIMITED, RIO TINTO LIMITED – ASX RIO, SANTOS LIMITED – ASX STO, COCHLEAR LIMITED – ASX COH, RESMED INCORPORATED – ASX RMD, INVOCARE LIMITED – ASX IVC, NUFARM LIMITED – ASX NUF, ANSELL LIMITED – ASX ANN, GOLDMAN SACHS AUSTRALIA PTY LTD, PEOPLE’S BANK OF CHINA

We’re at euphoric stage of cycle: Eley Griffiths

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 27 : 2-Oct-18

Eley Griffiths Group’s co-founder Ben Griffiths is upbeat about the outlook for equities. He believes that global sharemarkets are at what Sir John Templeton dubbed the "euphoric" stage of the current bull market. Eley Griffiths boasts around $1.8bn worth of funds under management, and both its small companies fund and its emerging companies fund outperformed the S&P/ASX Small Ordinaries Accumulation Index in 2017-18.

CORPORATES
ELEY GRIFFITHS GROUP PTY LTD, ELEY GRIFFITHS GROUP SMALL COMPANIES FUND, ELEY GRIFFITHS GROUP EMERGING COMPANIES FUND, STANDARD AND POOR’S ASX SMALL ORDINARIES ACCUMULATION INDEX, AFTERPAY TOUCH GROUP LIMITED – ASX APT, PINNACLE INVESTMENT MANAGEMENT GROUP LIMITED – ASX PNI, SIMS METAL MANAGEMENT LIMITED – ASX SGM, AUSTRALIS OIL AND GAS LIMITED – ASX ATS, BLUE SKY ALTERNATIVE INVESTMENTS LIMITED – ASX BLA, NETWEALTH GROUP LIMITED – ASX NWL

Record looms as dividends ready to soar

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Original article by Sarah Turner
The Australian Financial Review – Page: 20 : 24-Sep-18

Australia’s S&P/ASX 200 has gained around two per cent so far in 2018, and analysts are hopeful that the market will be bolstered by some $13bn worth of dividend payments in the last week of September. Richard Coppleson of Bell Potter estimates that listed companies will pay out around $18.9bn in dividends for the month, compared with $16.4bn in September 2017. The resources sector has accounted for four of the top five companies in terms of the size of dividend increases in 2017-18, and Shane Oliver of AMP Capital notes that this is having a flow-on effect across the broader market.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED, AMP CAPITAL INVESTORS LIMITED, BHP BILLITON LIMITED – ASX BHP, ALUMINA LIMITED – ASX AWC, WOODSIDE PETROLEUM LIMITED – ASX WPL, RIO TINTO LIMITED – ASX RIO, CSL LIMITED – ASX CSL, CREDIT SUISSE (AUSTRALIA) LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, FORTESCUE METALS GROUP LIMITED – ASX FMG, AMP LIMITED – ASX AMP

Watchdog acts to rein in initial coin offerings

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Original article by Samantha Bailey
The Australian – Page: 26 : 21-Sep-18

The Australian Securities & Investments Commission has the burgeoning cryptocurrencies industry in its sights, revealing a crackdown on so-called initial coin offerings. ASIC has blocked the issuance of cryptocurrency tokens by several companies, due to concerns that their ICO product disclosure statements contained misleading or deceptive information. The corporate regulator notes that ICOs are highly speculative and the sector is largely unregulated.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NEW DAWN FUND, INVESTORS EXCHANGE LIMITED