K64 Auxiliary Finance and Insurance Services

Late splurge sparks hopes for 2018 M&A

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 & 20 : 18-Dec-17

Data from Dealogic shows that $US86.9 billion worth of mergers and acquisitions had been announced in Australia as at 15 December 2017, which is 3.8 per cent lower than at the same time in 2016. Likewise, the value of announced M&A deals globally has fallen by 4.6 per cent to $US3.5 trillion. However, Nick Sims of Goldman Sachs notes that there has been an upturn in M&A activity in Australia and globally during the December quarter, which is expected to continue in 2018. Meanwhile, the total value of offshore acquisitions made by Australian companies has risen by 75 per cent so far in 2017, to $US26.3 billion.

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, MACQUARIE CAPITAL PTY LTD, WESTFIELD CORPORATION – ASX WFD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AWE LIMITED – ASX AWE, INTEGRAL DIAGNOSTICS LIMITED – ASX IDX, SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, 21ST CENTURY FOX INCORPORATED, WALT DISNEY COMPANY, CVS HEALTH CORPORATION, AETNA INSURANCE COMPANY, HERBERT SMITH FREEHILLS PTY LTD, NUFARM LIMITED – ASX NUF, LINK ADMINISTRATION HOLDINGS LIMITED – ASX LNK

ASX will share blockchain system savings

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 8-Dec-17

Stock exchanger operator ASX Limited expects to achieve significant cost savings by phasing out its CHESS settlement and clearing system for equities in favour of one based on blockchain technology. Financial market experts say the shift to distributed ledger technology developed by Digital Asset Holdings will increase the sharemarket’s transparency, and have welcomed the ASX’s announcement that some its cost savings will be passed on to market participants. The ASX could potentially deploy blockchain technology for other markets.

CORPORATES
ASX LIMITED – ASX ASX, DIGITAL ASSET HOLDINGS LLC, STOCKBROKERS AND FINANCIAL ADVISERS ASSOCIATION LIMITED, NORTHERN TRUST COMPANY, DIGITALX LIMITED – ASX DCC, EUROZ SECURITIES LIMITED, KPMG AUSTRALIA PTY LTD, NCC GROUP, AUSTRALIA. DEPT OF THE TREASURY, JP MORGAN AND COMPANY INCORPORATED

Bulls edge ahead in the battle for coming year

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Original article by David Rogers
The Australian – Page: 26 : 8-Dec-17

Investment banks are generally upbeat about the outlook for Australia’s benchmark S&P/ASX 200 in 2018. Credit Suisse and Macquarie Group both expect it to end the year at 6,500 points, while Citigroup has a year-end target of 6,400 point. In contrast, Morgan Stanley expects the index to end 2018 at just 5,800 points. Meanwhile, Hasan Tevfik of Credit Suisse believes that factors such as the potential for fiscal stimulus, a sharp rise in bond yields and rising capital investment to influence the direction of the sharemarket in 2018.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, DEUTSCHE BANK AG, BLOOMBERG LP, AUSTRALIAN LABOR PARTY, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Macquarie tips Australian shares to beat Wall St in 2018

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Original article by Patrick Commins
The Australian Financial Review – Page: 27 : 7-Dec-17

Jason Todd of Macquarie Group is upbeat about the outlook for the Australian sharemarket in 2018, forecasting that it will end the calendar year at 6,500 points. Todd expects the Australian bourse to outperform the US market in total return and local currency terms in 2018, following a stronger performance by Wall Street in 2017. However, he expects the S&P/ASX 200 to finish 2017 at 5,875 points, compared with around the 5,950-point level at present.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, DEUTSCHE BANK AG, CITIGROUP PTY LTD, RESERVE BANK OF AUSTRALIA, ADELAIDE BRIGHTON LIMITED – ASX ABC, DOWNER EDI LIMITED – ASX DOW, BORAL LIMITED – ASX BLD, JAMES HARDIE INDUSTRIES PLC – ASX JHX, INCITEC PIVOT LIMITED – ASX IPL, SEEK LEARNING PTY LTD

US tax cuts may trigger as good as it gets sell-off

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Original article by David Rogers
The Australian – Page: 28 : 5-Dec-17

Tobias Levkovich of Citigroup still expects the S&P 500 to be trading at 2,675 points in December 2018, despite the passage of President Donald Trump’s tax cuts package. Citi’s forecast for the S&P 500 will be increased by just 3.7 per cent if the US corporate tax rate is reduced to 20 per cent. The firm believes that investors may choose to take profits if the tax rate is cut to 20 per cent, upon expectations that the market will not rise any further.

CORPORATES
STANDARD AND POOR’S 500 INDEX, CITIGROUP INCORPORATED

ASX may rise on GDP, iron ore and Trump tax

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Original article by Timothy Moore
The Australian Financial Review – Page: 22 : 4-Dec-17

Futures pricing suggests that the Australian sharemarket may lose ground when trading resumes on 4 December. However, a number of factors bode well for the domestic bourse in coming days, including a rebound in the prices of key commodities such as iron ore and expectations that official data will show an improvement in the nation’s economic growth. Investor confidence may also be bolstered by the US Senate’s passing of tax cuts, while investors will also be awaiting the Reserve Bank of Australia’s last board meeting for 2017.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF MONTREAL, CAPITAL ECONOMICS LIMITED

Opportunity for financial planners to gain trust

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Original article by Roy Morgan
Market Research Update – Page: Online : 1-Dec-17

The new 2017 edition of the Roy Morgan "Superannuation & Wealth Management in Australia" report has found financial planners need to gain a greater level of trust among Australians. Trust in financial planners for ethics and honestly has shown no real improvement since the survey began in 2009, declining by 2% points in the past 12 months to 25%, back to the 2009 level. The report suggests ongoing confusion about which financial planners offer independent advice may have a part to play in this issue. Despite low trust in the industry, those who purchase their superannuation through an independent financial planner/adviser are the most satisfied (71.3%). The next most satisfied group are those who purchased through an accountant, with a satisfaction level of 68.8% in the latest 12-month period.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Don’t quit party early: Quinton sees more gains

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Original article by David Rogers
The Australian – Page: 24 : 15-Nov-17

The benchmark S&P/ASX 200 fell below 6,000 points on 14 November, following a gain of seven per cent over the last five weeks. Peter Quinton of Bell Financial Group believes that the S&P/ASX 200 is trading at fair value, which suggests that investors should continue to buy equities. He adds that the local bourse’s attractive earnings per share growth forecast and its grossed-up dividend yield also support the case for equities. Although Quinton’s "bear market checklist" suggests that a correction of 10 per cent is likely, it should not be any larger than this and will create more buying opportunities.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEXBELL FINANCIAL GROUP LIMITED – ASX BFGSTANDARD AND POOR’S 500 INDEXWOODSIDE PETROLEUM LIMITED – ASX WPLROYAL DUTCH SHELL PLC

Shopping centres will survive peak Amazon

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 & 24 : 13-Nov-17

The Australian real estate investment trust sector has responded more proactively to the threat posed to retail trade by Amazon than many have given it credit for, according to Pete Davidson of BT Investment Management. REIT stocks currently favoured by BTIM include Westfield, Mirvac and Charter Hall, along with Arena and Folkestone, which both have interests in childcare centres. Other stocks that BTIM like include Precinct Properties and Vital Healthcare.

CORPORATES
AMAZON.COM INCORPORATED, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, WESTFIELD CORPORATION – ASX WFD, MIRVAC GROUP – ASX MGR, CHARTER HALL GROUP – ASX CHC, ARENA REIT – ASX ARF, FOLKESTONE LIMITED – ASX FLK, PRECINCT PROPERTIES, VITAL HEALTHCARE PROPERTY TRUST, MYER HOLDINGS LIMITED – ASX MYR, SCENTRE GROUP – ASX SCG, MITCHELL MONTAGU

ASX seven years behind the world

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Original article by Sally Patten
The Australian Financial Review – Page: 23 : 9-Nov-17

Morgan Stanley Wealth Management’s MD Matthew Koch has downplayed the significance of the S&P/ASX 200’s first close above 6,000 points in almost a decade. He argues that key overseas indices passed their pre-global financial crisis highs between 3-4 years ago. Morgan Stanley’s Christopher Bell adds that the Australian sharemarket’s limited earnings growth means the benchmark index is unlikely to reach its record high of 6,828.7 points for some time. Koch and his colleagues manage some $A1.5bn on behalf of 55 clients.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, MORGAN STANLEY WEALTH MANAGEMENT AUSTRALIA PTY LTD, STANDARD AND POOR’S 500 INDEX, NIKKEI 225 INDEX, FTSE 100 INDEX, EURO STOXX 50 INDEX, MERRILL LYNCH (AUSTRALIA) PTY LTD