K64 Auxiliary Finance and Insurance Services

Visa moves to kill PINs with biometrics

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 19 : 29-Aug-17

Visa hopes it will not be too long before its card users will be able to do away with using PIN number or 16-digit card numbers to conduct transactions. Visa is looking to work with Australian banks to adopt biometric authentication protocols that will allow card users to make transactions by using their fingerprint, with the process aimed at both reducing fraud and cutting down transaction times. Visa’s Joe Cunningham would also like to see greater data sharing between banks and merchants.

CORPORATES
VISA INTERNATIONAL, AUSTRALIAN PAYMENTS CLEARING ASSOCIATION LIMITED

Despite the gloom, this is the best reporting season in years

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Original article by Patrick Commins
The Australian Financial Review – Page: 11 & 26 : 29-Aug-17

Financial market analysts argue that negative perceptions of the August 2017 reporting season are not justified. Jason Steed of JP Morgan notes that 123 stocks in the S&P/ASX 200 Index have risen so far in August, while he adds that investors’ perceptions of the reporting season are often influenced by a handful of stocks that post large declines in the wake of their earnings results. Hasan Tevfik of Credit Suisse says the capital expenditure intentions of ASX 200 companies also demonstrates the strength of the reporting season.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, BLUESCOPE STEEL LIMITED – ASX BSL, HEALTHSCOPE LIMITED – ASX HSO, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, SUNCORP GROUP LIMITED – ASX SUN, TELSTRA CORPORATION LIMITED – ASX TLS, FORTESCUE METALS GROUP LIMITED – ASX FMG, WOODSIDE PETROLEUM LIMITED – ASX WPL

Two strikes rule reining in exec pay

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Original article by Joanna Mather
The Australian Financial Review – Page: 3 : 24-Aug-17

The Australian Council of Superannuation Investors has released the findings of a survey which shows that the top listed companies have not significantly increased their CEOs’ salaries in the last 10 years. The annual fixed pay of S&P/ASX 100 CEOs has been steady at about $A1.9m, while bonuses have also been relatively steady. ACSI CEO Louise Davidson notes that the trend has coincided with the introduction of the "two strikes" rule.

CORPORATES
AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, STANDARD AND POOR’S 500 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, CHALLENGER LIMITED – ASX CGF, MACQUARIE GROUP LIMITED – ASX MQG, JAMES HARDIE INDUSTRIES PLC – ASX JHX, WESTFIELD CORPORATION – ASX WFD, PREMIER INVESTMENTS LIMITED – ASX PMV, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT, CSL LIMITED – ASX CSL, FORTESCUE METALS GROUP LIMITED – ASX FMG, QANTAS AIRWAYS LIMITED – ASX QAN

Wild ride for majors as profit season unfolds

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Original article by David Rogers
The Australian – Page: 27 : 24-Aug-17

The August 2017 reporting season has prompted large movements in the shares of some blue-chip stocks. Data from Bloomberg shows that 30 companies in the benchmark S&P/200 Index have experienced share price movements of at least five per cent on the day their latest financial results were released. AMP Capital’s Shane Oliver notes that a similar number of stocks have outperformed and underperformed the market, although investors have tended to react more savagely than usual to stocks that failed to meet earnings expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BLOOMBERG LP, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, TELSTRA CORPORATION LIMITED – ASX TLS, HEALTHSCOPE LIMITED – ASX HSO, ACONEX LIMITED – ASX ACX, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, SIRTEX MEDICAL LIMITED – ASX SRX, WOOLWORTHS LIMITED – ASX WOW, MONADELPHOUS GROUP LIMITED – ASX MND, THE A2 MILK COMPANY LIMITED – ASX A2M, VIRTUS HEALTH LIMITED – ASX VRT, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, McMILLAN SHAKESPEARE LIMITED – ASX MMS, AVEO GROUP – ASX AOG, BEACH POINT CAPITAL MANAGEMENT LP, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, FORTESCUE METALS GROUP LIMITED – ASX FMG, MACQUARIE GROUP LIMITED – ASX MQG

Investor U-turn amid signs the wheels are falling off Trump rally

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Original article by Philip Baker
The Australian Financial Review – Page: 27 : 23-Aug-17

The Dow Jones Industrial Average has gained 18 per cent since the US presidential election in November 2016. However, US investor and hedge fund manager Ray Dalio says the uncertainty surrounding the Trump administration may provide the catalyst for a sharemarket correction. The future of President Donald Trump’s much-touted corporate and personal income tax cuts in particular is uncertain, and a sell-off is likely if the reforms are not passed by Congress.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, DEMOCRATIC PARTY (UNITED STATES), REPUBLICAN PARTY (UNITED STATES)

Near enough is good enough in season so far

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Original article by David Rogers
The Australian – Page: 28 : 22-Aug-17

Analysts’ consensus earnings-per-share estimates for 2017-18 have been downgraded by 0.3 per cent so far in the August 2017 reporting season. Hasan Tevfik of Credit Suisse notes that this compares with EPS upgrades of 1.6 per cent in the February reporting season. Meanwhile, just 19 per cent of Australian-listed companies have exceeded consensus earnings estimates so far in the current reporting season, compared with an average of 40 per cent over the last two decades. Likewise, 38 per cent of companies have failed to meet consensus estimates to date, while the historical average is just 28 per cent.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL, BEACH ENERGY LIMITED – ASX BPT, G8 EDUCATION LIMITED – ASX GEM, FORTESCUE METALS GROUP LIMITED – ASX FMG, APN OUTDOOR GROUP LIMITED – ASX APO, TELSTRA CORPORATION LIMITED – ASX TLS, TRANSURBAN GROUP LIMITED – ASX TCL, CSL LIMITED – ASX CSL, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, AGL ENERGY LIMITED – ASX AGL, FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, CITIGROUP PTY LTD

Reporting season needs a real kick-along

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Original article by Philip Baker
The Australian Financial Review – Page: 20 : 21-Aug-17

To date some 76 companies in the S&P/ASX 200 companies have released their financial results so far in the August reporting season. Just 20 per cent of stocks to have issued guidance for 2017-18 have upgraded their earnings-per-share forecast. Blue-chip stocks such as Qantas and BHP Billiton will need to deliver solid earnings results in the next two weeks in order to bolster investor sentiment and boost the benchmark index. A major issue during the current reporting season has been the dearth of companies to have exceeded expectations.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, QANTAS AIRWAYS LIMITED – ASX QAN, WOOLWORTHS LIMITED – ASX WOW, MACQUARIE WEALTH MANAGEMENT, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, JANUS HENDERSON GROUP PLC – ASX JHG, JB HI-FI LIMITED – ASX JBH, IOOF HOLDINGS LIMITED – ASX IFL, ORIGIN ENERGY LIMITED – ASX ORG, SUNCORP GROUP LIMITED – ASX SUN, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JAMES HARDIE INDUSTRIES PLC – ASX JHX, NEWCREST MINING LIMITED – ASX NCM, CROWN RESORTS LIMITED – ASX CWN, CHALLENGER LIMITED – ASX CGF, KOGAN.COM LIMITED – ASX KGN, THE A2 MILK COMPANY LIMITED – ASX A2M

Fund managers wind back expectations and hoard a little extra cash

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

Bank of America Merrill Lynch’s latest survey of fund managers shows that just 33 per cent expect a rise in global corporate profits in the next 12 months, compared with 58 per cent in February 2017. Chief investment strategist ­Michael Hartnett says the survey provides a "warning sign" of the likely performance of shares against bonds, as well as cyclical stocks against defensive stocks. The survey also found that the average cash balance of the 174 respondents is now 4.9 per cent, compared with an average of 4.5 per cent over the last decade.

CORPORATES
BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, STANDARD AND POOR’S 500 INDEX, MSCI WORLD INDEX, STANDARD AND POOR’S ASX 200 INDEX, NASDAQ, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Lacklustre earnings after alarm bells in July

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Original article by David Rogers
The Australian – Page: 27 : 11-Aug-17

The Australian sharemarket has not risen significantly so far in August 2017, despite some good results during the reporting season. Carsales.com and Orora are among the stocks to have rallied in the wake of positive earnings reports, while the Commonwealth Bank, AGL and AMP have been sold down. Karen Jorritsma of Citigroup notes that capital management has been a major influence on share price movements during the current reporting season.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CARSALES.COM LIMITED – ASX CAR, ORORA LIMITED – ASX ORA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AGL ENERGY LIMITED – ASX AGL, AMP LIMITED – ASX AMP, JAMES HARDIE INDUSTRIES PLC – ASX JHX, SKYCITY ENTERTAINMENT GROUP LIMITED – ASX SKC, TRANSURBAN GROUP LIMITED – ASX TCL, MAGELLAN FINANCIAL GROUP LIMITED – ASX MFG, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC

Wall St record highs stumble on flare-up of North Korea tension

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Original article by Karen Maley
The Australian Financial Review – Page: 28 : 10-Aug-17

US share price indices have retreated and the Chicago Board Options Exchange’s volatility index has risen by more than 10 per cent in response to the latest war of words between President Donald Trump and North Korea’s Kim Jong-Un. However, some analysts had previously warned that the low level of the VIX suggested that financial market risk may be set to increase, and DoubleLine Capital’s Jeff Gundlach recently said that market indicators point to a rise in bond yields.

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, DOUBLELINE CAPITAL LP, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, UNITED NATIONS. SECURITY COUNCIL