K64 Auxiliary Finance and Insurance Services

PayPal takes $85m slice of SME lending pie

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Original article by Michael Bennet
The Australian – Page: 23 : 8-Jul-16

PayPal has written more than $A85 million worth of loans to about 3,000 small businesses in Australia since late 2014. Darrell Esch, the global general manager of small and medium business lending at PayPal, is amazed by the rate of growth at PayPal Working Capital. The program’s combined figure for loans in the US, Great Britain and Australia exceeds $US2 billion ($A2.6 billion).

CORPORATES
PAYPAL AUSTRALIA PTY LTD, PAYPAL INCORPORATED, SOCIETYONE AUSTRALIA PTY LTD, PROSPA FINANCIAL PTY LTD, MACQUARIE SECURITIES PTY LTD, ETTITUDE AUSTRALIA

Investors defy Brexit to scoop bargains

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 8-Jul-16

CYBG and Henderson Group are among the Australian-listed stocks that have been heavily sold down in the wake of the UK’s vote to leave the European Union. Some local fund managers have capitalised on the bearish sentiment to increase their holdings of unloved stocks that have exposure to the UK. However, Bennelong Australian Equity Partners’ Julian Beaumont remains cautious about such stocks, while some fund managers are increasing their holdings of gold stocks or real estate investment trusts.

CORPORATES
CYBG PLC – ASX CYB, HENDERSON GROUP PLC – ASX HGG, PERPETUAL INVESTMENTS, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, AVIVA PLC, THE STAR ENTERTAINMENT GROUP LIMITED – ASX SGR, ARISTOCRAT LEISURE LIMITED – ASX ALL, PHOENIX PORTFOLIOS PTY LTD, DESANE GROUP HOLDINGS LIMITED – ASX DGH, BLACKWALL PROPERTY TRUST – ASX BWR, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, CHARTER HALL RETAIL REIT – ASX CQR, VAN ECK ASSOCIATES CORPORATION, REGIS RESOURCES LIMITED – ASX RRL, MOONSTAR INVESTMENTS PTY LTD, PANTERRA GOLD LIMITED – ASX PGI, UBS HOLDINGS PTY LTD, SYRAH RESOURCES LIMITED – ASX SYR, MACQUARIE GROUP LIMITED – ASX MQG, GRYPHON MINERALS LIMITED – ASX GRY

Brexit II pushes Aussie bonds to record low

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Original article by Vesna Poljak, James Chessell
The Australian Financial Review – Page: 1 & 29 : 7-Jul-16

The yield on Australia’s 10-year government bond fell to a record low of 1.84 per cent on 6 July 2016. Bearish sentiment toward equities also prompted the yield on US Treasuries to fall to 1.34 per cent. The global shift to "safe haven" assets also prompted a rally in the gold price, which reached its highest level in two years. Meanwhile, the fallout from the UK’s vote to leave the European Union is continuing, with several British property funds moving to freeze redemptions.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, BANK OF ENGLAND, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 BANKS INDEX, AXA INVESTMENT MANAGERS PTY LTD, M&G INVESTMENT MANAGEMENT LIMITED, AVIVA PLC, STANDARD LIFE PLC, YOUGOV LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SPDR GOLD TRUST, COMMODITY EXCHANGE OF NEW YORK

Hung parliament syndrome: Lessons from Gillard in 2010

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 5-Jul-16

The potential for a hung parliament following the 2016 federal election is likely to weigh on investor sentiment in the near-term, although equities quickly recovered after a sell-off in the wake of the 2010 election. The prospect of another obstructive Senate in particular is a concern for investors, as it is likely to affect the timing of a return to a Budget surplus. However, financial markets are proving to be resilient to risk factors, as the rebound following the UK’s "Brexit" referendum demonstrates.

CORPORATES
WATERMARK FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S CORPORATION

ASX gains despite election uncertainty

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Original article by Jessica Sier
The Australian Financial Review – Page: 26 : 5-Jul-16

The Australian sharemarket posted solid gains on 4 July 2016, with the S&P/ASX 200 adding 0.7 per cent to close at 5,281.8. The knife-edge federal election result weighed on financial stocks, with Tristan K’Nell of Altair Asset Management noting that the Australian Labor Party will hold a royal commission into the banks if it wins office. However, resources groups benefited from a rise in commodity prices, while the yield on 10-year government bonds increased to 1.99 per cent after previously reaching a record low.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, ALTAIR ASSET MANAGEMENT PTY LTD, AUSTRALIAN LABOR PARTY, CAPITAL ECONOMICS LIMITED, OANDA AUSTRALIA PTY LTD, SELECT HARVESTS LIMITED – ASX SHV, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, MORGAN STANLEY CAPITAL INTERNATIONAL ASIA-PACIFIC INDEX

Election shock means tougher job for RBA

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Original article by Vesna Poljak
The Australian Financial Review – Page: 28 : 4-Jul-16

The Australian sharemarket is expected to lose ground when trading resumes on 4 July 2016. Uncertainly regarding the outcome of the federal election is likely to weigh on investor sentiment, while the Australian dollar is tipped to fall after peaking at $US0.7503 in local trading on 1 July. Stephen Walters of the Australian Institute of Company Directors says Australia’s "AAA" credit rating may be reviewed as a result of the election. Meanwhile, economists say the Reserve Bank is now unlikely to reduce the cash rate in July.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, RESERVE BANK OF AUSTRALIA, FIIG SECURITIES LIMITED, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

ASX enjoys sweet end to sour financial year

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Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 1-Jul-16

The Australian sharemarket posted solid gains on 30 June 2016, with the S&P/ASX 200 adding 1.8 per cent to end the financial year at 5,233.4. The Commonwealth Bank was 1.2 per cent higher at $A74.37 and BHP Billiton advanced 1.9 per cent to end the session at $A18.65. Woodside Petroleum rose 2.8 per cent to close at $A26.84 and Mayne Pharma was up 35.1 per cent at $A1.09. The benchmark index shed 4.1 per cent in 2015-16.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, WOODSIDE PETROLEUM LIMITED – ASX WPL, MAYNE PHARMA GROUP LIMITED – ASX MYX, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, NEWCREST MINING LIMITED – ASX NCM, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, PM CAPITAL LIMITED, PERPETUAL INVESTMENTS, RESERVE BANK OF AUSTRALIA, COLES SUPERMARKETS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, FTSE 100 INDEX, FTSE 250 INDEX

Sell-off is prime time for buying

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Original article by Jessica Sier, Vanessa Desloires
The Australian Financial Review – Page: 29 : 29-Jun-16

Shares in British and Irish banks have fallen sharply in the wake of the "Brexit" referendum, but Platinum Asset Management’s Clay Smolinski says this has created a buying opportunity for investors. Meanwhile, Aurora Funds Management’s Hugh Dive says the fallout from the UK’s vote to leave the European Union should have little impact on the Australian sharemarket and the nation’s four major banks. He notes that the local banks have less reliance on wholesale funding from Europe than during the global financial crisis.

CORPORATES
PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, AURORA FUNDS MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF IRELAND PLC, BARCLAYS BANK PLC, ROYAL BANK OF SCOTLAND GROUP PLC, EUROPEAN CENTRAL BANK, MOODY’S INVESTORS SERVICE INCORPORATED

Europe aftershocks set to rattle the globe

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Original article by Mark Mulligan
The Australian Financial Review – Page: 22 : 24-Jun-16

Futures traders expect Australia’s benchmark S&P/ASX 200 to be flat or rise slightly when trading resumes on 27 June 2016. However, European sharemarkets and the British pound could be further sold down in the next week, in the wake of the UK’s vote to leave the European Union. Meanwhile, Paul Bloxham of HSBC expects the Reserve Bank of Australia to leave the cash rate on hold in July, noting that low inflation remains the central bank’s focus.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, HSBC AUSTRALIA HOLDINGS PTY LTD, BANK OF ENGLAND, EUROPEAN CENTRAL BANK, JP MORGAN AND COMPANY INCORPORATED, LOMBARD STREET RESEARCH LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER

Recession in Europe a ‘very scary’ prospect

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Original article by Vesna Poljak, James Chessell, James Thomson
The Australian Financial Review – Page: 15 & 20 : 27-Jun-16

Opinion is divided regarding the likely impact of the UK’s vote to leave the European Union. Financial markets were sold down in the wake of the "Brexit" referendum, and Wilson Asset Management chairman Geoff Wilson warns of the potential for another financial crisis. However, Randal Jenneke of T Rowe Price does not expect Brexit to lead to an economic crisis, arguing that it is a political issue and a political crisis. Meanwhile, Investors Mutual’s Anton Tagliaferro says Brexit will have no impact on the majority of Australian-listed companies.

CORPORATES
WILSON ASSET MANAGEMENT, T ROWE PRICE GROUP INCORPORATED, INVESTORS MUTUAL LIMITED, FTSE 100 INDEX, METAGE CAPITAL GLOBAL VALUE FUND, UNICREDIT SPA, BANCO POPOLARE, BANK OF IRELAND PLC, GREAT BRITAIN. OFFICE OF THE PRIME MINISTER, EUROPEAN COMMISSION