K64 Auxiliary Finance and Insurance Services

BHP and QBE drive index closer to 6000

roymorgansocial Leave a comment

Original article by Misa Han
The Australian Financial Review – Page: 32 : 25-Feb-15

The Australian sharemarket posted solid gains on 24 February 2015, with the S&P/ASX 200 adding 0.3 per cent to close at 5,927. The Commonwealth Bank was 0.7 per cent higher at $A91.04 and BHP Billiton rose by 2.9 per cent to end the session at $A33.06. However, National Australia Bank shed 0.2 per cent to finish at $A37.58 and MMA Offshore was 11.7 per cent lower at $A0.87

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MMA OFFSHORE LIMITED – ASX MRM, RIO TINTO LIMITED – ASX RIO, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, QBE INSURANCE GROUP LIMITED – ASX QBE, WOODSIDE PETROLEUM LIMITED – ASX WPL, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, TELSTRA CORPORATION LIMITED – ASX TLS, AMCOR LIMITED – ASX AMC, PM CAPITAL LIMITED, UBS HOLDINGS PTY LTD, CITIGROUP PTY LTD, BLOOMBERG LP, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

More capital might lead to lower Westpac dividends

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 14 : 24-Feb-15

Westpac has regularly increased its interim dividend by $A0.02 since the first half of 2012, but this policy might be reviewed if regulators decide to introduce new capital levels. Morgan Stanley analyst Richard Wiles says such a review would also be necessary if economic conditions deteriorate in Australia. Morgan Stanley has a share price target on the stock of $A33.00

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED

Strong M&A tipped for 2015

roymorgansocial Leave a comment

Original article by Joyce Moullakis
The Australian Financial Review – Page: 15 : 24-Feb-15

Data from Dealogic shows that some $US13.9bn ($A17.7bn) worth of mergers and acquisitions have been proposed in Australia so far in 2015. M&A experts are generally upbeat about the outlook for 2015, with Minter Ellison partner Ron Forster anticipating strong activity in the gold and iron ore sectors in particular. Karen Evans-Cullen of Clayton Utz notes that the downturn in the value of the Australian dollar may attract more bids from offshore groups

CORPORATES
DEALOGIC (AUSTRALIA) PTY LTD, MINTER ELLISON, CLAYTON UTZ, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, NOVION PROPERTY GROUP – ASX NVN, FEDERATION CENTRES – ASX FDC, PORT OF MELBOURNE, AUSTRALIA. DEFENCE HOUSING AUSTRALIA, BOART LONGYEAR LIMITED – ASX BLY, CENTERBRIDGE PARTNERS LP, GRESHAM PARTNERS LIMITED, MIZUHO BANK LIMITED

$500m pay cut drives SMSFs to equities

roymorgansocial Leave a comment

Original article by Philip Baker
The Australian Financial Review – Page: 21 : 24-Feb-15

Credit Suisse estimates that each 25 basis point reduction in the cash rate slashes the income of self-managed superannuation funds (SMSFs) by $A500m. The firm notes that SMSFs now boast some $A568bn worth of funds under management, with equities accounting for 42 per cent of their investment portfolios. SMSFs are likely to further increase their exposure to equities in order to offset the impact of lower interest rates

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, RIO TINTO LIMITED – ASX RIO, MACQUARIE GROUP LIMITED – ASX MQG, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, DULUXGROUP LIMITED – ASX DLX, PHILO CAPITAL ADVISERS PTY LTD, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, TELSTRA CORPORATION LIMITED – ASX TLS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Big four banks have large cross-sell potential

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Feb-15

A Roy Morgan Consumer Single Source Survey has found that the "share of wallet" of each of Australia’s four major bank has increased over the last decade. The ANZ Bank’s share of wallet rose by 5.2 per cent to 28.8 per cent between January 2004 and December 2014, while the Commonwealth Bank of Australia’s share rose by 4.3 per cent to 34.2 per cent. For accounts/deposits, CBA has the highest share of their customers’ wallet with 60.3 per cent (up 7.1 per cent over the last 10 years), followed by Westpac with 55.3 per cent (up three per cent)

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

ASX has 6000 points in its sight

roymorgansocial Leave a comment

Original article by Sally Rose
The Australian Financial Review – Page: 20 : 23-Feb-15

The S&P/ASX 200 shed 0.4 per cent on 20 February 2015, closing at 5,881.5 points. However, the Australian sharemarket has gained 8.7 per cent so far in 2015, and the benchmark index reached a year-to-date high of 5,915.7 on 18 February. There is agreement among six equities strategists that the S&P/ASX 200 will soon breach the 6,000-point level, although they do not expect it to reach the record high of 6,828.7 for another 2-3 years

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, MACQUARIE RESEARCH EQUITIES, MACQUARIE BANK LIMITED – ASX MBL, TOLL HOLDINGS LIMITED – ASX TOL, JAPAN POST, AMP CAPITAL INVESTORS LIMITED, UBS WEALTH MANAGEMENT AUSTRALIA LIMITED, MLC LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, STANDARD AND POOR’S 500 INDEX

BHP under pressure to lift returns

roymorgansocial Leave a comment

Original article by Amanda Saunders
The Australian Financial Review – Page: 18 : 23-Feb-15

BHP Billiton has not reduced its dividend since 1988, and analysts generally agree that a reduced payout is unlikely when the resources giant releases its 2014-15 interim results on 24 February 2015. Paul Young of Deutsche Bank does not expect BHP to increase its dividend for at least another two years, arguing that it should focus on growth rather than improving returns to shareholders. Paul McTaggart of Credit Suisse also says a share buyback is unlikely in the next several years

CORPORATES
BHP BILLITON LIMITED – ASX BHP, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, SOUTH32 LIMITED

Calls for wider inquiry into financial planning

roymorgansocial Leave a comment

Original article by Clancy Yeates, Adele Ferguson
The Australian Financial Review – Page: 13 & 16 : 23-Feb-15

The Australian Government is likely to face increased pressure to hold an inquiry in the wake of a new controversy involving financial planners. It has been revealed that 750 customers of National Australia Bank have received compensation for poor advice from its investment advisers over the last five years. Several senators have urged the Government to undertake a royal commission, while Australian Consumers’ Association spokeswoman Erin Turner says there is need for greater transparency in dealing with such scandals

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN CONSUMERS’ ASSOCIATION, AUSTRALIAN LABOR PARTY, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, JBWERE LIMITED, MERITUM FINANCIAL GROUP PTY LTD

AMP cautions against new US-style test

roymorgansocial Leave a comment

Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 20-Feb-15

AMP CEO Craig Meller says there is widespread acceptance of the need for better standards of education for Australian financial advisers. However, Meller has questioned the need for financial planners to undertake a national exam if they already have a university degree. The Australian Securities & Investments Commission recently proposed an exam system modelled on the Series 7 exam that is used in the US

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, FINANCIAL INDUSTRY REGULATORY AUTHORITY INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE PRIVATE WEALTH MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Fairfax unveils buyback surprise

roymorgansocial Leave a comment

Original article by Max Mason, Dominic White
The Australian Financial Review – Page: 18 : 20-Feb-15

Australian-listed Fairfax Media has reported a 2014-15 interim underlying net profit of $A86m, which is 0.6 per cent lower than previously. Revenue from operations fell by 12.9 per cent to $A943.3m, while the media group will undertake an on-market share buyback over the next 12 months. It plans to repurchase up to 121 million shares, which equates to five per cent of the stock on issue

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, DOMAIN.COM.AU, CITIGROUP PTY LTD