K: Financial and Insurance Services

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

ANZ fires staff over harassment

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Original article by James Frost
The Australian Financial Review – Page: 18 : 30-Nov-17

The ANZ Bank has dismissed one of its overseas employees after he had sexually harassed a female employee from another bank. The incident occurred outside of work hours. His dismissal was reported to staff in an email from ANZ’s Kathryn van der Merwe; the same email also noted that other staff had been sacked for using illicit drugs at a work-connected event. Van der Merwe stressed in the email that ANZ staff could be dismissed for illegal activities, even if they occurred outside of work time.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

OECD urges RBA to start lifting rates

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 29-Nov-17

The OECD expects the Reserve Bank of Australia to lift interest rates in the second half of 2018, even if the inflation rate remains within the RBA’s target of two to three per cent. The OECD argues that rates will need to be increased in order to address concerns about Australia’s debt levels and to dampen down its housing market. The OECD has also called on the federal government to stick to its goal of improving the budget.

CORPORATES
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Sydney’s superstar house prices explained

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Original article by Vesna Poljak
The Australian Financial Review – Page: 13 : 23-Nov-17

Reserve Bank governor Philip Lowe says there are certain cities whose house prices increase a lot more than other cities in their countries. Lowe says this trend has been observed by his colleagues at other central banks, and the general consensus is that people are willing to pay higher prices for houses in some cities because of increased "economic or social returns" to be gained by living in them . Such places have been dubbed "superstar" cities, and Lowe says they include cities such as Sydney, Melbourne, Vancouver, Toronto, and San Francisco

CORPORATES
RESERVE BANK OF AUSTRALIA, ST GEORGE BANK LIMITED, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD

RBA governor Philip Lowe says banks needed push on interest-only lending

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Original article by Vesna Poljak
The Australian Financial Review – Page: Online : 22-Nov-17

Reserve Bank of Australia governor Philip Lowe says there is still a place for interest-only mortgage lending, but he believes the recent regulatory crackdown in this area has been a success. Speaking at the Australian Business Economists dinner on 21 November, Lowe said some banks had told him that they had welcomed the crackdown, which had prompted him to ask why they had not taken the initiative themselves and done something about it. Commenting on the prospects for the Australian economy, Lowe expects growth of above three per cent in both 2018 and 2019.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUSINESS ECONOMISTS INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. COUNCIL OF FINANCIAL REGULATORS

NAB and ANZ promise to be up front with employees over looming job cuts

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 16-Nov-17

National Australia Bank expects voluntary redundancies and natural attrition to account for many of the 6,000 jobs it intends to shed over the next several years. CEO Andrew Thorburn has stressed the need for NAB to be completely open with staff regarding its cost-cutting strategy and the impact of technology on the sector. Kath Bray of the ANZ Bank has expressed a similar view, noting that staff have been fully informed of the kind of skills it requires in a downsized workforce. ANZ has shed more than 5,000 employees in the last two years.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NABAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZAUSTRALIAN BANKERS’ ASSOCIATION

Stalled wages hit rate rise outlook

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Original article by David Rogers
The Australian – Page: 19 & 29 : 16-Nov-17

The Australian dollar fell to a four-month low in local trading on 15 November, after the latest wage price index data prompted financial markets to reduce expectations of a rise in official interest rates in 2018. The data shows that wages growth was below forecasts at just 0.5 per cent in the September quarter, while annual growth in wages was two per cent. Tom ­Kennedy of JP Morgan notes that wages growth was expected to be higher in the quarter due to a 3.3 per cent increase in the minimum wage.

CORPORATES
JP MORGAN AUSTRALIA LIMITEDAUSTRALIAN BUREAU OF STATISTICSRESERVE BANK OF AUSTRALIANATIONAL AUSTRALIA BANK LIMITED – ASX NABAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZCAPITAL ECONOMICS LIMITEDWESTPAC BANKING CORPORATION – ASX WBCUNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH

Bank testing AI to monitor mood of staff and customers

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Original article by James Eyers
The Australian Financial Review – Page: 18 : 15-Nov-17

Artificial intelligence technology may be utilised by Westpac in a number of areas of its business, including the monitoring of employees’ performance and assessing the capacity of mortgage borrowers to repay their loans. The AI-based cameras are also being evaluated in terms of their ability to assess the mood of employees based on their facial expressions. Westpac is also developing AI-based applications in partnership with companies such as Onboard Informatics and Hyper Anna.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBCONBOARD INFORMATICSHYPER ANNAALIBABA GROUP HOLDING LIMITED