K: Financial and Insurance Services

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

Government must keep its hands off super: Keating

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Original article by Andrew White
The Australian – Page: 17 & 21 : 14-Nov-17

Former treasurer Peter Costello recently suggested that a government-run fund could be set up to look after default superannuation contributions. However, this idea does not have the support of former prime minister Paul Keating, who initiated compulsory superannuation. He says this would amount to a monopoly which the Liberal Party would want to eventually sell off to the private sector. The Productivity Commission is currently investigating the best way forward for determining how default super contributions should be allocated.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, AUSTRALIAN LABOR PARTY

NAB traders didn’t read swap rate rules

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Original article by James Frost
The Australian Financial Review – Page: 18 : 14-Nov-17

Former National Australia Bank trader Brock Johnson has admitted that he was not aware of the rules governing the bank bill swap rate (BBSW). NAB, like the ANZ Bank, has settled with the Australian Securities & Investments Commission over allegations that they tried to rig the BBSW, but ASIC is still pursuing its case against Westpac over the matter. Johnson has told the Federal Court that he had not read the Australian Financial Markets Association’s rules concerning the BBSW.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED

Signs of life in corporate investment: RBA

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Original article by David Rogers, James Glynn
The Australian – Page: 28 : 14-Nov-17

The Reserve Bank’s deputy governor Guy Debelle has told the UBS Australasia Conference that business investment outside of Australia’s mining sector has been stronger than official figures suggest in the last several years. He said the services sector in particular has recorded strong growth in capital investment, while there has also been an increase in public investment in infrastructure. Meanwhile, Debelle noted that a rise in the cash rate will be dependent on an increase in wages and inflation.

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD

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

RBA can just sit back and watch the Fed

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Original article by Karen Maley
The Australian Financial Review – Page: 30 : 13-Nov-17

The latest monetary policy statements of the Reserve Bank and the Federal Reserve used identical wording to describe the current state of the Australian and US economies. The Federal Reserve is widely tipped to increase official interest rates again in December, which will allow the Reserve Bank to observe the impact of a rate rise in a low-inflation, low wages growth environment before taking any action of its own. There is no pressing need for the Reserve Bank to act, given that the unemployment rate remains well above that of the US and is not expected to fall in the next two years.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

CBA’s super shareholder to target director

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Original article by James Frost
The Australian Financial Review – Page: 15 & 18 : 13-Nov-17

AustralianSuper is believed to be planning to vote against the re-election of Andrew Mohl to the Commonwealth Bank of Australia’s board at its AGM on 16 November. Mohl, who is a member of the bank’s risk committee, is one of three directors who are seeking re-election. AustralianSuper’s opposition to his re-election is said to be in response to the CBA’s money-laundering scandal, which followed a number of other scandals at the bank in recent years. However, AustralianSuper will not vote against CBA’s remuneration report.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE

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

Growth hopes up as rates stay low

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Original article by David Uren
The Australian – Page: 2 : 8-Nov-17

Financial markets expect the Reserve Bank of Australia to leave official interest rates at 1.5 per cent until the second half of 2018, after it made no change to monetary policy on 7 November. RBA governor Philip Lowe noted that business conditions are improving, particularly the outlook for business investment in non-mining sectors of the economy. He also said growth in wages will remain low in the near-term but an upturn in the labour market will eventually have a flow-on effect, while he has forecast a further decline in the unemployment rate.

CORPORATES
RESERVE BANK OF AUSTRALIA, AMP LIMITED – ASX AMP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, STANDARD AND POOR’S ASX 200 INDEX

Surge to 6000 puts GFC to rest

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Original article by David Rogers
The Australian – Page: 19 & 27 : 8-Nov-17

A number of factors contributed to the S&P/ASX 200’s rise above the 6,000-point level on 7 November 2017, including the Reserve Bank’s decision to leave the cash rate on hold, a rise in the iron ore price and a new record high for the S&P 500. The S&P/ASX 200 has taken nearly 10 years to reach 6,000 points again. Tony Brennan of Citigroup still expects it to reach 6,250 by mid-2018, while Hasan Tevfik of Credit Suisse forecasts that it will rise to 6,500 in 2018.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, CITIGROUP PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, LEHMAN BROTHERS INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA