K: Financial and Insurance Services

Westpac CEO says political consensus needed to lift business confidence

roymorgansocial Leave a comment

Original article by James Eyers,James Frost
The Australian Financial Review – Page: Online : 7-Nov-17

Westpac CEO Brian Hartzer has urged Australia’s politicians to find common ground on issues such as energy policy and infrastructure spending, so as to encourage business confidence. He made his remarks while announcing on 6 November that Westpac had recorded an annual profit of $A8.1 billion. Westpac predicts that Australian gross domestic product will grow by just 2.5 per cent in 2018, compared with forecast global growth of 3.5 per cent. Hartzer does not expect any change in interest rates for some time to come.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC,AUSTRALIA. DEPT OF THE TREASURY,RESERVE BANK OF AUSTRALIA,AUSTRALIAN LABOR PARTY,AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ,NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Millennials more than double their share of superannuation funds over the decade

roymorgansocial Leave a comment

Original article by
Market Research Update – Page: Online : 6-Nov-17

A Roy Morgan Single Source survey has found that Millennials’ share of superannuation fund balances has more than doubled between September 2007 (6.4%) and September 2017 (14.6%). All three younger generations recorded gains in superannuation market share over the past 10 years. Meanwhile, for the six months to September 2017, satisfaction with the financial performance of industry funds was 58.5%, compared to retail funds on 56.9%. Retail funds increased their satisfaction rating by 0.7% over the last year, while the satisfaction rating for industry funds fell by 1.4%.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Four super funds paid millions to CFMEU

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: Online : 6-Nov-17

Four industry superannuation funds made total payments of over $A12 million to the Construction, Forestry, Mining & Energy Union between 2007 and 2016, according to the Australian Electoral Commission. The union-backed funds, which include Cbus and FirstSuper, state the payments covered sponsorship arrangements and fees for union officials for sitting on their boards, but Financial Services Minister Kelly O’Dwyer is concerned that the AEC figures do not reflect the full scope of fund payments to unions.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN ELECTORAL COMMISSION, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FIRST SUPER PTY LTD, BUSS (QUEENSLAND) PTY LTD, MINE WEALTH AND WELLBEING

BoE raises rates for the first time in a decade, but the pound tumbles

roymorgansocial Leave a comment

Original article by
abc.net au – Page: Online : 3-Nov-17

The British pound has fallen against the US and Australian currencies in response to the Bank of England’s decision to increase its benchmark interest rate by 25 basis points to 0.5 per cent. It was the central bank’s first increase in official interest rates since 2007, and two members of its Monetary Policy Committee voted against a rate rise amid concerns about sluggish growth in wages and the economy.

CORPORATES
BANK OF ENGLAND, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Donald Trump nominates Jerome Powell as Fed chair

roymorgansocial Leave a comment

Original article by Kate Davidson, Peter Nicholas
BBC.com – Page: Online : 3-Nov-17

US President Donald Trump has nominated Jerome Powell to succeed Janet Yellen as chair of the Federal Reserve. He is widely tipped to maintain the Federal Reserve’s current approach to tightening monetary policy, and financial market experts are generally supportive of the decision to select Powell over the other four candidates for the role, who included Yellen. Powell’s appointment must be confirmed by the Senate.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

NAB wields axe despite $6.6bn profit

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 19 & 23 : 3-Nov-17

National Australia Bank has posted a 2016-17 cash profit of $A6.64bn, which is 2.5 per cent higher than previously. The earnings of its business banking division rose by 6.3 per cent to $A2.8bn in the year to September 2017, while its consumer banking and wealth division reported earnings growth of 4.3 per cent to $A1.6bn. NAB has revealed plans to slash costs by $A1bn by 2020. This will include the loss of 6,000 jobs, which equates to about 18 per cent of its workforce, although NAB also intends to recruit 2,000 people with digital and technology skills as part of its focus on automation.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, NIPPON LIFE INSURANCE COMPANY LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD

Bulls to run all year but risks build for 2019

roymorgansocial Leave a comment

Original article by David Rogers
The Australian – Page: 30 : 3-Nov-17

The S&P 500 has gained 15.2 per cent so far in 2017, while the S&P/ASX 200 has risen by just 4.7 per cent. They have gained 17 per cent and 8.5 per cent respectively when dividends are included. John Normand of JP Morgan expects equities to continue to rally in 2018, although he says the S&P 500 is likely to record growth in the low double-digits when dividends are taken into account. Meanwhile, he is bearish about the outlook for government bonds, and warns that there are a number of risk factors for global financial markets in 2019.

CORPORATES
STANDARD AND POOR’S 500 INDEX, STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AND COMPANY INCORPORATED, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK, BANK OF JAPAN, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Westpac in so deep it ‘fixed rate pricing’

roymorgansocial Leave a comment

Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 1-Nov-17

The Federal Court has heard a series of recorded conversations in which Westpac staff allegedly discussed strategies for manipulating the bank bill swap rate. The taped conversations were part of the Australian Securities & Investments Commission’s evidence against the bank, which has elected to contest the allegations of market manipulation rather than agree to a settlement. Other evidence tendered in court by ASIC included email messages from Westpac staff and the minutes from Australian Financial Markets Association meetings.

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

Home loans break trillion dollar barrier

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 21 : 1-Nov-17

The Australian Prudential Regulation Authority has reported that the value of mortgage loans written for owner-occupiers rose by 0.5 per cent in September, to $A1.03bn. Meanwhile, there was 0.3 per cent growth across the mortgage lending sector during the month. Separate data from the Reserve Bank shows that there was 0.5 per cent growth in housing loans in September, while year-on-year growth rose from 6.4 per cent to 6.5 per cent. In contrast, annual growth in business lending was 4.3 per cent.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, DIGITAL FINANCE ANALYTICS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, SUNCORP GROUP LIMITED – ASX SUN, MACQUARIE GROUP LIMITED – ASX MQG, ME BANK, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD

Westpac takes on ASIC alone over rate rigging

roymorgansocial Leave a comment

Original article by James Frost, Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 31-Oct-17

Westpac has elected to let the courts decide whether allegations of rigging the bank bill swap rate have any foundation. National Australia Bank and the ANZ, which were also alleged by the Australian Securities & Investments Commission of rigging the BBSW, have agreed to a settlement over the issue. The case against Westpac will begin in the Federal Court on 31 October, with the case likely to run until the end of the year.

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