K: Financial and Insurance Services

US hike won’t deter the RBA from following suit

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Original article by David Rogers
The Australian – Page: 28 : 14-Dec-16

The US Federal Reserve’s monetary policy statement is likely to attract more scrutiny than the outcome of its December 2016 meeting, as it is generally expected to lift the cash rate by 25 basis points. Meanwhile, the fall in National Australia Bank’s latest business conditions survey may strengthen the case for the Reserve Bank of Australia to further reduce official interest rates, particularly in the wake of the higher-than-expected decline in GDP growth for the September quarter.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, FEDERAL RESERVE BANK OF ST LOUIS, JP MORGAN AUSTRALIA LIMITED

Under-30s turning their backs on private health

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Original article by Sarah-Jane Tasker
The Australian – Page: 4 : 13-Dec-16

Data from comparison website iSelect shows that a growing number of Australians under the age of 31 are questioning the need for private health insurance. CEO Scott Wilson notes that the lifetime health cover loading has ceased to be an incentive for younger people to take out private cover, as many are satisfied to use the public hospital system. Wilson expects private health insurance premiums to rise by 4.5 per cent to five per cent in 2017.

CORPORATES
ISELECT LIMITED – ASX ISU

Bullish Goldman likes resources

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Original article by David Rogers
The Australian – Page: 34 : 9-Dec-16

Investment bank Goldman Sachs is upbeat about the outlook for the Australian sharemarket in 2017, noting indications that the benchmark S&P/ASX 200 is experiencing an earnings upgrade cycle. Goldman Sachs expects market trends that have emerged toward the end of 2016 to continue in 2017, albeit at a slower pace. The firm has adopted an "overweight" position with regard to banking, resources and cyclical stocks, while it remains bearish about so-called bond proxy stocks.

CORPORATES
GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ALUMINA LIMITED – ASX AWC, SOUTH32 LIMITED – ASX S32, RIO TINTO LIMITED – ASX RIO, LEND LEASE GROUP LIMITED – ASX LLC, FAIRFAX MEDIA LIMITED – ASX FXJ, SKYCITY ENTERTAINMENT GROUP LIMITED – ASX SKC, BLUESCOPE STEEL LIMITED – ASX BSL, WESFARMERS LIMITED – ASX WES, TPG TELECOM LIMITED – ASX TPM, CALTEX AUSTRALIA LIMITED – ASX CTX, APA GROUP – ASX APA, SYDNEY AIRPORT – ASX SYD, SCENTRE GROUP – ASX SCG, QUBE HOLDINGS LIMITED – ASX QUB, HOTEL PROPERTIES INVESTMENTS – ASX HPI, CHARTER HALL GROUP – ASX CHC

Alarm as economic growth stalls

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Original article by David Rogers
The Australian – Page: 19 & 32 : 8-Dec-16

The Australian economy expanded by just 1.8 per cent in the year to September 2016. The Federal Government’s upcoming mid-year Budget update is likely to include a downgraded 2016 economic growth forecast, which was tipped to be 3.25 per cent in the Budget in May. However, Paul Bloxham of HSBC notes that GDP has not fallen for two consecutive quarters since 1991. Nevertheless, the national accounts for the September quarter may strengthen the case for further official interest rate cuts.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, LEHMAN BROTHERS INCORPORATED, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC

Westpac and NAB lift rates on investors

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Original article by Michael Bennet
The Australian – Page: 1 & 6 : 6-Dec-16

National Australia Bank (NAB) and Westpac have raised their interest rates on loans to property investors. NAB’s new and existing investors will now pay 5.55 per cent on loans with variable rates. A rise of 15 basis points will take effect on 12 December 2016. The rate for owners-occupiers remains unchanged at 5.25 per cent. Westpac has lifted interest-only rates for investors and owner-occupiers by eight basis points.

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

ASIC to scrutinise Bellamy’s trading

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Original article by Damon Kitney, Eli Greenblat
The Australian – Page: 22 : 6-Dec-16

The Australian Securities & Investments Commission will undertake an informal review of trading in the shares of Bellamy’s Australia prior to the release of an earnings update on 2 December 2016. The infant formula group’s shares fell by 43.52 per cent in response to the bearish guidance, and the stock shed another 4.23 per cent on 5 December. Bellamy’s had left its earnings guidance unchanged at the AGM in mid-October.

CORPORATES
BELLAMY’S AUSTRALIA LIMITED – ASX BAL, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, KATHMANDU HOLDINGS LIMITED – ASX KMD, BLACK PRINCE PRIVATE FOUNDATIONRST, ELLERSTON CAPITAL PTY LTD

Top 20 stocks lead revival, but with caveat

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Original article by Jens Meyer
The Australian Financial Review – Page: 20 : 5-Dec-16

Blue chip stocks have been in favour with Australian investors in recent weeks, amid a trend to offload growth stocks. The 20 largest stocks in particular have generally performed well since the start of October 2016, and Macquarie Group expects this trend to be sustained into 2017. However, Tony Brennan of Citigroup cautions that blue chip stocks in some sectors may not perform as well as others.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, VOCUS COMMUNICATIONS LIMITED – ASX VOC, BELLAMY’S AUSTRALIA LIMITED – ASX BAL, APP SECURITIES, QBE INSURANCE GROUP LIMITED – ASX QBE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, TRANSURBAN GROUP LIMITED – ASX TCL, SCENTRE GROUP – ASX SCG, WOOLWORTHS LIMITED – ASX WOW, WESFARMERS LIMITED – ASX WES, TELSTRA CORPORATION LIMITED – ASX TLS

Roy Morgan Research – 75 Years collecting, analysing and interpreting accurate information!

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Dec-16

Roy Morgan Research Ltd Directors are pleased to report the company has returned to profitability during 2016, both in Australia and overseas, and the start of 2017 is continuing in the same way. Shareholders have been advised that the consolidated profit for the financial year to June 30, 2016 was $3,045,000 compared with a loss for the year ended June 30, 2015 of $2,337,000 and a loss of $7,858,000 for 2014. EBITDA (Earnings before interest, income tax, depreciation, and amortisation) for the financial year to June 30, 2016 was $3,946,000 compared with a negative EBITDA of $1,784,000 for 2015 and a negative EBITDA of $6,644,000 for 2014. Directors expect Roy Morgan Research Ltd profit for the full year to June 30, 2017 to be near $5.5 million with EBITDA in excess of $6 million.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Perennial pair target ‘unloved, undervalued’ bunch of five

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 17 & 31 : 2-Dec-16

Value investing has fallen out of favour in recent years, but the August 2016 reporting season was a catalyst for renewed interest in value stocks. Stephen Bruce, a portfolio manager at Perennial, says stocks that have been dubbed "expensive defensives" began to be sold down in the wake of the reporting season, while value stocks received support due to financial results that were better than expected. Bruce and colleague John Murray identify BHP Billiton, QBE Insurance Group, AMP, Lend Lease and Macquarie Group as their top picks among value stocks.

CORPORATES
PERENNIAL VALUE MANAGEMENT LIMITED, BHP BILLITON LIMITED – ASX BHP, QBE INSURANCE GROUP LIMITED – ASX QBE, AMP LIMITED – ASX AMP, LEND LEASE GROUP LIMITED – ASX LLC, MACQUARIE GROUP LIMITED – ASX MQG, CSL LIMITED – ASX CSL, TRANSURBAN GROUP LIMITED – ASX TCL

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP