K: Financial and Insurance Services

Savers losers as banks cut term deposit rates

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Original article by Michael Bennet
The Australian – Page: 21 : 6-Sep-16

Data from Deutsche Bank shows that many Australian banks have reduced their term deposit interest rates by 15-25 basis points since the Reserve Bank cut the cash rate in August 2016. However, while rates on shorter-duration term deposits have fallen, the ANZ Bank has increased its rates on one- and two-year term deposits, while all four major banks have increased their longer-term rates for new customers. Meanwhile, the interest rates on their online savings accounts have been cut by 25 basis points.

CORPORATES
DEUTSCHE BANK AGAUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZCOMMONWEALTH BANK OF AUSTRALIA – ASX CBAWESTPAC BANKING CORPORATION – ASX WBCNATIONAL AUSTRALIA BANK LIMITED – ASX NABBANK OF WESTERN AUSTRALIA LIMITEDBENDIGO AND ADELAIDE BANK LIMITED – ASX BENBANK OF QUEENSLAND LIMITED – ASX BOQRESERVE BANK OF AUSTRALIA

Capex takes back seat as optimism stalls

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Original article by Vesna Poljak
The Australian Financial Review – Page: 15 : 2-Sep-16

Businesses are still reluctant to increase their capital investments. Figures released on 1 September 2016 suggest that $A105.2 billion will be spent on capital investments in 2016-17 which is unchanged in non-mining terms. Investors who rely on dividends are likely to benefit from this trend as companies will return some of their capital to them as dividends.

CORPORATES
RIO TINTO LIMITED – ASX RIO, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, NICK SCALI LIMITED – ASX NCK, BHP BILLITON LIMITED – ASX BHP

Commodity troubles weigh on ASX

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 2-Sep-16

The S&P/ASX 200 Index fell 17 points, or 0.3 per, to 5,415.6 on 1 September 2016. Investor sentiment was negatively affected by the weakness in share prices in the US and a fall in oil prices due to a larger-than-expected increase in US inventories. Santos and Origin Energy both lost 3.2 per cent in value. Katana Asset Management portfolio manager Romano Sala Tenna expects crude oil prices to continue to range between $US40 ($A53) and $US50 a barrel.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BHP BILLITON LIMITED – ASX BHP, NEWCREST MINING LIMITED – ASX NCM, NORTHERN STAR RESOURCES LIMITED – ASX NST, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, KATANA ASSET MANAGEMENT LIMITED

ASX ends earnings season on sour note

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Original article by Jens Meyer, Patrick Commins
The Australian Financial Review – Page: 28 : 1-Sep-16

The S&P/ASX 200 index closed 0.8 per cent lower at 5,433.0 on 31 August 2016. Mining and energy stocks were out of favour. Analysts are rather disappointed with the earnings season which ended on 31 August. Goldman Sachs found only five companies whose performance was judged impressive: Fortescue, Seven Group Holdings, GWA Group, JB Hi-Fi and Mayne Pharma.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AUSTRALIA PTY LTD, FORTESCUE METALS GROUP LIMITED – ASX FMG, SEVEN GROUP HOLDINGS LIMITED – ASX SVW, GWA GROUP LIMITED – ASX GWA, JB HI-FI LIMITED – ASX JBH, MAYNE PHARMA GROUP LIMITED – ASX MYX, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

Dollar hit by prospects of US interest rate hike

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Original article by David Rogers
The Australian – Page: 32 : 30-Aug-16

The Australian dollar fell to a four-week low in local trading on 29 August 2016, at around the $US0.7525 level. The currency was sold down amid indications that the Federal Reserve could increase US interest rates at least once before the end of the year, and potentially in September. A downturn in the spot price of iron ore also weighed on support for the commodity currency, which peaked at $US0.7756 earlier in the month. UBS forecasts that the dollar will test the $US0.70 level by the end of the year.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, UBS HOLDINGS PTY LTD, BLOOMBERG LP, RESERVE BANK OF AUSTRALIA, QIC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

CBA cuts discounts to boost margins

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Original article by Richard Gluyas
The Australian – Page: 19 & 22 : 23-Aug-16

The Commonwealth Bank has advised mortgage brokers that the discount on some of its mortgage loan applications for owner-occupiers and investors will be reduced by 15 basis points. It has also cut the discount on several other mortgage products by eight basis points. The move has been attributed to factors such as the rising cost of funding and new capital requirements. Australia’s major banks recently attracted criticism for withholding most of the 25 basis point reduction in the cash rate.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

‘Sell everything’ call a distant memory

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 19-Aug-16

Global sharemarkets have defied forecasts in January 2016 of a major slump, with most key indices having recovered from a sell-off in February. Andrew Mitchell of Ophir Asset Management says equities should continue to rise, unless there is a "black swan" event. Many fund managers increased their portfolios’ exposure to cash holdings following the Australian market’s downturn in April 2015, but its rebound from 2016 lows has prompted some to reinvest in equities.

CORPORATES
OPHIR ASSET MANAGEMENT PTY LTD, ROYAL BANK OF SCOTLAND GROUP PLC, FTSE 100 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, KATANA ASSET MANAGEMENT LIMITED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, DOW JONES INDUSTRIAL AVERAGE INDEX, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES

Big four banks sued by US funds over BBSW

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Original article by James Eyers
The Australian Financial Review – Page: 3 : 19-Aug-16

A class action launched in the US may complicate the Australian Securities & Investments Commission’s litigation against three of Australia’s big four banks. The litigants, including a derivatives trader and two hedge funds, allege in documents filed in a New York court that they suffered losses because the four major banks and Macquarie Group manipulated the bank bill swap rate. The US litigation makes a settlement between ASIC and the ANZ Bank, Westpac and National Australia Bank rather unlikely.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN LABOR PARTY, DISTRICT COURT OF UNITED STATES. SOUTHERN DISTRICT OF NEW YORK, SONTERRA CAPITAL MASTER FUND, FRONTPOINT FINANCIAL SERVICES, MAURICE BLACKBURN PTY LTD, BANK OF NEW ZEALAND, BNP PARIBAS SA, CITIBANK CORPORATION, CREDIT SUISSE AG, DEUTSCHE BANK AG, HSBC HOLDINGS PLC, JP MORGAN CHASE AND COMPANY, ROYAL BANK OF CANADA, ROYAL BANK OF SCOTLAND GROUP PLC, UC HOLDINGS, ICAP PLC, TULLETT PREBON, MORGAN STANLEY AND COMPANY INCORPORATED, LLOYD’S OF LONDON

Big four the cheapest in 20 years, says Regal

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Original article by Vesna Poljak
The Australian Financial Review – Page: 17 : 17-Aug-16

Regal Funds Management’s Julian Babarczy says Australia’s four major banks offer good value at present, noting that their valuations are at or near their lowest in the last two decades. Meanwhile, Babarczy says the banks’ capital ratios and credit quality are sufficient at present so they do not need to undertake capital raisings. The proceeds of the ANZ Bank’s $A1bn hybrid securities issuance will be treated as additional tier-1 capital rather than common equity tier-1 capital.

CORPORATES
REGAL FUNDS MANAGEMENT PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NIKKO ASSET MANAGEMENT GROUP

CBA chief’s $12.3m pay bonanza

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Original article by Michael Roddan, Ben Butler
The Australian – Page: 21 & 25 : 16-Aug-16

Commonwealth Bank executives were collectively paid a total of $A44.8m in 2015-16. This includes the $A12.3m remuneration of CEO Ian Narev, which was 50 per cent higher than previously. However, the banking major notes that this includes equity awards that were granted over the previous four years and vested during the financial year. Narev’s remuneration rose by 5.4 per cent to $A8.77m on a statutory basis. The bank recently posted a cash profit of $A9.45bn for 2015-16.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN LABOR PARTY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET