K: Financial and Insurance Services

Minority rule would knock confidence

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 9-Jun-16

The 2016 federal election remains too close to call, raising the prospect of a hung parliament or a minority government. Analysts warn that investor sentiment would be affected by a minority government, with Chris Nicol and Daniel Blake of Morgan Stanley noting that both business and consumer confidence were hit during the tenure of the previous minority government between 2010 and 2013. Analysis by Citigroup concludes that the Coalition is likely to win the election, although the Australian Labor Party could gain around 10 seats.

CORPORATES
CITIGROUP PTY LTD, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, JB HI-FI LIMITED – ASX JBH, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WHITEHAVEN COAL LIMITED – ASX WHC

ANZ-Roy Morgan Australian Consumer Confidence rebounds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Jun-16

ANZ-Roy Morgan Australian Consumer Confidence rose 3.2 per cent in the week ending 5 June, more than offsetting the 2.2 per cent decline of the previous week. Consumer confidence now stands at 116.8, the highest level since January 2014. The improvement in consumer confidence was likely driven by the solid GDP report released last week. The increase in confidence was broad-based, with consumers’ views of the economic outlook leading the gains. Views towards "economic conditions in the next 12 months" bounced a sharp seven per cent, and views towards "the economy in the next five years" rose 3.5 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

‘Unconscionable’ NAB sued by ASIC over alleged rate rigging

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 2 : 8-Jun-16

Opposition Leader Bill Shorten says the latest development in the scandal over manipulation of the bank bill swap rate demonstrates the need for a royal commission into the banking sector. The Australian Securities & Investments Commission will allege in the Federal Court that National Australia Bank manipulated the BBSW in 50 separate transactions from mid-2010 to late-2012. ASIC has previously launched legal action against Westpac and the ANZ Bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN GREENS, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

August cut tipped, but central bank headed for a pause

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Original article by Vesna Poljak
The Australian Financial Review – Page: 24 : 8-Jun-16

Inflation data to be released in late July 2016 may influence the Reserve Bank of Australia’s next move on interest rates, after the central bank left the cash rate on hold on 7 June. A survey by Bloomberg shows that most economists expect the cash rate to be 1.5 per cent by the June 2017 quarter. Jamieson Coote Bonds co-founder Charlie Jamieson expects a rate cut in August, adding that it may then opt to keep the cash rate on hold.

CORPORATES
RESERVE BANK OF AUSTRALIA, JAMIESONCOOTEBONDS PTY LTD, BLOOMBERG LP

Is the yield play back in vogue?

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Original article by Jessica Sier
The Australian Financial Review – Page: 25 : 8-Jun-16

The low interest rate environment has prompted strong support for high-yielding Australian stocks. However. investors recently began selling yield stocks amid expectations of several interest rate rises in the US during 2016. Citi Global Markets’ Karen Jorritsma notes that yield stocks will be back in favour following the release of the latest US jobs data, which will dampen expectations that the Federal Reserve will increase the cash rate.

CORPORATES
CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, SCENTRE GROUP – ASX SCG, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, APA GROUP – ASX APA, KATANA ASSET MANAGEMENT LIMITED, DEXUS PROPERTY GROUP – ASX DXS, MIRVAC GROUP – ASX MGR

NAB set to face claims of rate-rigging

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Original article by Sarah Thompson, Jemima Whyte, Anthony Macdonald
The Australian Financial Review – Page: 17 & 22 : 3-Jun-16

The Australian Securities & Investments Commission has a narrow time-frame to decide whether to pursue legal action against National Australia Bank for manipulating the bank bill swap rate. The alleged conduct occurred on 6 June 2010, which means ASIC must commence legal proceedings within days under the statute of limitations. Westpac and ANZ Bank have already been the subject of ASIC action over such conduct, while several investment banks have agreed to enforceable undertakings.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS AG, ROYAL BANK OF SCOTLAND GROUP PLC, BNP PARIBAS SA

Dobbed in, found guilty

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Original article by Misa Han
The Australian Financial Review – Page: 1 & 2 : 3-Jun-16

Former investment banker Oliver Curtis could be jailed for up to five years after being convicted of conspiracy to commit insider trading. The Australian Securities & Investments Commission had alleged that he profited by using market-sensitive information to trade contracts for difference in 2007 and 2008. Curtis had used inside information supplied by co-conspirator John Hartman, an equities dealer at Orion Asset Management. Hartman has served a 15-month jail term, and received a reduced sentence for providing evidence against Curtis.

CORPORATES
ORION ASSET MANAGEMENT (AUST) PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MACQUARIE GROUP LIMITED – ASX MQG, LYNAS CORPORATION LIMITED – ASX LYC, CLIFFORD CHANCE

Coca-Cola Amatil tops 10 stocks to buy if June turns ugly

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Original article by Simon Evans
The Australian Financial Review – Page: 30 : 3-Jun-16

The Australian sharemarket has performed well since mid-April 2016, but some analysts believe that this may not be sustained. Tim Baker of Deutsche Bank has identified a number of defensive stocks that investors should consider if sentiment becomes bearish in June. They are Coca-Cola Amatil, Estia Health, Mirvac Group, DUET Group, AGL Energy, Suncorp Group, Medibank Private, Shopping Centres Australasia Property Group, Vicinity Centres and Healthscope.

CORPORATES
DEUTSCHE BANK AG, COCA-COLA AMATIL LIMITED – ASX CCL, ESTIA HEALTH LIMITED – ASX EHE, MIRVAC GROUP – ASX MGR, DUET GROUP – ASX DUE, AGL ENERGY LIMITED – ASX AGL, SUNCORP GROUP LIMITED – ASX SUN, MEDIBANK PRIVATE LIMITED – ASX MPL, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, VICINITY CENTRES – ASX VCX, HEALTHSCOPE LIMITED – ASX HSO

Retail investors face lockout from IPOs if proposals adopted

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 3-Jun-16

The ASX argues that proposed changes to listing rules are intended to enhance the Australian bourse’s reputation as a market of "quality and integrity". However, the Australian Shareholders’ Association is concerned that the changes outlined in a recent consultation paper will make it harder for retail investors to participate in IPOs. The ASX proposes to introduce a minimum free-float of 20 per cent and scale back the minimum number of shareholders a company must have at the time of its IPO.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, STANDARD AND POOR’S ASX 200 INDEX

Economists say growth stunner won’t stop RBA rate cut

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Original article by Jessica Sier
The Australian Financial Review – Page: 32 : 2-Jun-16

Deutsche Bank’s Adam Boyton says inflation will be a bigger influence on the Reserve Bank of Australia’s monetary policy deliberations than GDP data. New figures show that the economy expanded by a higher-than-expected 1.1 per cent in the March 2016 quarter, with year-on-year growth of 3.1 per cent. There is general consensus among economists that there will be at least one more interest rate cut in 2016, although Craig James of CommSec cautions that this could put more upward pressure on house prices.

CORPORATES
DEUTSCHE BANK AG. RESERVE BANK OF AUSTRALIA. COMMONWEALTH SECURITIES LIMITED. AUSTRALIAN BUREAU OF STATISTICS. NATIONAL AUSTRALIA BANK LIMITED – ASX NAB