K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence Ticks up 2.2pts to 113.9

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 3-May-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose 2.0 per cent to 113.9 in the week ended 1 May 2016, partly reversing the fall in the previous week and bringing confidence back above its long run average. Consumers’ views towards their current personal finances rose 2.9 per cent, although households’ views towards the financial outlook fell by 0.9 per cent.

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

RBA delivers Turnbull a pre-election rate cut

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Original article by Vesna Poljak
The Australian Financial Review – Page: 1 & 4 : 4-May-16

The Australian sharemarket gained 2.1 per cent on 3 May 2016, after the Reserve Bank reduced the cash rate by 25 basis points to a record low of 1.75 per cent in the wake of a downturn in inflation. The ANZ Bank is the only "big four" bank that is yet to confirm that it will respond by reducing its mortgage interest rates. Meanwhile, Westpac and the Commonwealth Bank expect another official interest rate cut in August, although Goldman Sachs forecasts that rates will remain on hold until November.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY

Westpac misses the profit mark

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Original article by Michael Bennet
The Australian – Page: 19 & 23 : 3-May-16

Shares in Australia’s major banks were sold down on 2 May 2016, after Westpac posted lower-than-expected cash earnings of $A3.9bn for the first half of 2015-16. This was three per cent higher than previously, but impairment charges rose by 96 per cent to $A667m and the bank’s return on equity fell to 14.2 per cent. CEO Brian Hartzer says Westpac will cease offering financial products that do not generate a sufficient return. Shareholders will receive an unchanged interim dividend of $A0.94 per share.

CORPORATES
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, ARRIUM LIMITED – ASX ARI, SLATER AND GORDON LIMITED – ASX SGH, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD

Investors to get lead on smart play for May

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 3-May-16

The Australian sharemarket gained 3.3 per cent in April 2016, but historical analysis shows that it has lost ground in the month of May in six of the last eleven years. A number of factors may influence the direction of the sharemarket in May, including the release of interim financial results in the banking sector, the outlook for commodity prices and the outcome of the Reserve Bank’s monthly monetary policy meeting.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, STANDARD AND POOR’S ASX 200 INDEX, RIVKIN SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WATERMARK FUNDS MANAGEMENT PTY LTD

Pressure on dividends in bank earnings

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 2-May-16

The earnings and dividend payouts of Australia’s four major banks will come under scrutiny in the first week of May 2016, with three set to release their half-year results. Westpac is tipped to post an interim net profit of at least $A4bn, while the ANZ Bank and National Australia Bank are expected to report half-year profits of about $A3.58bn and $A3.34bn respectively. Hugh Dive of Aurora Funds Management says NAB is the most likely to reduce its dividend payout, although Mark Nathan of Arnhem Asset Management believes that all four major banks will leave dividends unchanged in the near-term.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AURORA FUNDS MANAGEMENT LIMITED, ARNHEM INVESTMENT MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, WATERMARK FUNDS MANAGEMENT PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ARRIUM LIMITED – ASX ARI, PEABODY ENERGY CORPORATION

Traders kiss goodbye to Aussie’s high hopes

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 29 : 29-Apr-16

The Australian dollar has retreated from recent highs after the latest inflation data showed that the CPI fell by 0.2 per cent in the March 2016 quarter. Currency traders now do not expect the currency to test the $US0.80 level in the near-term, while the inflation data has also heightened expectations of further monetary policy easing. However, currency strategists are divided about the outlook for the dollar, with year-end forecasts ranging from $A0.70 to $A0.78.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, HSBC AUSTRALIA HOLDINGS PTY LTD, MARKET ECONOMICS PTY LTD, CAPITAL ECONOMICS LIMITED, THINKFOREX

Business Confidence jumps again in April – up 7.4pts to 123.1

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Apr-16

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 7.4 points (or 6.4 per cent) to 123.1 in April 2016. Business confidence has now risen 12.5 points over the last three months, since a 2016 low of 110.6 in January. The rise in Business Confidence comes after more improvement on the Australian sharemarket in April, and as commodity prices rebounded in recent months following increased global stimulus. The level of business confidence in April is clearly positive for the economy overall and is now above the five-year average of 116.8. The strongest indicators in April relate to the upcoming year, with expectations of business performance over the next 12 months (+38.1) and whether the next 12 months will be a "good/bad time to invest" (+26.3).

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION

ANZ-Roy Morgan Australian Consumer Confidence dips to 111.7

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Apr-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 3.5 per cent to 111.7 in the week ended 24 April 2016, reversing the bounce in the previous week and falling back below its long run average. Consumers’ views towards their current personal finances fell by 3.3 per cent, although consumers’ views towards their future personal situation rose by 1.3 per cent. Roy Morgan Research executive chairman Gary Morgan says the fall in consumer confidence can be attributed to the economic uncertainty over the closure of Arrium and Electrolux, and continuing announcements of redundancies at several companies, and is also not surprising when one considers the pressures on the Australian economy – many of these issues are exacerbated by the Reserve Bank’s insistence on keeping interest rates much higher (currently at 2 per cent) than comparable commodity economies.

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

Dollar overvaluation won’t provoke rate cut, says NAB

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Original article by Jessica Sier, Mark Mulligan
The Australian Financial Review – Page: 26 : 27-Apr-16

The Australian dollar has risen by more than 12 per cent since mid-January 2016. National Australia Bank’s Rodrigo Catril says the currency may be approaching previous levels at which the Reserve Bank had expressed "discomfort". The central bank responded to these concerns by reducing the cash rate, but NAB does not believe that the dollar’s current level will be sufficiently high for the RBA to cut interest rates in May. The latest inflation and jobs data will also influence the RBA’s monetary policy decision.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, OANDA AUSTRALIA PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

IPOs reward wary investors

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Original article by Michael Bennet
The Australian – Page: 20 : 26-Apr-16

Some 13 companies debuted on the Australian sharemarket in the March 2016 quarter, with a total capitalisation of $A796m. A report from Deloitte notes that the 12 IPOs during the same period in 2015 were worth a combined $A754m. Meanwhile, new IPOs in the first quarter of 2016 posted an average gain of 7.6 per cent, while the benchmark S&P/ASX 200 shed four per cent. Afterpay, StatePlus and Reliance Worldwide Corporation are among the companies that are currently considering an IPO.

CORPORATES
DELOITTE TOUCHE TOHMATSU LIMITED, STANDARD AND POOR’S ASX 200 INDEX, AFTERPAY HOLDINGS LIMITED – ASX AFY, STATEPLUS, RELIANCE WORLDWIDE CORPORATION LIMITED – ASX RWC, BRAVURA SOLUTIONS LIMITED, SCOTTISH PACIFIC BUSINESS FINANCE PTY LTD, FASTACASH, CAMPERDOWN DAIRY INTERNATIONAL, DICK SMITH HOLDINGS LIMITED – ASX DSH, DEALOGIC (AUSTRALIA) PTY LTD, ONEVIEW HEALTHCARE PLC – ASX ONE, DING SHENG XIN FINANCE COMPANY LIMITED – ASX DXF, WISETECH GLOBAL LIMITED – ASX WTC, GLOBAL FORTUNE INVESTMENT LIMITED – ASX GFI, JC INTERNATIONAL GROUP LIMITED – ASX JCI, CADENCE ASSET MANAGEMENT PTY LTD, CITIBANK PTY LTD, THOMSON REUTERS PLC, McGRATH LIMITED – ASX MEA, SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO