K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence down 1.1pts to 113.4

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

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell one per cent to 113.4 in the week ended 3 April 2016, following a fall of 1.6 per cent over the previous two weeks. After being on an upward trend for the past eight weeks, the four-week moving average is now falling. Consumers’ views around the economic outlook over the next five years fell 7.6 per cent, although consumers’ views towards their finances compared to a year ago rose 2.6 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Strong $A may force RBA’s hand

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Original article by David Rogers
The Australian – Page: 19 & 28 : 6-Apr-16

AMP Capital Investors’ Shane Oliver says the Reserve Bank of Australia is unlikely to increase the cash rate for some time. He says the prospect of slowing economic growth could prompt further easing of monetary policy in the near-term. The central bank left official interest rates on hold at two per cent on 5 April 2016, and gave indications that a further rise in the Australian dollar or an increase in unemployment could provide the impetus for a rate cut.

CORPORATES
RESERVE BANK OF AUSTRALIA, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. FEDERAL RESERVE BOARD

Westpac accused of fixing market

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Original article by Leo Shanahan
The Australian – Page: 19 & 23 : 6-Apr-16

Westpac may face financial penalties of up to $A18m if allegations that it attempted to manipulate the bank bill swap rate are proven. The Australian Securities & Investments Commission’s statement of claim identifies 16 separate occasions on which the banking major is said to have engaged in such activity. The ANZ Bank is already subject to legal action by ASIC for manipulating the bank bill swap rate, while the Commonwealth Bank and National Australia Bank are being investigated.

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

RBA budget day cut ‘close’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 8 : 4-Apr-16

The consensus of economists polled by Fairfax Media is for the Reserve Bank of Australia to leave official interest rates unchanged on 5 April 2016. However, about 25 per cent of the 12 economists expect the cash rate to be reduced on 3 May, when the Federal Government will also hand down the Budget. Some economists suggest that the recent rise in the value of the Australian dollar will prompt a rate cut.

CORPORATES
RESERVE BANK OF AUSTRALIA, FAIRFAX MEDIA LIMITED – ASX FXJ, NOMURA AUSTRALIA LIMITED, AMP CAPITAL INVESTORS LIMITED, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD, ST GEORGE BANK LIMITED, CAPITAL ECONOMICS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

Business Confidence rises again in March – up 2.4pts to 115.7

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-Mar-16

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 2.4 points to 115.7 in March 2016, and it has now risen 5.1 points over the last two months. The rise in business confidence comes after steady improvement on the Australian sharemarket in March, after the All Ordinaries Index dropped in both January and February to start the year amid global economic concerns. The level of business confidence in March is clearly positive for the economy overall and just below the five-year average of 116.6. The weakest indicators are the performance of the business compared to a year ago (+7) and expectations of economic conditions in Australia over the next 12 months (+11).

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

Markets have gone a bit too quiet for some

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Original article by Vesna Poljak
The Australian Financial Review – Page: 26 : 1-Apr-16

Global financial market volatility has declined, as measured by the Chicago Board Options Exchange’s "fear index". However, Escala Partners’ Giselle Roux cautions investors to expect further volatility. She anticipates mixed fortunes in the upcoming US profit reporting season, while other factors that may weigh on market sentiment include the US presidential election and a UK referendum on staying in the European Union. Australia’s benchmark S&P/ASX 200 shed four per cent during the March 2016 quarter, or one per cent in US dollar terms.

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, ESCALA PARTNERS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, DEUTSCHE BANK AG, GROUP OF TWENTY (G-20), UNITED STATES. FEDERAL RESERVE BOARD, BELL POTTER SECURITIES LIMITED

Morrison declares open season on ASX

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Original article by Patrick Durkin
The Australian Financial Review – Page: 44 : 31-Mar-16

Federal Treasurer Scott Morrison announced on 30 March 2016 that ASX Limited will no longer have a monopoly on clearing and settlement activities. Elmer Funke Kupper’s recent resignation as CEO of the stock exchange operator makes it ill-prepared for the coming changes. Morrison said no licences will be granted during a transition period. The ASX has therefore 18 months to prepare itself for a new regulatory regime.

CORPORATES
ASX LIMITED – ASX ASX, AUSTRALIA. DEPT OF THE TREASURY, CHI-X AUSTRALIA PTY LTD, TABCORP HOLDINGS LIMITED – ASX TAH, COUNCIL OF FINANCIAL REGULATORS, CONTANGO ASSET MANAGEMENT LIMITED, LONDON STOCK EXCHANGE, DEUTSCHE BOERSE, SOCIETE GENERALE SA, UNICREDIT SPA, CHICAGO MERCANTILE EXCHANGE, INTERCONTINENTAL EXCHANGE, SINGAPORE EXCHANGE LIMITED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, TELSTRA CORPORATION LIMITED – ASX TLS, LONDON CLEARING HOUSE

Investors to get $9b dividend bonanza

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 15 & 20 : 31-Mar-16

Australian companies are expected to pay shareholders around $A19bn in interim dividends during March and April 2016. Fund managers estimate that almost $A9bn worth of dividends will be paid in the final week of March, including some $A3.4bn worth of dividends from the Commonwealth Bank. Meanwhile, CommSec’s Craig James warns that the current dividend payout ratio of 106.3 per cent of profits is not sustainable. Many shareholders are expected to reinvest their dividends in equities, particularly given the low returns from assets such as bonds.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH SECURITIES LIMITED, STANDARD AND POOR’S ASX 200 INDEX, CREDIT SUISSE (AUSTRALIA) LIMITED, PLATYPUS ASSET MANAGEMENT PTY LTD, PERPETUAL LIMITED – ASX PPT, WESTPAC BANKING CORPORATION – ASX WBC

Dividend lure keeps capex hungry

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 30-Mar-16

Australia’s benchmark S&P/ASX 200 boasts a dividend yield of 4.98 per cent at present, and it is tipped to be 4.66 per cent for the 2016 calendar year. Yield-hungry investors continue to shun bonds in favour of equities, and Citigroup has suggested that this focus on yield is deterring companies from increasing their capital expenditure. Australian companies anticipate capex of $A124bn in 2015-16, and $A82.6bn in 2016-17.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, CITIGROUP PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED

ANZ-Roy Morgan Australian Consumer Confidence has modest fall to 116.0

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-Mar-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 0.3 per cent to 116.0 in the week ended 20 March 2016, following a strong 4.5 per cent rise over the previous fortnight. Confidence is now sitting three per cent above its long run average, and the four-week moving average is on an upward trend. The sub-index on "economic conditions in the next 12 months" rose 3.3 per cent and is now sitting just a touch below its long run average. The sub-index on "economic conditions in the next 5 years" rose 2.7 per cent.

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