K: Financial and Insurance Services

Deutsche tips value stocks to outperform

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Original article by Jessica Sier
The Australian Financial Review – Page: 31 : 15-Mar-16

Australian equities with high price-earnings ratios have significantly outperformed the broader sharemarket in the last several years. However, Deutsche Bank says investors should consider buying into value stocks, forecasting that they are set to deliver the best returns. Deutsche Bank favours stocks such as Boral, Harvey Norman, Flight Centre Travel Group and AGL Energy.

CORPORATES
DEUTSCHE BANK AG, BORAL LIMITED – ASX BLD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, AGL ENERGY LIMITED – ASX AGL, FORAGER FUNDS MANAGEMENT PTY LTD, WHITEHAVEN COAL LIMITED – ASX WHC, SOUTH32 LIMITED – ASX S32, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, COCHLEAR LIMITED – ASX COH, TREASURY WINE ESTATES LIMITED – ASX TWE, CSL LIMITED – ASX CSL, REA GROUP LIMITED – ASX REA, RAMSAY HEALTH CARE LIMITED – ASX RHC

Aussie tests US76c as central banks ponder

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 14-Mar-16

Market watchers expect Australia’s benchmark S&P/ASX 200 to gain 0.8 per cent when trading resumes on 14 March 2016. The market is likely to benefit from a positive lead from overseas bourses and encouraging economic data from China. Investors will also be awaiting the outcome of the monetary policy meetings of the US and Japanese central banks in coming days, as well as the release of the latest jobs data in Australia.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, EUROPEAN CENTRAL BANK, CREDIT SUISSE (AUSTRALIA) LIMITED, EURO STOXX 50 INDEX, ROUBINI GLOBAL ECONOMICS LLC, PEOPLE’S BANK OF CHINA, BLOOMBERG LP

Vanguard sees lower returns

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Original article by Sally Patten
The Australian Financial Review – Page: 8 : 11-Mar-16

Vanguard Group CEO and chairman Bill McNabb is bearish about the outlook for global investment returns over the next decade. He expects returns to be around two per cent below the long-term average over this period, although he anticipates a subsequent upturn. Meanwhile, McNabb says there should be greater transparency regarding Australian superannuation funds’, while he argues that consolidation in the industry could also be used to put downward pressure on fees.

CORPORATES
THE VANGUARD GROUP INCORPORATED

Besieged bank vows to improve process

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Original article by Michael Bennet
The Australian – Page: 7 : 11-Mar-16

The Commonwealth Bank has promised to thoroughly investigate recent allegations of unethical behaviour at its insurance business. Reports in the media outline allegations of doctors being under pressure to change their diagnoses of life insurance policyholders to match CommInsure’s commercial goals. Superannuation fund HESTA is reviewing its relationship with CommInsure.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

ANZ-Roy Morgan Australian Consumer Confidence bounces to 114.8 (up 3.5pts)

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Mar-16

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose 3.1 per cent to 114.8 in the week ended 6 March 2016. This reverses the fall of 2.6 per cent in the previous week, and the four-week moving average is now trending higher. Last week’s news about the strong economic growth numbers, big gains in the equity markets and a strong Australian dollar were positive factors for consumer confidence. The subindex for the "economic outlook in the next 12 months" rose 11.6 per cent, and the subindex for "economic outlook in the next 5 years" rose 8.3 per cent

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

Saxo Bank’s Jakobsen betting on dollar parity

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 9-Mar-16

The Australian dollar reached an eight-month high of $US0.7485 in local trading on 8 March 2016, compared with a peak of $US1.10 in 2011. Steen Jakobsen, the chief economist at Saxo Bank, is upbeat about the outlook for the currency, forecasting that it will eventually reach parity with its US counterpart for the first time since 2011. He expects factors such as financial market volatility and the trend toward negative interest rates to bolster support for the currency.

CORPORATES
SAXO BANK A/S, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Westpac execs quizzed in rate-rig probe

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Original article by Leo Shanahan
The Australian – Page: 19 & 22 : 8-Mar-16

The Australian Securities & Investments Commission is believed to have interviewed about 25 Westpac employees to date as part of its investigation into allegations that banks manipulated the bank bill swap rate. The ANZ Bank is already the subject of legal action by ASIC over the scandal, while the corporate regulator is said to have identified about 120 Westpac employees and executives that it wants to interview. Westpac has stressed that it is co-operating fully with the investigation.

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

Citi expects bank dividends to be ‘significantly lower’

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Original article by James Chessell
The Australian Financial Review – Page: 18 : 8-Mar-16

Citi Global Markets’ Sebastien Bland has warned that hedge funds and long-only fund managers in the UK and Europe are not convinced that Australian banks’ dividend payouts are sustainable given their current capital levels. He says hedge funds believe that the banks will need to reduce their dividend payout ratios, but he adds that long-only funds expect the banks to maintain dividends via measures such as dividend reinvestment plans.

CORPORATES
CITI GLOBAL MARKETS, CITIGROUP INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, VARIANT PERCEPTION

ASIC targets more banks over rates

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 1 & 8 : 7-Mar-16

Law firm Maurice Blackburn is examining the potential for a class action against the ANZ Bank over allegations of misconduct in setting the bank bill swap. Meanwhile, the Australian Securities & Investments Commission may broaden its legal case to include the Commonwealth Bank, Westpac and National Australia Bank. ASIC launched legal action against ANZ after the bank refused to admit liability, which has thwarted attempts to reach a settlement.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, MAURICE BLACKBURN PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTERN SYDNEY UNIVERSITY, UNIVERSITY OF MELBOURNE

Investors advised to widen stocks horizons

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 4-Mar-16

The Australian sharemarket has shed five per cent so far in 2016, with the market volatility adversely affecting exchange-traded funds in particular. However, experts say investors who use an active investment strategy can diversify their portfolios by gaining exposure to passive investment options such as exchange-traded funds. The Market Vectors Gold Miners ETF has delivered the best performance among such funds in the year-to-date.

CORPORATES
MARKET VECTORS GOLD MINERS ETF – ASX GDX, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 300 INDEX, MORNINGSTAR PTY LTD, BETASHARES CAPITAL LIMITED, ISHARES INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BETASHARES AUSTRALIAN EQUITIES STRONGBEARHEDGEFUND – ASX BBO, MARKET VECTORS CHINAMC A-SHARE ETF – ASX CET, STANDARD AND POOR’S 500 INDEX, PROTEGE FUNDS LLC, VANGUARD S&P 500 ADMIRAL INDEX FUND