K: Financial and Insurance Services

NAB forced to delay Clydesdale float after ratings inquiry

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Original article by James Eyers
The Australian Financial Review – Page: 13 & 16 : 3-Feb-16

Shares in National Australia Bank spin-off Clydesdale Bank were slated to list on the London Stock Exchange on 2 February 2016. However, NAB has postponed the float by 24 hours after an unnamed ratings agency sought information on Clydesdale’s deposit rating. The request could potentially result in Clydesdale’s credit rating being downgraded, although NAB has stressed that this would have no impact on the UK bank’s financial outlook or its cost of funding.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY AND COMPANY INCORPORATED, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, JP MORGAN AND COMPANY INCORPORATED, CLIME ASSET MANAGEMENT PTY LTD

Investor sentiment hits a record low

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Original article by Ruth Liew
The Australian Financial Review – Page: 16 : 3-Feb-16

A survey by Investment Trends has found that the average investor expects the Australian sharemarket to gain just 1.2 per cent in 2016. However, Recep Peker of Investment Trends notes that 33 per cent of investors still intend to invest in equities. The survey also shows that 70 per cent of respondents have identified the outlook for the Chinese economy as their biggest concern, while the potential for another global financial crisis or market crash was cited by 54 per cent.

CORPORATES
INVESTMENT TRENDS PTY LTD, HLB MANN JUDD, RESERVE BANK OF AUSTRALIA, HSBC HOLDINGS PLC, SHANGHAI COMPOSITE INDEX, CSI 300 INDEX

Reporting season ups and downs

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Original article by Philip Baker
The Australian Financial Review – Page: 34 : 2-Feb-16

Australia’s benchmark S&P/ASX 200 Index has shed five per cent so far in 2016, and share price performances are likely to come under scrutiny during the February reporting season. Matt Ross of Goldman Sachs says price-earnings multiples are five per cent lower than they were in the lead-up to the August 2015 reporting season. He adds that growth in earnings-per-share is now at its lowest level since the global financial crisis.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BEGA CHEESE LIMITED – ASX BGA, COLES GROUP LIMITED, MURRAY GOULBURN CO-OPERATIVE COMPANY LIMITED, MG UNIT TRUST – ASX MGC, REA GROUP LIMITED – ASX REA, ISENTIA GROUP LIMITED – ASX ISD, RAMSAY HEALTH CARE LIMITED – ASX RHC, CSL LIMITED – ASX CSL, CARSALES.COM LIMITED – ASX CAR, SEEK LIMITED – ASX SEK, ARB CORPORATION LIMITED – ASX ARB, TATTS GROUP LIMITED – ASX TTS, QUBE HOLDINGS LIMITED – ASX QUB, IRESS LIMITED – ASX IRE, PREMIER INVESTMENTS LIMITED – ASX PMV, HEALTHSCOPE LIMITED – ASX HSO, TABCORP HOLDINGS LIMITED – ASX TAH, TRADE ME GROUP LIMITED – ASX TME, BRAMBLES LIMITED – ASX BXB, MYOB GROUP LIMITED – ASX MYO, WESFARMERS LIMITED – ASX WES, SELECT HARVESTS LIMITED – ASX SHV, DOMINO’S PIZZA ENTERPRISES LIMITED – ASX DMP, JB HI-FI LIMITED – ASX JBH, SONIC HEALTHCARE LIMITED – ASX SHL, VOCUS COMMUNICATIONS LIMITED – ASX VOC, CHALLENGER LIMITED – ASX CGF, MONADELPHOUS GROUP LIMITED – ASX MND

Small caps tipped to lift tough reporting season

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 13 & 22 : 1-Feb-16

The consensus of analysts is that the Australian sharemarket’s earnings per share will decline by six per cent in the February 2016 reporting season. However, a 45.5 per cent fall in earnings per share is forecast for the resources sector. Donald Williams of Platypus Asset Management is bearish about the outlook for the sector, warning that commodity prices are unlikely to rebound for several years. Meanwhile, Morgan Stanley expects stocks outside the top 20 to perform the best.

CORPORATES
PLATYPUS ASSET MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, BENNELONG AUSTRALIAN EQUITY PARTNERS PTY LTD, BHP BILLITON LIMITED – ASX BHP, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ORIGIN ENERGY LIMITED – ASX ORG, WORLEYPARSONS LIMITED – ASX WOR, AMCOR LIMITED – ASX AMC, ANSELL LIMITED – ASX ANN, MACQUARIE GROUP LIMITED – ASX MQG, COCA-COLA AMATIL LIMITED – ASX CCL, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, MANTRA GROUP LIMITED – ASX MTR, AVEO GROUP – ASX AOG, BURSON GROUP LIMITED – ASX BAP, CSG LIMITED – ASX CSV, TELSTRA CORPORATION LIMITED – ASX TLS, TABCORP HOLDINGS LIMITED – ASX TAH, REA GROUP LIMITED – ASX REA, GENWORTH MORTGAGE INSURANCE AUSTRALIA LIMITED – ASX GMA, UNITED STATES. FEDERAL RESERVE BOARD

Australian Roy Morgan Business Confidence continues to drift lower in January

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Jan-16

A Roy Morgan Business Single Source survey has found that Australian business confidence fell by 3.9 points to 110.6 in January 2016, following a decline of 4.2 points in December and 0.6 points in November. The combined drop of 8.7 points (down 7.3 per cent) over the last three months is an indication that the initial increase in confidence following Malcolm Turnbull becoming Prime Minister has been outweighed by the negative local and international economic environment, which saw the ASX decline by 8.6 per cent in the first three weeks of January. Despite the negative trend in business confidence over the last three months, it is still 7.8 per cent above the level prior to the appointment of Turnbull. Business confidence is now below the five-year average of 116.8 and is a sign that confidence is very fragile and easily impacted by negative economic events.

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

Retail funds not exempt from disclosure rules: O’Dwyer

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Original article by Sally Rose
The Age – Page: 23 : 29-Jan-16

There will be no exemptions from the product disclosure "dashboard" rules that are designed to allow investors to compare the performance and fees of superannuation funds. Industry Super Australia stated on 28 January 2016 that exemptions from the disclosure rules would apply to about 72 per cent of choice of fund products. However, Assistant Treasurer Kelly O’Dwyer says all funds will have to comply with the new rules.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, SUPERRATINGS PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES

Resources sector delivers top stock picks for the bold

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Original article by Simon Evans
The Australian Financial Review – Page: 26 : 29-Jan-16

Credit Suisse has identified Kula Gold as the Australian-listed stock that it expects to perform the best in 2016, forecasting a return of 362 per cent. This based on an analysis of 180 stocks. The other five stocks that Credit Suisse expects to achieve the highest returns for the calendar year are Altona Mining, WorleyParsons, Whitehaven Coal, Bradken and Senex Energy. Meanwhile, Brambles and Evolution Mining are among the stocks that are tipped to underperform.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, KULA GOLD LIMITED – ASX KGD, ALTONA MINING LIMITED – ASX AOH, WORLEYPARSONS LIMITED – ASX WOR, WHITEHAVEN COAL LIMITED – ASX WHC, BRADKEN LIMITED – ASX BKN, SENEX ENERGY LIMITED – ASX SXY, BRAMBLES LIMITED – ASX BXB, EVOLUTION MINING LIMITED – ASX EVN, PACIFIC ROAD CAPITAL MANAGEMENT PTY LTD, FRANKLIN TEMPLETON ASSET MANAGEMENT LIMITED, OZ MINERALS LIMITED – ASX OZL, TRANSURBAN GROUP LIMITED – ASX TCL, PACIFIC EQUITY PARTNERS PTY LTD, BAIN CAPITAL LLC

ANZ-Roy Morgan Australian Consumer Confidence down for the third week in a row to 112.2

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

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.9 per cent to 112.2 in the week ended 24 January 2016, and is now down 3.6 per cent over the past three weeks. Consumer confidence is now below its long-run average for the first time in almost four months. The recent falls are largely a reflection of ongoing global concerns and financial market volatility. The sub-index on "economic conditions in the next 12 months" has fallen by 13.5 per cent since early December, while the sub-index on "time to buy a major household item" has fallen by 7.9 per cent over the past three weeks.

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

NAB shareholders back Clydesdale spin-off

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Original article by Sally Rose, Clancy Yeates
The Australian Financial Review – Page: 15 & 18 : 28-Jan-16

National Australia Bank (NAB) will proceed with plans to demerge its Clydesdale Bank subsidiary in the UK, after 98 per cent of shareholders voted in favour of the deal. NAB shareholders will receive 75 per cent of Clydesdale’s shares, with the balance to be offered to institutional investors. However, the latter component of the transaction may be delayed if NAB fails to obtain a satisfactory price for the stock. NAB chairman Ken Henry says the bank’s dividend will not be affected by the sale of Clydesdale.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Retailers hit with 10pc hike in insurance cover

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Original article by Ruth Liew
The Australian Financial Review – Page: 19 : 28-Jan-16

Figures from commercial insurance comparison website BizCover show that small-to-medium businesses continue to benefit from strong competition in Australia’s insurance market. The retail sector is an exception. An insurance policy for a retail business may cost around $A1,700. A non-retail company would pay $A1,000 for a comparable cover. BizCover’s Small Business Insurance Index rose by five points in the fourth quarter of 2015.

CORPORATES
BIZCOVER PTY LTD, ALLIANZ AUSTRALIA LIMITED, AIG AUSTRALIA, QBE INSURANCE GROUP LIMITED – ASX QBE