K: Financial and Insurance Services

AGM downgrades but growth likely

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 24-Nov-15

Analysis by Citigroup shows that 36 Australian-listed companies have upgraded their earnings guidance during the 2015 AGM season, and 42 have issued downgrades. Citigroup’s Tony Brennan notes that earnings-per-share forecasts have been reduced by about one per cent overall. Citigroup now expects the benchmark S&P/ASX 200 to be trading at 5,900 points at the end of 2016, compared with its previous forecast of 6,200.

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, MACQUARIE GROUP LIMITED – ASX MQG, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN

Raw goods stocks make two-speed sharemarket

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Original article by Philip Baker
The Australian Financial Review – Page: 26 : 24-Nov-15

Australia’s benchmark S&P/ASX 200 Index has shed 2.57 per cent so far in 2015, but the energy and materials indices have shed 26 per cent and 15 per cent respectively. The selldown of commodity stocks has resulted in a two-speed sharemarket, with sectors such as utilities, industrials and health outperforming the broader market. Meanwhile, the end of the resources boom means the eastern states’ economies are now outperforming Western Australia.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG

Fixed rates fall as banks chase loans

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Original article by Clancy Yeates
The Australian Financial Review – Page: 16 : 23-Nov-15

Data from RateCity shows that 11 Australian mortgage lenders have reduced their three-year fixed interest rates since early November 2015. Peter Arnold of RateCity notes that the majority of these lenders have passed on interest rate cuts to both owner-occupiers and property investors. Meanwhile, Jessica Darnbrough of Mortgage Choice says the number of customers opting for a fixed-interest loan fell to a four-year low of 13.9 per cent in October.

CORPORATES
RATECITY PTY LTD, MORTGAGE CHOICE LIMITED – ASX MOC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Capex data to test Turnbull

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 23-Nov-15

The national capital spending survey for the September 2015 quarter will be a key focus for Australian investors in the week beginning 23 November 2015. Data from Bloomberg shows that economists generally expect the September quarter forecast for capex intentions in 2015-16 to be around $A120bn, compared with $A114bn in the June quarter. National Australia Bank is more upbeat, forecasting full-year capex of $A124bn.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, FEDERAL RESERVE BANK OF SAN FRANCISCO, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

OzForex co-founders big winners from Western Union bid

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Original article by Shaun Drummond, Sarah Thompson, Michael Bailey, Anthony Macdonald, Joyce Moullakis
The Australian Financial Review – Page: 13 & 18 : 20-Nov-15

Shares in online foreign exchange group OzForex closed 30 per cent higher at $A3.38 on 19 November 2015, in response to Western Union’s $A888m takeover approach The indicative offer is non-binding and may not result in a formal takeover bid, but OzForex’s co-founder Matthew Gilmour expects the company to attract other bids. He notes that a number of overseas groups were interested in buying OzForex prior to its IPO in 2013.

CORPORATES
OZFOREX GROUP LIMITED – ASX OFX, WESTERN UNION FINANCIAL SERVICES INCORPORATED, DEUTSCHE BANK AG, MACQUARIE GROUP LIMITED – ASX MQG, CLAYTON UTZ, GRESHAM PARTNERS LIMITED, EURONET WORLDWIDE INCORPORATED, DEUTSCHE BOERSE, TRAVELWISE, WORLD FIRST, NEW YORK STOCK EXCHANGE, VEDA GROUP LIMITED – ASX VED, EQUIFAX INCORPORATED, ISELECT LIMITED – ASX ISU, PROVIDENCE EQUITY PARTNERS INCORPORATED

Tweaking super won’t help women

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 20-Nov-15

The Australian Institute of Superannuation Trustees (AIST) says the gap in the superannuation savings of men and women can only be eliminated by paying women higher salaries and raising their workforce participation rates. The AIST believes that super policy reforms will have a limited effect on the savings gap, which is now 17 per cent.

CORPORATES
AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, DELOITTE TOUCHE TOHMATSU LIMITED

RIAA calls to end quarterly reporting

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Original article by Sally Rose
The Australian Financial Review – Page: 33 : 19-Nov-15

The majority of listed companies release quarterly earnings reports and guidance updates, but Responsible Investment Association Australasia (RIAA) CEO Simon O’Connor says their main priority should be pursuing strategies that will create long-term value for investors. A policy paper to be released on 19 November 2015 also presents the RIAA’s views on issues such as environmental and social governance risks, ethics and executive remuneration.

CORPORATES
RESPONSIBLE INVESTMENT ASSOCIATION AUSTRALASIA, BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VOLKSWAGEN AG, UNISUPER LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, FIRST STATE SUPER, VICSUPER PTY LTD, SUNSUPER PTY LTD, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, AMP CAPITAL INVESTORS LIMITED, PERPETUAL LIMITED – ASX PPT, BT INVESTMENT MANAGEMENT LIMITED – ASX BTT

ANZ-Roy Morgan Australian Consumer Confidence virtually unchanged at 115.9

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 17-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.6 per cent to 115.9 in the week ended 15 November 2015. This follows confidence reaching the highest level in almost two years in the previous week, while the four-week moving average continues to trend higher. The fall in confidence was mainly attributed to consumers’ views towards the economic outlook. The sub-index "economic conditions in the next 12 months" was down 3.7 per cent, and "economic conditions in the next five years" was down 2.4 per cent. Roy Morgan Research executive chairman Gary Morgan says consumer confidence remains virtually unchanged, and all indicators of general confidence in Australia – including ANZ-Roy Morgan Consumer Confidence, Roy Morgan Business Confidence and the Roy Morgan Government Confidence Rating – have improved substantially over the past two months.

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

History proves markets resilient to global terror

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Original article by Philip Baker
The Australian Financial Review – Page: 34 : 17-Nov-15

The Australian sharemarket lost ground early in trading on 16 November 2015, in the aftermath of the Islamic terrorist attacks in Paris. However, investors returned to the market to take advantage of lower share prices, allowing the S&P/ASX 200 to close slightly above the 5,000-point level. Analysis of trading patterns following significant terrorist attacks since 2001 shows that equity markets have generally rebounded strongly after falling in the immediate aftermath of the attacks.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, MACQUARIE BANK LIMITED – ASX MBL

Forget China, bigger risk for local shares on the horizon

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 35 : 17-Nov-15

Hasan Tevfik of Credit Suisse warns that a rise in the global inflation rate would have a bigger impact on Australian sharemarket investors that an interest rate rise in the US or an economic slowdown in China. Credit Suisse notes that global bond yields would most likely rise if there is a spike in the US inflation rate, while Stephen Walters of JP Morgan expects the global inflation rate to rise after falling to 1.4 per cent in September 2015.

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, JP MORGAN AUSTRALIA LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, CAPITAL ECONOMICS LIMITED