K: Financial and Insurance Services

Stocks set to tumble after French terror

roymorgansocial Leave a comment

Original article by Mark Mulligan
The Australian Financial Review – Page: 21 : 16-Nov-15

Global sharemarkets are expected to be heavily sold down on 16 November 2015, as investors opt for lower-risk assets in the wake of the terrorist attacks in Paris. Australia’s benchmark S&P/ASX 200 closed at 5,051.25 on 13 November, and futures markets had already anticipated a fall below the 5,000-point level prior to the terrorist attacks. AMP Capital’s Shane Oliver does expect any downturn in the Australian market to be sustained, although he says resources stocks are likely to fall further.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, BLOOMBERG COMMODITY INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PEAK ASSET MANAGEMENT PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, HASSIUM ASSET MANAGEMENT, CAC 40 INDEX, EURO STOXX 50 INDEX, RESERVE BANK OF AUSTRALIA, BLOOMBERG LP

Ausbil’s Xiradis sees value in bank stocks

roymorgansocial Leave a comment

Original article by Philip Baker, Vesna Poljak
The Australian Financial Review – Page: 22 : 16-Nov-15

Ausbil Investment Management boasts some $A10bn worth of funds under management, and its Active Equity Fund has achieved an annual return of 11.1 per cent since inception. Ausbil co-founder Paul Xiradis is upbeat about Australia’s four major banks, as well as other blue-chip stocks such as Woolworths and BHP Billiton. He also likes QBE Insurance Group and BlueScope Steel, and believes that Woolworths should exit the Masters hardware business.

CORPORATES
AUSBIL INVESTMENT MANAGEMENT LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WOOLWORTHS LIMITED – ASX WOW, BHP BILLITON LIMITED – ASX BHP, TELSTRA CORPORATION LIMITED – ASX TLS, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, QBE INSURANCE GROUP LIMITED – ASX QBE, BLUESCOPE STEEL LIMITED – ASX BSL, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, TREASURY WINE ESTATES LIMITED – ASX TWE, CSL LIMITED – ASX CSL, RAMSAY HEALTH CARE LIMITED – ASX RHC, CROWN RESORTS LIMITED – ASX CWN, WESTPAC INVESTMENT MANAGEMENT PTY LTD, BUNNINGS GROUP LIMITED

CEOs rapped for ‘lazy’ $20b rights splurge

roymorgansocial Leave a comment

Original article by Simon Evans
The Australian Financial Review – Page: 24 : 13-Nov-15

Clime Asset Management’s John Abernethy says retail investors have questioned whether some recent capital raisings by large Australian companies were necessary. More than $A20bn has been raised by banks and other big companies in recent months, which Abernethy describes as "excessive and expensive". Santos shares were heavily sold down on 12 November 2015, in response to the oil and gas producer’s capital raising.

CORPORATES
CLIME ASSET MANAGEMENT PTY LTD, SANTOS LIMITED – ASX STO, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MYER HOLDINGS LIMITED – ASX MYR, ORIGIN ENERGY LIMITED – ASX ORG, TREASURY WINE ESTATES LIMITED – ASX TWE, PERPETUAL LIMITED – ASX PPT, UNITED STATES. FEDERAL RESERVE BOARD

Company insolvencies ‘may rise 10pc’

roymorgansocial Leave a comment

Original article by Karen Maley
The Australian Financial Review – Page: 27 : 13-Nov-15

Ludovic Subran, the chief economist at credit insurance group Euler Hermes, has warned that the growing incidence of corporate insolvencies in emerging markets will have a flow-on effect globally in 2016. Euler Hermes forecasts that Australia will record five per cent growth in insolvencies during 2016, following an increase of around 10 per cent in 2015. Insolvencies in China are forecast to rise by 25 per cent in 2015 and 20 per cent in 2016.

CORPORATES
EULER HERMES, ALLIANZ AG HOLDING

Uncertainty clouds fate of blue-chip dividends

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 26 : 13-Nov-15

Data from Morningstar shows that the average gross dividend yield for S&P/ASX 20 stocks has risen to a seven year-high of seven per cent. Meanwhile, three of the top-20 stocks have a 12-month gross yield in excess of 10 per cent, according to Bloomberg. ST Wong of Prime Value Asset Management says the top-20 stocks should be able to maintain their dividend payouts during the next year. However, some analysts believe that banks and resources groups may need to reduce their dividends.

CORPORATES
STANDARD AND POOR’S ASX 20 INDEX, MORNINGSTAR PTY LTD, BLOOMBERG LP, PRIME VALUE ASSET MANAGEMENT LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, WATERMARK FUNDS MANAGEMENT PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, WOOLWORTHS LIMITED – ASX WOW, STANDARD AND POOR’S ASX 200 INDEX, UNITED STATES. FEDERAL RESERVE BOARD

$A likely to dip into the 50c range, says Macro Currency

roymorgansocial Leave a comment

Original article by Jonathan Shapiro
The Australian Financial Review – Page: 24 : 13-Nov-15

Mark Farrington of Macro Currency Group says the Australian dollar remains overvalued, despite its fall in recent months. He estimates that the currency needs to fall by another 10 per cent to the $US0.50 range as the economy rebalances. Meanwhile, Farrington expects the Reserve Bank to reduce the cash rate another two times in the current monetary policy easing cycle, adding that the first cut could be in the June 2016 quarter.

CORPORATES
MACRO CURRENCY GROUP, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD

Westpac’s Gail Kelly gets $11m in final year

roymorgansocial Leave a comment

Original article by Clancy Yeates
The Australian Financial Review – Page: 24 : 12-Nov-15

Westpac’s 2015 annual report shows that former CEO Gail Kelly received $A11.76 million for her last four months at the helm of the bank. This figure comprises $A2.25 million in cash in the year to September 2015 and $A9.51 million in performance share options awarded in prior years. Kelly retired in February 2015.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Gary Morgan – Business confidence surveys and selective reporting by the Australian media

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 11-Nov-15

It is impossible to stop "organisations" conducting "questionable" polls – sometimes ill-conceived and too often completely self-serving or even mischievous polls. However, it is a disgrace when Australia’s national news services "selectively report" only such polls. Australia’s media has a critical role to play in keeping the Australian people informed. Australia’s major media is concentrated and controlled by too few – probably soon to be fewer! This makes the ethics of journalists and media owners even more important. Good governance dictates journalists must be briefed to report all facts honestly – not report "selectively" to support their own opinion.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Business owners, Professionals and Managers swing decisively to new Turnbull Government; Business Confidence up under Malcolm Turnbull

roymorgansocial Leave a comment

Original article by Michele Levine, Gary Morgan, Roy Morgan Research
Market Research Update – Page: Online : 11-Nov-15

Business owners, Professionals and Managers have swung decisively behind the Malcolm Turnbull Government, with the L-NP vote now 61.5% (up 12.5 per cent from pre-Turnbull), compared with 38.5 per cent for the ALP (down 12.5 per cent). Confidence for this group of Business owners, Professionals and Managers has increased to 118.6 (up 5.2pts from pre-Turnbull), according to a special analysis of business people using data from Roy Morgan Single Source. In addition, the Roy Morgan survey of businesses shows that real Business Confidence has increased from 102.6 in August 2015 to 119.3 in October – a strong increase following Turnbull’s ascension to the Prime Ministership. The website of "The Australian" has selectively reported the NAB Business Confidence poll, which claims that Business Confidence is down since Malcolm Turnbull took over leadership – this is far from the truth and only serves to destabilise the new Turnbull leadership or cast doubt on the Coalition tax reform discussions. For years the business community has been calling for tax reform and a complete review of the Australian taxation system. It is unbelievable and inconceivable to think business has now lost confidence because Turnbull and Treasurer Scott Morrison are reviewing tax and "everything including GST is on the table". The NAB Business Confidence survey (sample and methodology undisclosed) reporting a drop in Business Confidence is either a "rogue poll", based on wrong questions or perhaps represents a very unrepresentative sample of the business community.

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

ANZ-Roy Morgan Australian Consumer Confidence Remains Elevated at 116.6 (up 1.4pts)

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Nov-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 1.2 per cent to 116.6 in the week ended 8 November 2015, reaching its highest level since January 2014. Confidence has been on an upward trend over the past few weeks, mainly driven by an improvement in households’ outlook on the economy. This likely reflects the ongoing support for the Turnbull government in creating an improving narrative on the prospects for the Australian economy. The sub-index "economic outlook in the next year" rose by 2.8 per cent, and "economic outlook in the next five years" rose by 7.5 per cent.

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