K: Financial and Insurance Services

Tech fund rush to hit $1b

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Original article by Patrick Durkin
The Australian Financial Review – Page: 1 & 6 : 2-Nov-15

Square Peg Capital will launch a $A200m venture capital fund that will invest in technology start-ups. Square Peg Capital was co-founded by Paul Bassat, who was also the joint founder of jobs website SEEK. Other recent initiatives in Australia’s venture capital space include a $A200m fund launched by Blackbird Ventures and Atlassian Software founder Michael Cannon-Brookes. Brandon Capital also launched a $A200m fund earlier in 2015.

CORPORATES
SQUARE PEG CAPITAL PTY LTD, SEEK LIMITED – ASX SEK, BLACKBIRD VENTURES PTY LTD, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, BRANDON CAPITAL MANAGEMENT PTY LTD, AUSTRALIANSUPER PTY LTD, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, STATEWIDE SUPERANNUATION PTY LTD, HOST-PLUS, THE GROUP OF EIGHT LIMITED, AIRTREE VENTURES PTY LTD, ACCEL PARTNERS, 99DESIGNS PTY LTD, CARSALES.COM LIMITED – ASX CAR, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, WESFARMERS LIMITED – ASX WES, AUSTRALIAN FOOTBALL LEAGUE, GOCATCH, ROCKT, VEND LIMITED, SCRIPTROCK PTY LTD, JETSTAR AIRLINES PTY LTD

ANZ calms the market on dividends fears

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 13 & 17 : 30-Oct-15

The ANZ Bank has posted a cash profit of $A7.2bn for 2014-15, which is one per cent higher than previously. However, its Australian division’s cash profit rose by seven per cent. The group’s return on equity fell from 15.4 per cent to 14 per cent in 2015-16, and CEO Mike Smith says it will abandon its goal of lifting this to 16 per cent. He has also stressed that ANZ will not reduce its dividend payout in order to offset the cost of complying with new capital requirements.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, CADENCE CAPITAL LIMITED – ASX CDT, DEUTSCHE BANK AG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Westpac’s Evans says no rate cut in sight

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 30-Oct-15

HSBC’s Paul Bloxham expects a reduction in Australia’s cash rate in either November or December 2015, in the wake of lower-than-expected inflation data in the September quarter. Westpac’s chief economist Bill Evans in turn still believes that the cash rate will remain unchanged in November, noting that the Reserve Bank has ignored one-off falls in the inflation rate in the past. Andrew Ticehurst of Nomura expects the cash rate to remain on hold until February.

CORPORATES
HSBC AUSTRALIA HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, NOMURA AUSTRALIA LIMITED

The winds of change will hit companies

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Original article by Stephen Cauchi
The Age – Page: 27 : 30-Oct-15

Morgan Stanley forecasts that the El Nino weather phenomenon will benefit Australian-listed companies across a range of sectors during the 2015-16 summer. Coca-Cola Amatil, JB Hi-Fi, Harvey Norman, Origin Energy and AGL Energy are among the companies that are tipped to enjoy stronger revenue due to the warmer weather associated with El Nino. Mining companies and insurers are also expected to benefit, but wheat, grain and beef producers in particular are likely to be adversely affected.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, GRAINCORP LIMITED – ASX GNC

Fed leaves rates on hold, preps for potential December lift

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Original article by
The Age – Page: Online : 29-Oct-15

The Federal Reserve’s two-day policy meeting in late October 2015 has resulted in US interest rates being left unchanged. The central bank’s monetary policy statement noted that the US economy is expanding at a "moderate pace", while jobs growth has slowed. The statement omitted the previous month’s reference to the potential impact of global risks on the US economy. BlackRock’s Russ Koesterich says a rate cut remains possible in December.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, BLACKROCK INCORPORATED, FEDERAL RESERVE BANK OF RICHMOND, EUROPEAN CENTRAL BANK, REUTERS HOLDINGS PLC

Yield reputation lives, even as growth slows

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Original article by Vesna Poljak, James Eyers
The Australian Financial Review – Page: 35 : 29-Oct-15

Australia’s top listed companies paid a total of $A79bn in dividends for the 2014-15 financial year. Brokers now expect the total payout for 2015-16 to be $A81bn, compared with a consensus forecast of $A85bn following the August 2015 reporting season. Dividend payouts in the banking sector remain strong, but a number of companies in the energy sector have reduced their dividends in the wake of the downturn in the crude oil price.

CORPORATES
WOODSIDE PARK STUD PTY LTD, SANTOS LIMITED – ASX STO, ORIGIN ENERGY LIMITED – ASX ORG, MYER HOLDINGS LIMITED – ASX MYR, BHP BILLITON LIMITED – ASX BHP, STANDARD AND POOR’S ASX 200 INDEX, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, EUROPEAN CENTRAL BANK, BANK OF JAPAN

Aussie dives as third-quarter inflation figure surprises

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Original article by Mark Mulligan
The Australian Financial Review – Page: 34 : 29-Oct-15

The Australian dollar was buying $US0.7119 late in trading on 28 October 2015, after starting the session above $US0.72. The currency fell sharply in response to official data showing that the headline and core inflation rates were lower than forecast in the September quarter, which may strengthen the case for further monetary policy easing. Paul Dales of Capital Economics says an interest rate cut is possible in November.

CORPORATES
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNITED STATES. FEDERAL RESERVE BOARD, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Link shares jump 11.5pc on ASX debut

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Original article by Sally Rose
The Australian Financial Review – Page: 17 & 22 : 28-Oct-15

Shares in superannuation administration services provider Link Group were issued at $A6.37 apiece in a $A946.5m IPO. The stock ended its first day of trading 11.5 per cent higher at $A7.05, after listing at $A7.10. Investors Mutual’s Anton Tagliaferro says Link was attractive to investors due to the limited growth opportunities in the domestic market at present. Meanwhile, Link CEO John McMurtrie has flagged offshore acquisitions to expand its footprint beyond Australia and New Zealand.

CORPORATES
LINK ADMINISTRATION HOLDINGS LIMITED – ASX LNK, INVESTORS MUTUAL LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, INTERMEDIATE CAPITAL GROUP PLC, MACQUARIE GROUP LIMITED – ASX MQG, UBS HOLDINGS PTY LTD, ASX LIMITED – ASX ASX, SUPERPARTNERS (AUSTRALIA) PTY LTD, AUSTRALIANSUPER PTY LTD, PILLAR ADMINISTRATION, COLLINS FOODS LIMITED – ASX CKF, KFC, SIZZLER RESTAURANTS AUSTRALIA LIMITED, AMP LIFE LIMITED, JP MORGAN AUSTRALIA LIMITED, BNP PARIBAS ASSET MANAGEMENT (AUSTRALIA) LIMITED, HSBC AUSTRALIA HOLDINGS PTY LTD, CITICORP GROUP PTY LTD, MACQUARIE CAPITAL PTY LTD, DEUTSCHE BANK AG

ANZ-Roy Morgan Australian Consumer Confidence virtually unchanged at 113.4

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 27-Oct-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.1 per cent to 113.4 in the week ended 25 October 2015, following a fall of two per cent in the previous week. This is somewhat surprising given further announcements of increases in variable mortgage interest rates. However, looking at the detail, consumers’ perceptions of their current finances deteriorated, suggesting that the prospect of higher mortgage repayments have hit households’ hip pocket nerve. The sub-index "finances compared to a year ago" was down 4.2 per cent, after a fall of 0.5 per cent in the previous week.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, PROPERTY COUNCIL OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA

ASIC takes issue with NAB’s debt collection letters

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 27-Oct-15

Customers of National Australia Bank may have been misled by the bank. The Australian Securities & Investments Commission is concerned that the debt collection letters sent to borrowers contain references to Fairhalsen Collections and Brunswick Collections Services. Borrowers could be under the impression that they had received a warning from independent debt collectors, when in fact these two entities are part of the bank.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, FAIRHALSEN COLLECTIONS, BRUNSWICK COLLECTIONS SERVICES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION