K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence: Turnbull turnaround boosts confidence to 114.5

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 22-Sep-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 8.7 per cent to 114.5 in the week ended 20 September 2015. This more than retraces the 7.1 per cent decline over the previous two weeks and leaves confidence above long-run average levels. With no other substantive economic news or market movements to explain the outcome, the driver of the bounce was most likely optimism around the elevation of Communications Minister Malcolm Turnbull to the Prime Ministership. The bounce in confidence was broad-based across the subindices. In particular, views on economic conditions over the next year jumped 25.8 per cent. Confidence in the economy over the next five years also gained a robust 13.4 per cent, but remains well below its long-run average.

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

Retiring CIO: new board rules will be good for super funds

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 21-Sep-15

Sunsuper will appoint Michael Traill and Andrew Fraser as independent directors. However, CEO Scott Hartley opposes the Australian Government’s proposal to require one-third of super fund’s boards – including the chairman – to be independent. In contrast, outgoing chief investment officer David Hartley favours the push for greater independence of directors. He notes that industry super funds with equal representation by employers and employees have tended deliver good returns.

CORPORATES
SUNSUPER PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SOCIAL VENTURES AUSTRALIA LIMITED, QUEENSLAND. TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN CONSUMERS’ ASSOCIATION, QSUPER LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, KPMG AUSTRALIA PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, TELSTRA SUPERANNUATION SCHEME

Get used to lower growth, returns

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 18-Sep-15

UBS Global Asset Management’s Tracey McNaughton believes that the US Federal Reserve should raise the cash rate in September 2015, but warns that financial markets may experience further volatility in the near-term regardless of its decision. McNaughton also says Australian investors can expect to receive lower returns in the future and should no longer rely on the traditional "set and forget" investment strategy.

CORPORATES
UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, NIKKO ASSET MANAGEMENT GROUP

ACCC nods at a Macquarie-Esanda tilt

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 16 : 18-Sep-15

The Australian Competition & Consumer Commission has ruled that there would be little impact on competition if Macquarie Group acquires the Esanda dealer finance business from ANZ Bank. Macquarie is regarded as the frontrunner to buy the Esanda business, which is tipped to change hands for up to $A1.5bn. Analysts say Macquarie could opt for a capital raising to help finance the deal if its bid succeeds.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, ESANDA FINANCE CORPORATION LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, SHAW AND PARTNERS LIMITED, CLSA AUSTRALIA PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, TOYOTA FINANCE AUSTRALIA LIMITED, NISSAN FINANCE

New PM a win for retail, media and tech shares

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 31 : 16-Sep-15

David Bassanese of BetaShares expects consumer and business confidence to rise in the near-term under new Prime Minister Malcolm Turnbull. He adds that Turnbull’s success in pursuing economic reform will determine whether a rise in business confidence is sustained. He says stocks in the retail, technology and construction sectors are likely to benefit from the leadership change. ST Wong of Prime Value Management say a Turnbull government may be positive for media stocks in particular.

CORPORATES
BETASHARES CAPITAL LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, PRIME VALUE ASSET MANAGEMENT LIMITED, PEAK ASSET MANAGEMENT PTY LTD, IG MARKETS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORPORATION – ASX NWS, AUSTRALIAN ETHICAL INVESTMENT LIMITED – ASX AEF, AUSTRALIA. DEPT OF THE ENVIRONMENT

ANZ-Roy Morgan Australian Consumer Confidence on the Slide to 105.3 before Turnbull deposes Abbott as Prime Minister

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

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 1.3 per cent to 105.3 in the week ended 13 September 2015. This follows a decline of 5.8 per cent in the previous week, and leaves confidence at its weakest level since July 2014. Confidence in the economic outlook continues to be much weaker than views on household finances. The subindex on "economic conditions in the next five years" fell by six per cent, following a 5.2 per cent fall in the previous week. This is the lowest level since the weekly survey began in October 2008. However, the subindex "finances compared to a year ago" rose by 1.6 per cent, and it is the only subindex to remain above its long-run average.

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

NAB intensifies pitch for Clydesdale float

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Original article by Clancy Yeates
The Australian Financial Review – Page: 19 & 24 : 16-Sep-15

National Australia Bank (NAB) CFO Craig Drummond has not ruled out a trade sale for the UK’s Clydesdale Bank if a suitable offer is made, but he says a demerger and partial IPO remains the preferred option. NAB shareholders will be offered up to 80 per cent of shares in Clydesdale if the previously outlined plan proceeds. Clydesdale CEO David Duffy is confident that so-called "challenger banks" such as Clydesdale can compete with the major UK banks, particularly in sectors such as retail banking and retail and lending to small business.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CLYDESDALE BANK PLC, BANCO SABADELL, CREDIT SUISSE (AUSTRALIA) LIMITED, CBA EQUITIES LIMITED

Macquarie poised for record $2b annual profit

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 13 & 17 : 15-Sep-15

Australian-listed Macquarie Group has advised that its 2015-16 interim profit will be 40 per cent higher than the $A678m result for the previous corresponding period. This suggests that Macquarie’s profit for the half-year to 30 September 2015 will be around $A949m. Macquarie has indicated that its profit for the second half will be similar to the first half, which means its full-year result could be around $A1.9bn. Meanwhile, the group has made a binding offer to acquire the Esanda dealer finance business from the ANZ Bank.

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, MACQUARIE ASSET MANAGEMENT, MACQUARIE SECURITIES PTY LTD, SHAW AND PARTNERS LIMITED, CLSA CAPITAL PARTNERS, WHITE FUNDS MANAGEMENT PTY LTD, TRANSGRID, LONDON CITY AIRPORT

Top sectors for feeding the dividend beast cited

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

Beulah Capital’s Peter Mavromatis does not expect further increases in Australian companies’ dividend payout ratios. He forecasts that companies will instead pursue mergers and acquisitions as investors continue to seek high dividend yields. Mavromatis believes that local and offshore companies will target sectors such as IT, property, transport and logistics. Gerald Moser of Credit Suisse Private Bank suggests that the healthcare and IT sectors are likely to experience more consolidation.

CORPORATES
BEULAH CAPITAL PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, GRAINCORP LIMITED – ASX GNC, TRANSURBAN GROUP LIMITED – ASX TCL, OIL SEARCH LIMITED – ASX OSH, WOODSIDE PETROLEUM LIMITED – ASX WPL, BHP BILLITON LIMITED – ASX BHP, FIDELITY AUSTRALIAN OPPORTUNITIES FUND, 3P LEARNING LIMITED – ASX 3PL, LEARNOSITY PTY LTD

More evidence needed to charge banks

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

The Australian Securities & Investments Commission has found no evidence of misconduct by banks that would warrant legal action. The corporate regulator wrote in a submission to an inquiry into the banks’ business customer defaults that it had received 61 complaints about bank behaviour in commercial finance since mid-2010. These complaints constituted less than one per cent of the total complaints received about credit.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BANK OF WESTERN AUSTRALIA LIMITED, HBOS AUSTRALIA LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA