K: Financial and Insurance Services

Bank raisings satisfy capital requirements

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 14-Aug-15

Australia’s big four banks have asked shareholders for a combined $A8 billion in new capital. The banks need extra funds to meet new regulatory requirements. Credit Suisse analyst Jarrod Martin estimates that the banks need $A28 billion in total. Analysts believe that any further increases in capital requirements will be met through retained earnings and dividend reinvestment plans.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BELL POTTER SECURITIES LIMITED, DEUTSCHE BANK AG

Wobbles in equity markets make real estate more attractive

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Original article by Robert Harley
The Australian Financial Review – Page: 38 : 13-Aug-15

When equities become volatile, investors turn their attention to property which may not now produce attractive returns but at least offers a higher degree of safety. DEXUS Property Group CEO Darren Steinberg stresses "a really consistent performance" of Australian-listed real estate investment trusts (REITs). The REIT sector fell only 0.3 per cent over the last three months, compared with a decline of 5.9 per cent in the S&P/ASX 200 over the same period.

CORPORATES
DEXUS PROPERTY GROUP – ASX DXS, INVESTA PROPERTY GROUP, GIC AUSTRALIA PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, STANDARD AND POOR’S ASX 200 INDEX

Housing ‘fascination’ won’t make us rich

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Original article by Jacob Greber
The Australian Financial Review – Page: 5 : 13-Aug-15

Almost 75 per cent of the increase in the ratio of net wealth to gross domestic product since the late 1980s is due to higher land prices. This is distinct from the value of houses built on that land, according to Reserve Bank of Australia deputy governor Philip Lowe, who claims Australia’s fascination with housing is in reality a fascination with land. He also concludes the obsession with property is not making the nation better off as a whole, with low interest rates implying low returns for savers and low underlying returns on assets.

CORPORATES
RESERVE BANK OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence stutters

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Aug-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell 0.4 per cent to 112.5 in the week ended 9 August 2015, after rising 5.5 per cent over the previous three weeks. Households’ views of their current finances declined 2.7 per cent while expectations of the economic outlook declined over both the next year and next five years, by 1.5 per cent and 5.3 per cent respectively. ANZ Bank chief economist Warren Hogan says that the Australian consumer confidence "remains highly vulnerable to a negative economic or financial shock".

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

Westpac tips Aussie at US70c by end of 2015

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Original article by Rose Powell
The Australian Financial Review – Page: 31 : 11-Aug-15

The Australian dollar is likely to continue to fall. Westpac expects the currency to decline to $US0.70 at the end of 2015. Westpac chief economist Bill Evans explains that the bank revised its forecast from $US0.72 to reflect lower forecast for global growth for both 2015 and 2016.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, OANDA AUSTRALIA PTY LTD

ASX bounces back as buyers return to banks

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 30 : 11-Aug-15

The Australian sharemarket closed higher on 10 August 2015. The S&P/ASX 200 index climbed 0.6 per cent to 5,509.2 points, while the All Ordinaries gained 0.6 per cent to 5,504.9. The big four banks regained some of their recent losses, with shares in the ANZ Bank rising 1.5 per cent to $A30.60 and Commonwealth Bank closing up one per cent at $A82.14.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, CITI AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, IG MARKETS LIMITED, ST GEORGE BANK LIMITED, SHANGHAI COMPOSITE INDEX, JB HI-FI LIMITED – ASX JBH, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, RIO TINTO LIMITED – ASX RIO, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP BILLITON LIMITED – ASX BHP

Speed urged on investment reform

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 7-Aug-15

The Opposition has urged the Australian Government not to delay the changes that would enable the creation of "collective investment vehicles". The changes are necessary if Australian funds are to benefit from the liberalisation of funds management in Asia and the introduction of the Asian Region Funds Passport in 2016. Shadow treasurer Chris Bowen says the Australian Labor Party is willing to cooperate with the Government on this issue.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, SCHRODER INVESTMENT MANAGEMENT AUSTRALIA LIMITED

Big banks make overtures to home buyers

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Original article by Duncan Hughes
The Australian Financial Review – Page: 48 : 6-Aug-15

Australian lenders are actively targeting the owner-occupier segment of the residential property market, due to new restriction on lending to property investors. Westpac-owned regional banks are offering a range of incentives for owner-occupiers, while some smaller lenders are reducing their loan-to-value ratios in a bid to gain market share from their larger peers.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, BANK OF MELBOURNE LIMITED, CAPITAL HOMELOANS PTY LTD, BLUEBAY HOME LOANS PTY LTD, LIBERTY FINANCIAL PTY LTD, MORTGAGE AND FINANCE ASSOCIATION OF AUSTRALIA

Wait for super needed, but political poison

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Original article by Sally Rose
The Australian Financial Review – Page: 25 : 6-Aug-15

The preservation age for superannuation should be raised from 55 at present. Actuaries warn that the current rules do not reflect rising longevity. The shadow minister for financial services and superannuation, Bernie Ripoll, made comments on the issue of access to super at the Financial Services Council’s annual conference on the Gold Coast on 5 August 2015. He agreed that the preservation age should be lifted. However, such a measure would be unpopular among voters.

CORPORATES
FINANCIAL SERVICES COUNCIL, RICE WARNER ACTUARIES PTY LTD, AUSTRALIAN LABOR PARTY, BT FINANCIAL GROUP PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL SENIORS AUSTRALIA LIMITED

Up to 80 funds ought to close: Chant West

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 5-Aug-15

Chant West’s Ian Fryer estimates that only about 40 of the 120-plus superannuation funds that offer default MySuper accounts are competitive. He notes that super funds with at least $A10bn in assets under management have much lower fees and deliver higher returns that their peers with less than $A5bn worth of assets under management. Some 89 super funds fit into the latter category, and Chant West believes the majority of them should either merge or be closed down.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, TRANSPORT INDUSTRY SUPERNNUATION FUND, LESF PTY LTD, CONCEPT ONE PTY LTD, CLUBSUPER, SMARTSAVE SUPER, AMG UNIVERSAL SUPER, FINANCIAL SERVICES COUNCIL, AUSTRALIA. FAIR WORK COMMISSION, GRATTAN INSTITUTE, MINE WEALTH AND WELLBEING