K: Financial and Insurance Services

ANZ-Roy Morgan Australian Consumer Confidence Creeps Higher

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 28-Jul-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.6 per cent to 112.5 in the week ended 26 July 2015. This follows a rise of 4.5 per cent in the previous week, driven by easing concerns around the Greece debt crisis and China stock market volatility. Despite this bounce, consumer confidence remains subdued and is down 3.2 per cent compared with this time in 2014. The sub-index for households’ finances in the next year rose by 1.1 per cent, but the sub-indices for confidence in the economic outlook over the short-term and medium term fell by 1.4 per cent and 0.5 per cent respectively.

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

SMSFs opt for better returns

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Original article by Kate Cowling
The Australian Financial Review – Page: 6 : 28-Jul-15

A report by the SMSF Association and nabtrade shows that 15 per cent of self-managed superannuation fund members opted to outsource the investment process in 2014. This compares with just 7.3 per cent in 2012. Almost 40 per cent of SMSF investors chose to handle investment decisions themselves in 2014, which has not changed much since 2012. The report also shows that falling interest rates have prompted many SMSF members to increase their exposure to assets such as shares.

CORPORATES
SELF-MANAGED SUPER FUND ASSOCIATION OF AUSTRALIA PTY LTD, NABTRADE

Westpac’s $1m-a-day IT glitch

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 1 & 6 : 28-Jul-15

The Commonwealth and ANZ banks increased their mortgage interest rates for property investors in late July 2015, while cutting fixed interest rates for owner-occupiers. However, Westpac and National Australia Bank currently have a single reference rate for both types of customers, which has forced the latter to increase interest rates for both. Westpac’s IT systems do not allow it to charge different interest rates at present, which is said to be costing it about $A1.15m each day.

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, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, BANK OF MELBOURNE LIMITED, ST GEORGE BANK LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSSIE HOME LOANS LIMITED, DEUTSCHE BANK AG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Australia may miss out on global M&A frenzy

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 16 : 24-Jul-15

Some $US2.28trn ($A3.09trn) worth of global mergers and acquisitions were announced during the first half of 2015, according to data from Dealogic. This includes 31 deals worth at least $US10bn. However, M&A activity in Australia has totalled just $US56.9bn so far in 2015, and David Friedlander of law firm King & Wood Mallesons describes the level of local activity as "disappointing". Grant Chamberlain of Bank of America Merrill Lynch says five local deals worth at least $A5bn were announced during the first half.

CORPORATES
KING AND WOOD MALLESONS, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, TOLL HOLDINGS LIMITED, ASCIANO LIMITED – ASX AIO, FEDERATION CENTRES – ASX FDC, NOVION PROPERTY GROUP, BROOKFIELD ASSET MANAGEMENT INCORPORATED, GREENHILL AND COMPANY, GRESHAM PARTNERS LIMITED

Large caps shine in under-loved index

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 23 : 24-Jul-15

Analysis by Morningstar shows that the Australian sharemarket is currently trading at a price/earnings ratio of 15.5. The market’s earnings yield is 6.5 per cent, while the yield on 10-year bonds is around three per cent. Morningstar believes that the local sharemarket still offers value, and it favours large-capitalisation stocks such as National Australia Bank, BHP Billiton, Veda Group, Santos and Goodman Group.

CORPORATES
MORNINGSTAR PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BHP BILLITON LIMITED – ASX BHP, VEDA GROUP LIMITED – ASX VED, PLATINUM ASSET MANAGEMENT LIMITED – ASX PTM, GOODMAN GROUP – ASX GMG, SANTOS LIMITED – ASX STO, AWE LIMITED – ASX AWE, ALUMINA LIMITED – ASX AWC, ATLAS IRON LIMITED – ASX AGO, FORTESCUE METALS GROUP LIMITED – ASX FMG, ARRIUM LIMITED – ASX ARI, STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

Chinese investment in property tipped to surge

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Original article by Sally Rose
The Australian Financial Review – Page: 22 : 22-Jul-15

The Chinese Government’s decision to make the nation’s sharemarket more accessible to international investors has prompted a rally in Shanghai Composite Index over the last year. However, some economists expect the relaxation of rules governing capital outflows from China to have a bigger impact in the long-term. Stephen Halmarick of Colonial First State Global Asset Management expects this to include a big rise in Chinese investment in Australia’s property market.

CORPORATES
COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, ABERDEEN ASSET MANAGEMENT LIMITED, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, SHANGHAI COMPOSITE INDEX, CHINA. NATIONAL BUREAU OF STATISTICS, MACQUARIE ASSET MANAGEMENT

Selfie investors snub cash, shares

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Original article by Kate Cowling
The Australian Financial Review – Page: 22 : 22-Jul-15

The investment portfolios of Australian self-managed superannuation funds (SMSFs) have usually been focused on assets such as local shares, cash and term deposits. However, AMP Capital and BlackRock are among the groups that have noted greater interest in their absolute return funds among SMSFs. Hasan Tevfik of Credit Suisse says SMSFs often change their asset allocations in order to boost income, although he adds that this typically means increased exposure to shares.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, TOWERS WATSON, PERPETUAL PRIVATE CLIENTS, AUSTRALIAN TAXATION OFFICE

ANZ eyes Esanda sale to raise $1.5b

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 19 : 22-Jul-15

The ANZ Bank aims to offload its Esanda personal finance business by mid-2016, while the banking major has also flagged the sale of some Asian assets. The sale of Esanda is likely to be worth about $A1.5bn, which will significantly boost ANZ’s capital ratio ahead of the introduction of new capital requirements in July 2016. It is estimated that ANZ will need to lift its capital by around $A2.3bn in total.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, PT PANIN BANK, JP MORGAN AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC

Upbeat run-in to reporting season puts 6000 target back on radar

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Original article by Rose Powell
The Australian Financial Review – Page: 21 : 22-Jul-15

Just 16 Australian-listed companies have issued earnings downgrades in the lead-up to the August 2015 profit-reporting season. Nader Naeimi of AMP says there is potential for the benchmark S&P/ASX 200 Index to reach the 6,000-point level during the reporting season, although he doubts that it will rise much further. Meanwhile, Credit Suisse has scaled back its end-of-year forecast for the S&P/ASX 200 from 6,500 to 6,000 points.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP LIMITED – ASX AMP, CREDIT SUISSE (AUSTRALIA) LIMITED, CLSA AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, AFFINITY EDUCATION GROUP LIMITED – ASX AFJ, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, SEEK LIMITED – ASX SEK, ARRIUM LIMITED – ASX ARI, UNITED STATES. FEDERAL RESERVE BOARD, PRIMARY HEALTH CARE LIMITED – ASX PRY, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SANTOS LIMITED – ASX STO, QANTAS AIRWAYS LIMITED – ASX QAN

ANZ-Roy Morgan Australian Consumer Confidence Bounces

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 21-Jul-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 4.5 per cent to 111.8 in the week ended 19 July 2015, partially reverses the eight per cent fall over the previous two weeks. The bounce was likely driven by easing concerns around international events, as the Chinese stock market rebounded and Greece reached an agreement with its creditors. The sub-index on "economic conditions in the next year" rose by 10.8 per cent, and the sub-index on "economic conditions in next five years" rose by 7.1 per cent.

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