K: Financial and Insurance Services

Australian dollar dips below US75c for first time since 2009

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Original article by Mark Mulligan
The Australian Financial Review – Page: 24 : 7-Jul-15

There was renewed support for "safe-haven" currencies on 6 July 2015, in response to the outcome of the referendum in Greece. The Australian dollar reached an intra-day low of $US0.7453 before rising to $US0.7504 late in trading. The debt crisis in Greece also weighed on the euro, which reached a low of $US1.09 early in Asian trading. National Australia Bank’s Ray Attrill says the euro and the Australian dollar could come under further downward pressure.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EUROPEAN CENTRAL BANK, INTERNATIONAL MONETARY FUND, GREECE. MINISTRY OF FINANCE, BARCLAYS BANK PLC

No evidence retirees are wasting super

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 7-Jul-15

A Productivity Commission report estimates that retirees’ superannuation balance would be bolstered by at least 10 per cent if they were not able to access their super until the age of 65. The report also refutes the widely-held view that members of the Baby Boom generation are reorganising their finances or spending their super payout on expensive holidays in order to qualify for the age pension.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

All eyes on Greece as markets await result

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Original article by Rose Powell
The Australian Financial Review – Page: 22 : 6-Jul-15

Australia’s benchmark S&P/ASX200 Index shed 0.14 per cent in the week ended 3 July 2015. The debt crisis in Greece and the country’s referendum referendum are likely to be the key issue for investors when trading resumes on 6 July. Meanwhile, Stephen Walters of JP Morgan expects the Reserve Bank to leave the cash rate unchanged on 7 July, while Rob Rennie of Westpac forecasts that the Australian dollar will fall below $US0.75 in the near-term.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, JP MORGAN AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

Strong start to year buoys optimism

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 19 : 6-Jul-15

Data from IRESS shows that equity trading volumes on the Australian Securities Exchange and Chi-X Australia have totalled around $A1.5bn so far in 2015. This compares with about $A1.2bn for the same period in 2014. Bruce Rolph of Citigroup expects trading volumes to remain strong in the second half of the calendar year, citing factors such as the potential for greater mergers and acquisitions activity and the August reporting season.

CORPORATES
IRESS LIMITED – ASX IRE, ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, CITIGROUP PTY LTD, PATERSONS SECURITIES LIMITED, DEUTSCHE BANK AG, UBS HOLDINGS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, JP MORGAN AUSTRALIA LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GREENSTONE LIMITED, IVE GROUP LIMITED, CARTER HOLT HARVEY LIMITED

ANZ tipped to exit Asia banks

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Original article by James Eyers
The Australian Financial Review – Page: 21 : 3-Jul-15

The ANZ Bank currently has a lower common equity tier 1 capital ratio than its peers, although at 8.7 per cent it is comfortably above the minimum requirement. However, Andrew Triggs of Deutsche Bank expects ANZ to offload some of its stakes in Asian banks in order to lift its capital ratio. He estimates that selling stakes in three of these banks – as well as the Esanda business – could boost ANZ’s capital ratio to more than 10 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ESANDA FINANCE CORPORATION LIMITED, PT PANIN BANK, AMBANK BERHAD, BANK OF TIANJIN COMPANY LIMITED, SHANGHAI RURAL COMMERCIAL BANK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CLYDESDALE BANK PLC, GREAT WESTERN BANK, UBS HOLDINGS PTY LTD, BLOOMBERG LP

Medibank flexes muscles, axes Calvary

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Original article by Tim Binsted
The Australian Financial Review – Page: 23 : 2-Jul-15

Negotiations between Australian-listed Medibank Private and Calvary Health Care have failed, prompting Medibank to end its contract with the private hospital group. Medibank and ahm members who use Calvary’s hospitals from 1 September 2015 may incur out-of-pocket expenses as a result, although Medibank will continue to pay some of its customers’ costs. Calvary has indicated that it is keen to resume discussions with Medibank.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, CALVARY HEALTH CARE LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Late rally ends dismal three months for ASX

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 1-Jul-15

The Australian sharemarket posted solid gains on 30 June 2015, with the S&P/ASX 200 adding 36 points to close at 5,459. Newcrest Mining was down 0.8 per cent at $A13.02 and Slater & Gordon was five per cent lower. However, the Commonwealth Bank advanced 0.5 per cent to end the session at $A85.15 and Kathmandu Holdings rose by 25.6 per cent to finish at $A1.57 in response to a takeover bid. The S&P/ASX 200 fell by 4.8 per cent in June and 7.3 per cent during the fourth quarter of 2014-15.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, NEWCREST MINING LIMITED – ASX NCM, SLATER AND GORDON LIMITED – ASX SGH, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, KATHMANDU HOLDINGS LIMITED – ASX KMD, TELSTRA CORPORATION LIMITED – ASX TLS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, EVOLUTION MINING LIMITED – ASX EVN, NORTHERN STAR RESOURCES LIMITED – ASX NST, CMC MARKETS PTY LTD, ST GEORGE BANK LIMITED, CAPITAL ECONOMICS LIMITED, BRISCOE GROUP LIMITED, INTERNATIONAL MONETARY FUND, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, SHANGHAI COMPOSITE INDEX, NIKKEI 225 INDEX

ANZ-Roy Morgan Australian Consumer Confidence up 2% to 116.3 – highest in 18 months

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Jun-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by two per cent to 116.3 in the week ended 28 June 2015, reaching its highest level in 18 months. This builds on the positive reaction by consumers from the Federal Budget, and puts confidence firmly on an upward trajectory. The sub-index for economic conditions in the next year rose by 5.7 per cent, while the sub-index for a "good time to buy a household item" rose by 2.1 per cent, to its highest level in two years.

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

Banks among those at risk of downgrade

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 26 : 30-Jun-15

Citigroup has identified a number of Australian companies that could potentially issue earnings downgrades during the upcoming reporting season. They include Myer Holdings, BlueScope Steel, Fairfax Media, Bank of Queensland and Boart Longyear. Several companies have already issued earnings downgrades, including Flight Centre, Woolworths and SEEK. However, Citigroup believes that Caltex Australia and Wesfarmers could upgrade their earnings expectations.

CORPORATES
CITIGROUP PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, BLUESCOPE STEEL LIMITED – ASX BSL, FAIRFAX MEDIA LIMITED – ASX FXJ, BANK OF QUEENSLAND LIMITED – ASX BOQ, BOART LONGYEAR LIMITED – ASX BLY, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, WOOLWORTHS LIMITED – ASX WOW, SEEK LIMITED – ASX SEK, CALTEX AUSTRALIA LIMITED – ASX CTX, WESFARMERS LIMITED – ASX WES, PACIFIC BRANDS LIMITED – ASX PBG, MONADELPHOUS GROUP LIMITED – ASX MND, NEWS CORPORATION – ASX NWS, APN NEWS AND MEDIA LIMITED – ASX APN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, REECE AUSTRALIA LIMITED – ASX REH, McMILLAN SHAKESPEARE LIMITED – ASX MMS, TRADE ME GROUP LIMITED – ASX TME, REA GROUP LIMITED – ASX REA, SPARK NEW ZEALAND LIMITED – ASX SPK, ECHO ENTERTAINMENT GROUP LIMITED – ASX EGP, GWA GROUP LIMITED – ASX GWA, NEXTDC LIMITED – ASX NXT, METCASH LIMITED – ASX MTS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC

Grexit fears wipe $38b from ASX

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Original article by Vesna Poljak, Lisa Murray
The Australian Financial Review – Page: 1 & 8 : 30-Jun-15

The Australian dollar and the domestic sharemarket were sold down on 29 June 2015, as Greece’s debt crisis deepened and Chinese shares fell. The benchmark S&P/ASX 200 was down 123 points or 2.2 per cent at 5,422.5, while the dollar fell to $US0.7643. Kapstream Capital’s Kumar Palghat says investors can expect more volatility in financial markets, while federal Treasurer Joe Hockey says there will be minimal impact on Australia if Greece leaves the eurozone.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, KAPSTREAM CAPITAL PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, GREECE. OFFICE OF THE PRIME MINISTER, INTERNATIONAL MONETARY FUND, ASIAN INFRASTRUCTURE INVESTMENT BANK, RESERVE BANK OF AUSTRALIA, PEOPLE’S BANK OF CHINA, SHANGHAI COMPOSITE INDEX, CHINEXT COMPOSITE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, PM CAPITAL LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, UNITED STATES. DEPT OF THE TREASURY, EUROPEAN CENTRAL BANK, AQUASIA PTY LTD