K: Financial and Insurance Services

Australia languishes in bottom five

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 24-Jun-15

Global asset managers are bearish about the outlook for returns from Australian shares over the next three years, according to a report commissioned by Principal Global Investors. The report’s author, Amin Rajan, says the survey shows that markets in Russia, Australia, Latin America, Canada and Eastern Europe will deliver the worst returns over this period, while the best returns will be achieved by the US, India, Japan, so-called frontier markets and Asia.

CORPORATES
PRINCIPAL GLOBAL INVESTORS, UNITED STATES. FEDERAL RESERVE BOARD

ANZ-Roy Morgan Australian Consumer Confidence Edges Down

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 23-Jun-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.4 per cent to 114.0 in the week ended 21 June 2015. However, the four-week moving average is now at 113.5, the highest level since November 2014, reflecting the more positive reaction to the Federal Budget. The sub-index for households’ finances in the next year fell by 1.1 per cent, while the sub-index for households’ finances compared with a year ago rose by 5.3 per cent.

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

The year that ‘defied the doomsayers’

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 29 : 23-Jun-15

Australia’s S&P/ASX 200 Index has gained 3.7 per cent so far in 2014-15, with one week left of the financial year. The broader All Ordinaries Index has risen by 3.9 per cent, while the total return for stocks in the All Ordinaries Accumulation Index has risen by 8.2 per cent. CommSec’s Craig James says the fiscal year has been "good" but not "great" for investors.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, COMMONWEALTH SECURITIES LIMITED, UNITED STATES. FEDERAL RESERVE BOARD

nib leaks customers’ private details

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Original article by Tim Binsted, Paul Smith
The Australian Financial Review – Page: 19 : 23-Jun-15

Listed health insurer nib has apologised to customers after their personal details were inadvertently made available to other customers via its web portal. The insurer has stressed that credit card details were not disclosed, although customers have said that they were able to view information such as the past claims of other customers. Data privacy agencies are expected to investigate the breach of confidentiality.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, PRIVATE HEALTH INSURANCE OMBUDSMAN, AUSTRALIA. OFFICE OF THE AUSTRALIAN INFORMATION COMMISSIONER, PRIVATE HEALTH INSURANCE ADMINISTRATION COUNCIL, MEDIBANK PRIVATE LIMITED – ASX MPL, INTELLIGENT BUSINESS RESEARCH SERVICES PTY LTD

ME Bank aims for rapid mortgage growth despite credit rules

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Original article by Clancy Yeates
The Australian Financial Review – Page: 19 : 23-Jun-15

Industry superannuation fund-backed ME Bank hopes to increase annual growth in home loan customers to 20 per cent over the next three years, according to CEO Jamie McPhee. This compares with its current growth rate of about 10 per cent a year. McPhee adds that a $A90m capital investment in ME Bank’s IT systems will increase efficiencies and support its growth ambitions by allowing the group to offer a wider range of home loan products.

CORPORATES
ME BANK, MEMBERS EQUITY BANK PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSSIE HOME LOANS LIMITED, MORTGAGE CHOICE LIMITED – ASX MOC

RBA tool blunted: ANZ

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 21 : 22-Jun-15

The Reserve Bank of Australia’s policy of reducing interest rates was intended to encourage consumers to spend. However, ANZ Bank economists have concluded that people nearing retirement are in fact saving rather than spending. They also note that older Australians are also saving more as a result of uncertainty concerning superannuation policy.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

RBA must cut again to weaken $A as Fed takes dovish view

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Original article by Vesna Poljak
The Australian Financial Review – Page: 24 : 19-Jun-15

Many Australian economists now expect the US Federal Reserve to delay a rate cut until December 2015, in the wake of its June monetary policy meeting. The central bank gave indications that any rate rises over the next several years will be at a slower pace than previously expected. This in turn has heightened expectations that the Reserve Bank will further reduce interest rates, in order to put downward pressure on the Australian dollar.

CORPORATES
UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, UBS HOLDINGS PTY LTD

Former QBE executive faces fraud charges

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Original article by Ruth Liew
The Australian Financial Review – Page: 15 & 21 : 19-Jun-15

US prosecutors will allege that James Shea and Eugene Fallon embezzled Australian-listed QBE Insurance Group of some $US2.6m ($A3.37m). Shea was a vice-president of QBE at the time of the alleged fraud, while Fallon was an external consultant. Shea has been accused of falsifying invoices and forging the signature of the insurer’s CFO. The Commonwealth Bank has also been embroiled in a fraud case.

CORPORATES
QBE INSURANCE GROUP LIMITED – ASX QBE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, DISTRICT COURT OF NEW YORK, COMPUTER SCIENCES CORPORATION, SERVICMESH CSC, ACE FOUNDATION

Cash Converters to settle payday lending class action

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Original article by James Eyers
The Australian Financial Review – Page: 23 : 18-Jun-15

Cash Converters is close to settling a class action in which it was alleged to have charged exorbitant interest rates on payday loans. Its shares are in a trading halt pending the settlement, and the stock is expected to resume trading on 19 June 2015. Law firm Maurice Blackburn, which led the class action on behalf of about 50,000 customers on low incomes, alleged that Cash Converters charged interest rates of between 145 and 633 per cent.

CORPORATES
CASH CONVERTERS INTERNATIONAL – ASX CCV. MAURICE BLACKBURN PTY LTD. MONEY3 CORPORATION LIMITED – ASX MNY. AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Speculation rife about which companies Buffett will choose

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 19 & 24 : 18-Jun-15

US investment guru Warren Buffett plans to reinvest Berkshire Hathaway’s allocation of Insurance Australia Group’s annual gross written premium in local stocks. Australia’s four major banks satisfy many of Buffett’s strict investment criteria, while other stocks that could potentially comply with his investment standards include BHP Billiton, Woodside Petroleum, Oil Search, GPT Group and Trade Me Group.

CORPORATES
BERKSHIRE HATHAWAY INCORPORATED. INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG. BHP BILLITON LIMITED – ASX BHP. WOODSIDE PETROLEUM LIMITED – ASX WPL. OIL SEARCH LIMITED – ASX OSH. GPT GROUP – ASX GPT. TRADE ME GROUP LIMITED – ASX TME. BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN. WESTPAC BANKING CORPORATION – ASX WBC. BT INVESTMENT MANAGEMENT LIMITED – ASX BTT. JP MORGAN AND COMPANY INCORPORATED. WELLS FARGO BANK. THE GOLDMAN SACHS GROUP INCORPORATED. BANK OF AMERICA CORPORATION. EXXONMOBIL CORPORATION. BURLINGTON NORTHERN SANTE FE CORPORATION. AURIZON HOLDINGS LIMITED – ASX AZJ. MEDIBANK PRIVATE LIMITED – ASX MPL. TESCO PLC. ALDI EINKAUF GMBH & CO OHG. LIDL GMBH & CO KG. WOOLWORTHS LIMITED – ASX WOW. APPLE INCORPORATED. GOOGLE INCORPORATED