K: Financial and Insurance Services

Keep tax credits, raise GST

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Original article by Patrick Durkin
The Australian Financial Review – Page: 8 : 7-Apr-15

A poll conducted among more than 560 members of the "Australian Financial Review" Business Leaders Panel suggests that Australians do not want the dividend imputation system to be abolished. They also expressed their opposition to proposals to remove tax concessions for superannuation and to reintroduce estate taxes. An increase in the goods and services tax rate is supported by 60 per cent of the panel

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Shares to open lower as RBA considers cut

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Original article by Mark Mulligan
The Australian Financial Review – Page: 29 : 7-Apr-15

Futures traders expect the Australian sharemarket to shed 0.15 per cent when trading resumes on 7 April 2015. The benchmark S&P/ASX 200 fell by 0.4 per cent during the previous week. The Reserve Bank’s monthly board meeting will be a focus for investors, with Credit Suisse data showing that financial markets have priced in a 75 per cent chance of a rate cut. Retail sales, construction and mortgage lending data will also be released in coming days

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, CREDIT SUISSE (AUSTRALIA) LIMITED, BLOOMBERG LP, UNITED STATES. FEDERAL RESERVE BOARD, BANK OF JAPAN, THE AUSTRALIAN INDUSTRY GROUP, UNITED STATES. FEDERAL OPEN MARKET COMMITTEE, SOCIETE GENERALE, OANDA AUSTRALIA PTY LTD, JP MORGAN AUSTRALIA LIMITED

CBA customers face deposit tax hit

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Original article by James Eyers, Clancy Yeates
The Australian Financial Review – Page: 8 : 2-Apr-15

The Commonwealth Bank of Australia (CBA) has expressed its support for the financial system inquiry’s recommendation to introduce a tax on deposits to cover the costs of any bank collapse. The proposed tax would amount to $A500 million a year in total for the sector. In a submission to Treasury in response to the inquiry’s recommendations, CBA stated that the tax might be passed on to its customers

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF THE TREASURY, CUSTOMER OWNED BANKING ASSOCIATION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Budget may move on super, Grattan warns

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Original article by Sally Patten
The Australian Financial Review – Page: 14 : 1-Apr-15

The Grattan Institute has suggested that the Australian Government’s May 2015 Budget could feature changes to tax breaks for superannuation contributions. CEO John Daley says such measures could potentially include reducing the annual contributions limit or the salary threshold at which a higher tax on contributions applies

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GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE TREASURY, TAXPAYERS AUSTRALIA INCORPORATED

Small business warning

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 1-Apr-15

The Australian Bankers’ Association’s submission on the financial system inquiry has broadly supported the recommendations on increased capital requirements for the nation’s banks. However, it has questioned the need for local banks to be in the top quartile of banks globally. The submission also raises concerns over the proposal for credit contracts to be covered by laws on unfair contracts, noting the potential impact on loans to small businesses

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

MYOB owner dismisses criticism from Xero

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Original article by Shaun Drummond, Sarah Thompson
The Australian Financial Review – Page: 11 & 17 : 1-Apr-15

US-based private equity firm Bain Capital will retain a controlling stake in MYOB when the software group debuts on the Australian sharemarket on 4 May 2015. The IPO is seeking to raise about $A830m, and shares in MYOB will be priced between $A3 and $A4 apiece. Rival accounting software group Xero has questioned MYOB’s claims about the size of its customer base

CORPORATES
MYOB TECHNOLOGY PTY LTD, BAIN CAPITAL LLC, XERO LIMITED – ASX XRO, CITIGROUP PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, MERRILL LYNCH (AUSTRALIA) PTY LTD, UBS HOLDINGS PTY LTD, ARCHER CAPITAL PTY LTD, HARBOURVEST PARTNERS

Iron ore slump forces RBA to mull April cut

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 1-Apr-15

The price of iron ore shed 16 per cent during March 2015, and it is now trading below $US53 per tonne. The slump has heightened expectations that the Reserve Bank of Australia will reduce the cash rate on 7 April, and financial markets have priced in a 68 per cent chance of a cut. Kieran Davies of Barclays is among the economists who expect a rate cut in April, although Westpac’s Bill Evans believes that the cash rate may be left on hold until May

CORPORATES
RESERVE BANK OF AUSTRALIA, BARCLAYS BANK PLC, WESTPAC BANKING CORPORATION – ASX WBC, ROYAL BANK OF CANADA, RATECITY PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY, TD SECURITIES

ASX 200 first quarter was best in decades

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Original article by Vesna Poljak
The Australian Financial Review – Page: 11 & 17 : 1-Apr-15

Deutsche Bank’s Tim Baker expects Australia’s benchmark S&P/ASX200 Index to reach 6,200 points, following a strong performance in the March 2015 quarter. The health sector in particular performed well during the quarter, and Philip Parker of Altair Asset Management notes that the sector benefited from the lower Australian dollar. However, the materials sector shed six per cent during March, due to factors such as the downturn in the iron ore price

CORPORATES
DEUTSCHE BANK AG, STANDARD AND POOR’S ASX 200 INDEX, ALTAIR ASSET MANAGEMENT PTY LTD, CBG ASSET MANAGEMENT LIMITED, AUSTRALIAN BUREAU OF STATISTICS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, RESMED INCORPORATED – ASX RMD, RESERVE BANK OF AUSTRALIA

ANZ-Roy Morgan Consumer Confidence: Low Confidence Needs a Boost

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 31-Mar-15

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 0.8 per cent to 112.3 in the week ended 29 March 2015, its third consecutive rise. While consumer confidence is now 2.3 per cent off its February lows, it remains below its long-run average. The sub-index for confidence in the economic outlook over the next year rose by one per cent, while confidence in the economic outlook over the next five years rose by 3.1 per cent. These indices are now 4.6 per cent and 4.5 per cent higher respectively since the February interest rate cut

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ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA

Allegro buys The Ghan and Indian Pacific trains

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Original article by Simon Evans
The Australian Financial Review – Page: 20 : 31-Mar-15

Allegro Funds has paid an undisclosed price for Great Southern Rail, which operates iconic Australian train services The Ghan and The Indian Pacific. The vendor was Serco, which has owned Great Southern Rail since 1999. International tourists account for around 25 per cent of passengers on the two trains, and Allegro MD Adrian Loader anticipates continued strong growth in demand for upmarket rail travel

CORPORATES
ALLEGRO FUNDS PTY LTD, GREAT SOUTHERN RAIL, SERCO GROUP PLC, LONDON STOCK EXCHANGE, CUSTOM COACHES