K: Financial and Insurance Services

Lower test will add fuel to the fire for shareholder class actions

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Original article by John Emmering, Michael Legg
The Australian Financial Review – Page: 32 : 13-Mar-15

In most cases, shareholder class actions in Australia are based on alleging causation between losses incurred by shareholders and directors’ behaviour. Until now, Australian courts have required proof of individualised reliance. The Federal Court’s observations in the case against Babcock & Brown directors are likely to stimulate discussion of causality in class actions

CORPORATES
BABCOCK AND BROWN LIMITED, FEDERAL COURT OF AUSTRALIA, DOWNER EDI LIMITED – ASX DOW, ARASOR CORPORATION, UNIVERSITY OF NEW SOUTH WALES, JONES DAY

NAB leads $8b mortgage bond rush as investor demand builds

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 22 : 13-Mar-15

There has been a spike in activity in Australia’s residential mortgage-backed securities market in 2015, with issuance in the year to date topping $A8.2bn. This compares with just $A4.8bn during the same period in 2014. National Australia Bank is the latest player to venture into the securitisation market, issuing $A1.75bn worth of such securities with a triple-A rating

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF QUEENSLAND LIMITED – ASX BOQ, RESIMAC LIMITED, SUNCORP GROUP LIMITED – ASX SUN, CREDIT UNION AUSTRALIA LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Cabinet split on flexible super plan

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Original article by Fleur Anderson, James Eyers
The Australian Financial Review – Page: 1 & 12 : 12-Mar-15

Communications Minister Malcolm Turnbull is among the federal MPs who have criticised a proposal to allow Australian to use their superannuation savings to buy a home. Shadow treasurer Chris Bowen also opposes any push by Treasurer Joe Hockey to permit super to be used in this way, while financial system inquiry panel member Craig Dunn argues that super should be used solely to finance retirement. Hockey has suggested that super should be available throughout a person’s life due to increasing longevity

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF COMMUNICATIONS, AMP LIMITED – ASX AMP, AUSTRALIAN LABOR PARTY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CENTRE FOR INTERNATIONAL FINANCE AND REGULATION, ABC RADIO, BRISBANE CLUB

Good value still out there for the willing

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 23 : 12-Mar-15

There has been strong demand for corporate bonds among yield-seeking investors in recent years. Craig MacDonald of Standard Life says long-term, lower-rated corporate bonds still offer value for investors, and he is actively seeking to invest in such assets. However, he favours cash holdings at present rather than short-term bonds. MacDonald adds that Standard Life’s corporate bond fund is likely to achieve a lower return in 2015 than in 2014

CORPORATES
STANDARD LIFE PLC, CEMEX SA

Bupa nips at Medibank’s heels

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Original article by Jessica Gardner
The Australian Financial Review – Page: 25 : 12-Mar-15

Bupa Australia has reported a pre-tax profit of $A517m for calendar 2014, which is 20.1 per cent higher than previously. Premiums revenue was up 8.4 per cent at $A5.3bn, while its gross margin rose from 13.6 per cent to 14.6 per cent. Bupa Health Services MD Hisham El Ansary says the group’s premiums are lower than those of rival health insurers, adding that Bupa aims to ensure that its products are affordable and offer the best value to consumers

CORPORATES
BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, DENTAL CORPORATION PTY LTD

Businesses trading offshore will capitalise on ‘sweet spot’

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Original article by Timna Jacks, Lucille Keen
The Australian Financial Review – Page: 8 : 12-Mar-15

The Australian dollar reached a low of $US0.7588 on 11 March 2015. Anthony Halas, the CEO of swimwear group Seafolly, says his company’s domestic margins have been affected by the falling currency, but notes that the business has benefited from its international expansion. Hybrid Electronics proprietor Walter Berryman says his firm has also benefited from the lower dollar, as its purchasing and sales are in US dollars and its manufacturing costs are in the domestic currency

CORPORATES
SEAFOLLY PTY LTD, HYBRID ELECTRONICS AUSTRALIA PTY LTD, ASCIANO LIMITED – ASX AIO, McLACHLAN TOURS

CBA to feast on growing SME pie

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Original article by Misa Han
The Australian Financial Review – Page: 29 : 12-Mar-15

Macquarie Group is upbeat about the outlook for the Commonwealth Bank of Australia (CBA), lifting its share price target from $A99 to $A101. Michael Wiblin of Macquarie believes that CBA in particular is in a strong position among the four major banks to increase its share of the small and medium enterprise banking market. He notes that the ANZ Bank and National Australia Bank seem to be losing market share to CBA in this sector

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ONDECK, KABBAGE, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD

ASX chief puts weight behind Murray recommendations

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Original article by James Chessell
The Australian Financial Review – Page: 19 : 11-Mar-15

The final report of the Australian Government’s financial system inquiry included recommendations on the future regulation of the corporate bond market. ASX CEO Elmer Funke Kupper has urged bipartisan parliamentary support for the proposed reforms, arguing that issuing retail corporate bonds in particular is costly and time consuming in Australia. He notes that the disclosure and prospectus requirements are much more onerous that when raising capital on the sharemarket

CORPORATES
ASX LIMITED – ASX ASX, TABCORP HOLDINGS LIMITED – ASX TAH, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA. DEPT OF THE TREASURY

Gordon offers to pump up to $100m into Ten

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Original article by Dominic White
The Australian Financial Review – Page: 15 & 20 : 11-Mar-15

The Ten Network’s largest shareholder, Bruce Gordon, opposes the broadcaster’s proposed acquisition by Foxtel and Discovery Communications. The 14.9 per cent stakeholder has instead approached Ten about investing an additional $A70m to $A100m in the network. This investment would be converted into equity in Ten if cross-media ownership laws are changed in the future. Gordon has also proposed being given two seats on Ten’s board

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, CROWN RESORTS LIMITED – ASX CWN, NEWS CORPORATION – ASX NWS, HANCOCK PROSPECTING PTY LTD, CITIGROUP PTY LTD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Eight stocks stalling the ASX

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Original article by Misa Han
The Australian Financial Review – Page: 29 : 11-Mar-15

Australia’s S&P/ASX 200 has risen by 83 per cent in the last six years, while the S&P 500 has risen by 205 per cent. Evan Lucas of IG Markets says the local market has been affected by the slowing Chinese economy and the Australian economy’s shift from a focus on mining to services. Analysis shows that BHP Billiton, QBE Insurance Group, Newcrest Mining, OZ Minerals, Rio Tinto, Woodside Petroleum, BlueScope Steel and WorleyParsons have accounted for about 530 of the points shed by the S&P/ASX 200 since late 2007

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, IG MARKETS LIMITED, BHP BILLITON LIMITED – ASX BHP, QBE INSURANCE GROUP LIMITED – ASX QBE, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, RIO TINTO LIMITED – ASX RIO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BLUESCOPE STEEL LIMITED – ASX BSL, WORLEYPARSONS LIMITED – ASX WOR, MINERALS AND METALS GROUP, MEDIBANK PRIVATE LIMITED – ASX MPL