K: Financial and Insurance Services

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

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

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

Murray shoots down Hockey’s super kite

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Original article by Fleur Anderson, Ruth Liew
The Australian Financial Review – Page: 1 & 10 : 11-Mar-15

Business leaders have expressed reservations about the Australian Government’s proposal for superannuation to be used to finance home ownership. Financial system inquiry chairman David Murray and AMP CEO Craig Meller are among those who oppose the plan due to its potential effects on the nation’s retirement system. Finance Minister Mathias Cormann also spoke out against such a proposal in October 2014

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF FINANCE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, LIBERAL PARTY OF AUSTRALIA, MONASH UNIVERSITY, GEM CAPITAL FINANCIAL ADVICE, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA

Chi-X labels ASX fee cuts ‘cynical’

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 10-Mar-15

Stock exchange operator ASX Limited proposes to reduce its fees for the clearing of equities from 1 July 2015, subject to a five-year extension of its existing monopoly. However, ASX’s actions have been criticised by Chi-X Australia CEO John Fildes, who has questioned why the offer was not made when the moratorium on competition in the sector commenced in 2013. Matthew Grounds of UBS says the Australian market is not large enough to support more than one equities clearing provider

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, COUNCIL OF FINANCIAL REGULATORS

Australian dollar could plummet below US60c: Credit Suisse

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Original article by Karen Maley
The Australian Financial Review – Page: 11 & 17 : 10-Mar-15

The Australian dollar was buying $US0.7693 late in trading on 9 March 2015, and Ric Deverell of Credit Suisse is bearish about the currency’s outlook. He expects the dollar to fall below the $US0.70 level, and warns that it could potentially fall below $US0.60. He cites factors such as the prospect of monetary policy tightening in the US later in 2015, which will in turn discourage the carry trade. Deverell is also upbeat about the Australian economy, noting that it is still relatively strong

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. FEDERAL RESERVE BOARD

Multibrand strategy baffles bank customers

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Original article by James Eyers
The Australian Financial Review – Page: 15 : 10-Mar-15

A Customer Owned Banking Association (COBA) submission to the financial system inquiry criticised Australia’s major banks for failing to adequately disclose their ownership of multibrands. A survey carried out by Essential Research on behalf of COBA found that nearly 75 per cent of respondents said the banks fail to do so, while more than 50 per cent were not sure which bank owns sub-brands such as Bank of Melbourne or Bankwest

CORPORATES
CUSTOMER OWNED BANKING ASSOCIATION, BANK OF MELBOURNE LIMITED, BANK OF WESTERN AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, ST GEORGE BANK LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, UBANK, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GROWTH SOLUTIONS GROUP PTY LTD, ONEPATH AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ