K: Financial and Insurance Services

Dollar to stay below US80c at year end

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 22 : 30-Jan-15

The Australian dollar was fetching $US0.7858 late in trading on 29 January 2015, after peaking at $US0.8022 on the previous day. Gavin Friend of National Australia Bank expects the currency to be trading at the $US0.78 level at the end of 2015, while Richard Grace of the Commonwealth Bank has a more bearish year-end forecast of $US0.76. There is growing expectation that the Reserve Bank will reduce the cash rate on 3 February

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, SWISS NATIONAL BANK, FOREX.COM, UNITED STATES. FEDERAL RESERVE BOARD, CENTREBET INTERNATIONAL LIMITED, WESTERN UNITED LIMITED, COMMONWEALTH SECURITIES LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

Law firms consider listing

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Original article by Luke Malpass
The Australian Financial Review – Page: 33 : 30-Jan-15

Shares in IPH Limited have peaked at $A3.80 since debuting on the Australian sharemarket at $A2.10 in November 2014. IPH is the holding company for law firm Spruson & Ferguson, and its success has prompted other intellectual property and patent law firms to consider IPOs. Graham Cowin, the managing partner of Phillips Ormonde Fitzpatrick, says the firm is looking at a range of options, while Griffith Hack chairman David Hughes says his firm has ruled out in IPO at this stage

CORPORATES
IPH LIMITED – ASX IPH, SPRUSON AND FERGUSON LAWYERS, PHILLIPS ORMONDE AND FITZPATRICK, GRIFFITH HACK LAWYERS PTY LTD, DAVIES COLLISON CAVE, MORNINGSTAR PTY LTD

Low inflation corners RBA

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 : 29-Jan-15

Australia’s underlying inflation rate increased by 0.7 per cent in the December 2014 quarter, which was higher than expected. There was an 0.2 per cent increase in the CPI during the quarter, and 1.7 per cent year-on-year. The benign inflation data may strengthen the case for a reduction in the cash rate when the Reserve Bank board meets on 3 February 2015. The central bank may also be swayed by recent monetary policy easing in other countries, which may prompt renewed support for the Australian dollar

CORPORATES
RESERVE BANK OF AUSTRALIA, UBS HOLDINGS PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN BUREAU OF STATISTICS, EUROPEAN CENTRAL BANK

Bond rally drives big stocks up

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Original article by Vesna Poljak, Philip Baker
The Australian Financial Review – Page: 1 & 6 : 28-Jan-15

Factors such as low bond yields and interest rates have promoted renewed support for Australian shares. The domestic sharemarket is also benefiting from historically low interest rates in Europe and the growing trend for self-managed superannuation funds to invest in stocks that offer high yields. Telstra and the Commonwealth Bank are among the stocks that rallied on 27 January 2015, and they now boast a net dividend yield of 4.5 per cent

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, TELSTRA CORPORATION LIMITED – ASX TLS, CREDIT SUISSE (AUSTRALIA) LIMITED, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, RESERVE BANK OF AUSTRALIA, EUROPEAN CENTRAL BANK, STANDARD AND POOR’S ASX 200 INDEX, WILSON ASSET MANAGEMENT

Don’t cut rates, says ANZ chief

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Original article by Jacob Greber, James Chessell
The Australian Financial Review – Page: 1 & 6 : 28-Jan-15

ANZ Bank CEO Mike Smith says the Reserve Bank should delay any easing of monetary policy. He remains upbeat about the outlook for the Australian economy, noting that the downturn in the value of the dollar has helped to offset the economic impact of lower commodity prices. The recent interest rate cut by the Bank of Canada and the European Central Bank’s quantitative easing have heightened speculation of further rate cuts in Australia

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, BANK OF CANADA, EUROPEAN CENTRAL BANK, RESERVE BANK OF NEW ZEALAND, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, WORLD ECONOMIC FORUM, AUSTRALIAN NATIONAL UNIVERSITY

Last chance to join NAB action

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Original article by Georgia Wilkins
The Australian Financial Review – Page: 14 : 27-Jan-15

Some 40,000 people so far have agreed to participate in a class action against National Australia (NAB) over exception fees. The deadline for taking part in the class action is 27 January 2015, and NAB indicated in late 2014 that it will seek to negotiate a settlement. Nine other banks are involved in a broader class action lawsuit over their fees. It is estimated that the banks could face a total payout of up to $A240m if they lose the case

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, CITIGROUP PTY LTD, FEDERAL COURT OF AUSTRALIA, FINANCIAL REDRESS PTY LTD, IMF BENTHAM LIMITED – ASX IMF, MAURICE BLACKBURN PTY LTD

Aussie’s tumble may slow RBA cuts

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Original article by Jacob Greber, Mark Mulligan
The Australian Financial Review – Page: 1 & 6 : 27-Jan-15

The Australian dollar reached a low of $US0.7855 on 26 January 2015, and it has lost more than four per cent of its value in just over a week. The currency’s recent decline could prompt the Reserve Bank to leave the cash rate on hold in the near-term. Central bank governor Glenn Stevens recently suggested that a fall to around the $US0.75 level would be desirable. The upcoming release of inflation data is likely to influence monetary policy

CORPORATES
RESERVE BANK OF AUSTRALIA, TD SECURITIES, UNITED STATES. FEDERAL RESERVE BOARD

Class actions: firms warned

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 3 : 23-Jan-15

The Australian class actions market is likely to grow. Herbert Smith Freehills partner Jason Betts says the profitability of the funding model makes the sector attractive to foreign litigation funders. Andrew Watson, the head of class actions at Maurice Blackburn, expects more such suits on behalf of investors

CORPORATES
IMF BENTHAM LIMITED – ASX IMF, AUSNET SERVICES LIMITED – ASX AST, LITIGATION FUNDING PARTNERS, HERBERT SMITH FREEHILLS PTY LTD, ALLCO FINANCE GROUP LIMITED, MAURICE BLACKBURN PTY LTD, KING AND WOOD MALLESONS, HARBOUR LITIGATION FUNDING LIMITED, COMPREHENSIVE LEGAL FUNDING LLC, AUSTRALIA. PRODUCTIVITY COMMISSION

Trading frenzy over pot stock

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Original article by Patrick Durkin
The Australian Financial Review – Page: 3 : 23-Jan-15

Shares in PhytoTech Medical closed at $A0.42 on 22 January 2015, after being issued at $A0.20 apiece in a $A5.9m IPO. Some 13 million shares in the group changed hands. PhytoTech will specialise in growing marijuana for medical use and the supply of medical devices for administering legal cannabis. Adam Blumenthal notes that the global medical cannabis industry is worth $A100bn at present

CORPORATES
PHYTOTECH MEDICAL LIMITED – ASX PYL, BBY LIMITED, GW PHARMACEUTICALS PLC, LONDON STOCK EXCHANGE, ASX LIMITED – ASX ASX, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Murray report to lead to more M&A activity

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Original article by Michael Bennet
The Australian – Page: 20 : 22-Jan-15

Data from Thomson Reuters shows that the value of mergers and acquisitions in Australia’s financial services sector topped $US54bn in 2014, which is 52 per cent higher than previously. Meanwhile, the value of equity capital market deals rose by 14 per cent to $US5bn. Market watchers anticipate further deal-making activity in 2015, with some citing the upcoming release of the final report of the financial system inquiry as a key factor

CORPORATES
THOMSON REUTERS PLC, WESFARMERS LIMITED – ASX WES, MEDIBANK PRIVATE LIMITED – ASX MPL, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ESANDA FINANCE CORPORATION LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, LLOYDS BANKING GROUP PLC, INVESTEC BANK (AUSTRALIA) LIMITED, GE CAPITAL AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF WESTERN AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, AXA ASIA PACIFIC HOLDINGS LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, CLYDESDALE BANK PLC, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, IOOF HOLDINGS LIMITED – ASX IFL, SFG AUSTRALIA LIMITED