K: Financial and Insurance Services

CBA, CSL and Macquarie Group on track for $100 shares

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Original article by Simon Evans
The Australian Financial Review – Page: 22 : 22-Jan-15

Shares in CSL and the Commonwealth Bank are currently trading at about $A84. While they have recently retreated from 12-months peaks, both stocks could potentially rise to $A100. CSL previously undertook a share split after its stock rose to $A100 in late 2007. Arnhem Investment Management’s George Clapham suggests that in many cases a demerger rather than a share split may generate more value for shareholders. Macquarie Group’s shares are currently trading above $A60, and the stock is also a potential candidate to breach $A100

CORPORATES
CSL LIMITED – ASX CSL, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MACQUARIE GROUP LIMITED – ASX MQG, ARNHEM INVESTMENT MANAGEMENT PTY LTD, AMCOR LIMITED – ASX AMC, ORORA LIMITED – ASX ORA, BRAMBLES LIMITED – ASX BXB, RECALL HOLDINGS LIMITED – ASX REC, IRON MOUNTAIN INCORPORATED, ELDERS LIMITED – ASX ELD, BERKSHIRE HATHAWAY INCORPORATED

Oil prices to stay low for years, JPMorgan warns

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Original article by Matt Chambers
The Australian – Page: 17 : 21-Jan-15

JP Morgan has lowered its 2014-15 earnings forecast for Australian-listed resources group BHP Billiton to $US8.3bn ($A10.1bn), or $US1.2bn less than the consensus. A major factor is that JP Morgan also expects the global crude oil price to fall further, and not recover for two years. Brent crude is now tipped to trade at $US49 a barrel in 2015 and $US57 in 2016, compared with previous estimates of $US82 and $US88 respectively. However the Global Energy Fund of Investec Asset Management has taken advantage of the bargain buying opportunity to acquire stock in energy company Santos

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, BEACH ENERGY LIMITED – ASX BPT, OIL SEARCH LIMITED – ASX OSH, JP MORGAN AUSTRALIA LIMITED, INVESTEC ASSET MANAGEMENT LIMITED, INVESTEC GLOBAL ENERGY FUND, LUKOIL-NEFTEGAZSTROY, CNOOC LIMITED, CHINA NATIONAL OFFSHORE OIL CORPORATION, PETROBRAS, PETROLEO BRASILEIRO SA

Retail super has only 5pc of default funds

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Original article by James Eyers
The Australian Financial Review – Page: 1 & 14 : 21-Jan-15

Data from Chant West indicates that industry and retail superannuation funds achieved a return of 8.6 per cent in 2014. However, industry funds dominate the list of default super funds in the modern industrial awards system. AustralianSuper is listed in 71 of the 122 awards, while SunSuper and Care Super are listed in 56 and 52 respectively. In contrast, AMP is included in just 15 awards. Financial Services Council CEO Sally Loane has called for Federal Government action to enhance competition in the sector

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, SUNSUPER PTY LTD, CARE SUPER PTY LTD, AMP LIMITED – ASX AMP, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, MERCER INVESTMENTS PTY LTD, PERPETUAL LIMITED – ASX PPT, AON AUSTRALIA PTY LTD, THE TRUST COMPANY LIMITED, EQUITY TRUSTEES LIMITED – ASX EQT, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, MLC LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, SUNCORP GROUP LIMITED – ASX SUN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, COLONIAL FIRST STATE GROUP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN MANUFACTURING WORKERS’ UNION, THE AUSTRALIAN INDUSTRY GROUP, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION

Markets drive Macquarie to bumper $1.5bn

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Original article by Michael Bennet
The Australian – Page: 21 : 20-Jan-15

Investment banking firm Macquarie Group has again raised its 2014-15 profit forecast, for the second time in half a year, and now expects a result of up to $A1.52bn that would be close to an all-time high. The increase by between 10% and 20% is based on an improved trading environment as well as the decline in the Australian dollar foreign exchange rate. Experts note that Macquarie’s fixed-income, currencies and commodities operations perform better in times of heightened volatility. On 19 January 2015 the stock closed 5.4% higher at $A58.25

CORPORATES
MACQUARIE GROUP LIMITED – ASX MQG, UNITED STATES. FEDERAL RESERVE BOARD, CLSA AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, MACQUARIE SECURITIES PTY LTD

$40b projects to aid tourism

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Original article by Jamie Freed
The Australian Financial Review – Page: 14 : 20-Jan-15

A report by Scott Ryall of CLAA identifies large tourism projects worth $A40 billion that are in progress or preparation. Ryall states that Asian tourists will assist the Australian economy in withstanding waning mining investment. The report contends that Asian tourism will bolster industries from ­construction and aviation to casinos, malls and wine. Arrium, Boral and Mirvac are among the businesses expected to benefit from tourism development projects

CORPORATES
CLSA AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, ARRIUM LIMITED – ASX ARI, BORAL LIMITED – ASX BLD, LEND LEASE GROUP LIMITED – ASX LLC, MIRVAC GROUP – ASX MGR, SCENTRE GROUP – ASX SCG, NOVION PROPERTY GROUP – ASX NVN, CROWN RESORTS LIMITED – ASX CWN, ECHO ENTERTAINMENT GROUP LIMITED – ASX EGP, SKYCITY ENTERTAINMENT GROUP LIMITED – ASX SKC, TREASURY WINE ESTATES LIMITED – ASX TWE, TTF AUSTRALIA LIMITED TOURISM AND TRANSPORT FORUM, TTF AUSTRALIA LIMITED, QANTAS AIRWAYS LIMITED – ASX QAN, CHINA EASTERN AIR HOLDING COMPANY

Cashed-up private equity firms on the prowl for acquisitions

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Original article by Sally Rose
The Australian Financial Review – Page: 14 : 19-Jan-15

Australian ­Private Equity & Venture Capital Association CEO Yasser El-Ansary expects local private equity firms to pursue acquisitions in 2015, after offloading many businesses in 2014. He notes that Australian private equity groups’ cash holdings now exceed $A6bn. Offshore private equity groups are also expected to target the Australian market, with falling valuations in the resources sector likely to attract the interest of firms such as Kohlberg Kravis Roberts

CORPORATES
AUSTRALIAN PRIVATE EQUITY AND VENTURE CAPITAL ASSOCIATION LIMITED,{SPAC}KOHLBERG KRAVIS ROBERTS AND COMPANY,{SPAC}KKR AND COMPANY LP,{SPAC}TPG CAPITAL LP,{SPAC}PACIFIC EQUITY PARTNERS PTY LTD,{SPAC}QUADRANT PRIVATE EQUITY PTY LTD,{SPAC}BIS INDUSTRIES LIMITED,{SPAC}FINDEX AUSTRALIA PTY LTD,{SPAC}STANDARD AND POOR’S ASX 200 INDEX,{SPAC}DENHAM CAPITAL MANAGEMENT LP,{SPAC}PEMBROKE RESOURCES PTY LTD,{SPAC}AUCTUS MINERALS PTY LTD,{SPAC}SPOTLESS GROUP HOLDINGS LIMITED – ASX SPO,{SPAC}ASALEO CARE LIMITED – ASX AHY,{SPAC}HOYTS CINEMAS LIMITED,{SPAC}GRIFFIN FOODS LIMITED,{SPAC}PETERS ICE CREAM,{SPAC}CAMPAIGN MONITOR PTY LTD,{SPAC}INSIGHT VENTURE PARTNERS,{SPAC}CHAMP VENTURES PTY LTD,{SPAC}SENSIS PTY LTD,{SPAC}PLATINUM EQUITY HOLDINGS,{SPAC}VELOCITY FREQUENT FLYER PTY LTD,{SPAC}AFFINITY EQUITY PARTNERS (AUSTRALIA) PTY LTD

Union funds may lose inside run

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Original article by Sally Patten
The Australian Financial Review – Page: 1 & 6 : 19-Jan-15

The Australian Government aims to enhance competition in the superannuation industry by making changes to the MySuper system. Assistant Treasurer Josh Frydenberg argues that any super fund that offers a MySuper product should take contributions from all employees, regardless of whether they chose their own super fund. He wants to have super funds removed from workplace agreements and require funds to improve their disclosure practices. Frydenberg also proposes to introduce a requirement for more directors of super funds to be independent

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY,{SPAC}AUSTRALIA. FAIR WORK COMMISSION,{SPAC}AUSTRALIAN LABOR PARTY,{SPAC}INDUSTRY SUPER AUSTRALIA PTY LTD,{SPAC}AUSTRALIA. PRODUCTIVITY COMMISSION,{SPAC}COMMONWEALTH BANK OF AUSTRALIA – ASX CBA,{SPAC}ASIAN FINANCIAL FORUM,{SPAC}FINANCIAL SERVICES COUNCIL

Slow season spurs rate cut call

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Original article by Adam Creighton
The Australian – Page: 19 : 19-Jan-15

The latest quarterly business sentiment survey by the Australian Chamber of Commerce & Industry (ACCI), covering the final three months of calendar 2014, shows a marked deterioration. Retailers note that the pre-Christmas period was the weakest since 1992, and there is a general feeling that economic conditions will worsen and the jobless rate rise. ACCI CEO Kate Carnell is urging the Federal Government to roll out reforms, and the Reserve Bank of Australia to lower the official cash interest rate that has been left unchanged at 2.5% for 14 months

CORPORATES
AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY,{SPAC}RESERVE BANK OF AUSTRALIA

Insurers dented $1bn by city hail

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Original article by Andrew Main, Mitchell Nadin
The Australian – Page: 3 : 16-Jan-15

Data from the Insurance Council of Australia shows that Brisbane’s "superstorm" in November 2014 has resulted in a total of 100,223 insurance claims to date. The total value of insurance claims has topped $A1.040bn, although this is likely to increase. Meanwhile, insurance claims arising from the bushfires in South Australia’s Adelaide Hills have totalled about $A24.9m so far

CORPORATES
INSURANCE COUNCIL OF AUSTRALIA LIMITED, MARSH PTY LTD

Jetpack float set to take off with China backer

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 16-Jan-15

New Zealand’s Martin Aircraft Company will be listed on the Australian stock exchange in February 2015. The group announced in mid-January 2015 that Hong Kong investment fund KuangChi Science will invest up to $A50 million in Martin Aircraft within the next two and a half years. The funds will be used to commercialise Martin Aircraft’s new jetpack

CORPORATES
MARTIN AIRCRAFT COMPANY LIMITED – ASX MJP, KUANGCHI SCIENCE LIMITED, NEW ZEALAND AIRWAYS LIMITED