K: Financial and Insurance Services

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

Rate cut likely as spending slows

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Original article by David Rogers
The Australian – Page: 19 : 22-Jan-15

There was a 2.4 per cent increase in the Westpac-Melbourne Institute index of consumer sentiment in January 2015. The index rose from 91.1 in December to 93.2 per cent in seasonally adjusted terms. Meanwhile, the ANZ-Roy Morgan Consumer Confidence Index has increased by 1.4 per cent to 113.6, although the data is not seasonally adjusted. Westpac’s chief economist Bill Evans expects the cash rate to be reduced in both February and March

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, UNIVERSITY OF MELBOURNE. INSTITUTE OF APPLIED ECONOMIC AND SOCIAL RESEARCH, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ROY MORGAN RESEARCH LIMITED, WORLD BANK, INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA

Health cover costs could rise by 7pc

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Original article by Jessica Gardner
The Australian Financial Review – Page: 3 : 22-Jan-15

Australian Health Minister Sussan Ley is expected to approve health insurance premium increases as high as seven per cent from 1 April 2015. Health insurance firms argue that rises of up to triple the rate of inflation are justified because of increased use of services, rising care costs and costs associated with technological progress

CORPORATES
AUSTRALIA. DEPT OF HEALTH, NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED – ASX MPL, WESTFUND HEALTH INSURANCE, CONSUMER HEALTH FORUM, AUSTRALIA. PRODUCTIVITY COMMISSION

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