K: Financial and Insurance Services

Majors facing $20bn squeeze

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Original article by Michael Bennet
The Australian – Page: 17 : 8-Dec-14

Among the recommendations made in the financial system review report by David Murray for the Australian Government is that the four main banks should significantly increase their reserve capital holdings. They are also urged to lift the risk weighting on home mortgage loans to a range of 25% to 30%. Analysts calculate that if adopted the new requirements will create an additional cost burden of $A20bn per annum for the sector. Australian Bankers’ Association CEO Steven Munchenberg has vowed to persist with its lobbying effort against the proposals and those of the Australian Prudential Regulation Authority

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BANKERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, WATERMARK FUNDS MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, THE BOSTON CONSULTING GROUP PTY LTD

Refinancing allows Boart boss to focus on long term

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Original article by Paul Garvey
The Australian – Page: 18 : 8-Dec-14

Investors in Australian-listed mining services group Boart Longyear are set to vote on a refinancing deal worth as much as $US342m ($A410m) with US-based private equity firm Centerbridge in mid-December 2014. It will come as a relief to CEO Richard O’Brien, who has had to face a series of crises since being appointed on 1 April 2013. He still believes that a turnaround in the resources sector may not occur until possibly 2016, and urges shareholders to support the package deemed "not fair but reasonable" by consultant KPMG

CORPORATES
BOART LONGYEAR LIMITED – ASX BLY, CENTERBRIDGE PARTNERS LP, KPMG AUSTRALIA PTY LTD, CGI GLASS LEWIS PTY LTD, ISS PROXY AUSTRALIA

US80c to the dollar is ‘fair value’ for RBA

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Original article by Stephen Cauchi
The Australian Financial Review – Page: 23 : 5-Dec-14

The Australian dollar reached a new 4.5-year low of $US0.8389 on 4 December 2014. Economists are divided regarding what constitutes fair value for the currency. Michael Workman of the Commonwealth Bank believes that a range of $US0.80 to $US0.85 is appropriate for the dollar at present. However, Bank of America Merrill Lynch’s Saul Eslake suggests that fair value would be below $US0.80

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, ST GEORGE BANK LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, MACQUARIE GROUP LIMITED – ASX MQG, TD SECURITIES, UNITED STATES. FEDERAL RESERVE BOARD

Westpac breaks ranks to tip RBA will cut rates

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 8 : 5-Dec-14

Westpac chief economist Bill Evans expects official interest rates to be reduced in both February and March 2015, citing factors such as the latest GDP data and the high Australian dollar. National Australia Bank and ANZ Bank economists have indicated that they may revise their forecasts for interest rates to remain on hold until late 2015. Economists at Goldman Sachs, Deutsche Bank and Credit Suisse have already forecast that the Reserve Bank will cut the cash rate in 2015

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. DEPT OF THE TREASURY, UNITED STATES. FEDERAL RESERVE BOARD

Banks lobbied to ‘feather nests’

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Original article by Anthony Klan
The Australian – Page: 31 : 4-Dec-14

It has emerged that nine financial services industry bodies lobbied the Australian Securities & Investments Commission (ASIC) in mid-2013 against the proposed Consultation Paper 212 regulations. They were meant to raise the standard of professional qualifications to be held by financial planners. ASIC chair Greg Medcraft has sharply criticised the industry, and noted the impact flawed advice has on clients. Meanwhile the Association of Independently Owned Financial Professionals argues the lobbying effort was indicative of the major banks and their aligned planning groups trying to defend their market share

CORPORATES
ASSOCIATION OF INDEPENDENTLY OWNED FINANCIAL PLANNERS INCORPORATED, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN BANKERS’ ASSOCIATION, FINANCIAL SERVICES COUNCIL, CPA AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA)

Three-way fight for ailing Ten

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Original article by Darren Davidson
The Australian – Page: 19 : 4-Dec-14

Competing bids worth between $A510m and $A664m have been prepared for Australian free-to-air TV group Ten Network, which along with adviser Citigroup is seeking at least $A770m. Pay TV provider Foxtel and US-based ally Discovery Communications are one suitor, and interest has also been voiced by private equity firm Saban Capital Group and hedge fund Anchorage Capital Partners. They would need the approval of News Corporation co-chair Lachlan Murdoch, Crown Resorts chair James Packer and WIN Corporation owner Bruce Gordon

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, SABAN CAPITAL GROUP INCORPORATED, ANCHORAGE CAPITAL PARTNERS PTY LTD, CITIGROUP PTY LTD, ASX LIMITED – ASX ASX, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, 21ST CENTURY FOX INCORPORATED, WALT DISNEY COMPANY, CVC ASIA PACIFIC (AUSTRALIA) PTY LTD, KOHLBERG KRAVIS ROBERTS AND COMPANY, KKR AND COMPANY LP, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM

Shoes of Prey closes $6.5m Series A round with Khosla Ventures

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Original article by Caitlin Fitzsimmons
BRW – Page: online : 3-Dec-14

Australian online retailer Shoes of Prey has raised $US5.5 million ($A6.5 million) in new venture capital. Companies and individuals that participated in the funding initiative included Khosla Ventures, Blackbird Ventures, Bonobos CEO Andy Dunn, ThirdLove co-founders David Spector and Heidi Zak, Atlassian co-founder Mike Cannon-Brookes, and Bill Tai from Southern Cross Venture Partners. The new funds will be used to finance expansion in the US and to construct a new factory in China

CORPORATES
SHOES OF PREY PTY LTD, SOUTHERN CROSS VENTURE PARTNERS PTY LTD, ATLASSIAN SOFTWARE SYSTEMS PTY LTD, KHOSLA VENTURES, BLACKBIRD VENTURES PTY LTD, BONOBOS INCORPORATED, THIRDLOVE

Hockey warns living standards could fall

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 4-Dec-14

Australia’s economic growth slowed to just 0.3 per cent in the September 2014 quarter, and by 2.7 per cent year-on-year. Economic growth contracted in all states except New South Wales. The national accounts also show that Australia has entered an "income recession", with real net disposable income contracting in the last two quarters. Treasurer Joe Hockey has urged opposition parties to support government policy in the Senate, warning that a decline in living standards is likely if reforms are not implemented

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, RESERVE BANK OF AUSTRALIA, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, AUSTRALIAN LABOR PARTY, PALMER UNITED PARTY, BUSINESS COUNCIL OF AUSTRALIA

ANZ-Roy Morgan Australian Consumer Confidence Stop-Start Grind Higher

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 2-Dec-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia fell by 0.3 per cent to 113.9 in the week ended 30 November 2014. This is a small setback following a solid 1.2 per cent rise in the previous week. Looking through the weekly volatility, consumer confidence is trending modestly higher. Confidence in households’ finances compared with 12 months ago fell by 1.9 per cent. However, expectations of the economic outlook and household finances improved

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

ASIC forced to fold on reform plan

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Original article by Anthony Klan
The Australian – Page: 22 : 3-Dec-14

The Australian Securities & Investments Commission (ASIC) will not go ahead with the proposed Consultation Paper 212 regulations, which were designed to lift the level of professional qualifications to be held by financial planners. ASIC maintains that the decision is due to the Federal Government failing to get amendments to the Future of Financial Advice laws passed by the Senate, making the issue less urgent. However it has emerged that nine industry bodies wrote to the watchdog in 2013 and argued against the push

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FINANCIAL PLANNING ASSOCIATION OF AUSTRALIA LIMITED, AUSTRALIAN BANKERS’ ASSOCIATION, FINANCIAL SERVICES COUNCIL, AUSTRALIA. DEPT OF THE TREASURY