K: Financial and Insurance Services

Ten brass to discuss bid by US media giant

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Original article by Dominic White, Jared Lynch, James Chessell
The Australian Financial Review – Page: 13/18 : 7-Nov-14

Investment banking firm Citi will advise Ten Network on bids by potential takeover suitors. Negotiations will start on 10 November 2014, and the most likely acquirer of the free-to-air TV group appears to be an alliance of pay TV provider Foxtel and US ally Discovery Communications. The speculation on 6 November lifted Ten’s share price by 7% to a close of $A0.23. Fairfax Media had also discussed a deal with Ten’s executives in October, but is now not expected to pursue the opportunity

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, FOXTEL MANAGEMENT PTY LTD, DISCOVERY COMMUNICATIONS INCORPORATED, CITIGROUP PTY LTD, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CROWN RESORTS LIMITED – ASX CWN, WIN CORPORATION PTY LTD, DEUTSCHE BANK AG, ANCHORAGE CAPITAL PARTNERS PTY LTD, PROVIDENCE EQUITY PARTNERS INCORPORATED

Birth of municipal bond market for local councils

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 7-Nov-14

Thirty of the 79 local councils in Victoria will join forces to issue $A200m worth of bonds via the Local Government Funding Vehicle, which has an "Aa2" rating from Moody’s Investors Service. The councils will offer both five- and seven-year notes, which will be priced on 7 November 2014. However, the indicative pricing margins are lower than those of the major banks

CORPORATES
LOCAL GOVERNMENT FUNDING VEHICLE, MOODY’S INVESTORS SERVICE INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

ANZ-Roy Morgan Consumer Confidence Unchanged at 114.6

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Nov-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia was unchanged at 114.6 in the week ended 2 November 2014. The four-week average remains at its highest level since late April. Perceptions of household finances compared with 12 months ago rose by 0.9 per cent, and continues to point to a modest pickup in consumer spending. However, households’ expectations of the economic outlook over the next year fell by 5.8 per cent

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

Local hedge funds better than ASX, global peers

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 25 : 6-Nov-14

Australian hedge funds achieved an average return of 4.3 per cent in the first nine months of 2014, according to Australian Fund Monitors. The firm also notes that 63 per cent of these funds outperformed the S&P/ASX 200 Index, while 95 per cent did so in September, when the market fell sharply. Local hedge funds have also outperformed their global counterparts, with the Bloomberg Global Aggregate Hedge Fund Index achieving a return of 2.3 per cent

CORPORATES
AUSTRALIAN FUND MONITORS PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX 200 ACCUMULATION INDEX, BLOOMBERG GLOBAL AGGREGATE HEDGE FUND INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, REGAL FUNDS MANAGEMENT PTY LTD, MORNINGSTAR PTY LTD

APRA rules to hit banks’ funding costs

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Original article by Michael Bennet
The Australian – Page: 21 : 5-Nov-14

The Australian Prudential Regulation Authority on 4 November 2014 announced the details for the liquidity coverage ratio (LCR) under the Basel III reforms, which will take effect from 1 January 2015. To meet the LCR requirements, Australian banks can seek committed liquidity facilities from the Reserve Bank, and the fee for this has now been set at 15 basis points. This equates to some $A400m for the four main banks combined. The sector had strongly lobbied against such an impost, in the submissions to the Federal Government’s financial system inquiry

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED

Reserve Bank keeps interest rate mantra

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 5-Nov-14

The Australian dollar late in the trading on 4 November 2014 rose to $US0.8724 from $US0.8694, following news that the Reserve Bank of Australia was leaving the official cash interest rate unchanged. The board meeting earlier in the day resulted in the 14th consecutive non-adjustment of the 2.5% rate, and the central bank has signalled that this will remain the case until close to mid-2015. The high foreign exchange rate is a major reason, although there are concerns that the low cost of home mortgage borrowing is creating a residential real estate prices bubble. Inflation is benign but the terms of trade are worsening

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BUREAU OF STATISTICS

Start-up lures Medibank customers

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Original article by Jessica Gardner
The Australian Financial Review – Page: 22 : 5-Nov-14

Online health insurance provider health.com.au enjoyed strong growth in its customer base in 2013-14, and now boasts about 90,000 policyholders. CEO Andy Sheats notes that Medibank Private and Bupa account for the bulk of customers switching to health.com.au. Sheats adds that neither of the big health funds market their products via iSelect, which is the biggest source of customers switching to health.com.au

CORPORATES
HEALTH.COM.AU PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, BUPA AUSTRALIA PTY LTD, ISELECT LIMITED – ASX ISU, AHM HEALTH INSURANCE, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, REA GROUP LIMITED – ASX REA

‘Corrupt culture’ in super fund

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Original article by Joanna Mather, Sally Patten
The Australian Financial Review – Page: 1 & 6 : 3-Nov-14

Jeremy Stoljar SC, counsel assisting the Royal Commission into Trade Union Governance & Corruption, has criticised the Cbus industry superannuation fund. He argued that evidence of members’ details being leaked to the Construction, Forestry, Mining & Energy Union showed an overly close relationship and a "cultural failure". Industry Super Australia CEO David Whiteley rejects any suggestion the leak is symptomatic of practices in the sector generally. Stoljar also recommended criminal charges against some building union officials over an unlawful secondary boycott

CORPORATES
CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION, BORAL LIMITED – ASX BLD, LIS-CON HOLDINGS PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, HIGH COURT OF AUSTRALIA

Ahh, to be young … and rich

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Original article by John Stensholt, Michael Bailey
The Australian Financial Review – Page: 10 & 11 : 31-Oct-14

Members of "BRW" magazine’s 2014 Young Rich List have a combined wealth of $A8.3bn. The list is headed by Mike Cannon-Brookes and Scott Farquhar of software group Atlassian, who are collectively worth $A2.1bn. They are followed by Campaign Monitor’s Dave Greiner and Ben Richardson, who are worth a combined $A500m. Carman’s Fine Foods’ Carolyn Creswell is the highest-ranked woman on the list, with personal wealth of $A83m

CORPORATES
ATLASSIAN SOFTWARE SYSTEMS PTY LTD, CAMPAIGN MONITOR PTY LTD, CARMAN’S FINE FOODS PTY LTD, T ROWE PRICE GROUP INCORPORATED, DRAGONEER INVESTMENT GROUP LLC, INSIGHT VENTURE PARTNERS, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, TESCO PLC, J SAINSBURY PLC, VANTAGE, YAHOO! INCORPORATED, AUSTRALIAN CAREERS NETWORK LIMITED – ASX ACO, REWARDLE HOLDINGS LIMITED – ASX RXH, BPM CONSTRUCTION AND DEVELOPMENT GROUP

Young Australians saved over $650 million

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Oct-14

Roy Morgan Research’s latest Young Australians Survey has found that 74 per cent of Australians aged 6-13 currently have personal savings, which total $A653m. The survey, which was carried out in the year to June 2014, also shows that the average amount saved by Australians in this age group is $A285, while 21.2 per cent have savings of less than $A50 and 10.2 per cent have savings of $A1,000 or more

CORPORATES
ROY MORGAN RESEARCH LIMITED, HERITAGE BANK LIMITED – ASX HBS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB