K: Financial and Insurance Services

Rollercoaster spells correction

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Original article by Michael Koziol
The Australian Financial Review – Page: 33 : 17-Oct-14

The US and European sharemarkets were heavily sold down on 16 October 2014. The Dow Jones Industrial Average closed 173 points lower, after shedding 368 points early in the trading session. Sharemarket indices in countries such as Germany, France, Spain and Japan have officially entered correction mode, having shed more than 10 per cent, while Australia’s benchmark S&P/ASX 200 has fallen by more than eight per cent in recent weeks

CORPORATES
DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S ASX 200 INDEX, TOKYO STOCK PRICE INDEX, SHANGHAI COMPOSITE INDEX, CAC 40 INDEX, NASDAQ COMPOSITE INDEX, PSI 20 INDEX, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, MORGAN STANLEY AUSTRALIA LIMITED

No-fault insurance proposal

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Original article by Alex Massey
The West Australian – Page: 14 : 16-Oct-14

The Western Australian Government will seek public comments on a proposal to adopt a no-fault compulsory third-party car insurance regime. The proposal has the support of Julie Waylen of National Disability Services, who is critical of the current fault-based system. However, a non-fault system is likely to increase the cost of compulsory third party insurance by $A109 per annum. Several Australian states already have a no-fault regime

CORPORATES
NATIONAL DISABILITY SERVICES LIMITED, WESTERN AUSTRALIA. DEPT OF TREASURY AND FINANCE, INSURANCE COMMISSION OF WESTERN AUSTRALIA

Vintners toast Aussie’s falling value

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Original article by Tim Binsted
The Australian Financial Review – Page: 31 : 16-Oct-14

Wirra Wirra Vineyards plans to capitalise on the recent fall in the value of the Australian dollar by increasing its export volumes to around 20 per cent in the next several years. Exports currently account for 10-15 of the South Australian wine producer’s output. Winemakers’ Federation of Australia CEO Paul Evans notes that the best outcome for the industry would be for the currency to fall to around $US0.80

CORPORATES
WIRRA WIRRA VINEYARDS, WINEMAKERS’ FEDERATION OF AUSTRALIA INCORPORATED, RABOBANK AUSTRALIA LIMITED

Silicon Valley start-up surges on ASX debut

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Original article by Sally Rose
The Australian Financial Review – Page: 25 & 32 : 16-Oct-14

Shares in online recruitment firm 1-Page closed at $A0.34 on 15 October 2014, capping a $A8.5m Australian sharemarket float for the US-based group. The stock was issued at $A0.20 apiece and listed at $A0.345. Amanda Moyes of ASX Limited says the sharemarket operator would like to see more US technology firms list on the local bourse. Australia’s R&D tax concessions regime contributed to 1-Page’s decision to list in Australia

CORPORATES
1-PAGE LIMITED – ASX 1PG, ASX LIMITED – ASX ASX, FOSTER STOCKBROKING PTY LTD, KTM CAPITAL PTY LTD, CYGNET CAPITAL PTY LTD, NASDAQ, SAN FRANCISCO 49ERS, FRANCE TELECOM SA

Hard times loom for Future Fund

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Original article by Richard Gluyas
The Australian – Page: 21 : 16-Oct-14

David Neal, MD of the Future Fund, has unveiled a 2013-14 rate of return of 14.3% for the Australian Government’s civil service superannuation liabilities manager. This is up from the previous estimate of 13.9%, and follows a result of 15%-plus in 2012-13. However despite further growth of 2.9% in the first quarter of 2014-15, Neal warns that the performance will now level off due to the tapering of quantitative easing and rising interest rates in the US. This was backed by investment strategy and risk head Stephen Gilmore, while chief investment officer Raphael Arndt said the Future Fund may invest in infrastructure assets privatised by state governments

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIAN NATIONAL UNIVERSITY

Few shares spared as index heads to correction

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Original article by Patrick Commins
The Australian Financial Review – Page: 21 : 15-Oct-14

Bearish sentiment toward equities means that just 11 stocks in Australia’s benchmark S&P/ASX 200 Index have risen in the last six weeks. These include TPG Telecom, Qube Holdings, Recall Holdings and M2 Group. Some 40 per cent of ASX 200 stocks have fallen by more than 10 per cent since early September 2014, while the index itself has shed eight per cent over this period. CIMB’s Shane Lee says the sell-off means that some stocks may now offer good value to investors

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, TPG TELECOM LIMITED – ASX TPM, QUBE HOLDINGS LIMITED – ASX QUB, RECALL HOLDINGS LIMITED – ASX REC, M2 GROUP LIMITED – ASX MTU, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, DOW JONES INDUSTRIAL AVERAGE INDEX, STANDARD AND POOR’S 500 INDEX, EUROPEAN CENTRAL BANK, RUSSELL INVESTMENTS PTY LTD, CSL LIMITED – ASX CSL, RESMED INCORPORATED – ASX RMD, SONIC HEALTHCARE LIMITED – ASX SHL, TOLL HOLDINGS LIMITED – ASX TOL, BRAMBLES LIMITED – ASX BXB, IINET LIMITED – ASX IIN, TELSTRA CORPORATION LIMITED – ASX TLS, WOOLWORTHS LIMITED – ASX WOW, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, JB HI-FI LIMITED – ASX JBH

RBA warns: share sell-off will be violent

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Original article by Adam Creighton
The Australian – Page: 21 : 15-Oct-14

A Citi investment conference in Sydney on 14 October 2014 heard from Guy Debelle, head of financial markets at the Reserve Bank of Australia. He argued investors were showing irrational exuberance and were ignoring risk at their own peril. Debelle said the stock market volatility of recent weeks was coming unexpectedly late given factors such as rising geopolitical tensions, and an eventual selling of fixed-interest instruments globally would be "violent". He also noted that new regulations prompted by the global financial crisis had reduced the scope for liquidity

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, STANDARD AND POOR’S ASX 200 INDEX, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

After the wipeout, Great Southern investors stand to lose homes

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Original article by Dennis Shanahan, Leo Shanahan
The Australian – Page: 21 : 15-Oct-14

The Supreme Court of Victoria will in late October 2014 rule on whether a settlement can be ratified that will mean Bendigo & Adelaide Bank can bring bankruptcy proceedings against investment loan borrowers. The about 47,000 customers had bought into the rural managed investment schemes of Great Southern between 2005 and 2008, and owe some $A398m. They will also claw back less than $A16 for every $A10,000 they lost in the collapse. Law firm MacPherson & Kelley, representing the investors, will gain close to $A20m

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, GREAT SOUTHERN LIMITED, MACPHERSON AND KELLEY LAWYERS PTY LTD, SUPREME COURT OF VICTORIA, TIMBERCORP LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Higher value Super members rate performance of industry funds ahead of retail funds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Oct-14

A Roy Morgan Single Source survey has found that 84.4 per cent of Australians aged 14+ who are members of industry superannuation funds and whose super balance exceeds $A700,000 are satisfied with the financial performance of their fund. Likewise, 76 per cent of retail fund members whose super balance tops $A700,000 are satisfied with their fund. In contrast, just 46.1 per cent of industry fund members and 51.8 per cent of retail fund members whose super balance is less than $A5,000 are satisfied with the financial performance of their fund

CORPORATES
ROY MORGAN RESEARCH LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, UNISUPER LIMITED, SUNSUPER PTY LTD, REST SUPER PTY LTD, HOST-PLUS, AUSTRALIANSUPER PTY LTD, FIRST STATE SUPER, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Credit card bank licences to go

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 14-Oct-14

The Australian Government has accepted the Reserve Bank’s recommendation to scrap the requirement for companies that issue credit cards to hold a bank licence. Finance Minister Mathias Cormann says the move will increase competition by attracting new entrants to the credit card market and result in lower fees for consumers and retailers. However, some experts doubt that the reforms will lead to greater competition

CORPORATES
AUSTRALIA. DEPT OF FINANCE, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED, RFI CONSULTING PTY LTD, GE CAPITAL AUSTRALIA, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, TYRO PAYMENTS, SQUARE PTY LTD, PAYVISION, AIRPLUS INTERNATIONAL