BCA cautions against hasty bank reforms

Original article by Annabel Hepworth
The Australian – Page: 19 : 9-Sep-14

The Business Council of Australia (BCA) has lodged its submission for the second round of the Federal Government’s new financial system review, conducted by ex-Commonwealth Bank of Australia CEO David Murray. The BCA argues against more stringent capital requirements for large banks, as this could have a knock-on effect on all enterprises via higher borrowing costs. The issue of how to handle banks deemed "too big to fail" will also be discussed at the upcoming Group of 20 summit in Australia

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BUSINESS COUNCIL OF AUSTRALIA, GROUP OF TWENTY (G-20), MOODY’S INVESTORS SERVICE INCORPORATED

Woolworths’ pub fund lightens load with $603m property sale

Original article by Ben Wilmot, Richard Gluyas
The Australian – Page: 17 : 9-Sep-14

Real estate funds management group Charter Hall and industry superannuation fund HOSTPLUS will jointly pay $A603m via a new unlisted vehicle to acquire pub assets. The seller of the freehold properties is the ALH Group linked to bottle shops and pubs operator Woolworths. The latter, through its venture with entrepreneur Bruce Mathieson, will lease back the 54 sites. The real estate holdings divestment by Woolworths has now reached $A2.9bn in value

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, CHARTER HALL GROUP – ASX CHC, AUSTRALIAN LEISURE AND HOSPITALITY GROUP LIMITED, BRUANDWO PTY LTD, HOST-PLUS, MH CARNEGIE AND COMPANY PTY LTD, AUSTRALIAN PUBS FUND, DAN MURPHY’S, BWS – BEER WINE SPIRITS, SHOPPING CENTRES AUSTRALASIA PROPERTY GROUP – ASX SCP, LAUNDY HOTELS PTY LTD, TELSTRA STAFF SUPERANNUATION SCHEME, ALE PROPERTY GROUP – ASX LEP, HOTEL PROPERTIES INVESTMENTS – ASX HPI, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES

Board members: when enough is enough

Original article by Philip Baker
The Australian Financial Review – Page: 29 : 9-Sep-14

Analysis by Credit Suisse suggests that the number of directors on a listed company’s board can influence shareholder returns. The firm concludes that the optimum number of directors for companies with a market value of at least $A5bn is between nine and 11, and 6-8 in the case of those with a capitalisation of less than $A5bn. The majority of companies have 6-8 directors, although BHP Billiton and Crown Resorts each have 13

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, BHP BILLITON LIMITED – ASX BHP, CROWN RESORTS LIMITED – ASX CWN, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, AMCOR LIMITED – ASX AMC, SCENTRE GROUP – ASX SCG, AGL ENERGY LIMITED – ASX AGK, STOCKLAND – ASX SGP, SONIC HEALTHCARE LIMITED – ASX SHL, CALTEX AUSTRALIA LIMITED – ASX CTX, SYDNEY AIRPORT – ASX SYD, INCITEC PIVOT LIMITED – ASX IPL, MIRVAC GROUP – ASX MGR, DEXUS PROPERTY GROUP – ASX DXS, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, BLUESCOPE STEEL LIMITED – ASX BSL, JAMES HARDIE INDUSTRIES PLC – ASX JHX, METCASH LIMITED – ASX MTS, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, FAIRFAX MEDIA LIMITED – ASX FXJ, CHALLENGER LIMITED – ASX CGF, ATLAS IRON LIMITED – ASX AGO, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, SEEK LIMITED – ASX SEK, INVESTA OFFICE FUND – ASX IOF, INDEPENDENCE GROUP NL – ASX IGO, WESFARMERS LIMITED – ASX WES, RIO TINTO LIMITED – ASX RIO, WESTFIELD CORPORATION – ASX WFD, FORTESCUE METALS GROUP LIMITED – ASX FMG, GOODMAN GROUP – ASX GMG, UNIVERSITY OF NEW SOUTH WALES, AUSTRALIAN SECURITIES EXCHANGE. CORPORATE GOVERNANCE COUNCIL, GMI RATINGS

Big four banks facing strong competition selling superannuation to their customers

Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-14

A Roy Morgan Research Consumer Single Source survey has found that National Australia Bank had an 18.4 per cent share of its customers’ superannuation wallet in the year to July 2014. This compares with 20.5 per cent in the year to July 2010. The Commonwealth Bank now has a 13.2 per cent share of its customers’ super wallet, followed by Westpac with 13 per cent. Meanwhile, industry super funds hold around 25 per cent of bank customers’ super wallet, while AMP holds about six per cent

CORPORATES
ROY MORGAN RESEARCH LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP LIMITED – ASX AMP

ACCC orange light on Wotif takeover

Original article by Jamie Freed
The Australian Financial Review – Page: 15 : 5-Sep-14

The Australian Competition & Consumer Commission (ACCC) had been widely tipped to approve Expedia’s acquisition of Wotif.com. However, the competition regulator has expressed concern that the $A703m deal may lead to an increase in commission rates in the accommodation sector. The ACCC has noted that Wotif.com’s low commission rates may have influenced rivals such as Expedia to offer lower rates in Australia than in other markets

CORPORATES
WOTIF.COM HOLDINGS LIMITED – ASX WTF, EXPEDIA INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BOOKING.COM BV, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG, CLIFFORD CHANCE, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, HELLOWORLD LIMITED – ASX HLO, STA TRAVEL PTY LTD, PRICELINE.COM, EUROMONITOR, JETSET TRAVELWORLD LIMITED, STELLA TRAVEL SERVICES LIMITED, DRANSFIELD HOTELS AND RESORTS PTY LTD, ACCOMMODATION ASSOCIATION OF AUSTRALIA PTY LTD

Murray review could lift costs

Original article by Kylar Loussikian
The Australian – Page: 18 : 4-Sep-14

JPMorgan banking analyst Scott Manning warns that wholesale funding costs in the banking sector may rise some $A2.2bn, if recommendations likely to be made by the Australian Government’s new financial system review are adopted. A major issue is potentially more stringent capital requirements to fund home mortgage lending. Interest rate discounts on such loans offered by the main banks have grown to between 1% and 1.4% from 0.2% in 2009

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, JP MORGAN AUSTRALIA LIMITED

Consumer confidence improving

Original article by Shane Wright
The West Australian – Page: 8 : 4-Sep-14

There has been a one per cent increase in the number of Western Australians who anticipate an improvement in the state’s economy. Likewise, the latest consumer confidence data from the Chamber of Commerce & Industry of Western Australia shows there has been a five per cent fall in the number of people who anticipate that the economy will deteriorate. Meanwhile, state final demand declined by 0.3 per cent in the June 2014 quarter

CORPORATES
CHAMBER OF COMMERCE AND INDUSTRY OF WESTERN AUSTRALIA (INCORPORATED), AMP LIMITED – ASX AMP

Epic $70b dividend haul

Original article by Vesna Poljak
The Australian Financial Review – Page: 17 & 27 : 4-Sep-14

Credit Suisse estimates that companies in the S&P/ASX 200 announced $A67.8bn worth of dividends in 2013-14, compared with $A61.3bn in the previous financial year. Hasan Tevfik of Credit Suisse notes that some companies are allowing shareholders to receive shares via dividend reinvestment plans rather than be paid in cash. He adds that capital expenditure is also being adversely affected by increased dividend payouts

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, STANDARD AND POOR’S ASX 200 INDEX, TELSTRA CORPORATION LIMITED – ASX TLS, WESFARMERS LIMITED – ASX WES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Mining tax deal delays 12pc super until 2025

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 3-Sep-14

On 2 September 2014, the Australian Government finally succeeded in repealing the minerals resource rent tax in the Senate, after striking a deal with the Palmer United Party. The superannuation guarantee will now not be increased again from its current level of 9.5% until mid-2021. It will then reach the 12% target set by the previous federal government in its mining sector tax plans by 2025. Prime Minister Tony Abbott and Treasurer Joe Hockey says the Australian Labor Party could have averted the delay, which will reduce the retirement savings pool by $A128bn over 10 years, by supporting the repeal

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, PALMER UNITED PARTY, AUSTRALIA. DEPT OF FINANCE, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD, FINANCIAL SERVICES COUNCIL, RIO TINTO LIMITED – ASX RIO, BUSINESS COUNCIL OF AUSTRALIA

Correction in housing market ‘inevitable’

Original article by Damon Kitney
The Australian – Page: 21 : 3-Sep-14

Residential real estate prices have risen an average 15% in a year in the Australian state and territory capital markets, while auction clearance rates in late August 2014 are around 70%. Australian Prudential Regulation Authority data also indicate that the main four banks are taking on riskier mortgage loan borrowers. However business leader David Gonski says while an eventual price decline is a certainty in the housing market, the banks are able to manage their lending strategies

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, SCHULTE RESEARCH INTERNATIONAL