K: Financial and Insurance Services

Concern over funding of class actions

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 13 : 28-Aug-14

The Australian Institute of Company Directors’ GM, Steve Burrell, has urged stricter regulation of litigation funders. He notes that growing competition in the sector has prompted a rise in class actions in the last 18 months. Litigation funders are typically paid 20-35 per cent of the total payout in successful class actions, but Burrell is concerned about a proposal to allow litigation funders to use the common fund system in Australia

CORPORATES
AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, INTERNATIONAL LITIGATION FUNDING PARTNERS INCORPORATED, ALLCO FINANCE GROUP LIMITED, BENTHAM IMF LIMITED – ASX IMF, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CITIBANK PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN COMMUNICATIONS CONSUMER ACTION NETWORK LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, VODAFONE AUSTRALIA LIMITED, NORTON ROSE FULBRIGHT AUSTRALIA

ASIC bid for tougher fines on corporate crime

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Original article by Anthony Klan
The Australian – Page: 21 : 27-Aug-14

The Australian Securities & Investments Commission (ASIC) has lodged a submission with the new financial system review conducted by David Murray for the Federal Government. The watchdog argues that harsher penalties should be rolled out for white-collar crimes, to ensure the perpetrators do no profit. ASIC also says it is not convinced that mandatory minimum balances should be introduced for self-managed superannuation fund accounts, and it seeks increased powers to ban unethical financial planners

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. JOINT STATUTORY COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Australians’ Inflation Expectations fall to 5.0% (down 0.3%)

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Original article by Roy Morgan Research
Morgan Poll Update – Page: Online : 26-Aug-14

A face-to-face Morgan Poll has found that Australian inflation expectations over the next two years fell by 0.3 per cent to five per cent a year in July 2014. This is also 0.3 per cent lower than in June 2013. Analysis by federal voting intention shows that Coalition supporters have the lowest inflation expectations, at four per cent, compared with 5.2 per cent for Australian Labor Party supporters. Roy Morgan Research executive chairman Gary Morgan says the most important policy priority for the Federal Government is to reduce Australia’s high level of unemployment and under-employment if it is to stand any chance of winning the 2016 election

CORPORATES
MORGAN POLL, ROY MORGAN RESEARCH LIMITED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, PALMER UNITED PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

S&P 500 makes history

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Original article by John Kehoe, Jonathan Shapiro
The Australian Financial Review – Page: 19 : 27-Aug-14

The S&P 500 scaled new heights on 25 August 2014, briefly rising above the 2,000-point level. The index reached the 1,000-point milestone for the first time in early February 1998. However, US financial stocks have underperformed over the last 16 years, gaining just 10 per cent overall. Shares in Citigroup, Bank of America and American International Group in particular have been savagely sold down since 1998, while the shares of Australia’s four major banks have surged

CORPORATES
STANDARD AND POOR’S 500 INDEX, CITIGROUP INCORPORATED, BANK OF AMERICA CORPORATION, AMERICAN INTERNATIONAL GROUP INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, PM CAPITAL LIMITED, DELTEC INTERNATIONAL GROUP, JP MORGAN AND COMPANY INCORPORATED

Fairfax-Nine rumours quashed

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Original article by Jake Mitchell
The Australian Financial Review – Page: 17 : 27-Aug-14

The combined stake of 36% in Nine Entertainment held by US-based hedge funds Oaktree Capital and Apollo Global Management will come out of escrow on 28 August 2014. There have been claims in News Corporation newspaper "The Australian" that rival publisher Fairfax Media is preparing to acquire a major holding in Nine. However due to current cross-media ownership laws it would only be able to purchase 14.99% of the free-to-air TV group, and Fairfax has rejected the speculation

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, OAKTREE CAPITAL MANAGEMENT LLC, APOLLO GLOBAL MANAGEMENT LLC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CITIGROUP PTY LTD

How stocks have fared in a post-results world

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Original article by Patrick Commins
The Australian Financial Review – Page: 29 : 27-Aug-14

Analysis by Bloomberg shows that Nine Entertainment Group, Slater & Gordon, Seven West Media, Crown Resorts and Rio Tinto are the most popular Australian-listed stocks among analysts as the August 2014 reporting season winds down. Meanwhile, M2 Group and OzForex have received the biggest upgrades in terms of analysts’ recommendations, while Tatts Group and Lynas Corporation are the stocks that have been downgraded the most

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SLATER AND GORDON LIMITED – ASX SGH, SEVEN WEST MEDIA LIMITED – ASX SWM, CROWN RESORTS LIMITED – ASX CWN, RIO TINTO LIMITED – ASX RIO, M2 GROUP LIMITED – ASX MTU, OZFOREX GROUP LIMITED – ASX OFX, TATTS GROUP LIMITED – ASX TTS, LYNAS CORPORATION LIMITED – ASX LYC, BLOOMBERG LP, THE REJECT SHOP LIMITED – ASX TRS, CARSALES.COM LIMITED – ASX CRZ, RUSSELL INVESTMENTS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, COCHLEAR LIMITED – ASX COH, ALS LIMITED – ASX ALQ, LEIGHTON HOLDINGS LIMITED – ASX LEI, COCA-COLA AMATIL LIMITED – ASX CCL

Almond harvest profits go nuts

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Original article by Sue Neales
The Australian – Page: 20 : 26-Aug-14

Select Harvests has posted a 2013-14 full-year net profit increase to an all-time high $A29m, as almond prices rose by a third and this compensated for a harvest that was down 17% after a poor season. The company has acquired three additional orchards and will source $A47m in fresh capital via a share issue priced at $A5.35. The final distribution is $A0.09 unfranked. MD Paul Thompson said Select Harvests was aiming to reduce its gearing to below 40%

CORPORATES
SELECT HARVESTS LIMITED – ASX SHV

NAB funding costs hit GFC low

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Original article by Michael Bennet
The Australian – Page: 23 : 26-Aug-14

Debt financing has become more affordable for Australia’s four main banks, meaning they can compete more vigorously for mortgage loan customers without sacrificing margins. National Australia Bank has in mid-August 2014 sourced $A1.65bn via bonds with a maturity of 5.25 years and an interest rate of just 82 basis points above the bank bill swap rate. This is the lowest cost for such a move by the "big four" since the global financial crisis. The majority of bank funding still comes from deposits, but long-term debt accounts for 12%

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, RESERVE BANK OF AUSTRALIA, MOODY’S INVESTORS SERVICE INCORPORATED, DEUTSCHE BANK AG

Shareholders get dividend from nib

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Original article by Jessica Gardner
The Australian Financial Review – Page: 18 : 26-Aug-14

NIB Holdings has posted a 2013-14 net profit of $A69.9m, which is four per cent higher than previously. The private health insurer’s operating profit increased by 4.3 per cent to $A72.3m, and revenue was up 15 per cent at $A1.53bn. Shareholders will receive a special dividend of $A0.09 per share. MD Mark Fitzgibbon notes that some customers did not renew their policies after NIB increased its premiums by 7.99 per cent

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, MEDIBANK PRIVATE LIMITED, CLSA AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, ISELECT LIMITED – ASX ISU, COMPARE THE MARKET PTY LTD

Escrow test ahead for ASX debutants

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Original article by Vesna Poljak, Philip Baker
The Australian Financial Review – Page: 15 & 20 : 26-Aug-14

Investors in companies that listed in late 2013 and early 2014 will be able to sell stock from late August 2014. Shares worth nearly $A3 billion will come out of escrow. Veda Group revealed that shares valued at $A1.1 billion will be released from escrow on 27 August. Geminder Holdings said that it will not sell down its stake in Pact Group when about $A465 million of shares come out of escrow on the same day

CORPORATES
VEDA GROUP LIMITED – ASX VED, PACT GROUP HOLDINGS LIMITED – ASX PGH, GEMINDER HOLDINGS PTY LTD, PERPETUAL LIMITED – ASX PPT, PACIFIC EQUITY PARTNERS PTY LTD, DICK SMITH HOLDINGS LIMITED – ASX DSH, ANCHORAGE CAPITAL PARTNERS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, APOLLO GLOBAL MANAGEMENT LLC, OAKTREE CAPITAL MANAGEMENT LLC, OZFOREX GROUP LIMITED – ASX OFX, MYER HOLDINGS LIMITED – ASX MYR, MEDIBANK PRIVATE LIMITED, HEALTHSCOPE LIMITED – ASX HSO, ESTIA HEALTH PTY LTD, RETIRE AUSTRALIA PTY LTD, HOYTS CINEMAS LIMITED, OOH!MEDIA PTY LTD, APN OUTDOOR PTY LTD