K: Financial and Insurance Services

Cyclical stocks could win favour as interest rates rise

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Original article by Vesna Poljak
The Australian Financial Review – Page: 22 : 22-Aug-14

There is general consensus among economists that the Reserve Bank of Australia will eventually begin to tighten monetary policy. Graham Harman of Russell Investments notes that cyclical stocks in particular tend to benefit from an increase in interest rates. However, David Sokulsky of UBS says historical analysis shows that stocks such as infrastructure, banks and utilities have been adversely affected by a rise in interest rates

CORPORATES
RESERVE BANK OF AUSTRALIA, RUSSELL INVESTMENTS PTY LTD, UBS HOLDINGS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD

Murray wants banks to prepare for market correction

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Original article by James Eyers, Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 22-Aug-14

The chairman of the financial system inquiry, David Murray, notes that Australia was largely unaffected by the global financial crisis. However, he warns that the domestic banking sector must take action to be ready for an eventual correction in asset prices, which have been boosted by stimulus measures in the wake of the crisis. Murray has previously noted that it could be necessary for banks to increase their capital reserves

CORPORATES
AUSTRALIAN BANKERS’ ASSOCIATION, RESERVE BANK OF AUSTRALIA

RBA tells Abbott to hold nerve

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Original article by Phillip Coorey,Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 21-Aug-14

The Australian Government continues to lobby minor party and independent senators on getting $A47bn worth of May 2014 Budget measures passed. However Prime Minister Tony Abbott has scaled back his rhetoric and is no longer labelling the Budget situation a "crisis" or "emergency". Meanwhile Reserve Bank of Australia governor Glenn Stevens has backed the Government’s cuts, which he said were far from dramatic. He also noted that monetary policy alone could not keep the economy on track

CORPORATES
RESERVE BANK OF AUSTRALIA,AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET,AUSTRALIA. DEPT OF THE TREASURY,AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA,AUSTRALIAN MEDICAL ASSOCIATION LIMITED,AUSTRALIA. DEPT OF FINANCE,LIBERAL DEMOCRATIC PARTY,LIBERAL PARTY OF AUSTRALIA,AUSTRALIAN LABOR PARTY,NICK XENOPHON GROUP,DELOITTE ACCESS ECONOMICS PTY LTD

IAG focuses on the bottom line

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Original article by Michael Bennet
The Australian – Page: 21 : 20-Aug-14

Insurance Australia Group (IAG) has announced a 2013-14 full-year net profit increase of 59% to $A1.23bn, as gross written premiums also lifted 3% to reach $A9.8bn. The 12-month distribution has been boosted 8.3% to $A0.39, and on 19 August 2014 the stock closed $A0.03 higher at $A6.20. CEO Mike Wilkins said the Australian-listed company would focus on improved margins rather than to defend market share, as smaller rivals such as Youi, Budget and Progressive as well as supermarket chains and major banks expand their business

CORPORATES
INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, QBE INSURANCE GROUP LIMITED – ASX QBE, SUNCORP GROUP LIMITED – ASX SUN, ALLIANZ AUSTRALIA LIMITED, YOUI PTY LTD, BUDGET DIRECT INSURANCE AGENCY PTY LTD, PROGRESSIVE DIRECT INSURANCE COMPANY, NRMA INSURANCE LIMITED, SGIO INSURANCE LIMITED, WESFARMERS LIMITED – ASX WES, CITIGROUP PTY LTD, UBS HOLDINGS PTY LTD

Forecasts dip as economy slackens

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 28 : 20-Aug-14

The Australian sharemarket has gained 3.5 per cent so far in 2014, although it has risen by 27 per cent in the last two years. Tony Brennan of Citigroup forecasts that the benchmark S&P/ASX 200 Index will end the year at 5,750 points. However, he warns that the market has lowered earnings expectations for 2014-15 by 0.5 per cent so far, and this could be scaled back further

CORPORATES
CITIGROUP PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, ARNHEM INVESTMENT MANAGEMENT PTY LTD, SUNCORP GROUP LIMITED – ASX SUN, TELSTRA CORPORATION LIMITED – ASX TLS, RIO TINTO LIMITED – ASX RIO, COMPUTERSHARE LIMITED – ASX CPU, JAMES HARDIE INDUSTRIES PLC – ASX JHX, BLOOMBERG LP, LEUTHOLD GROUP LLC, BARCLAYS BANK PLC, NEWS CORPORATION – ASX NWS, FAIRFAX MEDIA LIMITED – ASX FXJ, DOWNER EDI LIMITED – ASX DOW, LEIGHTON HOLDINGS LIMITED – ASX LEI

oOh!Media take two: better this time

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Original article by Jake Mitchell
The Australian Financial Review – Page: 18 : 20-Aug-14

Champ Private Equity plans to offload its controlling stake in outdoor advertising group oOh!Media via a trade sale or an IPO. The business has become the largest in its sector in Australia following its merger with Eye Corp. oOh!Media was listed on the sharemarket until 2012, and CEO Brendon Cook concedes that it was probably too small to justify being a public company at the time

CORPORATES
OOH!MEDIA PTY LTD, EYE CORP LIMITED, CHAMP PRIVATE EQUITY PTY LTD, CASTLE HARLAN AUSTRALIAN MEZZANINE PARTNERS PTY LTD, TEN NETWORK HOLDINGS LIMITED – ASX TEN, MACQUARIE GROUP LIMITED – ASX MQG, HIGHBURY PARTNERSHIP PTY LTD, THE LEADING EDGE MARKET RESEARCH CONSULTANTS PTY LTD

Aldi fails to disclose tap and go charges

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Original article by Shaun Drummond
The Australian Financial Review – Page: 8 : 19-Aug-14

The Australian Securities & Investments Commission has ordered Aldi to take remedial action to display fees for contactless card transactions at the point of sale. An investigation by the corporate regulator found that Aldi had failed to disclose the fact that a surcharge of 0.5 per cent applies to payments that are made using so-called "tap and go" credit cards

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, RESERVE BANK OF AUSTRALIA, VISA INTERNATIONAL, MASTERCARD AUSTRALIA LIMITED

Stricter super rules ‘inevitable’

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 18-Aug-14

Ernst & Young’s Graeme McKenzie forecasts that at some point the Australian Prudential Regulatory Authority will subject the nation’s $A1.8bn superannuation industry to greater supervision. He doubts that the regulatory regime will be tightened in the near-term, as APRA released new standards in 2013, but he argues that the amount of money flowing into the sector will necessitate stricter regulation in the future

CORPORATES
ERNST AND YOUNG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, TOWERS WATSON

Hoyts Group plans roadshow to market $900m float

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Original article by Sarah Thompson, Jake Mitchell, Anthony Macdonald
The Australian Financial Review – Page: 36 : 18-Aug-14

Pacific Equity Partners will undertake an overseas roadshow to promote the proposed sharemarket float of Hoyts Group. The private equity firm paid $A440m for the cinema group in late 2007, and the IPO is expected to be worth between $A800m and $A900m. Hoyts operates 44 cinema complexes, while it also owns a DVD distribution business and the Val Morgan cinema advertising business

CORPORATES
HOYTS CINEMAS LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, VAL MORGAN AND COMPANY (AUSTRALIA) PTY LTD, UBS HOLDINGS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, CINIPLEX, VILLAGE ROADSHOW LIMITED – ASX VRL, AMALGAMATED HOLDINGS LIMITED – ASX AHD, DALIAN WANDA GROUP COMPANY LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FOXTEL MANAGEMENT PTY LTD

ATO freezes assets of Perth investor

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Original article by Sarah Danckert
The Australian – Page: 17 : 18-Aug-14

The directors of Swiss entity Growth Investment Fund have been ordered by the Federal Court of Australia to comply with an assets freeze order sought by the Australian Taxation Office (ATO). The agency says there is an outstanding tax liability of $A14m, and the move applies to a stock portfolio worth $A9.5m as well as a total of four bank accounts held in Australia, France and Switzerland. It is believed the ATO’s action stems from a "Project Wickenby" investigation of a Perth-based investor

CORPORATES
GROWTH INVESTMENT FUND, AUSTRALIAN TAXATION OFFICE, FEDERAL COURT OF AUSTRALIA, WESFARMERS LIMITED – ASX WES, COCA-COLA AMATIL LIMITED – ASX CCL, REGIS RESOURCES LIMITED – ASX RRL, EMPIRED LIMITED – ASX EPD, EUROZ LIMITED – ASX EZL, EUROZ SECURITIES LIMITED, MONAVAL VERMOGENSVERWALTUNGS AG, ZERO NOMINEES PTY LTD