K: Financial and Insurance Services

Woodside buyback in doubt

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 & 23 : 31-Jul-14

Woodside Petroleum shareholders will vote on a proposed share buyback at an extraordinary general meeting on 1 August 2014. The deal to buy $US2.68bn ($A2.85bn) worth of shares from Royal Dutch Shell must be supported by 75 per cent of votes, but a number of superannuation funds are expected to oppose it. There is concern that the selective buyback treats Shell more favourably than other Woodside shareholders

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, PLATO INVESTMENT MANAGEMENT LIMITED, ALPHINITY INVESTMENT MANAGEMENT PTY LTD, ISS PROXY AUSTRALIA, OWNERSHIP MATTERS PTY LTD, CGI GLASS LEWIS PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, WESTFIELD CORPORATION – ASX WFD, STANDARD AND POOR’S ASX 300 INDEX

ANZ-Roy Morgan Consumer Confidence Back Above Long-Run Average Levels

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 29-Jul-14

The ANZ-Roy Morgan Consumer Confidence rating for Australia rose by 2.4 per cent to 116.2 in the week ended 27 July 2014. Consumer confidence has now completely retraced the sharp deterioration seen in the weeks around the Federal Government’s May 2013 Budget. While the recent improvement in confidence is an encouraging sign, ANZ’s base case remains that consumer spending growth will remain moderate in 2014, before improving in 2015 as the non-mining recovery gathers momentum

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

S&P draws line in the sand on national debt

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Original article by Adam Creighton
The Australian – Page: 21 : 30-Jul-14

Credit ratings agency Standard & Poor’s (S&P) has issued its annual ratings review for 2014, voicing some concerns about the Australian economy. It noted the reliance on China’s growth, the sizeable current account deficit and negative sentiment among investor as factors, as well as the potential for a "bubble" to emerge in the residential real estate market. S&P has also warned state and federal governments that in order to retain the nation’s "AAA" status their total net debt must not exceed 30% of GDP

CORPORATES
STANDARD AND POOR’S (AUSTRALIA) PTY LTD

$3.6b float boosts share confidence

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Original article by Jessica Gardner
The Australian Financial Review – Page: 15 & 20 : 29-Jul-14

Healthscope’s stock closed $A0.11 higher at $A2.21 on 28 July 2014, after dipping to $A2.09 early in its debut trading session The stock was issued at $A2.10 in a $A3.6bn IPO. Private equity firms TPG Capital and The Carlyle Group will retain their 38 per cent stake until Healthscope releases its financial results for fiscal 2015. The two firms had paid $A2.7bn for the private hospitals operator in 2010

CORPORATES
HEALTHSCOPE LIMITED – ASX HSO, TPG CAPITAL LP, THE CARLYLE GROUP, AURIZON HOLDINGS LIMITED – ASX AZJ, MEDIBANK PRIVATE LIMITED, STANDARD AND POOR’S ASX 200 INDEX, RAMSAY HEALTH CARE LIMITED – ASX RHC

Shares rebound and the seven-year itch

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

Australia’s benchmark S&P/ASX 200 Index rose to a new high only six years after the 1987 sharemarket correction, and just three years after the correction in 1980. In contrast, the market is approaching the seventh anniversary of its record close in November 2007, and it has yet to return to or surpass this level. The underperforming junk bond market may prove to be the "turning point" that investors are seeking for shares

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD, NUMERICABLE GROUP SA, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, BARCLAYS GLOBAL INVESTORS

Low rates spur buying spree

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Original article by Samantha Hutchinson
The Australian Financial Review – Page: 4 : 28-Jul-14

The respective residential real estate auction clearance rates for the Sydney and Melbourne markets on the 26-27 July 2014 weekend were 76% and 57%. The national average was 70% for the week, as buyers took advantage of record low interest rates for mortgage loans. The fixed rate has been cut to below 5% for the first time by three of the four major lenders. There is also a recovery underway in the upper end of the market, indicated by news that the "Tukurua" historic mansion in the Perth beachside suburb of Cottesloe has been placed on the market

CORPORATES
HOCKING STUART PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, RICHARDSON AND WRENCH PTY LTD, CORELOGIC AUSTRALIA PTY LTD, RP DATA LIMITED

Woodside gains the backing of ASA

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Original article by Barry FitzGerald
The Australian – Page: 17 : 28-Jul-14

Investors in Woodside Petroleum will on 1 August 2014 vote on the proposed stock repurchasing move worth $A2.85bn that has been triggered by Royal Dutch Shell’s partial divestment. The latter is reducing its stake from 23.1% to 4.5%, and Woodside wants to buy back 9.5% at $A36.49 a share. The company has gained the backing, with some qualifications, of the Australian Shareholders Association. However it must still address concern by institutional investors such as superannuation funds at the lack of franking credits. On 25 July the stock closed at $A42.70

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, ROYAL DUTCH SHELL PLC, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION

Mesoblast sows the seeds for stem cell success

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Original article by Rick Wallace
The Australian – Page: 15 & 16 : 28-Jul-14

A new regulatory environment in Japan means it will be the initial market in which Australian-listed biotechnology group Mesoblast launches its revolutionary stem cells therapy product. CEO Silviu Itescu notes that this will be a world first, and should boost stock analysts’ forecasts for the company. A 2016 launch in the US is also being aimed for. In that nation Mesoblast has concluded phase III clinical trials of mesenchymal stem cells for treating childhood graft-versus-host-disease. The group has cash holdings of about $A220m, and can allocate funding to separate trials of its degenerative disc repair product

CORPORATES
MESOBLAST LIMITED – ASX MSB, UNITED STATES. FOOD AND DRUG ADMINISTRATION, JCR PHARMACEUTICALS COMPANY LIMITED, TEVA PHARMACEUTICAL INDUSTRIES LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD, BELL POTTER SECURITIES LIMITED, BELL FINANCIAL GROUP LIMITED – ASX BFG

Bendigo ‘redy’ to pay through smartwatches

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Original article by Shaun Drummond, Ruth Liew
The Australian Financial Review – Page: 17 : 28-Jul-14

Bendigo & Adelaide Bank has launched a new mobile payments network that is dubbed "redy" and can be used with a Samsung smartwatch and smartphone. The technology was developed by the regional bank’s Community Telco subsidiary. The redy system uses QR codes to verify transactions, while customers also receive an online token for each redy transaction, which can be converted into cash that can be spent or donated to charity

CORPORATES
BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, COMMUNITY TELCO AUSTRALIA PTY LTD, PAYPAL AUSTRALIA PTY LTD, SAMSUNG CORPORATION, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, GOOGLE INCORPORATED

Low rates spur homeowners to clear mortgages

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Original article by Clancy Yeates
The Australian Financial Review – Page: 13 & 16 : 28-Jul-14

National Australia Bank (NAB) notes that many of its home loan customers are taking advantage of low interest rates to pay off their mortgage more quickly. Some 85 per cent of customers’ monthly repayments now exceed the minimum requirement. Anthony Cahill of NAB says customers are becoming more informed and prudent about understanding and managing their debt. He also downplays concerns about banks easing their lending standards, stressing that NAB assesses borrowers very closely

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, CREDIT SUISSE (AUSTRALIA) LIMITED, RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA