K: Financial and Insurance Services

Regulator confident plans are in place

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Original article by Michael Roddan
The Weekend Australian – Page: 26 : 29-Feb-20

The Australian Securities & Investments Commission is working with the Australian Financial Markets Association and large institutions to ensure that the coronavirus outbreak does not stop financial markets from remaining open. ASIC chairman James Shipton notes that it has a pandemic response plan in place, while ASIC’s executive director of markets Greg Yanco says the economic impact of the virus is uncertain. Shipton says ASIC has set up an internal working group to monitor the potential threat that the coronavirus poses and to work with other regulators.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN FINANCIAL MARKETS ASSOCIATION INCORPORATED

Investors rush to safe havens as stocks slide, dollar dives in coronavirus rout

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Original article by David Rogers
The Australian – Page: 17 & 26 : 28-Feb-20

The Australian sharemarket has fallen by seven per cent since reaching a record high of 7,197.2 points on 20 February, slashing its capitalisation by $150bn. The benchmark S&P/ASX 200 reached an intra-day low of 6,630.5 points on 27 February, its lowest level in three months, while the Australian dollar tested an 11-year low. Mikhail Sprogis of Goldman Sachs has forecast that the gold price will top $US1,800 an ounce in the next 12 months, amid a flight to safe-haven investments.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, THE GOLDMAN SACHS GROUP INCORPORATED

APRA probes bank, insurer virus plans

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Original article by Michael Roddan
The Australian – Page: 17 & 26 : 28-Feb-20

The Australian Prudential Regulation Authority has not updated its guidelines on pandemics since 2013, but the coronavirus outbreak has prompted it to activate Prudential Practice Guide CPG 233 – Pandemic Planning. APRA has asked financial institutions such as banks, insurers and superannuation funds to demonstrate that they are sufficiently prepared for a global pandemic. Westpac has responded to the outbreak by imposing a ban on employees travelling to China for business purposes, while AMP is requiring some employees in coronavirus epicentres to work from home.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP

Market sinking in a sea of red

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Original article by David Rogers
The Australian – Page: 17 & 27 : 27-Feb-20

The Australian sharemarket has shed 6.3 per cent since reaching a record high of 7,197.2 points on 20 February, slashing its capitalisation by $136bn. Richard Coppleson of Bell Potter believes that a further sell-off is likely amid growing concern about the spread of the coronavirus beyond mainland China. Wall Street and Asian sharemarkets have also retreated, while the Australian dollar fell to an 11-year low in local trading on 26 February.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, BELL POTTER SECURITIES LIMITED

Growing super’s $3 trillion funds pool

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Original article by Glenda Korporaal
The Australian – Page: 21 : 26-Feb-20

Data from the Australian Prudential Regulation Authority shows that the total value of assets managed by the nation’s superannuation funds increased by 13 per cent to $2.951bn in 2019. Rice Warner forecasts that the super pool will increase to about $7trn by 2034, and so-called mega funds will dominate the sector. MySuper accounts boasted assets under management of $802bn at the end of 2019, up nearly 20 per cent, while self-managed super funds had assets totalling $739.7bn, an increase of 7.8 per cent.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Earnings shredded as virus fears bite

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Original article by Eli Greenblat, David Rogers
The Australian – Page: 17 & 24 : 26-Feb-20

The coronavirus outbreak has become a major theme for the February reporting season, with a growing number of listed companies issuing earnings downgrades due to the impact of the virus. Treasury Wine Estates, Blackmores and Seek are among the latest companies to issue profit warnings; Treasury has downgraded its earnings expectations for the third time in 2020. Meanwhile, retail group Mosaic Brands had advised that its dividends have been put on hold until the impact of the coronavirus becomes clear.

CORPORATES
TREASURY WINE ESTATES LIMITED – ASX TWE, BLACKMORES LIMITED – ASX BKL, SEEK LIMITED – ASX SEK, MOSAIC BRANDS LIMITED – ASX MOZ

Roy Morgan Customer Satisfaction Awards 2019: the best brands in banking and finance

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Original article by Roy Morgan
Market Research Update – Page: Online : 25-Feb-20

The 2019 Roy Morgan Customer Satisfaction Awards have been presented in Melbourne. This year’s awards added six new banking and finance categories, taking the total list of winning banks, insurers and superannuation funds to fourteen. Commonwealth Bank (Major Bank) continued its dominance by securing its seventh straight customer satisfaction award. Bank Australia (Bank) and Newcastle Permanent Credit Union (Building Society/Credit Union) both recorded their first win of the annual award. RACT (General Insurer) and RAC (Major General Insurer) won their respective categories with seven and 12 monthly wins respectively. Insuranceline (Risk and Life Insurer) took out its third annual award, and MLC (Major Risk and Life Insurer) was a first-time winner. Tasmanian-based St.LukesHealth (Private Health Insurer), Defence Health (Major Private Health Insurer – Not for Profit or Restricted) and ahm (Major Private Health Insurer – Retail) were the other insurance category successes. Macquarie (Retail Superannuation Fund) fought off stiff competition to win another annual award, whereas Colonial First State (Major Retail Superannuation Fund) won comfortably with 11 monthly awards. HESTA (Major Industry Superannuation Fund) was welcomed to the winner’s podium for the first time.

CORPORATES
ROY MORGAN LIMITED

Epidemic will create merger and acquisition opportunities

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Original article by Joyce Moullakis
The Australian – Page: 17 & 19 : 24-Feb-20

Tony Damian of law firm Herbert Smith Freehills expects mergers and acquisitions activity in the Asia-Pacific region to remain strong in 2020. This is despite challenges such as the coronavirus outbreak. Damian forecasts that private equity firms and superannuation funds will be a major driver of M&A activity in Australia during 2020. Meanwhile, data from Refinitiv shows that the value of announced M&A deals in Australia has topped $US14.8bn in the year to date, compared with just $US5.4bn at the same time in 2019.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, REFINITIV AUSTRALIA PTY LTD

Markets hit fresh record high

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Original article by David Rogers
The Australian – Page: 17 & 26 : 21-Feb-20

The Australian sharemarket has gained 7.2 per cent so far in 2020, with the benchmark S&P/ASX 200 reaching a new intra-day high of 7,197.2 points on 20 February. The rally saw a number of blue-chip stocks rise to new highs. Meanwhile, the Australian dollar fell to its lowest level in more than a decade in response to data showing that the unemployment rate rose to 5.3 per cent in January. This in turn heightened market expectations of an official interest rate cut by August.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA

Westpac warns of hit to bottom line

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Original article by Aleks Vickovich
The Australian Financial Review – Page: 19 : 20-Feb-20

Westpac has used a market update for the first quarter of 2019-20 to advise that its earnings for the financial year will be affected by factors such as the Austrac scandal, storms and the bushfires crisis. Citigroup has responded by downgrading its half-year earnings per share forecast by seven per cent, while its forecast for the full year has been reduced by five per cent. Westpac could face fines of up to $2bn for breaching anti-money laundering laws, while it is the subject of two class actions over the scandal.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE