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Retail decline threat to growth

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Original article by Eli Greenblat
The Australian – Page: 17 & 28 : 1-Jun-17

National Australia Bank forecasts that retail sales rose by 0.3 per cent during April 2017, although chief economist Alan Oster says this figure could be optimistic. Official data will be released on 1 June, but some observers believe that retail sales fell in April. Oster says the retail sector is already in recession, and he does not anticipate an improvement in the near-term. A survey on the spending behaviour of NAB customers has highlighted the difficult trading conditions for the retail sector.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, CITIGROUP PTY LTD, MYER HOLDINGS LIMITED – ASX MYR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, SUPER RETAIL GROUP LIMITED – ASX SUL, JB HI-FI LIMITED – ASX JBH, OROTONGROUP LIMITED – ASX ORL, THE REJECT SHOP LIMITED – ASX TRS, ADAIRS LIMITED – ASX ADH, RCG CORPORATION LIMITED – ASX RCG, GODFREYS GROUP LIMITED – ASX GFY, AP EAGERS LIMITED – ASX APE, AUTOMOTIVE HOLDINGS GROUP LIMITED – ASX AHG, DAVID JONES LIMITED, TOPSHOP, HERRINGBONE PTY LTD, RHODES AND BECKETT PTY LTD, DAVID LAWRENCE, PAYLESS SHOES PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, JP MORGAN AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Late bid by media bosses to sway ALP

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Original article by David Crowe
The Australian – Page: 6 : 31-May-17

Media executives will lobby federal politicians to support cross-media ownership reforms at meetings on 31 May. The support of Senate cross-benchers is likely to be crucial, as the Australian Labor Party still opposes abolition of the "two-out-of-three" rule. Communications spokeswoman Michelle Rowland argues that media ownership is already too concentrated under the existing regime. However, she says Labor would vote to scrap the "reach rule" if it is put to parliament in a separate bill.

CORPORATES
AUSTRALIAN LABOR PARTY, ONE NATION PARTY, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS

Second bid pleases Fairfax shareholders

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Original article by Max Mason
The Australian Financial Review – Page: 31 : 22-May-17

Dealogic notes that the two rival bids for Fairfax Media are the largest takeover offers for any publisher worldwide so far in 2017. Allan Gray Australia MD Simon Mawhinney has welcomed Fairfax’s decision to allow TPG Capital and Hellman & Friedman to undertake due diligence. However, neither suitor is likely to make a formal bid before 30 June. TPG Australia boss Joel Thickins has told a Senate committee that the private equity firm will expand the Fairfax business and retain its charter of editorial independence.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, HELLMAN AND FRIEDMAN, ONTARIO TEACHERS’ PENSION PLAN, ALLAN GRAY AUSTRALIA PTY LTD, CONTANGO ASSET MANAGEMENT LIMITED – ASX CGA, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, MACQUARIE CAPITAL PTY LTD, DOMAIN.COM.AU

Watchdog to learn new tricks but old rules remain

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Original article by Mitchell Bingemann
The Australian – Page: 23 & 25 : 22-May-17

The Federal Government has endorsed all 27 recommendations arising from a review of the Australian Communications and Media Authority. Amongst other things, the roles of chair and CEO will no longer be held by the same person under the reforms to be implemented by the Government, while the focus of regulation will shift from traditional media such as print and broadcast to content and delivery channels.

CORPORATES
AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, ONE NATION PARTY, GOOGLE INCORPORATED, YOUTUBE INCORPORATED, AUSTRALIAN TAXATION OFFICE, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT

Hanson holds out on reform package

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Original article by Darren Davidson
The Australian – Page: 23 : 15-May-17

One Nation leader Pauline Hanson has indicated that her party will not support abolition of the "two-out-of-three rule", although it will back the rest of the Federal Government’s proposed media reform package. Communications Minister Mitch Fifield is holding negotiations with senate crossbenchers to secure support for the reforms, although the Opposition also intends to vote against scrapping the two-out-of-three rule.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, ONE NATION PARTY, AUSTRALIAN LABOR PARTY, NICK XENOPHON TEAM, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, FREE TV AUSTRALIA LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, TEN NETWORK HOLDINGS LIMITED – ASX TEN

ANZ-Roy Morgan Australian Consumer Confidence: Stabilising but still below average

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-May-17

ANZ-Roy Morgan Australian Consumer Confidence rose by 0.9% to 112.3 in the week ending 7 May 2017, and it is now just below its long-term average.

CORPORATES
Households’ views towards the economic outlook, both near and long term, posted solid increases of 5.0% and 4.9% respectively. The five-year economic outlook is now at its highest value since mid-February, though both are still well below their long-term average. Households’ views towards their finances were mixed. Confidence around current finances fell 3.3%, more than offsetting the 2.6% rise in the previous week. Meanwhile, views about future finances rose a modest 1.2%, partially reversing its previous 3.6% fall.

Reform package boosts shares

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Original article by Darren Davidson
The Australian – Page: 24 : 9-May-17

The Federal Government’s latest media reform proposals prompted a rally in the share prices of listed media groups on 8 May 2017. In addition to abolishing the "reach rule" and the "two out of three rule", the Government plan to replace TV broadcasting licence fees with an annual spectrum fee and ban gambling advertisements during live sports broadcasts prior to 8:30pm. Macquarie Group says the proposed reforms are positive for TV networks.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, MACQUARIE GROUP LIMITED – ASX MQG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, WIN CORPORATION PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, APN NEWS AND MEDIA LIMITED – ASX APN, TPG CAPITAL LP, FACEBOOK INCORPORATED, GOOGLE INCORPORATED

TPG bid ‘cherry-picks’ Fairfax assets

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Original article by Max Mason, Sarah Thompson, Anthony Macdonald
The Australian Financial Review – Page: 1 & 14 : 9-May-17

Legg Mason Martin Currie’s Patrick Potts says TPG Capital should make a takeover offer for all of Fairfax Media’s assets. TPG and the Ontario Teachers’ Pension Plan have made an indicative offer of $A0.95 per share for the Domain property listings business, Fairfax’s three flagship newspapers, and its events and digital ventures. Potts believes the $A2.2bn offer undervalues the assets that the TPG-led consortium wants to buy, while he adds that Fairfax shareholders would be left with "structurally challenged assets" whose value is difficult to determine.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, ONTARIO TEACHERS’ PENSION PLAN, DOMAIN.COM.AU, LEGG MASON MARTIN CURRIE, THORNEY INVESTMENT GROUP AUSTRALIA PTY LTD, ALLURE MEDIA PTY LTD, THE HUFFINGTON POST, MACQUARIE MEDIA LIMITED – ASX MRN, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, DEUTSCHE BANK AG, FAIRFAX NEW ZEALAND LIMITED, NZME LIMITED – ASX NZM, NEW ZEALAND. COMMERCE COMMISSION, PLATINUM EQUITY HOLDINGS, APN NEWS AND MEDIA LIMITED – ASX APN, FETCH PLUS INCORPORATED PTE LTD

Journalist cuts ‘will help drive Fairfax profits’

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Original article by Scott Murdoch
The Australian – Page: 4 : 5-May-17

Fairfax Media CEO Greg Hywood says back-office functions rather the editorial department have borne the brunt of its cost-cutting over the last five years. Hywood also says the latest round of redundancies will be the last, and he argues that Fairfax’s newspapers must be both profitable and sustainable in the long-term. Fairfax journalists hope that shareholders and advertisers will support their seven-day strike in response to the latest downsizing, which will result in the loss of 125 newsroom jobs.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIA. FAIR WORK COMMISSION

Fairfax journos strike as one in four jobs cut

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Original article by Stephen Brook, Mitchell Bingemann, Brad Norington
The Australian – Page: 6 : 4-May-17

A Fairfax Media spokesman says the print and digital editions of "The Age" and "The Sydney Morning Herald" will continue to be produced during industrial action. Fairfax journalists have commenced a seven-day strike in response to Fairfax’s measures to reduce costs by an additional $A30m. This will include a downsizing of its newsroom staff, initially via voluntary redundancies. Some 125 jobs will be cut, which equates to about 25 per cent of Fairfax’s journalists.

CORPORATES
FAIRFAX MEDIA LIMITED – ASX FXJ, AUSTRALIA. FAIR WORK COMMISSION, NATIONAL PRESS CLUB (AUSTRALIA), NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS