Slowing sales hit Woolies earnings

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Original article by Eli Greenblat
The Australian – Page: 19 : 27-Feb-20

Woolworths has posted a 2019-20 interim net profit of $887m, which is 7.7 per cent lower than previously. The retail giant’s half-year accounts included an $80m hit from its wage underpayments scandal. Woolworths has advised that its wage remediation costs have blown out to $315m, plus $80 million in interest payments. Meanwhile, CEO Brad Banducci notes that the group’s sales have been impacted by the coronavirus, particularly in suburbs that have a high proportion of Asian consumers and students from China.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW

Airlines set for worst since GFC

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Original article by Lucas Baird
The Australian Financial Review – Page: 19 : 27-Feb-20

CAPA-Centre for Aviation chairman Peter Harbison says the coronavirus will have a major impact on the global aviation sector if it is not contained quickly. He warns that if the virus outbreak becomes a pandemic, it will have the biggest impact on aviation since the global financial crisis. The International Air Transport Association estimates that the coronavirus will reduce the earnings of Asia-Pacific airlines by $US27.8bn in 2020.

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CAPA – CENTRE FOR AVIATION, INTERNATIONAL AIR TRANSPORT ASSOCIATION

ACMA report shows Australians are embracing data-hungry tech

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Original article by Finbar O’Mallon
The New Daily – Page: Online : 27-Feb-20

The Australian Communications & Media Authority’s annual report has highlight consumers’ growing use of digital technologies. ACMA notes that almost nine in 10 Australians accessed the internet via mobile phone in 2018-19, although fixed internet lines accounted for the bulk of data downloads. Meanwhile, more than half of Australians use Netflix, while one in 10 Australian use at least four streaming video services. The figures also show that online advertising is now worth $8.8bn a year.

CORPORATES
AUSTRALIAN COMMUNICATIONS AND MEDIA AUTHORITY, NETFLIX INCORPORATED

Rio to spend $US1b on climate

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Original article by Peter Ker
The Australian Financial Review – Page: 22 : 27-Feb-20

Rio Tinto has updated its climate change policies, which now include a net zero carbon emissions target of 2050. In addition, the resources group aims to reduce its scope 1 and scope 2 emissions to 15 per cent of 2018 levels by 2030, while it has set a goal of reducing its emissions intensity to 30 per cent of 2018 levels by the same date. However, it has not set any targets for scope 3 emissions. Rio Tinto has also committed to investing $US1bn ($1.5bn) in climate initiatives over the next five years.

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RIO TINTO LIMITED – ASX RIO

What’s our strategy for slump in wake of virus?

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Original article by Robert Gottliebsen
The Australian – Page: 25 : 26-Feb-20

Research by Roy Morgan shows that one-in-six Australian businesses have already been impacted by the coronavirus outbreak. This includes sectors of the economy that are among the biggest employers, such as manufacturing and education. However, small and medium enterprises are likely to be hardest hit by the economic fallout from the virus. The federal government is therefore to be commended for proposing to require large companies to pay suppliers more promptly. At present, the proposed legislation only applies to businesses with turnover of up to $10m, but it should be expanded to include medium-sized businesses.

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ROY MORGAN LIMITED

PM won’t identify foreign spy ring

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Original article by Andrew Tillett
The Australian Financial Review – Page: 4 : 26-Feb-20

ASIO’s director-general Mike Burgess has declined to identify any countries behind a recently-exposed foreign spy ring. Prime Minister Scott Morrison has also refused to do so, citing national interest concerns. However, Centre Alliance senator Rex Patrick says nations such as the US and Canada have "called out" the countries that are involved in espionage and foreign influence. He has suggested that China is the "most likely culprit".

CORPORATES
AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CENTRE ALLIANCE

ANZ-Roy Morgan Consumer Confidence decreases to 108.3

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Feb-20

ANZ-Roy Morgan Australian Consumer Confidence fell 0.7% to 108.3 in the week ended 23 February. Current finances fell 4%, while future finances were down 5.2% for a second straight weekly loss. In contrast, current economic conditions gained 2.4%, building on the strong rise of 6.5% in the previous reading; future economic conditions rose 2.7%. The ‘Time to buy a major household item’ subindex gained 1.7% after declining for two successive weeks. The four-week moving average for inflation expectations was stable at 4%.

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

Saviour found for Jeanswest chain

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Original article by Eli Greenblat
The Australian – Page: 19 : 26-Feb-20

The Australian subsidiary of Hong Kong-based Harbour Guide has secured a deal to acquire failed clothing retailer Jeanswest. Harbour Guide is owned by businessman Chun Fan Yeung, who is a shareholder in Jeanswest’s former parent company, Howsea. The sale to Harbour Guidance Pty Ltd is conditional on landlords agreeing to new lease arrangements for Jeanswest stores. The deal will result in up to 106 stores remaining open, which will allow about 680 employees to keep their jobs.

CORPORATES
JEANSWEST CORPORATION PTY LTD, HARBOUR GUIDE LIMITED, HARBOUR GUIDANCE PTY LTD, HOWSEA 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.

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AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RICE WARNER ACTUARIES PTY LTD

Blow to trade far larger than Trump

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Original article by Tony Boyd
The Australian Financial Review – Page: 1 & 16 : 26-Feb-20

BlackRock CEO Larry Fink says the coronavirus outbreak has highlighted the dangers of being too dependent on China for imported goods, and companies will need to diversify their supply chains. He also expects the coronavirus to have a greater impact on international trade than the tariff war that was initiated by President Donald Trump. Fink adds that rather than relying on the monetary policy measures of central banks, governments will need to pursue fiscal stimulus if the coronavirus affects global economic growth.

CORPORATES
BLACKROCK INCORPORATED, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT