Early exit for BHP’s Mackenzie

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Original article by Nick Evans
The Australian – Page: 14 : 24-Dec-19

BHP’s outgoing CEO Andrew Mackenzie had previously advised that he will leave the resources giant on 30 June. However, he says the transition to new CEO Mike Henry is ahead of schedule, so he will now depart on 31 March. BHP has advised that Mackenzie will not receive any severance pay or a payment in lieu of notice. Henry, who formally takes the helm on 1 January, is expected to make changes to BHP’s executive leadership team.

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BHP GROUP LIMITED – ASX BHP

Village Roadshow screened rival offer before Pacific Equity Partners deal

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Original article by Kylar Loussikian, Jennifer Duke
The Sydney Morning Herald – Page: Online : 24-Dec-19

Morningstar estimates that there is a 75 per cent chance that Village Roadshow Limited shareholders will accept a takeover proposal from Pacific Equity Partners. Meanwhile, it has been revealed that Village Roadshow Corporation’s owners considered a rival offer from BGH Capital before agreeing to accept PEP’s offer for its stake in VRL. VRC is owned by Robert Kirby, John Kirby and VRL CEO Graham Burke.

CORPORATES
VILLAGE ROADSHOW LIMITED – ASX VRL, VILLAGE ROADSHOW CORPORATION LIMITED, PACIFIC EQUITY PARTNERS PTY LTD, BGH CAPITAL PTY LTD, MORNINGSTAR PTY LTD

Paid leave for ANZ’s fire volunteers

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Original article by Gerard Cockburn
The Australian – Page: 14 : 24-Dec-19

The ANZ Bank has advised that its employees who are volunteer firefighters will be entitled to special paid leave in addition to their standard leave entitlements. ANZ provides its employees with up to five days of paid community service leave each year, and staff who use all of this leave during the current bushfire crisis will be able to access the bank’s special leave policy.

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AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIAN LABOR PARTY

Economy fear with credit in the doldrums

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Original article by David Rogers, Michael Roddan
The Australian – Page: 13 & 17 : 24-Dec-19

Data from the Reserve Bank of Australia shows that lending to businesses and property buyers increased by 0.1 per cent in November and 2.3 per cent in the year to November. This is the lowest rate of growth in private sector credit since April 2010. The figures also show that growth in home loans was 0.2 per cent in November and 2.9 per cent year-on-year, while non-housing credit fell by 0.5 per cent in November and 4.9 per cent year-on-year.

CORPORATES
RESERVE BANK OF AUSTRALIA, COUNCIL OF FINANCIAL REGULATORS, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CORELOGIC AUSTRALIA PTY LTD

Coopers breached covenants, but it’s only small beer

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Original article by Eli Greenblat
The Australian – Page: 13 & 14 : 23-Dec-19

Coopers Brewery’s 2019 financial report shows that shareholders received a total of $13.789m in dividend payments during the last year. Coopers has also disclosed that its banking covenants were breached in June, although the brewer obtained a waiver from its lender. Meanwhile, Coopers’ net profit fell by 31 per cent in 2019, to $16.4m. Coopers is the largest Australian-owned brewer, and the Coopers family comprises the bulk of its shareholders.

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COOPERS BREWERY LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, ANHEUSER-BUSCH INBEV SA/NV, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD

Bashing business damages economy

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Original article by Glenda Korporaal
The Australian – Page: 13 : 23-Dec-19

Former Business Council of Australia president Graham Bradley says that "anti-business rhetoric" within government is having a negative impact on the economy and deterring capital investment. He has also criticised the federal government for aligning itself with small and medium business and denigrating big business. Meanwhile, Australian Investment Council CEO Yasser El-Ansary says weak consumer confidence is deterring companies from investing, adding that the BCA’s proposal to include a business investment allowance in the May 2020 Budget would only provide a short-term economic stimulus.

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BUSINESS COUNCIL OF AUSTRALIA, AUSTRALIAN INVESTMENT COUNCIL

No justice for SMEs when the tax office smells blood

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Original article by Robert Gottliebsen
The Weekend Australian – Page: 31 : 21-Dec-19

The Administrative Appeals Tribunal’s landmark ruling in favour of the Australian Taxation Office against gold refiner EBS has significant implications for small and medium enterprises. The case – which centred on the tax treatment of bullion and scrap gold under the GST regime – had gone on for about six years, and the appeals process is likely to take another several years. The majority of SMEs simply cannot afford the cost of such lengthy legal proceedings. The small business appeals tribunal may provide some relief for SMEs, but government action is needed to make it easier for SMEs to conduct business in Australia.

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AUSTRALIAN TAXATION OFFICE, AUSTRALIA. ADMINISTRATIVE APPEALS TRIBUNAL, EBS

Australia’s economic interests at risk with RBA out of ammunition

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Original article by John Kehoe
The Australian Financial Review – Page: 2 : 21-Dec-19

Paul Brennan of Citigroup notes that the Reserve Bank of Australia’s average cumulative interest rate cut in the last four monetary policy easing cycles was three percentage points. With the cash rate already at a record low of 0.75 following three rate cuts since June, experts warn that the RBA has limited ‘firepower’ in the event of an economic downturn. RBA governor Philip Lowe has ruled out negative interest rates; while he is open to quantitative easing, his preference is for fiscal stimulus and structural reform.

CORPORATES
RESERVE BANK OF AUSTRALIA, CITIGROUP PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Warning on coverage as Rugby Australia toys with Optus deal

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Original article by Lilly Vitorovich, Zoe Samios
The Australian – Page: 15 : 23-Dec-19

Rugby Australia commenced talks with Optus regarding a broadcasting rights deal in November, after rejecting a ‘rollover’ agreement with incumbent broadcaster Foxtel. However, WPP AUNZ director John Steedman warns that a deal with Optus would be ‘disastrous’ for rugby due to the telco’s smaller audience. He also notes that advertisers would prefer a deal with a free-to-air or pay-TV network. Atomic 212 chairman Barry O’Brien agrees that rugby should be on free-to-air or pay-TV.

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RUGBY AUSTRALIA, SINGTEL OPTUS PTY LTD, FOXTEL MANAGEMENT PTY LTD, WPP AUNZ LIMITED – WPP, ATOMIC 212, ENGLISH PREMIER LEAGUE, SEVEN WEST MEDIA LIMITED – ASX SWM, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Fires to destroy 1000 homes

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Original article by Natasha Robinson, Adeshola Ore, Greg Brown
The Australian – Page: 1 & 5 : 23-Dec-19

Prime Minister Scott Morrison says the federal government will develop a nat­ional plan to prevent a repeat of the devastating bushfire season of 2019. Some 789 homes have been lost in New South Wales so far in the bushfire season, with Premier Gladys Berejiklian stating that the town of Balmoral has been largely destroyed in one of the latest fires. A bushfire has also destroyed 72 homes at Cudlee Creek in South Australia’s Adelaide Hills, with a 69-year-old man dying in the blaze. More than 200 fires are still burning across Australia, and NSW Rural Fire Service Commissioner Shane Fitzsimmons has warned that no significant rainfall has been forecast in the near-term.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, NEW SOUTH WALES RURAL FIRE SERVICE