Lawyers unite to stop erosion of freedoms

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Original article by Chris Merritt
The Australian – Page: 6 : 4-Sep-19

The Australian Federal Police raids on the ABC’s Sydney offices and the home of a News Corp journalist continue to attract scrutiny. Law Council president Arthur Moses will use a National Press Club speech on 4 September to express concern that Australians’ rights and freedoms are being eroded in the interests of ensuring national security. Victorian Bar president Matt Collins will in turn urge changes to the nation’s defamation laws. The ABC and News Corp are expected to challenge the legality of the AFP raids under the implied freedom of political communication in the Constitution.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, AUSTRALIAN FEDERAL POLICE, LAW COUNCIL OF AUSTRALIA, VICTORIAN BAR INCORPORATED, NATIONAL PRESS CLUB (AUSTRALIA), ALLIANCE FOR JOURNALISTS’ FREEDOM

ANZ boss braces for slowdown

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Original article by Richard Gluyas, Glenda Korporaal, David Rogers, Andrew White
The Australian – Page: 17 & 25 : 4-Sep-19

Harvey Norman chairman Gerry Harvey expects the Reserve Bank of Australia to reduce the cash rate to at least 0.5 per cent, but he says this will do little to stimulate the economy. The RBA signalled on 3 September that official interest rates are likely to remain low for an extended period; ANZ Bank CEO Shayne Elliott says record low interest rates demonstrate that central banks are concerned about the global economic outlook. The RBA’s monthly board meeting coincided with the release of data showing that retail spending fell by 0.1 per cent in July, compared with economists’ expectations of an 0.2 per cent increase.

CORPORATES
RESERVE BANK OF AUSTRALIA, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN TAXATION OFFICE, LATITUDE FINANCIAL SERVICES AUSTRALIA HOLDINGS PTY LTD

Surplus may signal new era for dollar

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Original article by Patrick Commins, Jonathan Shapiro
The Australian Financial Review – Page: 6 : 4-Sep-19

The Commonwealth Bank’s Richard Grace says the current account is unlikely to remain in surplus, citing the level of the nation’s net income deficit. However, he notes that the net income deficit – which is currently 3.4 per cent of GDP – will improve as superannuation funds increase their offshore holdings. Grace adds that factors such as a gradual reduction in the net income deficit and a structural improvement in the trade balance are likely to boost the Australian dollar over the longer-term.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, EXANTE DATA, RESERVE BANK OF AUSTRALIA

RBA eyes housing rebound as economic growth slows

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Original article by Adam Creighton
The Australian – Page: 1 & 2 : 4-Sep-19

The latest national accounts data is expected to show that Australia’s GDP growth slowed to about 1.5 per cent in the year to June, well below the federal government’s May 2019 Budget forecast of 2.25 per cent growth. Reserve Bank governor Philip Lowe has reiterated that economic growth will improve "gradually"; he notes that although new housing construction activity remains weak, there are signs of an upturn in the established housing market. The central bank’s decision to leave official interest rates on hold in September coincided with the release of data confirming a current account surplus of $5.9bn for the June quarter, the first since the 1970s.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, CAPITAL ECONOMICS LIMITED, AUSTRALIAN GREENS

ANZ-Roy Morgan Consumer Confidence virtually unchanged at 114.4

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Original article by Roy Morgan
Market Research Update – Page: Online : 4-Sep-19

ANZ-Roy Morgan Australian Consumer Confidence rose 0.3% to 114.4 in the week ended 1 September, its second straight weekly gain. Households’ views towards current financial conditions fell 3.3% after a strong rise in the previous week, but views towards future financial conditions gained 1.3%; both measures are above average. Consumers’ views toward current economic conditions fell 2.7%, the fifth consecutive decline, while views towards future economic conditions gained 3.8%; both sub-indices are below average. The ‘time to buy a major household item’ index gained 1.7% following a rise of 4% in the previous week, and the four-week moving average for inflation expectations rose 0.1ppt to 4%.

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

Telstra stung by go-slow on NBN

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Original article by Supratim Adhikari
The Australian – Page: 19 : 3-Sep-19

NBN Co’s latest corporate plan indicates that seven million homes will have an active National Broadband Network service by 30 June 2020, compared to its previous forecast of 7.5 million. The slowdown in the number of homes being connected to the NBN will not only impact on NBN Co’s revenue forecasts but on Telstra’s as well. The telco has advised that the slowdown will reduce its revenue by about $400m.

CORPORATES
NBN CO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS

Business cash flow tax would lift investment

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Original article by John Kehoe
The Australian Financial Review – Page: 9 : 3-Sep-19

Economist Ross Garnaut has called on the federal government to adopt a business cash flow tax that would incorporate a full deduction for corporate expenditure. He says a full tax write-off for business expenditure provides a significant incentive for investment, and is in line with Treasurer Josh Frydenberg’s recent call for companies to boost productivity by increasing capital investment in preference to share buybacks and special dividends. Garnaut and former federal Labor minister Craig Emerson have undertaken economic modelling on a possible switch from the traditional profit-based company tax to a tax based on cash flow.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, BHP GROUP LIMITED – ASX BHP

Quiet Australians shifted votes because of Shorten, not Morrison

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Original article by Andrew Tillett
The Australian Financial Review – Page: 6 : 3-Sep-19

Research undertaken by the Australian National University shows that 28.5 per cent of electors switched their voting intentions during the federal election campaign. The analysis of voters’ behaviour also shows that 39.6 per cent of electors who had intended to vote for Labor when the election was called in April subsequently voted for the Coalition on 18 May. Likewise, 37.2 per cent of electors who had expressed their intention to vote for the Coalition ended up giving Labor their vote. The research has concluded that the unpopularity of former Labor leader Bill Shorten was a key factor in the election outcome, rather than Labor’s policies or the personal appeal of Prime Minister Scott Morrison.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN NATIONAL UNIVERSITY

Look through soft growth

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Original article by Phillip Coorey, Matthew Cranston
The Australian Financial Review – Page: 1 & 4 : 3-Sep-19

There is speculation that the latest national accounts data will show that Australia’s growth slowed to about 1.4 per cent in the year to June. Treasurer Josh Frydenberg says GDP data for the June quarter is likely to be particularly weak, given that it was dominated by the federal election and the US-China trade war. He expects economic conditions to improve in the September quarter, citing stimulatory factors such as the Coalition’s income tax cuts and back-to-back interest rate cuts in June and July. Frydenberg stresses that the Australian economy’s fundamentals remain strong.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, RESERVE BANK OF AUSTRALIA, AUSTRALIAN LABOR PARTY, CORELOGIC AUSTRALIA PTY LTD

Rebound is on: prices rise across the board

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Original article by Mackenzie Scott
The Australian – Page: 5 : 3-Sep-19

New data from CoreLogic shows that house prices rose by 0.8 per cent nationally in August, which is the first increase since October 2017. CoreLogic’s latest Hedonic Home Value Index also shows that house prices in Sydney and Melbourne rose by 1.6 per cent and 1.4 per cent respectively in August, while Perth and Darwin were the only two capital cities to record a fall in house prices. Shane Oliver of AMP Capital says rising auction clearance rates suggest that house prices will continue to increase over the next 9-12 months.

CORPORATES
CORELOGIC AUSTRALIA PTY LTD, AMP CAPITAL INVESTORS LIMITED