Westpac challenged on growth

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Original article by Joyce Moullakis
The Australian – Page: 23 : 7-Nov-18

Credit Suisse and Bell Potter have upgraded their earnings forecasts for Westpac following the release of the bank’s latest full-year financial results. Credit Suisse expects Westpac’s cash profit to rise to $8.29bn in 2018-19, after a flat profit of $8.07bn for 2017-18. Meanwhile, Macquarie Group and Morgan Stanley have reduced their earnings-per-share forecasts, and Victor German of Macquarie expects Westpac’s earnings growth in 2018-19 to be "negligible".

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, CREDIT SUISSE (AUSTRALIA) LIMITED, BELL POTTER SECURITIES LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, MORGAN STANLEY AUSTRALIA LIMITED

PRRT changes may hold up oil and gas projects

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Original article by Matt Chambers
The Australian – Page: 20 : 7-Nov-18

Macquarie Group expects Woodside Petroleum to be affected the most by the federal government’s changes to the petroleum resource rent tax’s uplift rate. Meanwhile, Saul Kavonic of Credit Suisse warns that the review of the PRRT’s transfer pricing rules is a greater material risk to the value of existing LNG plants than the increase in the uplift rate, due to the potential for any changes to be retrospective. Macquarie has also cautioned that the transfer pricing review – which is slated to take 12-18 months – could result in delays to oil and gas projects and impact on the sector’s future earnings.

CORPORATES
WOODSIDE PETROLEUM LIMITED – ASX WPL, MACQUARIE GROUP LIMITED – ASX MQG, CREDIT SUISSE (AUSTRALIA) LIMITED, AUSTRALIA. DEPT OF THE TREASURY, SANTOS LIMITED – ASX STO

Sheik up, as McEvoy streaks to third Cup

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Original article by Chip Le Grand
The Australian – Page: 1 & 6 : 7-Nov-18

The Godolpin racing stable of Dubai’s Mohammed bin Rashid al Maktoum has won its first Melbourne Cup after trying to do so for two decades. Godolphin’s "Cross Counter" has become the first British-trained horse to win the prestigious race, with jockey Kerrin McEvoy riding a Melbourne Cup winner for the third time. Race favourite "Yucatan", which is part-owned by businessman Lloyd Williams, finished in 11th place. Another horse owned by Williams, "The Cliffs of Moher", was put down after fracturing its right shoulder.

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GODOLPHIN RACING

Bonuses risk igniting ABC powder keg

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Original article by Deborah Cornwall, Lilly Vitorovich
The Australian – Page: 3 : 7-Nov-18

ABC journalists have raised the prospect of industrial action over severe staff shortages at a time when the public broadcaster’s executives are receiving large bonuses. Members of the Media, Entertainment & Arts Alliance’s ABC house committee have sought meetings with acting chairman David Anderson to express the journalists’ concerns, but he has declined to do so. Liberal senator Eric Abetz is also seeking an explanation for the ABC’s decision to give one executive a bonus of more than $230,000 in 2017-18.

CORPORATES
AUSTRALIAN BROADCASTING CORPORATION, MEDIA, ENTERTAINMENT AND ARTS ALLIANCE, LIBERAL PARTY OF AUSTRALIA

Investor hit: Labor seats in crossfire

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 7-Nov-18

The federal government’s analysis of income and tax data for 2015-16 shows that 1.3 million Australians owned a negatively-geared investment property during that financial year. Some 640,000 people lived in seats held by the Coalition, while 570,000 were in seats held by Labor. Two Labor-held seats in the Australian Capital Territory had the highest number of people who used negative gearing. Treasurer Josh Frydenberg says Labor’s proposed changes to the negative gearing regime will hit not only its own supporters, but all Australians who own a home.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, RESERVE BANK OF AUSTRALIA, RISKWISE

Big four feel royal commission fallout

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Original article by Joyce Moullakis, Samantha Bailey
The Australian – Page: 21 : 6-Nov-18

Australia’s four largest banks have reported a combined profit of $29.5bn for 2017-18, which is 5.5 per cent lower than previously. Tim Dring of Ernst & Young notes that the big four banks are facing challenges such as a slowing housing market, customer remediation costs and the impact of the financial services royal commission. However, he adds that the banks are also benefiting from a sharp fall in bad and doubtful debts.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ERNST AND YOUNG, SWITZER DIVIDEND GROWTH FUND (MANAGED FUND) – ASX SWT, KPMG AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Westpac not wedded to advice arm

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Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 6-Nov-18

Westpac has posted a cash profit of $8.07bn for the year o 30 September, which is in line with the previous financial year. Its consumer banking division’s earnings were flat, although its business banking arm performed well. Meanwhile, CEO Brian Hartzer says Westpac remains committed to its BT Financial division, although he says the bank may be willing to consider divesting its in-house financial planning business. Westpac boasted 803 salaried and aligned financial planners at the end of the financial year.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, BT FINANCIAL GROUP PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MLC LIMITED, IOOF HOLDINGS LIMITED – ASX IFL, SWITZER DIVIDEND GROWTH FUND (MANAGED FUND) – ASX SWT, MORGAN STANLEY AUSTRALIA LIMITED

Reserve Bank board weigh up trifecta of risks for pre-Cup announcement

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Original article by Jessica Irvine
The Sydney Morning Herald – Page: 9 : 6-Nov-18

The Reserve Bank of Australia is widely expected to leave official interest rates on hold at 1.5 per cent on 6 November. The central bank’s board will consider factors such as subdued wages growth, falling house prices and the high level of household debt in its monetary policy deliberations. The RBA has left the cash rate unchanged on Melbourne Cup Day every year since 2011, and the general consensus of economists is that rates will remain on hold in 2019.

CORPORATES
RESERVE BANK OF AUSTRALIA, WESTPAC BANKING CORPORATION – ASX WBC, MERRILL LYNCH (AUSTRALIA) PTY LTD, HSBC AUSTRALIA HOLDINGS PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIA. DEPT OF THE TREASURY

Payne’s trip ends Chinese freeze

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Original article by Glenda Korporaal
The Australian – Page: 1 & 2 : 6-Nov-18

Australia’s Foreign Minister Marise Payne will meet with her Chinese counterpart Wang Yi during a two-day visit to Beijing from 8 November. The trip is part of efforts to improve the strained relations between the two nations, and could potentially lead to an official trip to China by Prime Minister Scott Morrison. Payne and Wang had held talks during a United Nations conference in August, which led to the invitation for Payne to visit China.

CORPORATES
AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CHINA. MINISTRY OF COMMERCE, ASIA-PACIFIC ECONOMIC CO-OPERATION

Williams chasing Cup three-peat

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Original article by James Thomson
The Australian Financial Review – Page: 3 : 6-Nov-18

Australian businessman Lloyd Williams is confident of winning a seventh Melbourne Cup with Irish horse "Yucatan". Williams is a co-owner of the Cup favourite, whose other owners include fellow entrepreneurs Brian Singer, Alan Green and Gerry Ryan. Williams is also the co-owner of another Melbourne Cup contender, "The Cliffs of Moher". Horses owned by Williams won the Melbourne Cup in 2016 and 2017.

CORPORATES
COOLMORE STUD