BUSINESS – AUSTRALIA

Labour market holding us back

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Original article by Joe Kelly
The Australian – Page: 4 : 27-Sep-17

Switzerland, the US and Singapore are the highest-rated countries in the World Economic Forum’s latest global competitiveness index. Australia is ranked 21st out of 137 countries, with the nation performing poorly on a number of key indicators. Australia is ranked 28th in terms of labour market efficiency and 72nd for co-operation in labour-employer relations. Meanwhile, the World Economic Forum’s Executive Opinion Survey has found that restrictive labour market practices, taxes and government bureaucracy are the biggest problems when doing business in Australia.

CORPORATES
WORLD ECONOMIC FORUM

Soaring electricity prices an obstacle to wage rises

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Original article by Jacob Greber, David Marin-Guzman
The Australian Financial Review – Page: 7 : 8-Sep-17

Employers’ groups have warned that the rising cost of electricity is affecting their capacity to grant pay rises. Australian Industry Group CEO Innes Willox notes that companies’ margins are being hurt by rising power costs, while consumers in turn are reducing their overall spending due to the impact of power price hikes. Australian Chamber of Commerce & Industry CEO James Pearson adds that many companies are delaying investment decision due to rising power costs, and some are considering relocating offshore.

CORPORATES
THE AUSTRALIAN INDUSTRY GROUP, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, BUSINESS COUNCIL OF AUSTRALIA, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, GOLDMAN SACHS AUSTRALIA PTY LTD

Business Confidence down in August to 114.4 as high energy prices a threat to economic growth

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 4-Sep-17

Business Confidence in Australia fell 2.6pts (-2.2%) to 114.4 in August 2017, according to the Roy Morgan Business Single Source survey, following extensive discussions about the high cost of energy in Australia. However, businesses remain largely positive with a majority of businesses expecting to be "better off" financially this time next year (51.7%), and most businesses say now is a good time to invest in growing the business (54.9%). The fall in Business Confidence was driven by large falls in confidence in several industries including Manufacturing, Electricity, Gas, Water and Personal, repair and other services.

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

Corporates finally ramp up capex

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 4 : 1-Sep-17

Data from the Australian Bureau of Statistics shows that private-sector companies anticipate capital expenditure of $A101.8bn in 2017-18. This is 17.6 per cent higher than had been forecast three months ago, and compares with analysts’ expectations of $A95.9bn. The figures also show that there was an 0.8 per cent increase in capex during the final quarter of 2016-17. Telstra and Santos are among the companies that have recently announced plans for increased capex in 2017-18.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, TELSTRA CORPORATION LIMITED – ASX TLS, SANTOS LIMITED – ASX STO, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CAPITAL ECONOMICS LIMITED, PERENNIAL VALUE MANAGEMENT LIMITED, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Business Confidence up in July to 117.0 driven by Agriculture, Construction, Information, Media & Telcos

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 7-Aug-17

Business Confidence in Australia rose 5.2pts (+4.7%) to 117.0 in July, according to the Roy Morgan Business Single Source survey. The rise in Business Confidence was driven by strong increases in several industries including Agriculture, forestry and fishing, Construction, and Information, media and telecommunications. Business Confidence increased on the back of rising expectations of the Australian economy, with a majority of businesses now expecting "good times" for the economy in both the short-term – 52.7% (up 5.8ppts) and long-term – 51.2% (up 1.6ppts). Expectations for their own businesses have also increased, with 44.5% (up 5.8ppts) saying the business is "better off" financially than this time last year and 47.4% (up 3ppts) expecting the business to be "better off" financially this time next year. The rise in Business Confidence mirrors a strengthening weekly ANZ-Roy Morgan Consumer Confidence Rating, which increased by 5.9pts (+5.2%) in the last two weeks of July to 118.4.

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

PM’s pitch as business rebounds

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Original article by Adam Creed
The Australian Financial Review – Page: 1 & 2 : 12-Jul-17

National Australia Bank’s latest business survey shows that there was a month-on-month improvement in sales, profits and trading conditions in June 2017. Prime Minister Malcolm Turnbull, who addressed a business forum in London on 11 July, cited the data as proof that the Australian economy is growing and has not been unduly affected by a fall in mining investment. He attributed the continued resilience of the domestic economy to factors such as Australia’s stance on free trade. Shadow treasurer Chris Bowen argues that low wages growth is the main issue of concern for workers.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN LABOR PARTY, ARRIUM LIMITED – ASX ARI, PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, HSBC AUSTRALIA HOLDINGS PTY LTD, ENERGYAUSTRALIA PTY LTD, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, AMAZON.COM INCORPORATED, CITIGROUP PTY LTD, BUSINESS COUNCIL OF AUSTRALIA

Business Confidence down in June to 111.8 driven by declines in the Retail and Electricity industries

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Jul-17

Business Confidence in Australia fell 2pts (-1.8%) to 111.8 in June, according to the Roy Morgan Business Single Source survey. Business Confidence declined on the back of falling expectations of the Australian economy, with fewer businesses expecting "good times" for the economy in both the short-term and the long-term. Some 46.9% (down 6.3ppts) of businesses expect "good times" for the economy over the next year and 49.6% (down 0.9ppts) expect "good times" for the economy over the next five years. Meanwhile, 46% (up 5.2ppts) of businesses expect "bad times" for the economy over the next year and 42.5% (up 2.4ppts) expect "bad times" for the economy over the next five years. Roy Morgan Research CEO Michele Levine says the back-to-back declines for Business Confidence over the past two months has seen Business Confidence dip below the ANZ-Roy Morgan Australian Consumer Confidence rating for the first time since early March.

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

Business Confidence gives soft ‘thumbs down’ to Federal Budget

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Jun-17

Business Confidence in Australia fell 2.8pts (-2.4%) to 113.8 in May, according to the Roy Morgan Business Single Source survey. The fall in Business Confidence came during the month Treasurer Scott Morrison handed down a Federal Budget which included plans to increase taxation on Australian banks and coincided with the Australian All Ordinaries falling 186.3pts (-3.1%) to 5,761.3. The business specific financial indicators drove this month’s fall in Business Confidence back to the pre-Budget March rating of 113.8. In May 44.4% (down 4.3ppts) of Australian businesses expected to be "better off" financially this time next year, compared to 22.6% (up 2.9ppts) that expected to be "worse off" – a net negative movement of 7.2pts. Also fewer Australian businesses, 39% (down 3.2ppts), said the business is "better off" financially than a year ago while 32.9% (up 3.6ppts), said the business is "worse off" – a net negative movement of 6.8pts.

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIA. DEPT OF THE TREASURY

Business Confidence was up in April before the Federal Budget

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 18-May-17

Business Confidence in Australia rose 2.8pts (+2.5%) to 116.6 in April 2017, according to the Roy Morgan Business Single Source survey. The rise in Business Confidence coincided with the All Ordinaries Index gaining 43.8pts (+0.7%) to 5,947.60 during the month and strong near-record monthly trade surpluses of over $A3bn in the months leading into April. The increase in Business Confidence came before last week’s Federal Budget, which appeared to have a negative impact on Consumer Confidence – the ANZ-Roy Morgan Consumer Confidence Rating fell 2.6% to 109.4 following the Budget. Business Confidence was boosted in April by improving sentiment about the year ahead. In April, 48.7% (up2.7ppts) of Australian businesses expected to be "better off" financially this time next year, while 19.7% (down 0.4ppts) expected to be "worse off". In addition, a majority of Australian businesses, 52.8% (up 2.7ppts), expected "good times" for the Australian economy over the next 12 months, while 40.0% (down 6.1ppts) expected "bad times" – a net positive gain of a significant 8.8ppts.

CORPORATES
ROY MORGAN RESEARCH LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX

Business Confidence up in March; but low confidence sees Barnett Government thrown out

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Apr-17

Roy Morgan Research’s Business Confidence rose 2.4% to 113.8 in March 2017. The rise in Business Confidence coincided with the All Ordinaries Index gaining 142.8pts (+2.5%) to 5,903.8. However, the continuing low Western Australian Business Confidence contributed to the election loss for former premier Colin Barnett. WA has consistently had the lowest Business Confidence of any State since the end of the mining boom in mid-2015. A record high 43.3% (up 3.4ppts) of businesses say they are "better off financially" than a year ago while just 28.6% (down 2.2ppts) say they are "worse off", a net positive gain of 5.6ppts. In addition, 50.1% (up 4.4ppts) of businesses expect "good times" for the Australian economy over the next 12 months, while 46.1% (down 0.8ppts), expect "bad times" – a net positive gain of 5.2ppts. Meanwhile, 50% (up 0.8ppts) expect "good times" for the economy over the next five years, while 41.8% (unchanged) expect bad times.

CORPORATES
ROY MORGAN RESEARCH LIMITED, STANDARD AND POOR’S ASX ALL ORDINARIES INDEX