BUSINESS – AUSTRALIA

RBA reveals why boards won’t invest

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Original article by Jacob Greber, Jemima Whyte, Jenny Wiggins, Anne Hyland, Yolanda Redrup, Perry Williams, Agnes King
The Australian Financial Review – Page: 1 & 8 : 19-Jun-15

Research by the Reserve Bank of Australia has examined factors that deter companies from making capital investments. Some 90 per cent of companies said they would only commit to new investment if the hurdle rate is at least 10 per cent. However, the central bank notes that some companies are applying outdated hurdle rates that do not reflect current interest rates. Computershare tries to maintain its return on capital at a certain level, according to CFO Mark Davis, but is open to revising it when this is deemed to be necessary.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMPUTERSHARE LIMITED – ASX CPU, TECHNOLOGY ONE LIMITED – ASX TNE, ARISTOCRAT LEISURE LIMITED – ASX ALL, AURIZON HOLDINGS LIMITED – ASX AZJ, WESFARMERS LIMITED – ASX WES, BORAL LIMITED – ASX BLD, WOODSIDE PETROLEUM LIMITED – ASX WPL, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Business confidence in May boosted by budget – but remains fragile

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Jun-15

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 9.1 per cent to 114.7 in May 2015. This is the highest level since January 2015 (114.9), but business confidence remains below the five-year average of 117.3 and the peak of 136.3 in October 2013. The increase in business confidence in May occurred across all components of the index, but stemmed mainly from an increase in the proportion of businesses believing that Australia will experience good economic conditions over the next 12 months.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Business confidence in March shows tentative improvement

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Apr-15

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 6.3 per cent to 112.4 in March 2015. Despite the improvement, business confidence remains below its level before the 2013 federal election and the average for the last four years of 117.6. The rise in business confidence occurred across all components of the index, but it stemmed mainly from an increase in the proportion of businesses that believe the next 12 months will be a good time to invest in growing their business

CORPORATES
ROY MORGAN RESEARCH LIMITED

Fear of failure stifles innovation: McKeon

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Original article by Ruth Liew
The Australian Financial Review – Page: 27 : 26-Mar-15

Australian companies must become more innovative, AMP chairman Simon McKeon said on 25 March 2015. He noted that local businesses are more risk-averse than their US counterparts. He said foreign investors like Australia’s "AAA" credit rating. McKeon is also the chairman of CSIRO, whose funding was reduced in the 2014 federal Budget

CORPORATES
AMP LIMITED – ASX AMP, JP MORGAN AUSTRALIA LIMITED, CSIRO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG

Fear of failure stifles innovation: McKeon

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Original article by Ruth Liew
The Australian Financial Review – Page: 27 : 26-Mar-15

Australian companies must become more innovative, AMP chairman Simon McKeon said on 25 March 2015. He noted that local businesses are more risk-averse than their US counterparts. He said foreign investors like Australia’s "AAA" credit rating. McKeon is also the chairman of CSIRO, whose funding was reduced in the 2014 federal Budget

CORPORATES
AMP LIMITED – ASX AMP, JP MORGAN AUSTRALIA LIMITED, CSIRO, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE GROUP LIMITED – ASX MQG

Businesses trading offshore will capitalise on ‘sweet spot’

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Original article by Timna Jacks, Lucille Keen
The Australian Financial Review – Page: 8 : 12-Mar-15

The Australian dollar reached a low of $US0.7588 on 11 March 2015. Anthony Halas, the CEO of swimwear group Seafolly, says his company’s domestic margins have been affected by the falling currency, but notes that the business has benefited from its international expansion. Hybrid Electronics proprietor Walter Berryman says his firm has also benefited from the lower dollar, as its purchasing and sales are in US dollars and its manufacturing costs are in the domestic currency

CORPORATES
SEAFOLLY PTY LTD, HYBRID ELECTRONICS AUSTRALIA PTY LTD, ASCIANO LIMITED – ASX AIO, McLACHLAN TOURS

Business confidence weaker in February despite interest rate cut

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 10-Mar-15

A Roy Morgan Business Single Source survey has found that Australian business confidence fell by eight per cent to 105.7 in February 2015. Business confidence is now well below pre-election levels and 22.5 per cent lower than its peak of 136.3 in October 2013, immediately following the federal election. The decline in business confidence occurred across all components of the index, but it was mainly due to a deterioration in the outlook for the Australian economy over the next five years

CORPORATES
ROY MORGAN RESEARCH LIMITED

Westpac leads big four in business customer satisfaction and advocacy

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 12-Feb-15

A Roy Morgan Research Business Single Source survey has found that the overall satisfaction level of the business customers of Australia’s four major banks fell to 65.6 per cent in January 2015. This compares with 68.6 per cent in September 2014. Westpac retained the highest satisfaction rating at 70.5 per cent, ahead of the Commonwealth Bank on 66.4 per cent. However, smaller banks continue to outperform the "big four" in terms of business customer satisfaction, increasing their satisfaction level from 69.4 per cent to 70.6 per cent

CORPORATES
ROY MORGAN RESEARCH LIMITED, 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, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, SUNCORP GROUP LIMITED – ASX SUN

Business confidence rebounds in January prior to the February RBA decision to drop rates

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 5-Feb-15

A Roy Morgan Business Single Source survey has found that Australian business confidence rose by 8.3 per cent to 114.9 in January 2015, compared with 105.3 in December 2014. This improvement was well above the average gain of 3.5 per cent for the month of January over the last four years. However, business confidence remains below the five-year average of 117.9. It is also well below the peak of 136.3 in October 2013, which followed the election of the Federal Government

CORPORATES
ROY MORGAN RESEARCH LIMITED

Budget deficit saps confidence

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Original article by Adam Creighton
The Australian – Page: 19 : 20-Jan-15

Roy Morgan Research’s business confidence index has fallen to its lowest level since August 2011. The index fell to 105.3 in December 2014, compared with 123 in November. Roy Morgan’s Norman Morris says business confidence was adversely affected by the Australian Government’s forecast of a $A40bn Budget deficit for 2014-15. A survey by the Australian Chamber of Commerce & Industry also shows that there has been a sharp fall in business conditions

CORPORATES
ROY MORGAN RESEARCH LIMITED, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY, TD SECURITIES, RESERVE BANK OF AUSTRALIA