BUSINESS – AUSTRALIA

Investment outlook clouded by global risks

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Original article by David Rogers
The Australian – Page: 25 : 30-Aug-19

Marcel Thieliant of Capital Economics expects the upcoming national accounts data to show that the Australian economy grew by just 0.2 per cent in the June quarter. This follows the release of data showing an 0.5 per cent decline in private new capital expenditure during the quarter; financial markets had anticipated an increase of 0.4 per cent. However, there has been a 16.7 per rise in capital expenditure intentions for 2019-20, with capex estimates in the mining sector revised upwards by 17.7 per cent.

CORPORATES
CAPITAL ECONOMICS LIMITED, UBS HOLDINGS PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AMP CAPITAL INVESTORS LIMITED, AUSTRALIA. DEPT OF THE TREASURY, BUSINESS COUNCIL OF AUSTRALIA, RESERVE BANK OF AUSTRALIA

Business Confidence down slightly at 114 in July

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Original article by Roy Morgan
Market Research Update – Page: Online : 6-Aug-19

In Australia, Business Confidence eased 0.7pts (-0.6%) to 114.0 in July 2019, according to the latest Roy Morgan Business Single Source survey. Business Confidence has now averaged 114.4 over the last three months, after an 11.2% jump in May. Business Confidence is now 0.4pts above its level of July 2018, but 1.6pts below its long-term average of 115.6. Now 53.9% (unchanged) of businesses expect the business to be ‘better off’ financially this time next year (the equal highest figure for this indicator since April 2018), while 19.8% (up 5.7ppts) expect the business to be ‘worse off’ financially this time next year. Meanwhile, 49.1% (down 0.4ppts) of businesses expect the Australian economy to have ‘good times’ over the next year, while 43.2% (up 3.5ppts) expect the economy to have ‘bad times’. However, 48.7% (up 7.5ppts) of businesses say the next year will be a ‘good time to invest in growing the business’, while only 38.9% (down 4.5ppts) say it will be a ‘bad time to invest’.

CORPORATES
ROY MORGAN LIMITED

Business Confidence virtually unchanged at 114.7 in June

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Original article by Roy Morgan
Market Research Update – Page: Online : 2-Jul-19

In Australia, Business Confidence rose 0.3pts (+0.3%) to 114.7 in June 2019, according to the latest Roy Morgan Business Single Source survey, after an 11.2% jump in May. Business Confidence has now increased to its highest level since May 2018 (117.1). Now 53.9% (up 9.4ppts) of businesses expect the business to be ‘better off’ financially this time next year (the highest figure for this indicator since April 2018), while just 14.1% (down 1.6ppts) expect the business to be ‘worse off’ financially this time next year (the lowest figure for this indicator since April 2016). Meanwhile, 49.5% (up 2.1ppts) of businesses expect the Australian economy to have ‘good times’ over the next year, while 39.7% (down 1.6ppts) expect the economy to have ‘bad times’. However, just 41.2% (down 10.1ppts) of businesses say the next year will be a ‘good time to invest in growing the business’, while 43.4% (up 7.4ppts) say it will be a ‘bad time to invest’.

CORPORATES
ROY MORGAN LIMITED

Business Confidence soars 11% to 114.4 as L-NP win election and majority say now is a good time to invest

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Original article by Roy Morgan
Market Research Update – Page: Online : 3-Jun-19

In Australia, Business Confidence rose 11.5pts (+11.2%) to 114.4 in May 2019, according to the latest Roy Morgan Business Single Source survey, in a month in which the L-NP Government was re-elected against the expectations of many. The increase was across the whole month, although the small proportion of interviews conducted after the election had a higher level of Business Confidence (118.4) than the pre-election period (113.5). The jump in Business Confidence in May is the biggest monthly increase since a 14.7pt (+12.3%) jump to 134.3 in September 2013, when the L-NP Government was first elected. Business Confidence is now only 2.7pts below its level in May 2018 and 1.3pts less than its long-term average of 115.7. Now 44.5% (up 9.3ppts) of businesses expect the business to be ‘better off’ financially this time next year, while just 15.7% (down 6.1ppts) expect the business to be ‘worse off’ financially. Meanwhile, 47.4% (up 6.4ppts) of businesses expect the Australian economy to have ‘good times’ over the next year, while 41.3% (down 6.6ppts) expect the economy to have ‘bad times’. Now 51.3% (up 3.6ppts) of businesses also say the next year will be a ‘good time to invest in growing the business’, while 36% (down 2.9ppts) say it will be a ‘bad time to invest’ (the lowest figure for this indicator since February 2018).

CORPORATES
ROY MORGAN LIMITED

Business Confidence up slightly in March at 106.7 (pre-Budget)

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Apr-19

In Australia, Business Confidence rose 1.1pts to 106.7 in March 2019, according to the latest Roy Morgan Business Single Source survey. Business Confidence is now 8.7pts below its level of March 2018 and 9.1pts below its long-term average of 115.8. In addition, the average Business Confidence during the March quarter of only 106.1 is the weakest start to a year in the history of the Index. Now 49.6% (down 1.1ppts) of businesses expect the business to be ‘better off’ financially this time next year, while just 24% (up 0.2ppts) expect the business to be ‘worse off’ financially. Meanwhile, 45.6% (up 4.9ppts) of businesses expect the Australian economy to have ‘good times’ over the next year, while 48.6% (down 4.6ppts) expect the economy to have ‘bad times’. Roy Morgan CEO Michele Levine says April and May are set to be dominated by the looming Federal Election, and the continuing political uncertainty is likely to prevent any significant moves either up or down for Business Confidence.

CORPORATES
ROY MORGAN LIMITED

Billions in gains on offer from US-China skirmish

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Original article by Glenda Korporaal
The Australian – Page: 20 : 8-Mar-19

A PwC report has concluded that Australia’s manufacturing, education and resources sectors are amongst those that could benefit from the US-China trade war. The report suggests that the domestic economy could potentially be bolstered by up to $2bn a year if the trade tensions continue. PwC economist Jeremy Thorpe says local businesses should be looking at how they can capitalise on any trade opportunities that may arise as a result of the tensions between the US and China.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD

Business Confidence virtually unchanged in February at 105.6

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Mar-19

Roy Morgan Business Confidence was virtually unchanged at 105.6 (down 0.3 points) in February. However, the consecutive ratings under 110 represent the weakest start to a year in the history of the Index dating back to 2011, and follow a slowing of the Australian economy to a GDP growth rate of only 0.2% during the December quarter, the slowest quarterly growth since 2016. Business Confidence in February was 14.4pts below its level of a year ago, and 10.3pts below its long-term average of 115.9. However, some industries have started 2019 with high and increasing confidence, including mining, accommodation and food services, and transport, postal and warehousing. Roy Morgan CEO Michele Levine says business confidence should improve in the second half of 2019, once the federal and New South Wales elections are out of the way.

CORPORATES
ROY MORGAN LIMITED

Sims wants to hit companies in the share price for misconduct

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Original article by Andrew White, Perry Williams
The Australian – Page: 19 & 23 : 27-Feb-19

Australian Competition & Consumer Commission chairman Rod Sims has outlined the competition watchdog’s priorities for 2019. They include greater scrutiny of advertising services on digital media platforms, customer loyalty schemes that collect and use data, and consumer protection guarantees for large household items. Sims also says he hopes courts will use consumer penalty laws passed in 2018 to impose fines for corporate misconduct that are sufficient to have a material effect on a company’s share price.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DEUTSCHE BANK AG, CITIGROUP PTY LTD, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

Business Confidence up for third straight month to 113.8 in November

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Original article by Roy Morgan
Market Research Update – Page: Online : 3-Dec-18

In Australia, Business Confidence rose 0.7pts (+0.6%) to 113.8 in November 2018, according to the latest Roy Morgan Business Single Source survey. Business Confidence has continued a rebound which began following the Liberal leadership instability in late August. Business Confidence is now above where it was in July (113.6), prior to the leadership challenge, for the first time. Business Confidence so far during 2018 has averaged 115.6, the highest yearly average since 2014. Businesses are largely positive, with 51.1% (up 5.9ppts) expecting the business to be ‘better off financially’ this time next year and 51.8% (up 2.3ppts) expecting ‘good times’ for the Australian economy over the next five years. Roy Morgan CEO Michele Levine says there is rising confidence across a broad number of industries compared to this time a year ago.

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ROY MORGAN LIMITED

Manufacturing, mining to power capex rebound

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Original article by John Kehoe
The Australian Financial Review – Page: 6 : 30-Nov-18

Data from the Australian Bureau of Statistics shows that capital expenditure in the private sector is now expected to top $114.1bn in 2018-19, compared with a previous forecast of $102bn. The mining and manufacturing sectors are tipped to be the key drivers of the upturn in capital expenditure. Meanwhile, the figures show that private sector capex fell by 0.5 per cent in the September quarter, primarily due to lower expenditure in the mining sector.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, JP MORGAN SECURITIES AUSTRALIA LIMITED, TD SECURITIES, COMMONWEALTH SECURITIES LIMITED, MORGAN STANLEY AUSTRALIA LIMITED