BUSINESS FORECASTING – AUSTRALIA

Advertising spending set for growth spike, says WPP

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Original article by Darren Davidson
The Australian – Page: 20 : 9-Dec-14

The advertising market in Australia is tipped to grow 4.1% to $A13.7bn in 2015, according to global market leader by revenue WPP. This compares with 2.8% and $A13.1bn for 2014, and is the best result since 2010. However WPP’s annual outlook report also shows that in the newspapers segment the decline will continue, with a fall of 9.5% to $A1.8bn. Online will experience strong growth, but less rapid than the 21.5% seen in 2013 and only coming in at 13.4% to $A5.7bn

CORPORATES
WPP GROUP PLC, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, SEVEN WEST MEDIA LIMITED – ASX SWM, FOXTEL MANAGEMENT PTY LTD, NETFLIX INCORPORATED, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, PRESTO ENTERTAINMENT PTY LTD, GROUPM COMMUNICATIONS PTY LTD

CCA sheds 260 jobs to help cut costs by $100m

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 &20 : 9-Dec-14

Australia-listed Coca-Cola Amatil (CCA) has advised that its EBIT for the second half of 2014 will be higher than the first-half result of $A316.7m. The group’s underlying EBIT for calendar 2013 was $A833m. Meanwhile, CCA will retrench 260 employees in the finance, human resources and IT departments in 2015 as it seeks to achieve further cost savings. CEO Alison Watkins notes that sales of its new products are performing well

CORPORATES
COCA-COLA AMATIL LIMITED – ASX CCL, GRAINCORP LIMITED – ASX GNC, CIMB SECURITIES INTERNATIONAL (AUSTRALIA) PTY LTD, CITIGROUP PTY LTD, THE COCA-COLA COMPANY, PEATS RIDGE WATER PTY LTD, BARISTA BROS

Qantas on course for profit of $350m

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Original article by Jamie Freed
The Australian Financial Review – Page: 15 & 20 : 9-Dec-14

Qantas expects its 2014-15 interim underlying net profit to be within the range of $A300m to $A350m, compared with a loss of $A252m previously. Deutsche Bank has responded by upgrading its full-year forecast from $A364m to $A801.5m. Qantas has benefited from factors such as its $A2bn cost-cutting initiative and lower fuel costs. Reducing debt remains the priority, although CEO Alan Joyce says the carrier could potentially resume paying dividends earlier than forecast

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, DEUTSCHE BANK AG, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH

Majors facing $20bn squeeze

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Original article by Michael Bennet
The Australian – Page: 17 : 8-Dec-14

Among the recommendations made in the financial system review report by David Murray for the Australian Government is that the four main banks should significantly increase their reserve capital holdings. They are also urged to lift the risk weighting on home mortgage loans to a range of 25% to 30%. Analysts calculate that if adopted the new requirements will create an additional cost burden of $A20bn per annum for the sector. Australian Bankers’ Association CEO Steven Munchenberg has vowed to persist with its lobbying effort against the proposals and those of the Australian Prudential Regulation Authority

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN BANKERS’ ASSOCIATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, WATERMARK FUNDS MANAGEMENT PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, THE BOSTON CONSULTING GROUP PTY LTD

Miners forgo exploration

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Original article by Tess Ingram
The Australian Financial Review – Page: 13 : 8-Dec-14

MinEx Consulting MD Richard Schodde expects Australian resources group to continue reducing their expenditure on exploration programs in the near-term. Australian Bureau of Statistics data shows that mining companies spent just $A439.8m on exploration in the September 2014 quarter, compared with more than $A1bn in March 2012. Schodde notes that the decline in exploration will adversely affect government revenue

CORPORATES
MINEX CONSULTING PTY LTD, AUSTRALIAN BUREAU OF STATISTICS, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG

Metcash warns on profit growth

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 17 : 2-Dec-14

Listed grocery wholesaler Metcash has reported a 2014-15 interim underlying net profit of $A101.7m, which is nine per cent lower than previously. It has advised that full-year EBIT is likely to be within the range of $A315m to $A330m. CEO Ian Morrice says the initial results of the group’s five-year turnaround plan have been encouraging, but he has indicated that the group may not achieve its goal of resuming profit growth in 2016

CORPORATES
METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, SUPA IGA, CITIGROUP PTY LTD, DEUTSCHE BANK AG, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, DANKS HOLDINGS LIMITED

Woolies defies critics with profit guidance

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Original article by Andrew Fraser
The Australian – Page: 21 : 28-Nov-14

The stock of retailing sector group Woolworths on 27 November 2014 closed 2.16% higher at $A31.75, following comments made by chair Ralph Waters at its AGM. He told investors that the company was maintaining its forecast of 2014-15 net profit growth between 4% and 7%. CEO Grant O’Brien also noted the improving performance of the Dan Murphy’s liquor stores chain, Masters hardware joint venture and New Zealand supermarkets division. Waters sought to discount the competitive threat potentially posed by rival Aldi

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, DAN MURPHY’S, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE CORPORATION, TESCO PLC, J SAINSBURY PLC, STANDARD AND POOR’S ASX 200 INDEX

Firms count on confidence

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Original article by Chris Merritt
The Australian – Page: 21 : 28-Nov-14

Commonwealth Bank of Australia has issued its first "Accounting Market Pulse" survey, commissioned from Beaton Research + Consulting. The findings for September and October 2104 indicate that accounting firms in all states except South Australia predict revenue to increase. The ratio of respondents stating that trading conditions are positive is net 15%, while that of firms forecasting the same for 2015 is 50%. This is better on both counts than for law firms, with researcher George Beaton noting that accounting groups offer a wider range of services to their clients

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, BEATON RESEARCH AND CONSULTING PTY LTD

Test for Rio spending

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Original article by Peter Ker
The Australian Financial Review – Page: 20 : 28-Nov-14

Paul Young of Deutsche Bank believes that Rio Tinto’s investor briefing on 28 November 2014 will include plans to proceed with the Silvergrass iron ore mine in Western Australia. He expects Rio’s board to approve the greenfields mine during the December quarter, despite its recent moves to reduce capital expenditure. Rio aims to increase annual iron ore exports from 290 million tonnes to 360 million. Silvergrass is expected to boost output to about 330 million tonnes

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, GLENCORE PLC, AUSTRALIA. DEPT OF INDUSTRY. BUREAU OF RESOURCES AND ENERGY ECONOMICS, CLSA AUSTRALIA PTY LTD, DOMINION DIAMOND CORPORATION

Energy exports at risk as oil prices slump

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Original article by Bianca Hartge-Hazelman
The Australian Financial Review – Page: 27 : 26-Nov-14

The price of Brent crude oil is trading at $US0.7945 per barrel, having fallen to $US77.92 in mid-November 2014. David Hewitt of Credit Suisse notes that a number of market watchers are particularly bearish about the outlook for the crude oil price, with some warning that it could fall below $US60. He also says Australian-listed LNG producers would be adversely affected by continued weakness in the crude oil price, as the price of LNG is linked to the crude oil price

CORPORATES
CREDIT SUISSE (AUSTRALIA) LIMITED, WOODSIDE PETROLEUM LIMITED – ASX WPL, SANTOS LIMITED – ASX STO, OIL SEARCH LIMITED – ASX OSH, ORGANISATION OF PETROLEUM EXPORTING COUNTRIES, INTERNATIONAL MONETARY FUND, RBC CAPITAL MARKETS, REUTERS HOLDINGS PLC, LUPUS ALPHA COMMODITY INVESTMENT FUND, BLOOMBERG LP, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD