CAPITAL INVESTMENTS – AUSTRALIA

BHP urged to revive the faith

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Original article by Amanda Saunders
The Age – Page: 21 : 22-Feb-16

The 2015-16 interim financial results of BHP Billiton are likely to be closely scrutinised by investors. Pengana Capital’s Tim Schroeders says the resources group needs to restore investors’ faith and outline its strategy to achieve future growth. He believes that BHP will abandon its progressive dividend policy in favour of a payout ratio, while Paul McTaggart of Credit Suisse anticipates a reduction in capital expenditure over the next two years.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PENGANA CAPITAL LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, UBS HOLDINGS PTY LTD, BLOOMBERG LP, VUMA CONSENSUS, RIO TINTO LIMITED – ASX RIO, SAMARCO MINERACAO SA

Infrastructure financial backing falls by $16b

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Original article by Jacob Greber
The Australian Financial Review – Page: 6 : 8-Feb-16

The "asset recycling program" that was announced in the Australian Government’s May 2014 Budget was expected to generate $A126.3bn worth of infrastructure investment by the states and the private sector. However, new figures show that this estimate has been scaled back to $A110bn. The Federal Government’s original proposal to invest $A50bn on infrastructure projects has in turn been reduced by $A1.4bn.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN BUREAU OF STATISTICS, AUSTRALIAN LABOR PARTY, AUSTRALIAN NATIONAL UNIVERSITY. CRAWFORD SCHOOL OF ECONOMICS AND GOVERNMENT

Capex data to test Turnbull

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Original article by Vesna Poljak
The Australian Financial Review – Page: 20 : 23-Nov-15

The national capital spending survey for the September 2015 quarter will be a key focus for Australian investors in the week beginning 23 November 2015. Data from Bloomberg shows that economists generally expect the September quarter forecast for capex intentions in 2015-16 to be around $A120bn, compared with $A114bn in the June quarter. National Australia Bank is more upbeat, forecasting full-year capex of $A124bn.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BLOOMBERG LP, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, DOW JONES INDUSTRIAL AVERAGE INDEX, UNITED STATES. FEDERAL RESERVE BOARD, FEDERAL RESERVE BANK OF SAN FRANCISCO, EUROPEAN CENTRAL BANK, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Spending cuts keep coming as BHP Billiton starts strongly

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Original article by Peter Ker
The Australian Financial Review – Page: 23 & 30 : 22-Oct-15

BHP Billiton has reported that its petroleum division’s output for the September 2015 quarter was 65 million barrels of oil equivalent. The group will reduce the division’s capital expenditure by a further $US200m ($A275m) in 2015-16, to $US2.9bn. Glyn Lawcock of UBS says that while additional cost reductions will be harder to achieve after several years of cutbacks, he believes there is potential for most cost savings. Iron ore, copper and coking coal output exceeded analysts’ forecasts for the quarter.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, MORGANS FINANCIAL LIMITED

Woolworths, Lowe’s tip $105m into Masters

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 13-Oct-15

Australian-listed Woolworths and joint venture partner Lowe’s have invested $A3.32bn in Masters Home Improvement to date. They invested an additional $A105m in the hardware venture on 30 September 2015. US-based Lowe’s has now invested $A1.11bn in Masters over the last six years. A put option to sell its 33 per cent stake in the venture to Woolworths can be exercised on 20 October. Woolworths and Lowe’s are progressively introducing a new store format for Masters in a bid to boost sales.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, LOWE’S COMPANIES INCORPORATED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, HOME TIMBER AND HARDWARE, HYDROX HOLDINGS PTY LTD, BIG W DISCOUNT STORES, CITIGROUP PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Woolworths to spend $65m on fresh look

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 & 20 : 21-Sep-15

Australian-listed Woolworths will respond to customer complaints by spending $A65m on upgrading its supermarkets, including new shopping trolleys, in-store signage and shelving. The head of the group’s supermarkets division, Dave Chambers, says shopper have frequently complained about poor customer service and stock not being available. Woolworths is also undertaking daily customer surveys and using data analytics to improve its stores.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, IGA, ALDI STORES SUPERMARKETS PTY LTD, COSTCO WHOLESALE AUSTRALIA PTY LTD, THE QUANTIUM GROUP PTY LTD, PROGRESSIVE ENTERPRISES HOLDINGS LIMITED, FOODTOWN SUPERMARKETS LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD

Hartzer to slim down a higher-tech Westpac

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Original article by Clancy Yeates, James Eyers
The Australian Financial Review – Page: 1 & 6 : 8-Sep-15

Westpac CEO Brian Hartzer has ruled out large-scale branch closures, although he has conceded that some branches are likely to be closed as the shift toward online banking gains momentum. Hartzer has also flagged plans to increase the banking major’s investment in technology, as part of a strategy to boost overall investment by 20 per cent. Westpac will also seek to ensure that its return on equity remains above 15 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, ST GEORGE BANK LIMITED, UBS HOLDINGS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, BANK OF MELBOURNE LIMITED, BANK OF SOUTH AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Optus mobile subscriber base hit by competition

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Original article by David Ramli
The Australian Financial Review – Page: 18 : 14-Aug-15

Singtel-Optus has vowed to take the fight to Telstra in its bid to win an increased share of the mobile phone market. As it pursues the most lucrative sector of the market, Optus says it is already spending more per customer than its big rival. Optus net profit was $A196 million in the three months to 30 June 2015. Operating revenue rose 13 per cent to $A1.9 billion.

CORPORATES
SINGTEL OPTUS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE AUSTRALIA LIMITED

Optus mobile subscriber base hit by competition

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Original article by David Ramli
The Australian Financial Review – Page: 18 : 14-Aug-15

Singtel-Optus has vowed to take the fight to Telstra in its bid to win an increased share of the mobile phone market. As it pursues the most lucrative sector of the market, Optus says it is already spending more per customer than its big rival. Optus net profit was $A196 million in the three months to 30 June 2015. Operating revenue rose 13 per cent to $A1.9 billion.

CORPORATES
SINGTEL OPTUS PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE AUSTRALIA LIMITED

Rio capex cut to shore up pay-outs

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Original article by Amanda Saunders
The Australian Financial Review – Page: 1&12 : 7-Aug-15

Rio Tinto has reported a 43 per cent decline in underlying earnings to $US2.9 billion for the first half of 2015, compared with $US5.1 billion in the previous corresponding period. Commenting on the results, CEO Sam Walsh said that Rio will reduce capital investment by at least $US2.5 billion over two years. He assured investors that the cuts will not affect the company’s growth prospects.

CORPORATES
RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, UBS AG, DEUTSCHE BANK AG, X2 RESOURCES PARTNERS LP