COMPETITION – AUSTRALIA

Default fund choice aired

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 4-Jun-15

The financial system inquiry concluded that Australian superannuation fees are too high, costing members about $A20bn a year. Inquiry chairman David Murray has told a conference of the need for increased competition in the sector in order to reduce fees, while Assistant Treasurer Josh Frydenberg has flagged possible changes to the default super fund regime to boost competition. However, industry and retail super fund executives disagree on whether such reforms will result in lower fees.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, COLONIAL FIRST STATE GROUP LIMITED, INDUSTRY FUND SERVICES PTY LTD, RICE WARNER ACTUARIES PTY LTD, GRATTAN INSTITUTE, COMMITTEE FOR SUSTAINABLE RETIREMENT INCOMES, ERNST AND YOUNG, AMP LIMITED – ASX AMP, CHALLENGER LIMITED – ASX CGF, DIMENSIONAL FUND ADVISORS

Virtus shares drop 20pc on profit downgrade

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Original article by Yolanda Redrup
The Australian Financial Review – Page: 16 : 3-Jun-15

Australian-listed IVF group Virtus Health has slightly downgraded its net profit forecast for 2014-15. The group indicated in February 2015 that its market share was 45.6 per cent, but it advised on 2 June that bulk-billing providers in New South Wales have eroded its market share. Virtus shares closed 19.92 per cent lower at $A6.11.

CORPORATES
VIRTUS HEALTH LIMITED – ASX VRT, PRIMARY HEALTH CARE LIMITED – ASX PRY, QUADRANT PRIVATE EQUITY PTY LTD

Farmers cry over Woolies milk

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Original article by Jared Lynch
The Australian Financial Review – Page: 22 : 28-May-15

The Queensland Dairyfarmers’ Organisation notes that 130 farmers in the state have left the industry since Coles and Woolworths introduced deep discounts on fresh milk in 2011. Meanwhile, Dairy Australia reports that milk production in Queensland fell by 5. 9 per cent in the year to April 2015, although national production rose by 2.9 per cent. Woolworths argues that a number of factors affect the farmgate price of milk.

CORPORATES
QUEENSLAND DAIRYFARMERS’ ORGANISATION LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, DAIRY AUSTRALIA, AUSTRALIAN DAIRY FARMERS’ LIMITED, AUSTRALIAN FOOTBALL LEAGUE, BRISBANE LIONS FOOTBALL CLUB, GOLD COAST FOOTBALL CLUB LIMITED

Woolworths faces $1b hit from price cuts

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 20-May-15

Morgan Stanley estimates that Aldi’s private-label grocery products cost 27 per cent less than Woolworths’ Select brand and six per cent less than Coles Group’s home brand. However, Aldi products cost 21 per cent more than Woolworths’ entry-level Homebrand. Tom Kierath of Morgan Stanley warns that Woolworths’ earnings could fall by between 5.09 per cent and 33 per cent if it reduces the prices of its private-label products to boost its competitiveness.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, ALDI STORES SUPERMARKETS PTY LTD, MORGAN STANLEY AUSTRALIA LIMITED, CITIGROUP PTY LTD

Optus fights off rivals with data boost

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Original article by David Ramli
The Australian Financial Review – Page: 3 : 7-Apr-15

Singtel Optus will offer more generous mobile download limits to new customers. Those signing up to a standard $A60 plan over 24 months will have a monthly limit of three gigabytes of data, compared with the previous limit of 2GB. Optus has 9.39 million mobile subscribers, versus Telstra’s 16.4 million and Vodafone Australia’s 5.3 million

CORPORATES
SINGTEL OPTUS PTY LTD, SINGAPORE TELECOMMUNICATIONS LIMITED – ASX SGT, TELSTRA CORPORATION LIMITED – ASX TLS, VODAFONE HUTCHISON AUSTRALIA PTY LTD, TPG TELECOM LIMITED – ASX TPM, IINET LIMITED – ASX IIN, FETCHTV PTY LTD, NETFLIX INCORPORATED, MORGAN STANLEY AUSTRALIA LIMITED, AUSTRALIAN COMMUNICATIONS CONSUMER ACTION NETWORK LIMITED

Woolworths advised to cut everyday prices in grocery war

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 7-Apr-15

Price competition between Woolworths, Coles and IGA is escalating. UBS states in a new report that the level of intensity in competition between Australian supermarket chains is rising, which suggests that an all-out price war is likely to erupt. UBS advises Woolworths to protect its market share by reducing the prices of popular products and cutting the number of products on promotion

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES GROUP LIMITED, INDEPENDENT GROCERS OF AUSTRALIA, METCASH LIMITED – ASX MTS, ENERGIZER AUSTRALIA PTY LTD, CADBURY AUSTRALIA LIMITED, KIRKS FINE FOODS, ALBERT HEIJN, KONINKLIJKE AHOLD NV, UBS HOLDINGS PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, SAFEWAY INCORPORATED, KROGER COMPANY, TESCO PLC, J SAINSBURY PLC, ASDA GROUP PLC, WESFARMERS LIMITED – ASX WES

Foxtel fights back as streaming services tempt subscribers

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Original article by Jared Lynch
The Australian Financial Review – Page: 30 : 23-Mar-15

A Venture Consulting surveys shows that around 250,000 of Foxtel’s customers intend to cancel or reduce their pay-TV subscription and start using a video streaming service in the next three months. Foxtel CEO Richard Freudenstein is confident that the company’s subscriber base will not be unduly affected by the growth of video streaming. Foxtel has joined forces with Seven West Media to establish its own streaming service

CORPORATES
FOXTEL MANAGEMENT PTY LTD, VENTURE CONSULTING PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, PRESTO ENTERTAINMENT PTY LTD, NETFLIX INCORPORATED, QUICKFLIX LIMITED – ASX QFX, STAN, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, APPLE INCORPORATED, COMCAST CORPORATION, TIME WARNER INCORPORATED

Chi-X calls for share clearing split

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Original article by Shaun Drummond
The Australian Financial Review – Page: 16 : 16-Mar-15

Submissions on the Council of Financial Regulators review of ASX Limited’s monopoly on equities clearing must be lodged by 27 March 2015. John Fildes, the CEO of rival stock exchange operator Chi-X Australia, argues that the ASX Clear business should be subject to formal separation from ASX Limited or internal separation to ensure independent access to equities clearing. Fildes acknowledges that the domestic market is too small to justify introducing competition in the sector

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, COUNCIL OF FINANCIAL REGULATORS, LCH.CLEARNET SA, ASX CLEAR

Chi-X labels ASX fee cuts ‘cynical’

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Original article by Shaun Drummond
The Australian Financial Review – Page: 15 : 10-Mar-15

Stock exchange operator ASX Limited proposes to reduce its fees for the clearing of equities from 1 July 2015, subject to a five-year extension of its existing monopoly. However, ASX’s actions have been criticised by Chi-X Australia CEO John Fildes, who has questioned why the offer was not made when the moratorium on competition in the sector commenced in 2013. Matthew Grounds of UBS says the Australian market is not large enough to support more than one equities clearing provider

CORPORATES
ASX LIMITED – ASX ASX, CHI-X AUSTRALIA PTY LTD, UBS HOLDINGS PTY LTD, COUNCIL OF FINANCIAL REGULATORS

Supermarkets cut to the chase

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Original article by Sue Mitchell
The Australian Financial Review – Page: 16 : 6-Mar-15

Australian supermarket groups’ food and liquor sales were 0.7 per cent lower in January 2015. The sector recorded sales growth of just 2.2 per cent in year-on-year terms. Meanwhile, the four major grocery retailers all plan to open new stores in 2015, prompting analysts to warn that the new stores will gain sales at the expense of established stores. Aggressive price discounting due to slowing consumer spending is also adversely affecting the supermarket chains’ margins

CORPORATES
COLES GROUP LIMITED, WESFARMERS LIMITED – ASX WES, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, INDEPENDENT GROCERS OF AUSTRALIA, MORGAN STANLEY AUSTRALIA LIMITED, UBS HOLDINGS PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED, LIDL GMBH & CO KG