COMPETITION – AUSTRALIA

Choice of default super may open up

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Original article by Sally Rose
The Australian Financial Review – Page: 1 & 8 : 21-Sep-16

Australia’s default superannuation fund system is currently dominated by industry super funds, but it could be opened to competition from retail funds. The Productivity Commission’s review of the default super regime has raised the possibility of introducing alternatives to the existing system, including allowing non-industry funds to bid to be included in the list of default funds. Financial Services Council CEO Sally Loane says there is a need for greater competition in the sector.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. FAIR WORK COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, GRATTAN INSTITUTE

Woolies’ Masters discounting dims Beacon’s stellar growth

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Original article by Sue Mitchell
The Australian Financial Review – Page: 20 : 19-Aug-16

Australian-listed Beacon Lighting Group has posted a 2015-16 statutory net profit of $A18.3m, which is eight 8 per cent higher than previously. However, Beacon recorded a 14.6 per cent decline in profits during the second half, which it attributes to large price discounts on lighting products by Masters Home Improvement. Beacon recorded overall sales growth of 7.7 per cent, while same-store sales grew by just 2.7 per cent.

CORPORATES
BEACON LIGHTING GROUP LIMITED – ASX BLX, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, MORGANS FINANCIAL LIMITED

Harvey Norman brushes off rival threat

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Original article by Sue Mitchell
The Australian Financial Review – Page: 15 : 25-May-16

Steinhoff International currently has two POCO stores in Australia, which sell a range of household appliances, furniture and home renovation products. Steinhoff is believed to be planning to expand its POCO chain to at least 45 stores in the next several years, and may seek to acquire some Masters sites. Harvey Norman chairman Gerry Harvey has downplayed the impact that the POCO expansion will have on his company, arguing that they offer a different product mix.

CORPORATES
STEINHOFF INTERNATIONAL HOLDINGS LIMITED, POCO AUSTRALIA, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, THE GOOD GUYS, JB HI-FI LIMITED – ASX JBH, FREEDOM FURNITURE, SNOOZE SLEEP WELL PTY LTD, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, BEST AND LESS PTY LTD, HARRIS SCARFE HOLDINGS LIMITED, CONFORAMA, HARVEYS, PEP CORPORATION, POSTIE PLUS GROUP LIMITED, RETRAVISION (AUSTRALIA) PTY LTD, CLIVE ANTHONYS PTY LTD, BRASHS PTY LTD, RICK HART DISCOUNTS, CLIVE PEETERS, BREVILLE GROUP LIMITED – ASX BRG, ROBINHOOD AUSTRALIA PTY LTD, EVERDURE, BLANCO PTY LTD

Ten rebuffs Southern Cross offer to sell assets

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Original article by Dominic White
The Australian Financial Review – Page: 30 : 14-Mar-16

Regional broadcaster Southern Cross Media Group has offered to sell its TV assets to Ten Network during negotiations for a new affiliation agreement. However, Ten chairman David Gordon has ruled out any such deal, saying the metropolitan broadcaster is not interested in buying Southern Cross’s TV stations. Regional broadcasters are facing growing competition from the streaming services offered by metropolitan networks and offshore players such as Netflix.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, NETFLIX INCORPORATED, TRIPLE M CORPORATION PTY LTD, HIT NETWORK, FREEHILLS PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, WIN CORPORATION PTY LTD, DEUTSCHE BANK AG, APN NEWS AND MEDIA LIMITED – ASX APN, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS

Amazon may use ex-Top Gear presenters’ show to launch SVOD here

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Original article by Dominic White, John McDuling
The Australian Financial Review – Page: 2 : 29-Feb-16

US-based Amazon has declined to comment on speculation that it plans to enter Australia’s subscription video-on-demand market. Industry sources have suggested that the group could launch the Amazon Prime Instant Video service in Australia later in 2016, to capitalise on the popularity of former "Top Gear" presenters Jeremy Clarkson, Richard Hammond and James May. They will soon host a new show for Amazon, which could opt to sell the local broadcasting rights to a rival SVOD provider.

CORPORATES
AMAZON.COM INCORPORATED, AMAZON PRIME, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, PRESTO ENTERTAINMENT PTY LTD, BRITISH BROADCASTING CORPORATION, MACQUARIE GROUP LIMITED – ASX MQG, THE BOOK DEPOSITORY LIMITED, DAI POST PTY LTD, AUSTRALIAN CONSUMERS’ ASSOCIATION

Netflix a ‘threat to jobs’ without media reforms

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Original article by Darren Davidson
The Australian – Page: 1 & 2 : 14-Jan-16

Changes to cross-media ownership laws remain on the Australian Government’s agenda, and Nine Entertainment Company CEO Hugh Marks argues that reforms are necessary for local companies to compete effectively against offshore groups like Netflix. He notes that the subscription video-on-demand provider is not subject to the same regulations and does not pay a licence fee. Marks adds that lack of reform will threaten jobs in the industry and the production of local content.

CORPORATES
NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, NINE NETWORK AUSTRALIA LIMITED, NETFLIX INCORPORATED, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, STAN ENTERTAINMENT PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, WIN CORPORATION PTY LTD, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Bank profits feel the heat of increased competition

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Original article by Clancy Yeates
The Australian Financial Review – Page: 17 : 2-Nov-15

Factors such as low interest rates and growing competition are putting downward pressure on the lending margins of Australia’s major banks. Westpac has reported flat net interest margins for fiscal 2015, while the rival "big four" banks reported lower margins. Julie Coates of PricewaterhouseCoopers forecasts that the banks’ margins will fall below the record low of 2.05 per cent recorded in 2008.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WATERMARK FUNDS MANAGEMENT PTY LTD, BELL POTTER SECURITIES LIMITED, RESERVE BANK OF AUSTRALIA

Supermarkets cut prices in private-label drive

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Original article by Catie Low
The Australian Financial Review – Page: 27 : 8-Oct-15

Research by Deutsche Bank shows that Woolworths reduced the cost of its private-label grocery products by nine per cent in the September 2015 quarter. Rival Coles in turn reduced its house brand prices by seven per cent during the period. Meanwhile, the prices of branded products at Woolworths fell by 0.8 per cent and rose by 5.7 per cent at Coles. Woolworths says it has invested some $A250m on price reductions since early 2015.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, DEUTSCHE BANK AG, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN BUREAU OF STATISTICS

Metcash plays down threat of Aldi expansion into WA, SA

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Original article by Simon Evans
The Australian Financial Review – Page: 17 : 30-Sep-15

Aldi will enter the South Australian and Western Australian markets in 2016, with plans for 120 stores in coming years. IGA stores in the two states typically boast higher profit margins than those on the east coast, and Metcash CEO Ian Morrice believes that IGA stores in SA and WA are in a stronger position to compete with Aldi than IGA stores in Victoria and New South Wales. Morrice has also downplayed the prospect of a price war between Coles and Woolworths.

CORPORATES
METCASH LIMITED – ASX MTS, IGA, ALDI STORES SUPERMARKETS PTY LTD, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, FOODLAND AUSTRALIA LIMITED, CELLARBRATION PTY LTD, THE BOTTLE-O, IGA LIQUOR, MITRE 10 LIMITED, TRUE VALUE HARDWARE LIMITED, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD

IGA prepares for Aldi attack

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Original article by Sue Mitchell
The Australian Financial Review – Page: 27 : 17-Sep-15

Aldi will expand into the Western Australian and South Australian markets in 2016, and it will pose a major threat to Metcash in particular. Nearly 30 per cent of stores that trade under Metcash’s IGA banner are located in these states. Morgan Stanley believes that Aldi’s entry could slash the sales of independent retailers operating under the IGA banner by about $A360m a year, while Metcash itself could face a sharp fall in sales. Its market share in the eastern states is already falling, although a survey by Roy Morgan Research shows that it boasts the highest level of customer loyalty.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, METCASH LIMITED – ASX MTS, IGA, COLES GROUP LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, ROY MORGAN RESEARCH LIMITED, SIMMO’S ICE CREAMERY