CORPORATE PROFITS

Fund managers wind back expectations and hoard a little extra cash

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Original article by David Rogers
The Australian – Page: 28 : 17-Aug-17

Bank of America Merrill Lynch’s latest survey of fund managers shows that just 33 per cent expect a rise in global corporate profits in the next 12 months, compared with 58 per cent in February 2017. Chief investment strategist ­Michael Hartnett says the survey provides a "warning sign" of the likely performance of shares against bonds, as well as cyclical stocks against defensive stocks. The survey also found that the average cash balance of the 174 respondents is now 4.9 per cent, compared with an average of 4.5 per cent over the last decade.

CORPORATES
BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, STANDARD AND POOR’S 500 INDEX, MSCI WORLD INDEX, STANDARD AND POOR’S ASX 200 INDEX, NASDAQ, UNITED STATES. FEDERAL RESERVE BOARD, EUROPEAN CENTRAL BANK

Exploration dives as miners bank profits

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Original article by Paul Garvey
The Australian – Page: 21 : 7-Jun-17

A report from PwC shows that the world’s 40 largest mining companies posted a combined profit of $US20bn in 2015, compared with a $US48bn loss in 2015. They also repaid some $US93bn ($A124.4bn) worth of debt in 2016, while combined capital expenditure fell by 41 per cent to a record low of $US50bn. The report also notes that expenditure on exploration fell to $US7.2bn, having peaked at $US21.5bn in 2012.

CORPORATES
PRICEWATERHOUSECOOPERS, ASSOCIATION OF MINING AND EXPLORATION COMPANIES, AUSTRALIAN BUREAU OF STATISTICS

Commodity rout to dog miners

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Original article by Amanda Saunders
The Australian Financial Review – Page: 20 : 22-Jul-15

BHP Billiton recently wrote down the value of its US shale assets by $US2.8bn. Analysts expect many resources groups to announce write-downs of key commodities during the next year, due to the sharp downturn in the prices of commodities such as iron ore, crude oil and coal. BHP, Rio Tinto, Glencore and Anglo American are tipped to report large declines in their underlying earnings as a result of bearish commodity markets.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, GLENCORE PLC, ANGLO AMERICAN PLATINUM CORPORATION, UBS HOLDINGS PTY LTD, LIBERUM CAPITAL LIMITED

Low oil price helps airlines to forecast bumper $US29.3b profits

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Original article by Jamie Freed
The Australian Financial Review – Page: 18 : 10-Jun-15

The International Air Transport Association forecasts that the global airline industry’s combined profit for 2015 will total $US29.3bn ($A38.4bn). This compares with a previous forecast of a $US25bn profit for the sector. Airlines in North America are expected to book a $US15.7bn profit, while Asia-Pacific airlines’ combined profit is expected to be $US5.1bn. Airlines have benefited from factors such as lower oil prices and bond yields.

CORPORATES
INTERNATIONAL AIR TRANSPORT ASSOCIATION, QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH