ELECTIONS – AUSTRALIA

PM finally set to scrape home

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 2 : 7-Jul-16

Seven undecided seats are likely to determine the outcome of the 2016 federal election. The Coalition appears to have won 72 seats to date, and Treasurer Scott Morrison is "very confident" that it will secure the 76 lower house seats required to form a majority government. However, Prime Minister Malcolm Turnbull will hold meetings with several crossbenchers as a contingency plan in the event that the Coalition falls short of this target. Counting of votes is continuing, but the Australian Labor Party currently has 50.2 per cent of the popular vote on a two-party preferred basis.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, VICTORIA. DEPT OF PREMIER AND CABINET, VICTORIA. COUNTRY FIRE AUTHORITY

Party message missed the mark, says Hastie

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Original article by
The Australian – Page: 5 : 7-Jul-16

Liberal Party MP Andrew Hastie has retained the seat of Canning with a margin of 6.2 per cent, after a swing against him of 5.1 per cent in the federal election. Hastie is the latest Coalition MP to criticise the Liberal Party’s election campaign, noting that policies such as company tax cuts and the innovation agenda had little relevance for many Australians. Hastie also says Coalition backbenchers must be consulted regarding any negotiations with crossbenchers.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA

Kidman sale in doubt with election results

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Original article by Matthew Cranston
The Australian Financial Review – Page: 30 : 5-Jul-16

The post-election reconfiguration of the Australian parliament could affect the sale of S. Kidman & Company. Dakang Australia Holdings is expected to try again to buy Kidman, after its acquisition proposal was rejected by Treasurer Scott Morrison. Senators Adam Bandt, Pauline Hanson, Nick Xenophon and Bob Katter are likely to oppose the sale of Kidman to foreigners.

CORPORATES
S KIDMAN AND COMPANY PTY LTD, DAKANG AUSTRALIA HOLDINGS PTY LTD, SHANGHAI CRED REAL ESTATE STOCK COMPANY LIMITED, AUSTRALIAN GREENS, DOMACOM LIMITED

Hung parliament lifts risk of credit downgrade

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Original article by David Uren
The Australian – Page: 1 & 4 : 5-Jul-16

Standard & Poor’s is tipped to review Australia’s "AAA" credit rating in the wake of the federal election. S&P has indicated that the nation’s credit rating may be downgraded unless the next government can implement measures to reduce the Budget deficit. Fitch Ratings has also warned of the potential for a downgrade if a hung parliament results in policies that further increase the deficit. However, Moody’s notes that Australia’s government debt remains much lower than the majority of developed economies.

CORPORATES
STANDARD AND POOR’S CORPORATION, FITCH RATINGS LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, RESERVE BANK OF AUSTRALIA

Hung parliament syndrome: Lessons from Gillard in 2010

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 5-Jul-16

The potential for a hung parliament following the 2016 federal election is likely to weigh on investor sentiment in the near-term, although equities quickly recovered after a sell-off in the wake of the 2010 election. The prospect of another obstructive Senate in particular is a concern for investors, as it is likely to affect the timing of a return to a Budget surplus. However, financial markets are proving to be resilient to risk factors, as the rebound following the UK’s "Brexit" referendum demonstrates.

CORPORATES
WATERMARK FUNDS MANAGEMENT PTY LTD, STANDARD AND POOR’S ASX 200 INDEX, CAPITAL ECONOMICS LIMITED, CITIGROUP PTY LTD, STANDARD AND POOR’S CORPORATION

Shorten calls for Turnbull to fall on sword

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Original article by Phillip Coorey
The Australian Financial Review – Page: 3 : 5-Jul-16

Anthony Albanese has ruled out a leadership challenge if the Australian Labor Party loses the 2016 federal election. Meanwhile, Opposition Leader Bill Shorten says Prime Minister Malcolm Turnbull should accept responsibility for the "farcical" situation in the Senate and resign, arguing that his voting reforms have resulted in greater instability in the upper house. Turnbull will also come under pressure from the National Party to be given an additional cabinet portfolio if the Coalition is re-elected.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NATIONAL PARTY OF AUSTRALIA, LIBERAL PARTY OF AUSTRALIA, ONE NATION PARTY, LIBERAL PARTY OF VICTORIA

Turnbull faces Liberal revolt

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Original article by Dennis Shanahan, David Crowe
The Australian – Page: 1 & 4 : 4-Jul-16

Prime Minister Malcolm Turnbull has held preliminary talks with key crossbenchers, who could determine the outcome of the federal election. However, Coalition ministers and backbenchers will insist on being consulted by Turnbull regarding any deals with the crossbenchers. Meanwhile, Turnbull has attracted criticism over the Coalition’s election campaign, but senior Coalition MPs have expressed support for him.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN ELECTORAL COMMISSION, NICK XENOPHON TEAM, SKY NEWS, RADIO NATIONAL

Election logjam won’t force RBA rate cut

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Original article by Mark Mulligan
The Australian Financial Review – Page: 27 : 5-Jul-16

Paul Dales of Capital Economics expects the Reserve Bank of Australia to leave the cash rate unchanged on 5 July 2016. The general consensus of economists, including Dales, is that the central bank will reduce official interest rates to 1.5 per cent in August, due to weak underlying inflation. The inflation data for the June 2016 quarter is likely to be a bigger influence on monetary policy than the political uncertainty in the wake of the federal election.

CORPORATES
CAPITAL ECONOMICS LIMITED, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, FITCH RATINGS LIMITED, MOODY’S INVESTORS SERVICE INCORPORATED

Numbers don’t stack up for joint sitting on unions crackdown

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Original article by Laura Tingle
The Australian Financial Review – Page: 6 : 4-Jul-16

Resources Minister Josh Frydenberg has conceded that the Federal Government would not have sufficient numbers to pass its industrial relations reforms in a joint sitting of parliament following the 2016 federal election. With the Coalition uncertain to be returned to office, it seems likely to have a combined maximum of 108 of the 226 seats in the upper and lower houses. Legislation to reinstate the Australian Building & Construction Commission was a trigger for the double-dissolution election.

CORPORATES
AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Turnbull policies face big Senate hurdle

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Original article by Fleur Anderson
The Australian Financial Review – Page: 6 : 4-Jul-16

The Australian Government’s changes to the Senate voting system may result in more crossbenchers in the new upper house. The future of some key Coalition policies is uncertain, even if it is returned to office. These include superannuation reforms and plans to progressively reduce the company tax rate. The Coalition would need the support of the Opposition, the Greens or most of the crossbenchers.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, NICK XENOPHON TEAM, JUSTICE PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN ELECTORAL COMMISSION