INVESTMENTS

Levy a shock for foreign investors: NAB

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 18 : 16-Jun-17

The Senate Economics Legislation Committee is currently investigating the bill to implement the Federal Government’s proposed bank levy. National Australia Bank CFO Gary Lennon says foreign investors have expressed concern to him about the tax, including the rushed manner in which it has been adopted. Amongst other things, submissions to the committee have argued that the bill should include a "sunset clause" and that the tax should cover foreign banks.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. SENATE ECONOMICS LEGISLATION COMMITEE, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, MACQUARIE BANK LIMITED – ASX MBL, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIAN BANKERS’ ASSOCIATION, ME BANK, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, CUSTOMER OWNED BANKING ASSOCIATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS

Adani’s end of year wait for loan decision

roymorgansocial Leave a comment

Original article by Mark Ludlow, Peter Ker
The Australian Financial Review – Page: 6 : 8-Jun-17

Adani aims to finalising funding for the first stage of the $A16.5bn Carmichael coal project in December 2017. Adani still hopes to partially fill a $A3.3bn funding deficit via a concessional loan from the Northern Australia Infrastructure Facility. Resources Minister Matthew Canavan says the NAIF’s board is not expected to make a decision on the loan until the end of the year. Wood Mackenzie estimates that the thermal coal price will need to average $U82 per tonne – compared with $US74 at present – for the first stage of the Carmichael project to achieve a 15 per cent rate of return.

CORPORATES
ADANI MINING PTY LTD, ADANI ENTERPRISES LIMITED, NORTHERN AUSTRALIA INFRASTRUCTURE FACILITY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AURIZON HOLDINGS LIMITED – ASX AZJ, WOOD MACKENZIE

Offshore bank investors fret over housing: Elliott

roymorgansocial Leave a comment

Original article by James Eyers
The Australian Financial Review – Page: 8 : 2-Jun-17

ANZ Bank CEO Shayne Elliott says UK investors with stakes in Australian banks are worried that recent regulatory changes to housing policy in Australia may lead to a market correction. Elliott, who was speaking at a G100 conference in Sydney, also said that comments by Federal Treasurer Scott Morrison that Australia’s large banks are "an oligopoly" were unhelpful, noting that there are other sectors in Australia that are just as concentrated as banking.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. DEPT OF THE TREASURY

Wesfarmers faces hit from Amazon

roymorgansocial Leave a comment

Original article by Sue Mitchell
The Australian Financial Review – Page: 22 : 2-Jun-17

Morgan Stanley forecasts that Amazon’s entry to the Australian market could slash Wesfarmers’ earnings by more than $A400m a year by 2026. The firm expects the Kmart and Target discount department stores to be more vulnerable than specialist retailers such as JB Hi-Fi. Morgan Stanley has reduced its valuation for Kmart and Bunnings, while it now has a zero valuation on Target. It share price target for Wesfarmers has been downgraded from $A41 to $A36.

CORPORATES
WESFARMERS LIMITED – ASX WES, AMAZON.COM INCORPORATED, MORGAN STANLEY AUSTRALIA LIMITED, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, JB HI-FI LIMITED – ASX JBH, SUPER RETAIL GROUP LIMITED – ASX SUL, MYER HOLDINGS LIMITED – ASX MYR, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS SUPERMARKETS

Australians say ‘No’ to 100% foreign ownership of Fairfax

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 26-May-17

An Australia-wide Roy Morgan Survey has found that 78% of Australians aged 14+ do not want Fairfax Media to be 100% owned by either of the two overseas owned institutions that have lodged multi-billion dollar bids for the company. Meanwhile, 17% of Australians say that overseas-owned institutions should be allowed to buy Fairfax outright. The survey, which was conducted from 22-24 May 2017, also shows that 53% of Australians are in favour of allowing overseas-based institutions to own a minority stake in Fairfax. A larger majority of L-NP supporters (59%) are in favour of this option for Fairfax than ALP supporters (51%). The survey has also found that the internet is now the main source of information for 51% of Australians, compared to 24% for TV and 12% for both newspapers and radio.

CORPORATES
ROY MORGAN RESEARCH LIMITED, FAIRFAX MEDIA LIMITED – ASX FXJ, TPG CAPITAL LP, HELLMAN AND FRIEDMAN

Unlockd raises $30.7m, eyes key Asian markets

roymorgansocial Leave a comment

Original article by Paul Smith
The Australian Financial Review – Page: 24 : 25-May-17

Unlockd CEO Matt Berriman says the mobile telephone advertising technology company will use the proceeds of its latest round of fund raising to expand its presence in the Asia-Pacific region. Venture capital firm Alium Capital and Malaysian telco Axiata are among the contributors to Unlockd’s series B funding round, which has raised $US23m (A$30.7m). Berriman has also indicated that Unlockd’s mobile advertising platform will be launched in several new markets in coming months.

CORPORATES
UNLOCKD PTY LTD, ALIUM CAPITAL, AXIATA, CITIBANK PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, CATCH-OF-THE-DAY.COM.AU

Media companies next in line to feel full force of Amazon’s arrival

roymorgansocial Leave a comment

Original article by Max Mason
The Australian Financial Review – Page: 12 : 27-Apr-17

Andrew McLeod of Morgan Stanley says Australian media groups as well as retailers are likely to be affected by Amazon’s entry into the domestic market. He says retailers accounted for 20-30 per of overall advertising expenditure in 2016, and competition from Amazon may prompt local retailers to reduce their ad spend. McLeod adds that retailers are among the biggest source of ad revenue for TV networks, and the "Amazon effect" could prompt some retailers to shift more of their ad spend from traditional media to online.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, JB HI-FI LIMITED – ASX JBH, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, AMAZON PRIME VIDEO, AMAZON WEB SERVICES LLC, AUDIBLE TECHNOLOGIES LIMITED

Japan Post takes axe to Toll jobs

roymorgansocial Leave a comment

Original article by Damon Kitney
The Australian – Page: 17 & 26 : 27-Apr-17

Toll Holdings has shed about 300 jobs at its head office so far in 2017, and the transport and logistics group has revealed plans to axe an additional 1,700 positions over the next year. Toll’s Australian division, which employs about 25,000 people, is expected to bear the brunt of the job cuts. Toll will implement a restructuring program after parent company Japan Post flagged a $US3.6bn ($A4.8bn) writedown of the business and advised that 2017 EBIT is likely to be well below expectations. Japan Post paid $A6.5bn for Toll in 2015.

CORPORATES
TOLL HOLDINGS LIMITED, JAPAN POST COMPANY LIMITED, ASCIANO LIMITED, TELSTRA CORPORATION LIMITED – ASX TLS, LINFOX PTY LTD, KIRIN HOLDINGS COMPANY LIMITED, LION-DAIRY AND DRINKS PTY LTD

US, Britain soak up cash

roymorgansocial Leave a comment

Original article by David Uren
The Australian – Page: 28 : 27-Apr-17

Data shows that Australian foreign investment doubled in the 10 years to 2015, to $A534bn, and offshore investment now accounts for 32.4 per cent of GDP. The US tops the list of overseas investment destinations, at $A105bn, ahead of the UK ($A85bn). However, Andrew Parker of PwC notes that Asia accounts for only 10.9 per cent of Australia’s total foreign investment. A survey by PwC has found that Australia’s dividend imputation system is generally not regarded as a deterrent to investing in Asia.

CORPORATES
PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, COMMITTEE FOR ECONOMIC DEVELOPMENT OF AUSTRALIA, STANDARD AND POOR’S ASX 200 INDEX, ASSOCIATION OF SOUTH-EAST ASIAN NATIONS

‘Fast and vast’ Amazon on its way

roymorgansocial Leave a comment

Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 20-Apr-17

US-based e-commerce group Amazon will expand its presence in Australia over the next several years, with a focus on low prices, fast deliver times and a wide range of merchandise. A new report from Morgan Stanley notes that Amazon already boasts annual sales of $A1bn in Australia, while some retail analysts believe that local retailers’ earnings could be slashed by around 50 per cent if Amazon opts to offer a full service in Australia. Amazon has commenced the process of recruiting a local CEO, while it is also scouting potential locations for distribution warehouses.

CORPORATES
AMAZON.COM INCORPORATED, MORGAN STANLEY AUSTRALIA LIMITED, JB HI-FI LIMITED – ASX JBH, MYER HOLDINGS LIMITED – ASX MYR, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, WESFARMERS LIMITED – ASX WES, COLES SUPERMARKETS AUSTRALIA PTY LTD, KMART AUSTRALIA LIMITED, TARGET AUSTRALIA PTY LTD, BUNNINGS GROUP LIMITED, WOOLWORTHS LIMITED – ASX WOW, FLINDERS INVESTMENT PARTNERS