INVESTMENTS

BHP tops big oil in Mexico

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Original article by Peter Ker
The Australian Financial Review – Page: 1 & 6 : 7-Dec-16

BHP Billiton has acquired a 60 per cent stake in the Trion oil field in the Gulf of Mexico, following a highly-contested auction process. BHP will initially pay $US62.4m for the stake, while the deal also requires it to spend at least $US320m ($A429m) on an appraisal program. Mexico’s state-owned Pemex, which will have a 40 per cent stake in Trion, estimates that the oil field could contain about 485 million barrels of oil equivalent. BP also submitted a bid to acquire the Trion stake.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, PEMEX PETROLEOS MEXICANOS, BP PLC, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, MACQUARIE GROUP LIMITED – ASX MQG, RIO TINTO LIMITED – ASX RIO, NEWCREST MINING LIMITED – ASX NCM, OZ MINERALS LIMITED – ASX OZL, MEXICO. MINISTRY OF ENERGY

DUET investors buoyed by CKI’s $7.3b offer

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 11 & 24 : 6-Dec-16

Shares in DUET Group closed at $2.74 on 5 December 2016, after reaching an intra-day high of $A2.82. Hong Kong-based Cheung Kong Infrastructure has proposed to pay $A3 per share for the energy infrastructure group, whose assets include the Dampier-Bunbury gas pipeline in Western Australia. However, DUET has noted that the offer is unsolicited and not binding, and there is no certainty that CKI will make a formal bid. Mark Busuttil of JP Morgan says the offer represents full value and a rival bid is unlikely.

CORPORATES
DUET GROUP – ASX DUE, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, JP MORGAN AUSTRALIA LIMITED, RARE INFRASTRUCTURE, ARGO INVESTMENTS LIMITED – ASX ARG, UNISUPER LIMITED, RBC CAPITAL MARKETS, 4D INFRASTRUCTURE PTY LTD, CITIGROUP PTY LTD, AUSGRID PTY LTD, STATE GRID CORPORATION OF CHINA, AUSTRALIA. DEPT OF THE TREASURY

Rio Tinto suspends Oyu Tolgoi shipments to China

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Original article by James Thomson
The Australian Financial Review – Page: 15 : 5-Dec-16

Turquoise Hill Resources expects the Oyu Tolgoi mine in Mongolia to produce between 175,000 and 195,000 tonnes of copper concentrate and at least 255,000 ounces of gold in 2016. The Rio Tinto-controlled company has advised that the mine’s shipments to China have been put on hold in response to the introduction of new border regulations. A spokesman for Rio Tinto is optimistic that the issue can be resolved quickly. The mine’s copper production is expected to top 500,000 per annum when a $US3.5bn underground expansion is completed.

CORPORATES
RIO TINTO LIMITED – ASX RIO, TURQUOISE HILL RESOURCES LIMITED, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP

Australia is a key market, says Bank of Tokyo

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Original article by James Eyers
The Australian Financial Review – Page: 17 : 1-Dec-16

The Bank of Tokyo-Mitsubishi intends to expand its presence in Australia. Randy Chafetz, the managing executive officer of the bank, says stagnant conditions in Japan will continue to result in pressure on Japanese companies to seek more promising markets in other countries, including Australia. Earlier in 2016, the bank appointed ex-ANZ executive Drew Riethmuller as head of corporate finance operations for Oceania.

CORPORATES
BANK OF TOKYO-MITSUBISHI (AUSTRALIA) LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, DAI-ICHI LIFE INSURANCE COMPANY LIMITED, MORGAN STANLEY AUSTRALIA LIMITED, AMP LIMITED – ASX AMP

Spending, tax cuts to buoy firms with US exposure

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Original article by Damon Kitney, Andrew White, Eli Greenblat, Matt Chambers
The Australian – Page: 21 & 26 : 11-Nov-16

Australian-listed companies with a significant presence in the US do not expect the election of Donald Trump as president to have much impact on their business. Brambles CEO Tom Gorman is upbeat about the logistics group’s outlook, noting that its US customers are primarily in sectors that are not affected by political and economic cycles. Orora CEO Nigel Garrard says the packaging group is optimistic about the economic impact of Trump’s policies on corporate tax cuts and infrastructure spending.

CORPORATES
BRAMBLES LIMITED – ASX BXB, ORORA LIMITED – ASX ORA, TREASURY WINE ESTATES LIMITED – ASX TWE, BLUESCOPE STEEL LIMITED – ASX BSL, FORTESCUE METALS GROUP LIMITED – ASX FMG, EVANS AND PARTNERS PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, SYDNEY AIRPORT – ASX SYD, TRANSURBAN GROUP LIMITED – ASX TCL, WESTFIELD CORPORATION – ASX WFD, BERINGER WINE ESTATES HOLDINGS INCORPORATED, DIAGEO PLC, NORTH STAR STEEL, PRATT INDUSTRIES (USA) INCORPORATED, OAKTREE CAPITAL MANAGEMENT LLC

You’re fired: result shows the limits of the forecasters

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 33 : 11-Nov-16

Most public opinion polls had pointed to Hillary Clinton winning the US presidential election. Principal Global Investors’ Mark Farrington likens polling methods to the trading models used in financial market, noting that they both rely on historical predictions. In the case of Donald Trump’s election victory, and the Brexit vote earlier in 2016, traditional models did not reflect the forces that influenced voting trends. Meanwhile, Wall Street rallied and bond yields rose in response to Trump’s election victory.

CORPORATES
PRINCIPAL GLOBAL INVESTORS, UBS O’CONNOR LLC, UNITED STATES. FEDERAL RESERVE BOARD

Shock win ‘will boost local real estate sales’

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Original article by Scott Murdoch
The Australian – Page: 4 : 10-Nov-16

Donald Trump’s US presidential victory is likely to result in an interest rate rise in the US, increasing the likelihood of a cut in Australia’s 1.5 per cent official cash rate. LJ Hooker’s head of research Matthew Tiller says foreign investors will be less willing to invest in US property, and Chinese buyers in particular are likely to switch to Australia.

CORPORATES
LJ HOOKER (AUSTRALIA) PTY LTD, REPUBLICAN PARTY (UNITED STATES), REA GROUP LIMITED – ASX REA, RESERVE BANK OF AUSTRALIA

Clinton victory set to unleash a ‘wave of cash’ into global markets

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Original article by David Rogers, Glenda Korporaal, Michael Bennet
The Australian – Page: 19 & 32 : 8-Nov-16

The Australian sharemarket rallied on 7 November 2016, after a new FBI probe cleared US presidential candidate Hillary Clinton over the use of a private email server. AMP Capital’s Nader Naeimi says investors are likely to reallocate cash holdings to higher-risk assets if Clinton wins the election. Meanwhile, Paul Donovan of UBS has warned that world trade and global capital flows could be disrupted if Donald Trump becomes president.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, AMP CAPITAL INVESTORS LIMITED, UBS AG, WESTPAC BANKING CORPORATION – ASX WBC, NIKKEI 225 INDEX, NZSX-50 INDEX, UNITED STATES. FEDERAL BUREAU OF INVESTIGATION, UNITED STATES. FEDERAL RESERVE BOARD

Clinton campaign boss paid by Adani-fight foundation

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Original article by Dennis Shanahan
The Australian – Page: 8 : 3-Nov-16

Hillary Clinton’s presidential campaign chairman John Podesta was paid $US7,000 a month by the Sandler Foundation, starting from February 2016. Documents released by WikiLeaks show that Podesta received the payments for his advice on Adani’s coal project in Queensland. The leaked information validates the Australian Government’s claims that foreign-funded groups were involved in the protest against the Adani project.

CORPORATES
ADANI MINING PTY LTD, GREENPEACE, SANDLER FOUNDATION, WIKILEAKS, GETUP LIMITED, LIBERAL-NATIONAL PARTY OF QUEENSLAND