INVESTMENTS

Goldman upbeat, we won’t get a recession

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 32 : 10-Feb-16

Modelling by investment bank Goldman Sachs suggests that there is a 25 per cent chance that developed economies will experience a recession in the next 12 months. This compares with the historical average of 28 per cent. The risk of Australia experiencing a recession is just 13 per cent, while the long-term average is 23 per cent. Goldman Sachs chief economist Jan Hatzius argues that the recent volatility in global financial markets presents an opportunity for risk-averse investors.

CORPORATES
THE GOLDMAN SACHS GROUP INCORPORATED, TAILORED INVESTMENT SOLUTIONS PTY LTD, RESERVE BANK OF AUSTRALIA, MONTGOMERY INVESTMENT MANAGEMENT PTY LTD, WILSON ASSET MANAGEMENT

Pimco forecasts slow year but no recession

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Original article by Vanessa Desloires
The Australian Financial Review – Page: 28 : 5-Feb-16

Mihir Worah and Geraldine Sundstrom of Pimco believe that the seven-year bull run is over and volatility will be a characteristic of financial markets in 2016. They also warn that investors can expect a period of lower returns, while the crude oil price is forecast to reach $US50 per barrel by the end of the year. Meanwhile, Pimco forecasts that the global inflation rate will rise to between 1.75 per cent and 2.25 per cent, although it has downplayed the prospect of a recession.

CORPORATES
PACIFIC INVESTMENT MANAGEMENT COMPANY LLC, UNITED STATES. FEDERAL RESERVE BOARD

Blackstone measures Masters as retailers weigh up sites

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Original article by Catie Low
The Australian Financial Review – Page: 13 : 4-Feb-16

US private equity firm Blackstone Group has declined to comment on speculation that it may seek to acquire either the Masters Home Improvement business itself or its portfolio of stores. Meanwhile, Costco and Ikea are among the big-box retailers that are believed to be considering taking over some of the Masters stores, while Bunnings could potentially acquire about 25 outlets. David Errington of Bank of America Merrill Lynch estimates that Woolworths could recover around $A1bn from divesting its home improvement assets.

CORPORATES
WOOLWORTHS LIMITED – ASX WOW, MASTERS HOME IMPROVEMENT AUSTRALIA PTY LTD, THE BLACKSTONE GROUP LP, COSTCO WHOLESALE AUSTRALIA PTY LTD, IKEA TRADING PTY LTD, SPOTLIGHT GROUP HOLDINGS PTY LTD, SPOTLIGHT STORES PTY LTD, ANACONDA STORES PTY LTD, BUNNINGS GROUP LIMITED, WESFARMERS LIMITED – ASX WES, HOME TIMBER AND HARDWARE, METCASH LIMITED – ASX MTS, COLES SUPERMARKETS AUSTRALIA PTY LTD, LOWE’S COMPANIES INCORPORATED, TPG CAPITAL LP, BIG W DISCOUNT STORES, CROWN RESORTS LIMITED – ASX CWN, BLACKSTONE REAL ESTATE ADVISORS LLC

Rio offloads coal mine for $347m

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Original article by Brian Robins
The Australian Financial Review – Page: 15 & 20 : 28-Jan-16

Indonesia-based Salim Group will pay $US244m ($A347m) for Rio Tinto’s undeveloped Mount Pleasant thermal coal asset in New South Wales. The deal also includes payment of a two per cent royalty if the thermal coal price rises to $US72.50 ($A104) per tonne. Thermal coal is currently trading at around $US50 per tonne, compared with about $US100 just 18 months ago. Rio Tinto previously sold its 40 per cent stake in the Bengalla thermal coal mine.

CORPORATES
RIO TINTO LIMITED – ASX RIO, SALIM GROUP, ANGLO AMERICAN PLC, CITIGROUP PTY LTD, NEW HOPE CORPORATION LIMITED – ASX NHC, PATERSONS SECURITIES LIMITED, ASCIANO LIMITED – ASX AIO, PACIFIC NATIONAL PTY LTD, AURIZON HOLDINGS LIMITED – ASX AZJ, PEABODY ENERGY CORPORATION, INDOFOOD, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

More foreign-owned properties in breach

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Original article by Primrose Riordan, Su-Lin Tan
The Australian Financial Review – Page: 2 : 19-Jan-16

Treasurer Scott Morrison has ordered eight foreign investors to sell their properties because of breaching foreign investment laws. The affected real estate includes properties in Blackburn, Carlton and Mount Waverley in Victoria; Robertson, Crestmead, Eight Mile Plains and Park Ridge in Queensland; and Windsor in New South Wales. The Australian Taxation Office is investigating 800 other potentially illegal purchases of property.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, JELLIS CRAIG AND COMPANY, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Security ‘key to foreign investing’

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Original article by Brendan Nicholson
The Australian – Page: 2 : 18-Jan-16

Offshore investment in key Australian infrastructure is under scrutiny in the wake of the Northern Territory Government’s deal to lease the Port of Darwin to a Chinese company. The Australian Strategic Policy Institu­te’s submission to a Senate inquiry argues that the existing procedures for assessing proposed foreign investments are insufficient. It adds that while Australia must continue to welcome offshore investment, the question of national security must be given precedence.

CORPORATES
AUSTRALIAN STRATEGIC POLICY INSTITUTE LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, AUSTRALIA. NATIONAL SECURITY COMMITTEE, PORT OF DARWIN, LANDBRIDGE GROUP COMPANY LIMITED, AUSTRALIA. SENATE STANDING COMMITTEE ON ECONOMICS, AUSTRALIA. DEPT OF DEFENCE, AUSTRALIAN SECURITY INTELLIGENCE ORGANISATION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Property buyers snub special visa

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Original article by Su-Lin Tan
The Australian Financial Review – Page: 1 & 6 : 8-Jan-16

Changes to the Australian Government’s Significant Investor Visa (SIV) scheme in July 2015 have made the program less attractive. The aim of the legislators was to discourage investments in property while redirecting them towards venture capital funds and listed small companies. Only 47 SIV applications have been received since mid-2015, compared with around 50 applications per month under the old rules.

CORPORATES
HALL AND WILCOX, TARONGA GROUP, AUSTRALIA. PRODUCTIVITY COMMISSION

Bull market not dead yet, says Citi

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Original article by Jessica Sier
The Australian Financial Review – Page: 27 : 7-Jan-16

Citigroup is upbeat about the outlook for international shares in 2016, forecasting that global equities will gain 12 per cent. However, the investment bank says the Federal Reserve’s recent move to begin tightening monetary policy means other sharemarkets may offer more value for investors than US equities, particularly stocks in Japan and continental Europe. Citigroup also forecasts that Australia will record GDP growth of 2.75 per cent in 2016.

CORPORATES
CITIGROUP INCORPORATED, CITIGROUP PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

Chinese developers spend $56m on Melbourne sites

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Original article by Larry Schlesinger
The Australian Financial Review – Page: 31 : 6-Jan-16

Three residential development sites in Melbourne were sold to Chinese developers during the Christmas 2015 holiday period. The transactions included the sale of a 6,000sq m site in the suburb of Oakleigh for $A28m, while an office building in South Melbourne fetched about $A15m and a two-storey office building in St Kilda Road was sold for $A13.7m. At least 800 apartments are expected to be developed on the three sites.

CORPORATES
CBRE PTY LTD, VIAPAC AUSTRALIA PTY LTD, GUANGDONG CARRINGTON REAL ESTATE GROUP, YONG HALL PTY LTD, SPACIOUS GROUP

Law firms in hunt for Singapore tie-ups

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Original article by Marianna Papadakis
The Australian Financial Review – Page: 7 : 5-Jan-16

Australian law firms are seeking partners in Asian business centres such as Shanghai, Singapore, Hong Kong, Seoul and Tokyo. Herbert Smith Freehills (HSF) has formed an alliance with Singaporean firm Prolegis. HSF’s south-east Asia managing partner Alastair Henderson says Singaporean law is increasingly being used in other Asian countries, including India and Indonesia.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, PROLEGIS, DWYER CONSULTING PTY LTD, EATON CAPITAL PARTNERS, BEATON CAPITAL PTY LTD