Negative gearing a $1.5bn turn-off

Original article by Olivia Caisley
The Australian – Page: 4 : 1-Aug-19

Research undertaken by Deloitte Access Economics on behalf of the Property Council of Australia suggests that Labor’s proposed negative gearing reforms would have slashed the nation’s GDP by about $1.5bn. It is also estimated that the policy would have resulted in the loss of 7,800 construction industry jobs and cost the sector around $766m. A separate survey of voters in 16 marginal electorates has found that 34 per cent indicated that Labor’s negative gearing and capital gains tax reforms were a key reason why they did not vote for the party at the 18 May election.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

House-price optimism yet to reach investors

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 31 : 23-Jul-19

Australian investors are feeling less optimistic about the property market than they were three months ago, according to ME Bank’s latest property sentiment survey. However, overall sentiment regarding the market is more positive than it was in April. Although the downturn in the property market appears to have come to an end, fewer people between the age of 18 and 39 are feeling positive about the state of the property market than they were in April.

CORPORATES
ME BANK

Lawyers fear slowdown after Hayne sugar hit

Original article by Michael Pelly, Edmund Tadros
The Australian Financial Review – Page: 34 : 28-Jun-19

The latest Law Partnership Survey shows that the number of partners at participating firms has increased by 2.8 per cent in the first half of 2019, and by 3.2 per cent in the last year. Meanwhile, Herbert Smith Freehills and Allens are among the firms that have recorded strong growth in non-partner fee-earners in the last six months. Some lawyers are upbeat about the outlook for the legal services sector, noting that law firms are continuing to gain work in the aftermath of the financial services royal commission.

CORPORATES
HERBERT SMITH FREEHILLS PTY LTD, ALLENS, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, KING AND WOOD MALLESONS, ARNOLD BLOCH LEIBLER, DLA PIPER, LANDER AND ROGERS, CLAYTON UTZ, MINTER ELLISON, CORRS CHAMBERS WESTGARTH, MILLS OAKLEY LAWYERS PTY LTD, JOHNSON WINTER AND SLATTERY, KPMG AUSTRALIA PTY LTD

Affordability still an issue for most home owners

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 34 : 11-Jun-19

A survey by ME Bank shows that 88 per cent of Australians regard housing affordability as a major concern. The survey also found that 94 per cent of first-home buyers are concerned about housing affordability, compared with 87 per cent of owner-occupiers and 83 per cent of property investors. The survey was undertaken in late April, prior to the re-election of the Coalition and the recent reduction in official interest rates.

CORPORATES
ME BANK, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Boards feel the pinch on pay as Hayne fallout hits home

Original article by Eli Greenblat
The Australian – Page: Online : 4-Jun-19

A new survey shows that company secretaries in the financial services sector have received an average pay rise of 24 per cent in 2018-19. In contrast, the remuneration of directors and chairpersons in the industry have fallen by 11 per cent in the wake of the Hayne royal commission. Likewise, the remuneration of CEOs in the sector fell by 21 per cent and managing directors’ pay was cut by 10 per cent. The survey was undertaken by the Governance Institute, in partnership with McGuirk Consultants and Board Direction.

CORPORATES
GOVERNANCE INSTITUTE OF AUSTRALIA LIMITED, McGUIRK MANAGEMENT CONSULTANTS PTY LTD, BOARD DIRECTION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Property risk to credit market

Original article by Samantha Bailey
The Australian – Page: 19 : 9-May-19

Fitch Ratings’ latest quarterly survey of fixed-income investors shows that 70 per cent of respondents consider a housing market downturn to be the biggest risk to Australia’s credit market. This compares with just 29 per cent a year ago. The survey also shows that nearly all respondents anticipate a further decline in house prices, compared with 52 per cent a year ago. Meanwhile, 60 per cent of respondents expect official interest rates to be cut by up to 50 basis points over the next 12 months.

CORPORATES
FITCH RATINGS LIMITED

Australians embracing robo-advisers

Original article by Luke Housego
The Australian Financial Review – Page: 20 : 23-Apr-19

A survey of more than 1,000 Australians has found that 30 per cent would be willing to receive financial advice from ‘robo-advisers’. The survey was commissioned by consulting firm Thinque, with company founder Anders Sorman-Nilsson suggesting that consumers have become less willing to trust human financial advisers as a result of the banking royal commission. Around 80 per cent of respondents stated that financial services is the sector in which they are most worried about digital fraud.

CORPORATES
THINQUE, IRESS WEALTH MANAGEMENT SOLUTIONS (RSA) PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Stretched Australians unable to reduce debt

Original article by Matthew Cranston
The Australian Financial Review – Page: 9 : 9-Apr-19

An EY survey has found that just 28 per cent of Australians expect to reduce their debt in 2019, down from 60 per cent in 2018. The survey also found that more than 60 per cent of respondents were ‘extremely’ concerned about the cost of living, suggesting that more people are not able to cut their debt because they lack the ability to do so, rather than a lack of desire to do so. It is possible that some Australians could use the tax cuts announced in the April 2019 Budget as an opportunity to reduce their debt.

CORPORATES
ERNST AND YOUNG, RESERVE BANK OF AUSTRALIA

Economists see rates on hold this year

Original article by Sarah Turner, Vesna Poljak, William McInnes
The Australian Financial Review – Page: 14 & 21 : 1-Apr-19

The latest quarterly survey of economists shows that the general consensus is that the Reserve Bank of Australia will leave official interest rates unchanged at 1.5 per cent for the remainder of 2019. The previous quarterly survey had shown that respondents expected rates to rise to 1.75 by the end of 2019. Meanwhile, the median forecast for the unemployment rate is 5 per cent by mid-2019, compared with a median forecast of 5.20 per cent in the previous survey. Expectations for underlying inflation in mid-2019 have also been pegged back, from 2.10 per cent in the January survey to 1.80 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NOMURA AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, HSBC AUSTRALIA HOLDINGS PTY LTD, BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, CITIGROUP PTY LTD, LAMINAR CAPITAL PTY LTD, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED

Mobile Virtual Network Operators taking market share from Mobile Networks

Original article by Roy Morgan
Market Research Update – Page: Online : 11-Mar-19

Mobile Virtual Network Operators (MVNOs) are continuing to take market share from the traditional Mobile Network Operators (MNO) in the prepaid mobile market, according to the latest research from Roy Morgan. Over 6.7 million Australians (32.6%) now have a prepaid mobile phone, and a rising share of these prepaid mobile phones are bought via a MVNO, such as those operated by the likes of Aldi Mobile, Amaysim, Kogan, Boost, Lebara, Lycamobile. MVNOs are now used by nearly 2 million Australians, or 29.4% of consumers who have a prepaid mobile phone. This market penetration for MVNOs is up a significant 2.5ppts in the last year alone, and up by 6.3ppts from four years ago in the six months to July 2014. Roy Morgan CEO Michele Levine says the increased market share taken by MVNOs in the prepaid mobile market is driven by a range of factors, including Australians looking for a better phone deal.

CORPORATES
ROY MORGAN LIMITED, ALDI STORES SUPERMARKETS PTY LTD, AMAYSIM AUSTRALIA LIMITED – ASX AYS, KOGAN.COM LIMITED – ASX KGN, BOOST MOBILE, LYCAMOBILE PTY LTD