Original article by Michael Bleby
The Australian Financial Review – Page: 30 : 31-Aug-16
New home approvals have risen to their highest level in more than a year in July 2016. Figures released by the Australian Bureau of Statistics on 30 August 2016 show that total new home approvals rose 11 per cent to 20,987. It is difficult to say whether the rise in approvals is the result of strong demand or oversupply.
CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, UBS HOLDINGS PTY LTD
Original article by Su-Lin Tan
The Australian Financial Review – Page: 33 : 11-Aug-16
Aussie Home Loans chairman John Symond says the residential property market is "still healthy." He believes that house prices may rise by 10 to 15 per cent for the next three years. Prospects for detached housing bought by owner-occupiers on Australia’s east coast are quite solid, but apartments will underperform because of oversupply, which is particularly evident in western and inner-south suburbs of Sydney and Docklands in Melbourne.
CORPORATES
AUSSIE HOME LOANS LIMITED, AUSTRALIAN BUREAU OF STATISTICS
Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 8-Aug-16
The annual capacity of Vale’s "S11D" iron ore project will be 90 million tonnes, which has prompted some analysts to forecast an iron ore oversupply in 2017. However, Vale’s Peter Poppinga has downplayed concerns about an oversupply, arguing that the Brazilian group will ramp up exports over several years, with its mine capacity to increase at a faster pace than its rail capacity. He also stresses that not all of the increased production will be exported to Asia.
CORPORATES
VALE SA, UBS HOLDINGS PTY LTD, BHP BILLITON LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG, ROY HILL HOLDINGS PTY LTD, ATLAS IRON LIMITED – ASX AGO, MINERAL RESOURCES LIMITED – ASX MIN, WORLEYPARSONS LIMITED – ASX WOR
Original article by Robert Harley
The Australian Financial Review – Page: 31 : 4-Aug-16
The vacancy rate in Sydney’s CBD office market declined to 5.6 per cent in the first half of 2016. Figures from the Property Council’s half yearly "Office Market Report", to be released on 4 August, also show that Perth is experiencing a very different trend, with the office vacancy rate rising to 21.8 per cent. Nationwide, the CBD vacancy rate rose marginally to 11 per cent.
CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, JONES LANG LASALLE AUSTRALIA PTY LTD, COLLIERS INTERNATIONAL HOLDINGS (AUSTRALIA) LIMITED, CBRE PTY LTD
Original article by Matt Chambers
The Australian – Page: 19 : 4-Aug-16
Rio Tinto has posted a 2016 interim underlying profit of $US1.56bn, which is 47 per cent lower than previously. Weaker commodities prices reduced the underlying profit by $US1.9bn, while the net profit from its iron ore operations in Western Australia fell by 17 per cent to $US1.74bn. Meanwhile, CEO Jean-Sebastien Jacques has warned that the recent upturn in the iron ore price may not be sustained, noting that the availability of credit was a major driver of increased demand for steel in China during the June quarter.
CORPORATES
RIO TINTO LIMITED – ASX RIO, ARNHEM INVESTMENT MANAGEMENT PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, TURQUOISE HILL RESOURCES LIMITED
Original article by Jessica Sier
The Australian Financial Review – Page: 29 : 28-Jul-16
APN Outdoor has benefited from renewed interest in out-of-home advertising, with its share price gaining more than 160 per cent in the last year. T Rowe Price’s Randal Jenneke says the growing shift from static to digital billboards is driving the strong growth in outdoor advertising. He notes that digital technology allows advertisers to target difference markets depending on the time of day. T Rowe Price is increasing its exposure to APN Outdoor, while UBS has also lifted its holdings in both APN Outdoor and oOh!media.
CORPORATES
APN OUTDOOR GROUP LIMITED – ASX APO, OOH!MEDIA LIMITED – ASX OML, T ROWE PRICE GROUP INCORPORATED, JUNKEE MEDIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD
Original article by Su-Lin Tan
The Australian Financial Review – Page: 33 : 24-Jun-16
Asian Pacific Group CEO Will Deague claims that there is no oversupply of apartments in Melbourne, and in fact not enough apartments are being built in the Victorian capital. Asian Pacific Group’s Melbourne developments include the Whitehorse Towers apartment project in Box Hill and the Collins House project in the CBD. The latter is a joint project with another developer.
CORPORATES
ASIAN PACIFIC GROUP PTY LTD, FAR EAST CONSORTIUM HOLDINGS (AUSTRALIA) PTY LTD, PONTIAC LAND GROUP
Original article by John Kehoe
The Australian Financial Review – Page: 18 : 22-Jun-16
BHP Billiton CEO Andrew Mackenzie says factors such as a low cost base means the group is in a better position to ride out the downturn in commodity prices than many rivals. He has forecast that the global oversupply of key commodities could to persist for about 10 years due to the big increase in capital investment during the resources boom. Mackenzie adds that demand and supply of iron ore in particular is likely to be take a long time to return to balance.
CORPORATES
BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, VALE SA, ASIA SOCIETY
Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 17 : 17-Jun-16
Oversupply in the LNG Asian market could force some of Australia’s LNG producers to reduce capacity. Fereidun Fesharaki, chairman of consultancy FGE, says prices will be under pressure. The price of LNG in north Asia has declined to about $US4.50 per million British thermal units from about $US20 in early 2014, and further declines are likely.
CORPORATES
ORIGIN ENERGY LIMITED – ASX ORG, FGE
Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 27 : 10-Jun-16
There is growing recognition among Australian energy groups of the need to continue reducing costs, amid sustained weakness in the crude oil price and a growing oversupply in the LNG market. Santos CEO Kevin Gallagher has suggested greater collaboration among rival LNG groups and has raised the possibility of LNG infrastructure being owned by independent operators rather than producers. Meanwhile, Woodside Petroleum CEO Peter Coleman has acknowledged that the LNG projects in Queensland have cost much more than originally budgeted.
CORPORATES
SANTOS LIMITED – ASX STO, WOODSIDE PETROLEUM LIMITED – ASX WPL, OIL SEARCH LIMITED – ASX OSH, NOVA SYSTEMS, ORIGIN ENERGY LIMITED – ASX ORG, AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, INTERNATIONAL ENERGY AGENCY, CLOUGH LIMITED, McKINSEY AND COMPANY, CB&I INCORPORATED, SHELL COMPANY OF AUSTRALIA LIMITED
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