VIRUS DISEASES – AUSTRALIA

Bank shareholders face $7bn hit

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Original article by Michael Roddan
The Australian – Page: 13 & 16 : 9-Apr-20

Shares in Australia’s major banks retreated on 8 April, after the Australian Prudential Regulation Authority asked them to consider delaying or reducing their dividend payments due to the coronavirus crisis. The Bank of Queensland has already advised that it will defer its interim dividend, while investors in Westpac, National Australia Bank and the ANZ Bank were slated to receive a combined $7bn worth of dividends in May. Commonwealth Bank shareholders recently received their interim dividends.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK OF QUEENSLAND LIMITED – ASX BOQ, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Extra 1.4 million Australians out of work in wake of COVID-19 pandemic – 3.92 million (27.4% of workforce) now unemployed or under-employed

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Original article by Roy Morgan
Market Research Update – Page: Online : 9-Apr-20

The latest Roy Morgan unemployment estimate for the second half of March jumped a staggering 1.4 million to 2.4 million (16.8%) and under-employment increased 374,000 to 1.52 million (10.6%). This means a record high 3.92 million (27.4%) of Australians were either unemployed or under-employed and looking for more work in the second half of March – far more Australians looking for work than was the case during the last recession in 1990/91. Roy Morgan CEO Michele Levine said: "The results from today’s Roy Morgan late March employment and unemployment estimates show the value of timely data closely tracking the employment statuses of Australian workers. In this uncertain times it is vital for Governments and policy-makers dealing with the COVID-19 ‘fallout’ to have the most up-to-date data on the state of the Labour market to make the correct decisions".

CORPORATES
ROY MORGAN LIMITED

PM plans staggered virus exit

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 8-Apr-20

Theoretical modelling suggests that just 12 per cent of Australians would be infected by the coronavirus and less than one per cent would require hospitalisation if people comply with lockdown measures. However, failure to do so could see 89 per cent of the population become infected, while only 15 per cent of people who need an intensive care bed would get one. Prime Minister Scott Morrison has warned that the economy cannot afford to be shut down for too long, and he has flagged a staged winding back of lockdown restrictions. He also says Australia will need to reduce its dependence on imports in the post-virus world, particularly critical supplies such as medical equipment.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Prices face 30pc fall if lockdown lingers

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Original article by Mackenzie Scott
The Australian – Page: 2 : 8-Apr-20

SQM Research MD Louis Christopher says confidence in the housing market will recover if coronavirus-induced restrictions are eased by the end of May. He warns that residential property prices could fall by up to 30 per cent in Sydney and Melbourne if there is a second wave of coronavirus infections during winter and the restrictions have to remain in place. Christopher adds that the closure of the nation’s borders will reduce underlying demand for housing; he expects this to be one of the last restrictions to be lifted.

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SQM RESEARCH PTY LTD

Prepare to be hit but we’ll ease blow: RBA

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Original article by Adam Creighton
The Australian – Page: 4 : 8-Apr-20

Reserve Bank of Australia governor Philip Lowe has indicated that the cash rate will remain at 0.25 per cent until inflation returns to its target range of 2-3 per cent and the unemployment rate falls to around 4.5 per cent. The central bank will also maintain its bond-buying program until these targets are achieved. Lowe has warned that the domestic economy faces a "very large economic contraction" due to the coronavirus, while he says the unemployment rate will rise to its highest level in many years. The RBA left the cash rate on hold at its April board meeting.

CORPORATES
RESERVE BANK OF AUSTRALIA

JobKeeper flexibilities give employers power to alter hours, ask staff to take leave

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Original article by Samantha Maiden
The New Daily – Page: Online : 8-Apr-20

Labor will support the federal government’s JobKeeper wage subsidy package when parliament reconvenes for a one-off sitting on 8 April. Attorney-General Christian Porter says the temporary changes to the Fair Work Act will allow employers to reduce an employee’s agreed hours of work for six months due to the pandemic. However, he stresses that any such reduction in agreed hours must be reasonable. The changes will also allow employers to request that staff use some of their annual leave entitlements during the pandemic.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT, SKILLS, SMALL AND FAMILY BUSINESS, AUSTRALIAN LABOR PARTY, ACTU

Nearly two-thirds of Australians (65%) now say Australian Government is handling COVID-19 well – up 22% in a week

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Original article by Roy Morgan
Market Research Update – Page: Online : 8-Apr-20

A special Roy Morgan web survey shows that 65% of Australians aged 18+ now say the Australian Government is handling COVID-19 well, up 22% in a week. Just 29% (down 20%) of Australians disagree that the Australian Government is handling the Coronavirus well. While previously only 38% of those in New South Wales agreed that the Australian Government was handling COVID-19 well, this has increased to 59% (up 21% in a week). This is similar to clear majorities in other states: Queensland 70% (up 28%), Victoria 66% (up 21%), Western Australia 75% (up 22%) and South Australia 58% (up 11%). Meanwhile, 59% of Australians now say the ‘worst is yet to come’ over the next month in regards to the COVID-19 coronavirus pandemic – down 26% in a week. The survey of a cross-section of 987 Australians aged 18+ was conducted over the weekend of April 4-5.

CORPORATES
ROY MORGAN LIMITED

Australia has flattened the curve – for now

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Original article by Edmund Tadros, Tom McIlroy
The Australian Financial Review – Page: 3 : 6-Apr-20

The global death toll from the coronavirus has risen to 74,395; more than 1,339,000 people worldwide have now been diagnosed with the respiratory illness, including 5,795 in Australia. The nation’s death toll from the virus has risen to 41, including a 12th passenger from the ill-fated ‘Ruby Princess’ cruise ship. However, Australia’s rate of infection has slowed to 1.7 per cent, with just 104 new confirmed cases on 6 April. Deputy Chief Medical Officer Paul Kelly has reiterated the need to keep complying with social distancing rules in order to continue to curb the virus’s spread.

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Economy the great unknown in viral era

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Original article by Nick Cater
The Australian – Page: 10 : 7-Apr-20

New Zealand and Australia have adopted vastly different strategies in their efforts to combat COVID-19. Many have urged Scott Morrison to adopt NZ Prime Minister Jacinta Ardern’s comprehensive lockdown, but he has preferred to adopt social distancing rules that aim to minimise restrictions on economic activity. Australians were asked by Roy Morgan recently if they believed things would get worse before they get better; 85 per cent said yes. It is starting to appear they are wrong so far as COVID-19 goes, but perhaps not so the economy. Modelling suggests adopting the NZ strategy would have a much more negative impact on the economy that those measures adopted by Morrison, while it is forecast that unemployment could rise by 1.2 million if the federal government’s current measures remain in place for six months or longer.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ROY MORGAN LIMITED

Rio Tinto flies in 700 miners to beat lockdown

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Original article by Nick Evans
The Australian – Page: 16 : 7-Apr-20

Rio Tinto has advised that about 700 of the fly-in, fly-out workers at its Pilbara iron ore mines will temporarily relocate to Western Australia following the state’s decision to close its borders. Rio Tinto workers will be required to remain on site for 14 days in compliance with the state’s quarantine rules, as well as coronavirus lockdown rules when they are not working. BHP has also relocated about 300 FIFO workers to WA during the pandemic.

CORPORATES
RIO TINTO LIMITED – ASX RIO, BHP GROUP LIMITED – ASX BHP, FORTESCUE METALS GROUP LIMITED – ASX FMG