VIRUS DISEASES – AUSTRALIA

Before Morrison’s Sunday night talk to the nation over two-thirds of Australians (69%) claim they are self-isolating

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Original article by Roy Morgan
Market Research Update – Page: Online : 30-Mar-20

Over two-thirds of Australians (69%) claim they are following Government directives to self-isolate as much as possible to fight the coronavirus COVID-19 pandemic. However, 31% say they are ‘not’ self-isolating, according to a special Roy Morgan Snap SMS survey of an Australia-wide cross-section of 2,069 Australians aged 18+ conducted on Friday March 27 and Saturday March 28. Roy Morgan CEO Michele Levine says that 69% of Australians claim they are self-isolating even before Prime Minister Scott Morrison’s directive on Sunday evening to restrict public gatherings to only one other person you are not living with. She adds that this figure is remarkably high when one considers the rising fatality counts in many overseas countries. Levine says Roy Morgan will repeat this survey in the next few days to determine whether Morrison’s appeals to self-isolate in no more than groups of two and avoid contact with people will lead to a rise in Australians who claim to be self-isolating or not.

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ROY MORGAN LIMITED

Bosses, union unite to save jobs

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Original article by Ewin Hannan
The Australian – Page: 4 : 25-Mar-20

The Fair Work Commission has approved temporary changes to the industry award for hospitality workers in response to the coronavirus pandemic. The agreement between the United Workers Union and the Australian Hotels Association will allow employers to reduce workers’ hours to 60 per cent of full-time or regular part-time hours; employees can also be directed to take leave at half pay with just 24 hours’ notice. The changes to the Hospitality Award will initially be in place until 30 June. Employers and unions will seek similar changes to awards covering clerks and restaurant workers.

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AUSTRALIA. FAIR WORK COMMISSION, UNITED WORKERS UNION, AUSTRALIAN HOTELS ASSOCIATION

Wage subsidies not enough for small business

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Original article by John Kehoe
The Australian Financial Review – Page: 8 : 25-Mar-20

Former Treasury official Steven Hamilton has urged the federal government to increase the wage subsidies for small and medium enterprises in response to the pandemic. He warns that the SME sector will be "completely wiped out" if the government does not act, while the nation will face a long and deep recession. Andrew Boak of Goldman Sachs agrees that the government’s existing wage subsidy measures will not be sufficient to avert large-scale job losses.

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GOLDMAN SACHS AUSTRALIA GROUP HOLDINGS PTY LTD, GEORGE WASHINGTON UNIVERSITY

Brace for a record fall in GDP

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Original article by Patrick Commins
The Australian – Page: 4 : 25-Mar-20

JPMorgan economist Ben Jarman expects GDP to fall by 10 per cent in the June quarter due to the coronavirus lockdown measures. The previous largest quarterly decline in GDP was just two per cent in 1974. Jarman also forecasts that the unemployment rate will rise to 11 per cent during the quarter, a view shared by Bill Evans of Westpac. However, Evans expects GDP to fall by just 3.5 per cent in the quarter. Westpac economists have also forecast a Budget deficit of $90bn in 2019-20 due to the federal government’s stimulus measures, and a deficit of $160bn in 2020-21.

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JP MORGAN AUSTRALIA LIMITED, WESTPAC BANKING CORPORATION – ASX WBC

BBQ ban: social life not ok

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Original article by Greg Brown, Simon Benson, Geoff Chambers
The Australian – Page: 1 & 5 : 25-Mar-20

The federal government has announced further restrictions as part of the coronavirus lockdown. A range of non-essential service providers will be forced to close, including beauticians, nail salons and tattoo parlours, although hairdressers and barber shops will be permitted to remain open for now. Restrictions have also been placed on the number of people who can attend weddings and funerals, while cultural institutions such as libraries and museums will be closed. Prime Minister Scott Morrison has also urged people to stay at home if possible, and he has cautioned against attending large gatherings such as barbecues and birthday parties.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Banks race to roll out SME loans

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Original article by Joyce Moullakis
The Australian – Page: 15 & 18 : 23-Mar-20

The federal government will underwrite 50 per cent of new loans made by eligible lenders to small and medium enterprises as part of its response to the coronavirus crisis. Westpac’s acting CEO Peter King says the SME Guarantee Scheme will provide "significant support" to SMEs, while he supports moves to allow people in financial hardship to access their superannuation. The rollout of the scheme in New South Wales and Victoria has been complicated by moves to lockdown non-essential services in coming days, as banks work to keep as many branches open as possible in those states.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Jobless rate could hit 13.8pc despite priming of the pump

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Original article by Matthew Cranston
The Australian Financial Review – Page: 8 : 23-Mar-20

The federal government and the Reserve Bank have now announced a combined $189bn worth of coronavirus stimulus measures. This includes cash payments for small businesses and non-profit organisations. However, many companies that operate in sectors that employ a lot of people will not be eligible for financial relief. The construction, retail, hospitality, recreation and education are major employers; it is estimated that the unemployment rate would rise from 5.1 per cent to 13.8 per cent if they shed just 25 per cent of their workforce, or about 1.2 million people.

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RESERVE BANK OF AUSTRALIA

Insolvency law change to head off avalanche

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Original article by Matthew Cranston
The Australian Financial Review – Page: 6 : 23-Mar-20

The federal government will make temporary changes to laws governing insolvent trading in response to the pandemic. Amongst other things, directors will be exempt from personal liability if a company is found to be trading while insolvent, while the threshold at which creditors can initiate bankruptcy proceedings against a company will be increased from $5,000 to $20,000. These measures will remain in place for at least six months.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

How newsrooms are adapting to report the COVID-19 crisis

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Original article by Max Mason, Natasha Gillezeau
The Australian Financial Review – Page: 33 : 23-Mar-20

Australia’s media industry has responded to the coronavirus pandemic by implementing measures to protect staff and reduce the infection’s spread. This includes working from home, splitting staff into several rotating teams and using technologies such as video conferencing. Meanwhile, consumers are turning to trusted sources of information about the virus, with news and current affairs shows dominating the list of the 20 highest-rating TV programs in the last week. The websites of traditional newspaper publishers have also experienced a spike in traffic, while Guardian Australia editor Lenore Taylor says the online-only publisher’s site had record traffic every day during the last week.

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NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SEVEN WEST MEDIA LIMITED – ASX SWM, AUSTRALIAN BROADCASTING CORPORATION, THE GUARDIAN AUSTRALIA, JUNKEE MEDIA PTY LTD

Third bailout being prepared as $66b injected to help first blows

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 23-Mar-20

The second stage of the federal government’s stimulus package includes the introduction of a welfare wage for workers who lose their jobs due to the coronavirus pandemic. They will be eligible for a fortnightly payment of up to $1,100, while the existing Newstart allowance will be increased and renamed the Jobseeker Payment. Workers who are stood down will also be able to withdraw up to $20,000 from their superannuation fund. Meanwhile, businesses with annual turnover of up to $50m will be eligible for a cash payment of up to $100,000. The government and the nation’s banks will also jointly provide a $40bn loan facility for small and medium enterprises.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET