VIRUS DISEASES

Criminal charges for food profiteering

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 20-Mar-20

Home Affairs Minister Peter Dutton claims that some members of the community are profiteering from coronavirus-inspired demand for groceries. Dutton has warned that people who are found to be buying groceries in bulk in order to send them overseas or to sell them on the black market could face criminal prosecution. Agriculture Minister David Littleproud notes that Australia produces three times the amount of food that is consumed domestically, so there is no need for panic buying.

CORPORATES
AUSTRALIA. DEPT OF HOME AFFAIRS, AUSTRALIA. DEPT OF AGRICULTURE AND WATER RESOURCES, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Vale setback a boon for Australian iron ore producers

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Original article by Peter Ker
The Australian Financial Review – Page: 23 : 20-Mar-20

Vale’s iron ore distribution hub in Malaysia will be disrupted by the government’s efforts to contain the coronavirus. Vale expects work at the hub to be suspended until the end of March, which could reduce its iron ore shipments for the first quarter by an additional one per cent. The Brazilian miner had previously advised that its export volumes would be seven per cent lower than previously. The pandemic has affected mining operations worldwide, although it has yet to have any impact on Australia’s iron ore sector.

CORPORATES
VALE SA

Qantas to announce new cuts by weekend

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Original article by Lucas Baird
The Australian Financial Review – Page: 15 : 17-Mar-20

Qantas has advised that the new quarantine rules for people travelling to Australia and New Zealand will force it to further reduce capacity on some routes. The airline recently cut capacity on domestic and international routes by five per cent and 23 per cent respectively in response to falling demand for air travel due to the coronavirus. A spokesman for Virgin Australia says the airline is still assessing its response to the new travel restrictions, while Air New Zealand has flagged redundancies and a looming 85 per reduction in international capacity.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, AIR NEW ZEALAND LIMITED – ASX AIZ

AFL cuts season, opener in doubt

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Original article by John Ferguson, Tessa Akerman
The Australian – Page: 3 : 17-Mar-20

The Australian Football League has responded to the coronavirus crisis by reducing the 2020 home-and-away season from 22 rounds to just 17. The AFL has yet to decide whether to cancel round one or stage matches in empty stadiums. Delaying the start of the season until late May is also an option. CEO Gillon McLachlan has stressed that protecting the community is the league’s top priority. Reports have suggested that AFL players may be asked to take pay cuts of up to 20 per cent.

CORPORATES
AUSTRALIAN FOOTBALL LEAGUE

Virus could stall progress on Rio Tinto’s Mongolia project

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Original article by Peter Ker
The Australian Financial Review – Page: 27 : 17-Mar-20

Rio Tinto has advised that work on the multi-billion dollar underground expansion of its Oyu Tolgoi copper mine in Mongolia is being slowed as a consequence of efforts to limit the spread of the coronavirus. Rio had previously reported in February that copper deliveries from the mine to buyers in China were being delayed due to border control measures aimed at tackling the spread of the virus. The underground expansion of the Oyu Tolgoi mine has been the subject of ongoing delays.

CORPORATES
RIO TINTO LIMITED – ASX RIO

Call to delay minimum wage rise

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Original article by Ewin Hannan
The Australian – Page: 5 : 17-Mar-20

The Australian Industry Group has not made a recommendation on an increase in the minimum wage in its submission to the Fair Work Commission. It has cited the uncertain outlook for the economy by 1 July, when any rise in the minimum wage is slated to take effect. Ai Group has also urged a delay in any such increase until 15 July; it argues that the FWC should hold off on finalising its wage review until after the release of national accounts data on 3 July. Ai Group CEO Innes Willox has warned that every segment of the economy will be affected by the coronavirus.

CORPORATES
AUSTRALIA. FAIR WORK COMMISSION, THE AUSTRALIAN INDUSTRY GROUP

Home care risks repeat of Italy disaster

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Original article by Jamie Walker
The Australian – Page: 2 : 17-Mar-20

The global death toll from the coronavirus has risen to 7,098 and the number of fatalities outside of China now exceeds the total in that country. More than 179,000 people worldwide have been diagnosed with the virus, including 375 in Australia. Infectious diseases expert Professor Dale Fisher says Australia should not allow people who are showing few symptoms of the virus to self-isolate at home. He notes that countries such as China and South Korea have managed to contain the virus by forcing anybody who tested positive to remain in hospital until they were completely clear of it. In contrast, 60 per cent of people who tested positive in Italy were sent home in the initial stages of the outbreak; the nation has now recorded 2,158 deaths from the virus.

CORPORATES
WORLD HEALTH ORGANIZATION

Economic dose of medicine

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Original article by Patrick Commins
The Australian Financial Review – Page: 1 & 4 : 17-Mar-20

The Reserve Bank of Australia is set to make an emergency interest rate cut in response to the coronavirus pandemic. RBA governor Philip Lowe has also flagged a government bond purchasing program to ensure that financial markets continue to function smoothly. The central bank injected some $5.9bn into the banking system on 16 March in order to boost liquidity. The US Federal Reserve and the Reserve Bank of New Zealand announced out-of-cycle interest rate cuts on 16 March; US rates have been reduced to near zero and NZ rates have been slashed by 75 basis points to just 0.25 per cent.

CORPORATES
RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, RESERVE BANK OF NEW ZEALAND

Businesses buffeted in sea of uncertainty

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Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 17-Mar-20

A growing number of Australian-listed companies are abandoning their recently-issued earnings guidance in response to the coronavirus. They include Cochlear, which has warned that hearing implants will be a low priority for the healthcare sector in terms of elective surgery when the virus is eventually contained. Challenger Limited, Auckland International Airport and oOh!Media are among the other companies that have withdrawn their earnings guidance. In contrast, The Reject Shop has advised that its sales have risen strongly year-on-year amid panic buying by consumers.

CORPORATES
COCHLEAR LIMITED – ASX COH, CHALLENGER LIMITED – ASX CGF, AUCKLAND INTERNATIONAL AIRPORT LIMITED – ASX AIA, OOH!MEDIA LIMITED – ASX OML, THE REJECT SHOP LIMITED – ASX TRS

Small businesses in NSW and South Australia hardest hit by coronavirus crisis

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Original article by Adam Creighton
The Australian – Page: Online : 17-Mar-20

Research by Roy Morgan has found that 60 per cent of Australian businesses have now been affected by the coronavirus pandemic, compared with just 15 per cent in mid-February. The survey of more than 1,100 businesses also shows that 17 per cent of businesses have been affected ‘a great deal’ by the virus, up from two per cent in mid-February. Roy Morgan CEO Michele Levine notes that more than 70 per cent of businesses with turnover of at least $1m have reported being affected by the coronavirus, at a time when the economy is still recovering from the bushfires. She says the federal government’s stimulus package will need to be significantly increased to avert a devastating recession.

CORPORATES
ROY MORGAN LIMITED