Australia and New Zealand Banking Group Limited (ANZ):
Australia’s banks will need to connect with Chinese online payment companies such as Alibaba and Wechat if they are to retain a growing number of small businesses that are selling goods through these channels. Mark Whelan, ANZ Banking Group’s head of institutional banking, said the bank needed to embrace payment platforms to reach millions of Chinese. ‘‘We follow what our customers are doing. There is $800 billion [of sales] through e-commerce in China and 100 million high income earners so many brands will move into China,’’ he said. Mr Whelan said he was monitoring the opportunities for the banks in linking up with online payments systems such as Alipay and Wechat, to allow their customers to better access these platforms. He said ANZ was one of five foreign banks licensed to trade yuan and could provide foreign exchange and other transactional services to its customers that were selling to China.
Bellamy’s Australia Limited (BAL), Blackmores Limited (BKL):
Australia’s banks will need to connect with Chinese online payment companies such as Alibaba and Wechat if they are to retain a growing number of small businesses that are selling goods through these channels, Livia Wang, chiefexecutive of Access CN, said almost 95 per cent of her online sales were conducted via Wechat, a social media platform that has an integrated payments system. Ms Wang is a ‘‘daigou’’,a professional shopper that buys Australian goods and sends them to Chinese consumers. This grey market channel has been a large driver of products made by Blackmores and Bellamy’s. Ms Wang said research was showing demand for international goods such as infant formula and vitamins would more than triple by the end of next year.
BHP Billiton Limited (BHP); Orica Limited (ORI):
Orica chief executive Alberto Calderon has revealed that his bid to become CEO of the world’s biggest mining company, BHP Billiton, was hampered by the fact he and senior board members held ‘‘different views of the world’’. BHP Billiton chief financial officer Peter Beaven has put hard numbers behind the push for a company tax cut, declaring ‘‘every Australian’’ would benefit from the increase in investment, jobs and tax revenue that would be spurred by a cut. Speaking at The Australian Financial Review’s Business Summit in Sydney on Thursday, Mr Beaven said that while the resources sector had invested $600 billion over the past decade and employed 235,000 workers on an average wage of $140,000, he was concerned about a drought in business investment. ‘‘The reason why we are losing the race for investment dollars is simple – the costs of doing business in Australia are too high,’’ he said. ‘‘That means Australia is less likely to attract its fair share of global capital. And, without those investment dollars, it is difficult to create nation-building jobs.’’ In an untypically blunt assessment of Australia’s eroding place on the global investment pecking order, Peter Beaven said BHP was working on a $25 billion portfolio of Australian growth opportunities that could be added to the diversified extractor’s asset base over the next decade. Those growth options range from plans to progressively more than double copper production at Olympic Dam, to finally tapping a very big but very distant offshore Western Australian gas field called Scarborough. It is BHP’s assessment that collectively this investment would bring a new generation of highly paid jobs and add an estimated $45 billion over 20 years to the national exchequer through taxes and royalties.
Commonwealth Bank of Australia (CBA); Australia and New Zealand Limited (ANZ); National Australia Bank Limited (NAB); Westpac Banking Group (WBC):
The parliamentary committee investigating the banks will consider whether to set a threshold for new protections for small business borrowers at $5 million of total loans rather than $3 million as preferred by the banks. So-called ‘‘non-monetary default’’ clauses in loan contracts with SMEs transfer external risks to the customer by giving banks power to enter negotiations when, for example, the value of loan security falls as determined by a loan-to-valuation ratio. Given about two-thirds of all small business loans are secured by residential property, these clauses will give banks the ability to default many small business borrowers if there isa crash in housing markets. During sustained questioning of the big four bank CEOs on business lending by the House of Representatives standing committee on economics over the past week, the bank bosses said they hardly ever used the powers– but nevertheless wanted to restrict calls for them to be removed.
Central Petroleum Limited (CTP); Macquarie Group Limited (MQG):
Macquarie Group is set to sweeten its $75 million takeover offer for junior gas developer Central Petroleum as it hones in on opportunities to capitalise on the worsening east coast gas crisis. The financial powerhouse is expected to slightly increase its rejected 17.5¢ per share cash offer of November after completing due diligence and in the hope of getting an endorsement from the board of the cash-strapped explorer. Central, which holds vast exploration acreage across the Northern Territory and Queensland, halted its shares from trading on Thursday, citing a pending announcement on a revised offer from Macquarie for 100 per cent of its capital. The formal news of the revised bid is expected either Friday or over the weekend. Macquarie is Central’s principal financier, having loaned it $90 million, as well as its secondbiggest shareholder. It also holds unlisted options and a gas sales agreement with the junior. In December, it tightened its grip on resources in central Australia, snapping up Santos’ half-share in the Mereenie oil and gas field, the rest of which is owned by Central.
Origin Energy Limited (ORG); Santos Limited (STO):
Shell Australia chairman Andrew Smith has blamed some gas customers for worsening the crisis in the east coast for selling fuel back to LNG export ventures as producers are subjected to a political blowtorch over shortages for manufacturing and power generation. Shell – Queensland’s biggest LNG exporter and also a major local supplier– ExxonMobil, Santos and Origin Energy, as well as the heads of the three Queensland LNG ventures, are set to be hauled in front of Prime Minister Malcolm Turnbull in a roundtable likely for mid-next week. Federal Energy Minister Josh Frydenberg made clear to The Australian Financial Review Business Summit that the onus was on the industry to come up with proposals to address the worsening crisis. Mr Turnbull will ‘‘be looking to them to explain to their customers’’, he said.
Seven West Media Limited (SWM); Telstra Corporation Limited (TLS):
Street Talk can reveal that HealthEngine is currently before potential investors, seeking a $10 million to $20 million equity injection in a deal that would value the company at north of $100 million. It’s understood HealthEngine has already secured the support of at least one high-profile backer, which would join the register alongside fellow heavyweights Telstra Ventures and Seven West Media. The company has told prospective investors that funds raised would be put towards national expansion. As it stands, HealthEngine’s doctors, dentists and allied health booking services are only available in Sydney, Melbourne, Perth and Brisbane.
Tabcorp Holdings Limited (TAH), Tatts Group Limited (TTS):
The competition watchdog is poised to give the green light to the $11 billion merger between gambling giants Tabcorp and Tatts Group, after raising some concerns but revealing it is satisfied punters have plenty of choice over where to place their bets. Australian Competition and Consumer Commission chairman Rod Sims said on Thursday that the rise of online bookmakers such as Sportsbet and Crownbet meant the merger would not lessen competition in wagering. ‘‘Even though TAB and Tatts are very big players overall in wagering ... they do face sufficient competition from the online corporate bookmakers. We’ve sort of jumped that hurdle.’’
(Source: AIMS)
Australia’s banks will need to connect with Chinese online payment companies such as Alibaba and Wechat if they are to retain a growing number of small businesses that are selling goods through these channels. Mark Whelan, ANZ Banking Group’s head of institutional banking, said the bank needed to embrace payment platforms to reach millions of Chinese. ‘‘We follow what our customers are doing. There is $800 billion [of sales] through e-commerce in China and 100 million high income earners so many brands will move into China,’’ he said. Mr Whelan said he was monitoring the opportunities for the banks in linking up with online payments systems such as Alipay and Wechat, to allow their customers to better access these platforms. He said ANZ was one of five foreign banks licensed to trade yuan and could provide foreign exchange and other transactional services to its customers that were selling to China.
Bellamy’s Australia Limited (BAL), Blackmores Limited (BKL):
Australia’s banks will need to connect with Chinese online payment companies such as Alibaba and Wechat if they are to retain a growing number of small businesses that are selling goods through these channels, Livia Wang, chiefexecutive of Access CN, said almost 95 per cent of her online sales were conducted via Wechat, a social media platform that has an integrated payments system. Ms Wang is a ‘‘daigou’’,a professional shopper that buys Australian goods and sends them to Chinese consumers. This grey market channel has been a large driver of products made by Blackmores and Bellamy’s. Ms Wang said research was showing demand for international goods such as infant formula and vitamins would more than triple by the end of next year.
BHP Billiton Limited (BHP); Orica Limited (ORI):
Orica chief executive Alberto Calderon has revealed that his bid to become CEO of the world’s biggest mining company, BHP Billiton, was hampered by the fact he and senior board members held ‘‘different views of the world’’. BHP Billiton chief financial officer Peter Beaven has put hard numbers behind the push for a company tax cut, declaring ‘‘every Australian’’ would benefit from the increase in investment, jobs and tax revenue that would be spurred by a cut. Speaking at The Australian Financial Review’s Business Summit in Sydney on Thursday, Mr Beaven said that while the resources sector had invested $600 billion over the past decade and employed 235,000 workers on an average wage of $140,000, he was concerned about a drought in business investment. ‘‘The reason why we are losing the race for investment dollars is simple – the costs of doing business in Australia are too high,’’ he said. ‘‘That means Australia is less likely to attract its fair share of global capital. And, without those investment dollars, it is difficult to create nation-building jobs.’’ In an untypically blunt assessment of Australia’s eroding place on the global investment pecking order, Peter Beaven said BHP was working on a $25 billion portfolio of Australian growth opportunities that could be added to the diversified extractor’s asset base over the next decade. Those growth options range from plans to progressively more than double copper production at Olympic Dam, to finally tapping a very big but very distant offshore Western Australian gas field called Scarborough. It is BHP’s assessment that collectively this investment would bring a new generation of highly paid jobs and add an estimated $45 billion over 20 years to the national exchequer through taxes and royalties.
Commonwealth Bank of Australia (CBA); Australia and New Zealand Limited (ANZ); National Australia Bank Limited (NAB); Westpac Banking Group (WBC):
The parliamentary committee investigating the banks will consider whether to set a threshold for new protections for small business borrowers at $5 million of total loans rather than $3 million as preferred by the banks. So-called ‘‘non-monetary default’’ clauses in loan contracts with SMEs transfer external risks to the customer by giving banks power to enter negotiations when, for example, the value of loan security falls as determined by a loan-to-valuation ratio. Given about two-thirds of all small business loans are secured by residential property, these clauses will give banks the ability to default many small business borrowers if there isa crash in housing markets. During sustained questioning of the big four bank CEOs on business lending by the House of Representatives standing committee on economics over the past week, the bank bosses said they hardly ever used the powers– but nevertheless wanted to restrict calls for them to be removed.
Central Petroleum Limited (CTP); Macquarie Group Limited (MQG):
Macquarie Group is set to sweeten its $75 million takeover offer for junior gas developer Central Petroleum as it hones in on opportunities to capitalise on the worsening east coast gas crisis. The financial powerhouse is expected to slightly increase its rejected 17.5¢ per share cash offer of November after completing due diligence and in the hope of getting an endorsement from the board of the cash-strapped explorer. Central, which holds vast exploration acreage across the Northern Territory and Queensland, halted its shares from trading on Thursday, citing a pending announcement on a revised offer from Macquarie for 100 per cent of its capital. The formal news of the revised bid is expected either Friday or over the weekend. Macquarie is Central’s principal financier, having loaned it $90 million, as well as its secondbiggest shareholder. It also holds unlisted options and a gas sales agreement with the junior. In December, it tightened its grip on resources in central Australia, snapping up Santos’ half-share in the Mereenie oil and gas field, the rest of which is owned by Central.
Origin Energy Limited (ORG); Santos Limited (STO):
Shell Australia chairman Andrew Smith has blamed some gas customers for worsening the crisis in the east coast for selling fuel back to LNG export ventures as producers are subjected to a political blowtorch over shortages for manufacturing and power generation. Shell – Queensland’s biggest LNG exporter and also a major local supplier– ExxonMobil, Santos and Origin Energy, as well as the heads of the three Queensland LNG ventures, are set to be hauled in front of Prime Minister Malcolm Turnbull in a roundtable likely for mid-next week. Federal Energy Minister Josh Frydenberg made clear to The Australian Financial Review Business Summit that the onus was on the industry to come up with proposals to address the worsening crisis. Mr Turnbull will ‘‘be looking to them to explain to their customers’’, he said.
Seven West Media Limited (SWM); Telstra Corporation Limited (TLS):
Street Talk can reveal that HealthEngine is currently before potential investors, seeking a $10 million to $20 million equity injection in a deal that would value the company at north of $100 million. It’s understood HealthEngine has already secured the support of at least one high-profile backer, which would join the register alongside fellow heavyweights Telstra Ventures and Seven West Media. The company has told prospective investors that funds raised would be put towards national expansion. As it stands, HealthEngine’s doctors, dentists and allied health booking services are only available in Sydney, Melbourne, Perth and Brisbane.
Tabcorp Holdings Limited (TAH), Tatts Group Limited (TTS):
The competition watchdog is poised to give the green light to the $11 billion merger between gambling giants Tabcorp and Tatts Group, after raising some concerns but revealing it is satisfied punters have plenty of choice over where to place their bets. Australian Competition and Consumer Commission chairman Rod Sims said on Thursday that the rise of online bookmakers such as Sportsbet and Crownbet meant the merger would not lessen competition in wagering. ‘‘Even though TAB and Tatts are very big players overall in wagering ... they do face sufficient competition from the online corporate bookmakers. We’ve sort of jumped that hurdle.’’
(Source: AIMS)
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