Australia and New Zealand Banking Group (ANZ); Commonwealth Bank of Australia (CBA); National Australia Bank (NAB);Westpac Banking Corporation (WBC):
Australian bank stocks are running hot as investors bet that their out of cycle rate increases will deliver bigger profits, even as rating agencies remain worried about the sector’s exposure to rising household debt and rapid house price growth. The big four banks each gained more than 1 per cent on Wednesday, taking total gains for the week to between 3 and 3.6 per cent.
BHP Billiton Limited (BHP):
BHP Billiton has flagged a preferred path for the multibillion-dollar task of replacing its largest iron ore mine, Yandi, while projecting weaker, volatile prices for the key commodity. BHP West Australian iron ore asset president Edgar Basto told a conference in Perth on Wednesday the large South Flank deposit was the ‘‘preferred long-term solution’’ to replace its Yandi mine in the Pilbara, which is nearing exhaustion and needs to be replaced within five to 10 years. Yandi produces about 80 million tonnes of iron ore a year, or about a third of BHP’s iron ore in the state, and so replacing the mine is a mammoth and costly undertaking.
Myer Holdings Limited (MYR); Premier Investments Limited (PMV):
Veteran retailer Solomon Lew has not ruled out making a future takeover offer for department store chain Myer after confirming the acquisition of a 10.8 per cent strategic stake for $101 million through his listed investment company, Premier Investments. While Premier Investments, which is 42 per cent owned by Mr Lew, said it wasn’t ‘‘currently’’ planning to make a full takeover offer, insiders said the strategic stake gave Premier the option of making an offer at a later date while reserving a seat at the table. Premier bought most of its stake from Perpetual Investments, which until Monday was Myer’s largest shareholder. Veteran retailer Solomon Lew has not ruled out making a future takeover offer for Myer after confirming the acquisition of a 10.8 per cent stake for $101 million through his listed investment company Premier Investment.
Henderson Group Plc (HGG):
Liveris is the chief executive of US-based Dow Chemical and Donald Trump’s manufacturing advisor. Formica is a Londonbased former AMP Capital funds manager who has turned Henderson Global Investors into one of the world’s biggest investment firms. Chanticleer was present when Liveris swung by Henderson’s Sydney headquarters to meet fund managers as he sells the merits of Dow’s $US145 billion tieup with Dupont to create a global agrichemicals giant. Formica was in town to talk to his Australian shareholders about Henderson’s marriage with Janus Capital.
Origin Energy Limited (ORG):
Origin has signed up for 240 megawatts of generation from the plant near Adelaide. Josh Frydenberg has claimed some credit for the move. The chance of blackouts in South Australia next summer has been reduced by deals struck between Origin Energy and Engie that will enable the restart of the second turbine at the French company’s Pelican Point generator. Origin signed up for 240 megawatts of generation from the plant near Adelaide and will also supply gas to Engie, justifying a $40 million upgrade so the turbine can run on a regular basis.
Sydney Airport Holdings Limited (SYD):
Sydney Airport investors do not expect chief executive Kerrie Mather’s sudden resignation to change the company’s belief that building a second airport at Badgerys Creek will be ‘‘uneconomic’’.Ms Mather, who has run Sydney Airport since 2002, surprised investors and airlines on Monday by announcing she was retiring. Ms Mather told The Australian Financial Review it was a ‘‘logical’’ time to leave, given that April 2 was the 15th anniversary of the company’s listing and that she had reached ‘‘a personal milestone’’. But analysts said her role was likely to become less challenging if the company confirmed market expectations and knocked back the opportunity to develop the $5 billion Western Sydney Airport at Badgerys Creek. Sydney Airport, which has a first right of refusal on the airport, had been keen to develop it until the federal government said in December it would not provide any funding for it. It is no coincidence the sudden resignation of Sydney Airport boss Kerrie Mather after 15 years running the city’s most important infrastructure assets comes weeks before a decision on whether to take up the option to build a second airport at Badgerys Creek. Mather was furious at the federal government’s formal funding proposal for the second airport released in December, which meant Sydney Airport would need to come up with more than $4 billion in funding instead of $1 billion initially expected. This meant the project no longer looked economically viable for Sydney Airport, which will lose monopoly as the city’s sole airport operator if it does not take up the right.
Treasury Wine Estates (TWE):
China’s third biggest wine company is aiming to have an $80 million winery up and running by 2019 near Mildura to mirror the export strategy of big Australian rivals including Treasury Wine Estates, and says short-term red tape won’t crimp its long-term plans. Weilong Grape Wine Company, which operates the Grand Dragon wine brand, has a permit from the local council for the construction of the winery. It is just a few kilometres from the vast Karadoc winery in north-west Victoria operated by Treasury, which produces a number of brands including Lindemans. The Weilong winery is being described by experts as one of the largest infrastructure investments in the $4 billion wine industry in Australia in the past decade.
(Source: AIMS)
Australian bank stocks are running hot as investors bet that their out of cycle rate increases will deliver bigger profits, even as rating agencies remain worried about the sector’s exposure to rising household debt and rapid house price growth. The big four banks each gained more than 1 per cent on Wednesday, taking total gains for the week to between 3 and 3.6 per cent.
BHP Billiton Limited (BHP):
BHP Billiton has flagged a preferred path for the multibillion-dollar task of replacing its largest iron ore mine, Yandi, while projecting weaker, volatile prices for the key commodity. BHP West Australian iron ore asset president Edgar Basto told a conference in Perth on Wednesday the large South Flank deposit was the ‘‘preferred long-term solution’’ to replace its Yandi mine in the Pilbara, which is nearing exhaustion and needs to be replaced within five to 10 years. Yandi produces about 80 million tonnes of iron ore a year, or about a third of BHP’s iron ore in the state, and so replacing the mine is a mammoth and costly undertaking.
Myer Holdings Limited (MYR); Premier Investments Limited (PMV):
Veteran retailer Solomon Lew has not ruled out making a future takeover offer for department store chain Myer after confirming the acquisition of a 10.8 per cent strategic stake for $101 million through his listed investment company, Premier Investments. While Premier Investments, which is 42 per cent owned by Mr Lew, said it wasn’t ‘‘currently’’ planning to make a full takeover offer, insiders said the strategic stake gave Premier the option of making an offer at a later date while reserving a seat at the table. Premier bought most of its stake from Perpetual Investments, which until Monday was Myer’s largest shareholder. Veteran retailer Solomon Lew has not ruled out making a future takeover offer for Myer after confirming the acquisition of a 10.8 per cent stake for $101 million through his listed investment company Premier Investment.
Henderson Group Plc (HGG):
Liveris is the chief executive of US-based Dow Chemical and Donald Trump’s manufacturing advisor. Formica is a Londonbased former AMP Capital funds manager who has turned Henderson Global Investors into one of the world’s biggest investment firms. Chanticleer was present when Liveris swung by Henderson’s Sydney headquarters to meet fund managers as he sells the merits of Dow’s $US145 billion tieup with Dupont to create a global agrichemicals giant. Formica was in town to talk to his Australian shareholders about Henderson’s marriage with Janus Capital.
Origin Energy Limited (ORG):
Origin has signed up for 240 megawatts of generation from the plant near Adelaide. Josh Frydenberg has claimed some credit for the move. The chance of blackouts in South Australia next summer has been reduced by deals struck between Origin Energy and Engie that will enable the restart of the second turbine at the French company’s Pelican Point generator. Origin signed up for 240 megawatts of generation from the plant near Adelaide and will also supply gas to Engie, justifying a $40 million upgrade so the turbine can run on a regular basis.
Sydney Airport Holdings Limited (SYD):
Sydney Airport investors do not expect chief executive Kerrie Mather’s sudden resignation to change the company’s belief that building a second airport at Badgerys Creek will be ‘‘uneconomic’’.Ms Mather, who has run Sydney Airport since 2002, surprised investors and airlines on Monday by announcing she was retiring. Ms Mather told The Australian Financial Review it was a ‘‘logical’’ time to leave, given that April 2 was the 15th anniversary of the company’s listing and that she had reached ‘‘a personal milestone’’. But analysts said her role was likely to become less challenging if the company confirmed market expectations and knocked back the opportunity to develop the $5 billion Western Sydney Airport at Badgerys Creek. Sydney Airport, which has a first right of refusal on the airport, had been keen to develop it until the federal government said in December it would not provide any funding for it. It is no coincidence the sudden resignation of Sydney Airport boss Kerrie Mather after 15 years running the city’s most important infrastructure assets comes weeks before a decision on whether to take up the option to build a second airport at Badgerys Creek. Mather was furious at the federal government’s formal funding proposal for the second airport released in December, which meant Sydney Airport would need to come up with more than $4 billion in funding instead of $1 billion initially expected. This meant the project no longer looked economically viable for Sydney Airport, which will lose monopoly as the city’s sole airport operator if it does not take up the right.
Treasury Wine Estates (TWE):
China’s third biggest wine company is aiming to have an $80 million winery up and running by 2019 near Mildura to mirror the export strategy of big Australian rivals including Treasury Wine Estates, and says short-term red tape won’t crimp its long-term plans. Weilong Grape Wine Company, which operates the Grand Dragon wine brand, has a permit from the local council for the construction of the winery. It is just a few kilometres from the vast Karadoc winery in north-west Victoria operated by Treasury, which produces a number of brands including Lindemans. The Weilong winery is being described by experts as one of the largest infrastructure investments in the $4 billion wine industry in Australia in the past decade.
(Source: AIMS)
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