Monday, May 22, 2017
AGL Energy Limited (AGL):
AGL Energy has put itself at the forefront of corporate support for electric vehicles, committing to buy 36 Mitsubishi plug-in vehicles as it works towards a goal of electrifying 10 per cent of its car fleet and challenging others to do better. The commitment by the utility comes as an Electric Vehicle Council – bringing together car makers, energy and infrastructure players as well as consumer groups – will be launched in Canberra on Monday to inform policy making on EV uptake. Sales of electric cars represent only 0.1 per cent of new vehicle sales in Australia, which is lagging well behind other similar markets overseas, according to Scott Ferraro, head of implementation at ClimateWorks Australia, a member of the EV Council. Federal Energy Minister Josh Frydenberg will announce a $390,000 grant from the Australian Renewable Energy Agency to support the uptake of EVs as part of the push.
APA Group (APA); Santos Limited (STO):
A group of NSW manufacturers has stepped up its efforts to ensure gas from Santos’ $2 billion Narrabri project is kept within the state to supply struggling local buyers rather than sucked north for export through Gladstone. Hunter Gas Pipeline, which is leading the group, has told the NSW Department of Planning that Santos’ assurances that the gas would feed the NSW domestic market can’t be relied on given it failed in its previous claims that its GLNG venture in Queensland wouldn’t draw gas from the domestic market. Hunter Gas argues gas from the proposed Narrabri project should be sent in an already-approved $500 million pipeline proposed by Jemena that would take it to Newcastle, rather than in the new Western Slopes line planned by APA Group in co-ordination with Santos.
BHP Billiton Limited (BHP); Rio Tinto Limited (RIO):
Local shares are set to open higher to start the week, rebounding from Friday’s losses, amid renewed interest in oil, gold, iron ore and base metals. Commodities markets are responding to a less negative view about the deceleration of China’s economy as well as repositioning on the outlook for the US dollar, given the deepening political troubles for President Donald Trump and rising hurdles to implementation of his pro-growth agenda. The spot price of iron ore rallied 1.8 per cent to $US62.69 a tonne on Friday as Chinese steel futures rallied. Credit Suisse analysts see the potential for further gains in the second half of 2017, arguing that steel mills in China have managed their inventories better than thought and concern about iron ore stockpiles at ports in China have been overstated.
Flight Centre Travel Group Limited (FLT); Harvey Norman Holdings Limited (HVN):
Flight Centre co-founder Geoff Harris and Harvey Norman founder Gerry Harvey have called for corporate and personal incomes taxes to be lowered, as the prospect of a 49.5 per cent top income tax rate delights those, such as fellow BRW Rich Lister Patrick Grove, who are competing for talent elsewhere in the Asia-Pacific region. Mr Harris has not only called for lower company taxes and an increase to the goods and services tax – despite the fact it would raise prices at the travel agency in which he retains a 15 per cent share – but the creation of two budgets, one for recurrent spending to be balanced annually, and another for infrastructure spending.
Graincorp Limited (GNC):
One of Australia’s leading businessmen, who is on a temporary work visa, has sounded a warning about the ramifications for companies with global aspirations from the Turnbull government’s abolition of 457 visas. Mark Palmquist, an American who left a 35-year career with Minnesota based Fortune 100 company CHS Inc to take the helm of GrainCorp in 2014, is caught up in the change and will need to reapply for a shorter, two-year visa under new rules next year. But he says his biggest concern over the government’s decision to scrap 457 visas in favour of a new program with tighter restrictions and available to fewer occupations is not his personal circumstance but what impact it could have on GrainCorp, which has significant offshore operations and competes globally.
(Source: AIMS)
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