Australia and New Zealand Banking Group (ANZ); National Australia Bank Limited (NAB); Commonwealth Bank of Australia (CBA); Westpac Banking Corporation (WBC):
Lenders and mortgage brokers claim they are struggling with the most volatile price and funding conditions since the end of the global financial crisis, despite the cost of money being close to record lows. Other lenders, such as State Custodians, Pacific Mortgage Group, Freedom Land, AMO Group and Move, offer interest-only rates below 4 per cent, which was the benchmark the majors competed around before the regulatory tightening. By contrast, Commonwealth Bank, the nation’s largest lender to property buyers, is increasing interestonly mortgages to owner-occupied borrowers by 30 basis points, to 5.77 per cent from July 7, while interest-only loans to investors will increase by 30 basis points to 6.24 per cent. The last RBA cash rate move was a 25-basis-point cut last August. The major banks passed around half this on to their borrowers.
BWX Limited (BWX):
When beauty products company BWX bought the Sukin brand from Melbourne siblings Alison Goodger and Simon O’Connor for $53 million in 2015, sales of the vegan skincare range were less than $30 million. Fast forward two years and Sukin is poised to go global following BWX’s $US38.4 million ($50.5 million) acquisition of Californiabased natural cosmetics company Mineral Fusion National Brand.
Origin Energy (ORG); Wesfarmers (WES):
The 25 new chief executives appointed to top 200 companies over the past 18 months received an average 25 per cent pay cut from their predecessors, according to new research by consultants Egan Associates. The research reveals that the new batch of CEOs, which included Wesfarmers’ Rob Scott, Origin Energy CEO Frank Calabria and Carsales CEO Cameron McIntyre, received an average $4.19 million pay packet compared to over $5 million for the outgoing CEOs.CEO pay increased by 120 per cent for Australian CEOs between 2001 and 2008, culminating in a 12.5 per cent bump in 2012-1.
Santos (STO):
East coast gas buyers say the government is likely to trigger its new powers to limit LNG exports at the earliest opportunity to help bring an end to a situation that Australian Industry Group describes as ‘‘disastrous’’ for manufacturers. LNG producers last month seized on the changed forecast from the Australian Energy Market Operator, which dropped its March warning of a large shortfall in east coast gas and instead said the market was ‘‘finely balanced’’. Santos CEO Kevin Gallagher used that to declare that ‘‘there is no gas shortage’’, and that the only issue was price.
Tabcorp (TAH):
Wagering, gaming and Keno operator Tabcorp has revealed that a hiring spree to boost its digital team from 30 people to more than 200 in the past three years is behind a push to reposition itself as a fierce competitor in the online gambling market. These 200-plus people form part of the company’s broader technology team, which has grown to more than 750 people with science, technology, engineering and maths skills, now making up close to 25 per cent of the company’s workforce. Tabcorp’s major investment in its digital skills in the past few years is part of a strategy, spearheaded by its chief information officer Kim Wenn, to transform the business into one that is more innovative and embraces technology.
Mirvac (MGR):
The Morgan Stanley Real Estate Investing platform has taken a $138 million half stake in a new Collins Street office tower in Melbourne that Mirvac is developing. The fund-through deal for the tower at 664 Collins Street with MSREI’s Prime Property Fund Asia has been struck on a yield of 4.97 per cent. Designed by Grimshaw Architects, the 26,000 square metre building is almost two thirds pre-leased to Exxon-Mobil and Pitcher Partners.As part of the deal with the Morgan Stanley’s Prime Asia fund, Mirvac will provide rental guarantee on any unlet space for five years after practical completion, which is expected next year.
(Source: AIMS)
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