Australia and New Zealand Banking Group Limited (ANZ); Commonwealth Bank of Australia (CBA); National Australia Bank Limited (NAB); Westpac Banking Corporation (WBC):
Westpac, the nation’s second largest mortgage lender, is ditching mortgage and equity-release products in a highlevel review of its product range and underwriting standards. The top-down review is expected to reassess dozens of loans and lending packages, which include credit and insurance products, as the bank and its subsidiaries adjust lending criteria to changing market conditions. It is being undertaken as major big four competitors continue to tighten lending for interest-only loans, increase mandatory deposits for home loans and tighten access to credit-related products. There was broadbased buying in the big four banks, which followed the leads of their US peers. Commonwealth Bank closed 0.8 per cent higher, while Westpac was up 0.8 per cent. ANZ climbed 0.4 per cent and National Australia Bank was up 0.7 per cent.
Macquarie Group (MQG):
Macquarie’s top performing infrastructure division is beginning to face many of the same headwinds that are squeezing equity fund managers around the world, leading to questions about how much of a contributor the specialist manager will be to group earnings in the future. The growing sophistication of investors, big prices paid for assets, increased competition and a shift to passive investing are among the key hurdles for Macquarie’s Infrastructure and Real Assets (MIRA) division.The observations are among those made in a 36-page report by Citi analyst Craig Williams that looked at the circumstances that have contributed to the rise of MIRA run by Martin Stanley within the Macquarie Asset Management (MAM) profit engine.
South32 Limited (S32):
South32’s most problematic mine, the Appin coal mine in NSW, will suffer an ‘‘extended outage’’ while the miner conducts a safety review, which analysts anticipate could take months. The Perth-based miner suspended operations at Appin in late June after evacuating its workers due to concerns about high gas levels. Despite South32 finding no breach of gas limits, the NSW Department of Planning and Environment hit the company with a prohibition notice and raised concerns about ongoing gas issues and ‘‘operating practices’’ at the mine. South32 said on Monday operations at Appin would remain suspended while it reviewed its operating systems and practices.
Woolworths Limited (WOW):
Woolworths’ plans to pay down debt, refurbish supermarkets and expand its convenience store network will hinge on a decision this week by the competition watchdog on the $1.8 billion sale of Woolworths fuel stations to BP. The Australian Competition and Consumer Commission is due to decide by Thursday whether to approve or block the deal, which is due to be completed in January 2018, or whether to release a statement of issues. Analysts believe there is a 50 per cent chance the deal will be blocked. Even if it is approved, BP may be forced to sell as many as 90 outlets to appease the ACCC, changing the economics of the deal.
Gazal Corporation Limited (GZL); Oroton Group Limited (ORL):
Clothing distributor Gazal Corp has dealt itself a seat at the table in a $50 million sale of upmarket accessories retailer OrotonGroup, confirming it bought a 7.3 per cent stake last week for $3.1 million. Gazal Corp, which is controlled by veteran retailers Michael and David Gazal, said they had no proposal to put to OrotonGroup but noted the company was conducting a sale process and would consider opportunities as they arose. Gazal Corp chief executive Patrick Robinson, a former senior executive at David Jones, declined to comment further.As reported last week by The Australian Financial Review’s Street Talk column, British-based fund manager Highclere International sold its entire 7 per cent stake or 2.9 million shares through Angus Aitken’s Aitken Murray Capital Partners, just before the market opened on Thursday, at $1 a share.
(Source: AIMS)
Westpac, the nation’s second largest mortgage lender, is ditching mortgage and equity-release products in a highlevel review of its product range and underwriting standards. The top-down review is expected to reassess dozens of loans and lending packages, which include credit and insurance products, as the bank and its subsidiaries adjust lending criteria to changing market conditions. It is being undertaken as major big four competitors continue to tighten lending for interest-only loans, increase mandatory deposits for home loans and tighten access to credit-related products. There was broadbased buying in the big four banks, which followed the leads of their US peers. Commonwealth Bank closed 0.8 per cent higher, while Westpac was up 0.8 per cent. ANZ climbed 0.4 per cent and National Australia Bank was up 0.7 per cent.
Macquarie Group (MQG):
Macquarie’s top performing infrastructure division is beginning to face many of the same headwinds that are squeezing equity fund managers around the world, leading to questions about how much of a contributor the specialist manager will be to group earnings in the future. The growing sophistication of investors, big prices paid for assets, increased competition and a shift to passive investing are among the key hurdles for Macquarie’s Infrastructure and Real Assets (MIRA) division.The observations are among those made in a 36-page report by Citi analyst Craig Williams that looked at the circumstances that have contributed to the rise of MIRA run by Martin Stanley within the Macquarie Asset Management (MAM) profit engine.
South32 Limited (S32):
South32’s most problematic mine, the Appin coal mine in NSW, will suffer an ‘‘extended outage’’ while the miner conducts a safety review, which analysts anticipate could take months. The Perth-based miner suspended operations at Appin in late June after evacuating its workers due to concerns about high gas levels. Despite South32 finding no breach of gas limits, the NSW Department of Planning and Environment hit the company with a prohibition notice and raised concerns about ongoing gas issues and ‘‘operating practices’’ at the mine. South32 said on Monday operations at Appin would remain suspended while it reviewed its operating systems and practices.
Woolworths Limited (WOW):
Woolworths’ plans to pay down debt, refurbish supermarkets and expand its convenience store network will hinge on a decision this week by the competition watchdog on the $1.8 billion sale of Woolworths fuel stations to BP. The Australian Competition and Consumer Commission is due to decide by Thursday whether to approve or block the deal, which is due to be completed in January 2018, or whether to release a statement of issues. Analysts believe there is a 50 per cent chance the deal will be blocked. Even if it is approved, BP may be forced to sell as many as 90 outlets to appease the ACCC, changing the economics of the deal.
Gazal Corporation Limited (GZL); Oroton Group Limited (ORL):
Clothing distributor Gazal Corp has dealt itself a seat at the table in a $50 million sale of upmarket accessories retailer OrotonGroup, confirming it bought a 7.3 per cent stake last week for $3.1 million. Gazal Corp, which is controlled by veteran retailers Michael and David Gazal, said they had no proposal to put to OrotonGroup but noted the company was conducting a sale process and would consider opportunities as they arose. Gazal Corp chief executive Patrick Robinson, a former senior executive at David Jones, declined to comment further.As reported last week by The Australian Financial Review’s Street Talk column, British-based fund manager Highclere International sold its entire 7 per cent stake or 2.9 million shares through Angus Aitken’s Aitken Murray Capital Partners, just before the market opened on Thursday, at $1 a share.
(Source: AIMS)
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