AMP Ltd (AMP):
The multi-billion-dollar redevelopment of Sydney’s Circular Quay is gathering steam, with AMP -Capital in pole position to secure accounting firm Deloitte as an anchor tenant of its proposed $3 billion Quay Quarter Tower. The accounting firm in March issued one of the city’s largest ever leasing requirements, seeking 30,000sq m-35,000sq m of space, and it is now set to occupy multiple floors along with financial services group AMP. The accounting firm will shift out of Grosvenor Place at 225 George Street — which is owned by the listed Dexus, Investa and fund manager ARIA — in 2023. The move means that AMP Capital’s tower has effectively beaten rival project Lendlease’s 55-level commercial Circular Quay Tower for the accounting firm. Deloitte’s move means AMP also has the jump on a series nearby Sydney office projects proposed by Mirvac and Poly Group at Circular Quay.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank and CSIRO’s Data61 have successfully completed a blockchain-powered ‘smart money’ trial that the bank says could one day redefine the way payments are doled out by government agencies, insurance companies and financial institutions. CBA and CSIRO’s pilot project focused on how ‘smart money’ technology can be used in the federal government’s National Disability Insurance Scheme (NDIS) initiative, with the bank’s head of government and ADIs Julie Hunter said the prototype app had shown how the technology can deliver to citizens greater choice and control over their disability support services. The NDIS, which is expected to provide support to 460,000 Australians by July 2020 and will be supported by thousands of Australian businesses, is a good example of a conditional payment environment.
Incitec Pivot Ltd (IPL):
Chemical and explosive maker Incitec Pivot has reported net profit after tax of $207.9 million, down 35 per cent on the year after a series of writedowns at the half year. It said excluding those material items its profit was $347m, an increase of 9 per cent. “We have entered FY19 with solid momentum, but the challenges will include increased gas pricing at Gibson Island over the next year and the continued search for economically viable gas supply for that operation. I am confident that the business is well placed to benefit from the continued execution of our strategy, as well as improved conditions across our markets,” Incitec boss Jeanne Johns told the market. It said that improved processes in its Asia Pacific fertiliser business had offset the impact of the drought, that sector notching a 0.7pc earnings gain to $104.6 million.
Lendlease Group (LLC):
Investors are stepping up pressure on Lendlease to exit its troubled engineering business as its share price rout deepened, with a total of $2.2 billion stripped from the developer’s value since it -revealed a shock $350 million writedown on Friday. The crisis sparked by the unit is threatening to engulf the listed company, with major corporate governance firm Institutional Shareholder Services to issue an alert about potential governance issues ahead of this Friday’s ¬annual general meeting. The company’s disclosure practices are also under the microscope with at least one class-action firm, Maurice Blackburn Lawyers, reviewing the situation. “What’s happened at Lendlease certainly warrants further scrutiny,” Maurice Blackburn Lawyers class-actions spokesman Cameron Scott said. “We are assessing it in terms of whether disclosure was adequate and any relation that might have to the significant loss of value ¬experienced by shareholders.” The company’s shares fell by 6.32 per cent to a two-year low of $13.35 yesterday as the market reacted to the writedown which followed a $200m hit taken against engineering projects in June.
Rio Tinto Ltd (RIO):
The buzz surrounding Rio Tinto’s secretive exploration camp in a remote corner of Western Australia has gathered further momentum, with mid-tier miner Independence Group agreeing to pump in almost $17 million to join the hunt in the region. The West Perth rumor mill has been going into overdrive in recent months amid talk that Rio Tinto may have a potentially significant copper discovery in Western Australia’s Paterson Ranges, between the state’s Pilbara and Kimberley regions. Yesterday, long-time Paterson explorer Encounter Resources announced a deal that will see Independence take a $1.8m placement in the company at a 60 per cent premium to its previous share price. Independence will also have the right to spend up to $15m on exploration at Encounter’s Yeneena prospect in the Paterson in return for a 70 per cent interest. Antipa executive chairman Stephen Power told The Australian yesterday that Rio’s growing ground position, its investment in the area and the persistent rumors all pointed to something significant.
Seven Group Holdings Ltd (SVW) & APA Group (APA):
Seven Group Holdings chief executive Ryan Stokes says the Australian government is justified in signalling it will block Hong Kong-listed CK Infrastructure’s $13 billion takeover bid for pipeline operator APA Group given the assets are critical infrastructure to the nation’s east coast gas network. CKI was set to become Australia’s largest gas pipeline operator on the nation’s east coast if the deal proceeded at a sensitive time for the industry. Seven — which owns a 25 per cent stake in South Australian gas producer Beach Energy — does not expect any fallout from foreign investors given it is what he describes as a “one-off” decision over a unique asset. APA owns 15,000km of gas pipelines, representing 74 per cent of gas transmission infrastructure. “It’s critical infrastructure and APA have been very active and effective with managing that process,” Mr Stokes said.
Suncorp Group Ltd (SUN):
Suncorp Group has postponed the targeted close of the $725 million sale of its Australian life insurance business to Japan’s Dai-ichi Life, citing the timing of regulatory approvals. The company said in a statement it was targeting late February for the completion date, compared with its initial date of late-December this year. The company also said that an extraordinary general shareholders’ meeting regarding a capital return would be held after the completion of the sale, instead of mid-December as initially proposed.
Wesfarmers Ltd (WES):
Coles chief executive Steven Cain, who in eight days’ time will lead the supermarket giant onto the ASX as an independent company, said overseas shareholders he spoke to on a recent overseas roadshow for the $20 billion demerger were not phased by recent share market turmoil that had sent global equity markets spiraling downwards. Mr. Cain sad international investors were more focused on Coles’ growth profile than it being a defensive play offering a strong flow of dividend. Mr. Cain, who was accompanied on an investor tour of Asia, Europe and the USA by his CFO Leah Weckert, said the mood wasn’t impacted by the sharp slide by global sharemarkets while he was conducting the Coles investment roadshow. Mr. Cain said he met upwards of nearly 100 investors in his tour with the majority existing Wesfarmers shareholders (who will get shares in Coles if the demerger is approved on Thursday) as we’ll as some new investors keen to hear about Coles.
Westpac Banking Corp (WBC):
The Federal Court has refused to approve a $35 million civil penalty agreed to by Westpac after action by the corporate regulator over breaches of responsible mortgage lending obligations. It comes after Westpac and the Australian Securities and Investments Commission (ASIC) agreed in September to the fine, after the bank conceded it wrongly assessed people’s ability to repay mortgages by relying on a benchmark for customer expenses. Federal Court Judge Nye Perram had questioned how Westpac and ASIC arrived at the penalty, which he said was significantly higher than previous penalties handed out for irresponsible lending. Westpac had agreed to the settlement with ASIC for contravening the National Consumer Credit Protection Act after an automated Westpac system approved about 10,500 loans between December 2011 and March 2015 that should not have been approved, before changing its systems in 2015.
Woolworths Group Ltd (WOW):
The sale of Woolworths’ petrol business to UK based EG Group will likely result in an off-mark buy-back for as much as 4.4 per cent of shares - according to CLSA’s Richard Barwick. In a note to clients he said the petrol sale would likely lead to capital management and with $2.6 billion of franking credits available, he sees scope for a buyback. “He estimates full deployment of the sale proceeds could enable 4.4 per cent of shares to be extinguished to deliver further EPS accretion of 2 per cent,” CLSA said. He continues to believe the stock is expensive at 21x FY19 EPS and given competitive pressures and limitations to the upside.
（Source: AIMS）
The multi-billion-dollar redevelopment of Sydney’s Circular Quay is gathering steam, with AMP -Capital in pole position to secure accounting firm Deloitte as an anchor tenant of its proposed $3 billion Quay Quarter Tower. The accounting firm in March issued one of the city’s largest ever leasing requirements, seeking 30,000sq m-35,000sq m of space, and it is now set to occupy multiple floors along with financial services group AMP. The accounting firm will shift out of Grosvenor Place at 225 George Street — which is owned by the listed Dexus, Investa and fund manager ARIA — in 2023. The move means that AMP Capital’s tower has effectively beaten rival project Lendlease’s 55-level commercial Circular Quay Tower for the accounting firm. Deloitte’s move means AMP also has the jump on a series nearby Sydney office projects proposed by Mirvac and Poly Group at Circular Quay.
Commonwealth Bank of Australia (CBA):
Commonwealth Bank and CSIRO’s Data61 have successfully completed a blockchain-powered ‘smart money’ trial that the bank says could one day redefine the way payments are doled out by government agencies, insurance companies and financial institutions. CBA and CSIRO’s pilot project focused on how ‘smart money’ technology can be used in the federal government’s National Disability Insurance Scheme (NDIS) initiative, with the bank’s head of government and ADIs Julie Hunter said the prototype app had shown how the technology can deliver to citizens greater choice and control over their disability support services. The NDIS, which is expected to provide support to 460,000 Australians by July 2020 and will be supported by thousands of Australian businesses, is a good example of a conditional payment environment.
Incitec Pivot Ltd (IPL):
Chemical and explosive maker Incitec Pivot has reported net profit after tax of $207.9 million, down 35 per cent on the year after a series of writedowns at the half year. It said excluding those material items its profit was $347m, an increase of 9 per cent. “We have entered FY19 with solid momentum, but the challenges will include increased gas pricing at Gibson Island over the next year and the continued search for economically viable gas supply for that operation. I am confident that the business is well placed to benefit from the continued execution of our strategy, as well as improved conditions across our markets,” Incitec boss Jeanne Johns told the market. It said that improved processes in its Asia Pacific fertiliser business had offset the impact of the drought, that sector notching a 0.7pc earnings gain to $104.6 million.
Lendlease Group (LLC):
Investors are stepping up pressure on Lendlease to exit its troubled engineering business as its share price rout deepened, with a total of $2.2 billion stripped from the developer’s value since it -revealed a shock $350 million writedown on Friday. The crisis sparked by the unit is threatening to engulf the listed company, with major corporate governance firm Institutional Shareholder Services to issue an alert about potential governance issues ahead of this Friday’s ¬annual general meeting. The company’s disclosure practices are also under the microscope with at least one class-action firm, Maurice Blackburn Lawyers, reviewing the situation. “What’s happened at Lendlease certainly warrants further scrutiny,” Maurice Blackburn Lawyers class-actions spokesman Cameron Scott said. “We are assessing it in terms of whether disclosure was adequate and any relation that might have to the significant loss of value ¬experienced by shareholders.” The company’s shares fell by 6.32 per cent to a two-year low of $13.35 yesterday as the market reacted to the writedown which followed a $200m hit taken against engineering projects in June.
Rio Tinto Ltd (RIO):
The buzz surrounding Rio Tinto’s secretive exploration camp in a remote corner of Western Australia has gathered further momentum, with mid-tier miner Independence Group agreeing to pump in almost $17 million to join the hunt in the region. The West Perth rumor mill has been going into overdrive in recent months amid talk that Rio Tinto may have a potentially significant copper discovery in Western Australia’s Paterson Ranges, between the state’s Pilbara and Kimberley regions. Yesterday, long-time Paterson explorer Encounter Resources announced a deal that will see Independence take a $1.8m placement in the company at a 60 per cent premium to its previous share price. Independence will also have the right to spend up to $15m on exploration at Encounter’s Yeneena prospect in the Paterson in return for a 70 per cent interest. Antipa executive chairman Stephen Power told The Australian yesterday that Rio’s growing ground position, its investment in the area and the persistent rumors all pointed to something significant.
Seven Group Holdings Ltd (SVW) & APA Group (APA):
Seven Group Holdings chief executive Ryan Stokes says the Australian government is justified in signalling it will block Hong Kong-listed CK Infrastructure’s $13 billion takeover bid for pipeline operator APA Group given the assets are critical infrastructure to the nation’s east coast gas network. CKI was set to become Australia’s largest gas pipeline operator on the nation’s east coast if the deal proceeded at a sensitive time for the industry. Seven — which owns a 25 per cent stake in South Australian gas producer Beach Energy — does not expect any fallout from foreign investors given it is what he describes as a “one-off” decision over a unique asset. APA owns 15,000km of gas pipelines, representing 74 per cent of gas transmission infrastructure. “It’s critical infrastructure and APA have been very active and effective with managing that process,” Mr Stokes said.
Suncorp Group Ltd (SUN):
Suncorp Group has postponed the targeted close of the $725 million sale of its Australian life insurance business to Japan’s Dai-ichi Life, citing the timing of regulatory approvals. The company said in a statement it was targeting late February for the completion date, compared with its initial date of late-December this year. The company also said that an extraordinary general shareholders’ meeting regarding a capital return would be held after the completion of the sale, instead of mid-December as initially proposed.
Wesfarmers Ltd (WES):
Coles chief executive Steven Cain, who in eight days’ time will lead the supermarket giant onto the ASX as an independent company, said overseas shareholders he spoke to on a recent overseas roadshow for the $20 billion demerger were not phased by recent share market turmoil that had sent global equity markets spiraling downwards. Mr. Cain sad international investors were more focused on Coles’ growth profile than it being a defensive play offering a strong flow of dividend. Mr. Cain, who was accompanied on an investor tour of Asia, Europe and the USA by his CFO Leah Weckert, said the mood wasn’t impacted by the sharp slide by global sharemarkets while he was conducting the Coles investment roadshow. Mr. Cain said he met upwards of nearly 100 investors in his tour with the majority existing Wesfarmers shareholders (who will get shares in Coles if the demerger is approved on Thursday) as we’ll as some new investors keen to hear about Coles.
Westpac Banking Corp (WBC):
The Federal Court has refused to approve a $35 million civil penalty agreed to by Westpac after action by the corporate regulator over breaches of responsible mortgage lending obligations. It comes after Westpac and the Australian Securities and Investments Commission (ASIC) agreed in September to the fine, after the bank conceded it wrongly assessed people’s ability to repay mortgages by relying on a benchmark for customer expenses. Federal Court Judge Nye Perram had questioned how Westpac and ASIC arrived at the penalty, which he said was significantly higher than previous penalties handed out for irresponsible lending. Westpac had agreed to the settlement with ASIC for contravening the National Consumer Credit Protection Act after an automated Westpac system approved about 10,500 loans between December 2011 and March 2015 that should not have been approved, before changing its systems in 2015.
Woolworths Group Ltd (WOW):
The sale of Woolworths’ petrol business to UK based EG Group will likely result in an off-mark buy-back for as much as 4.4 per cent of shares - according to CLSA’s Richard Barwick. In a note to clients he said the petrol sale would likely lead to capital management and with $2.6 billion of franking credits available, he sees scope for a buyback. “He estimates full deployment of the sale proceeds could enable 4.4 per cent of shares to be extinguished to deliver further EPS accretion of 2 per cent,” CLSA said. He continues to believe the stock is expensive at 21x FY19 EPS and given competitive pressures and limitations to the upside.
（Source: AIMS）
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