Two of the nation's biggest banks have slashed key deposit rates to virtually zero, leaving millions of Australians who depend on the interest from their savings with almost no extra income. ANZ Bank and National Australia Bank have reduced the rates they are offering on their basic saver accounts, just days after the Reserve Bank of Australia's most recent cut to official interest rates. According to financial services research firm Canstar, ANZ has halved its online saver base interest rate to 0.15 per cent. It has kept its introductory rate on the account at 1.8 per cent. The base rate on its progress saver account remains at 0.01 per cent, although it has sliced a full 0.25 percentage points from the bonus rate on this type of account to 1.95 per cent.
Group Ltd (BHP):
BHP Group is moving ahead with plans to exit thermal coal, according to people familiar with the matter, the latest move by the world's biggest miners to retreat from the dirtiest fuel. BHP is looking at options to divest the business that includes assets in Australia and Colombia, said the people, who asked not to be identified as the development has not been made public. There's no guarantee the company will go ahead with a sale, the people said. Rio Tinto Group, the second-biggest miner, has already removed all exposure to thermal coal and other producers including Anglo American Plc have been cutting production amid growing pressure from investors concerned about climate change. Even Glencore Plc, the biggest shipper, has said it would look to limit production.
Charter Hall Group (CHC):
A consortium led by the Charter Hall Group has bought Telstra’s global headquarters building in the heart of the Melbourne’s central business district for $830 million with the deal showing demand for skyscrapers is running hot. The year as been marked by a series of transactions by players including US private equity firm Blackstone and listed groups Dexus, GPT and Cromwell that have all bought major office assets. The spree has pushed up values but buyers believe that office rents along the eastern seaboard are rising strongly and they will benefit from record low interest rates to finance their purchases.Charter Hall formed a partnership to buy the Telstra building at 242 Exhibition Street at the “Paris end” of Melbourne’s CBD. The property will be held by a wholesale partnership comprising the $5.4 billion unlisted Charter Hall Prime Office Fund, Canada’s Public Sector Pension Investment Board and the listed firm. The structure was flagged by The Australian last month.
Healius Ltd (HLS):
Healius is being supported by potential takeover activity from China, as analysts increase their price target on the healthcare company ahead of new deal action. The Australian-listed company has long been seen as a takeover target and in January its largest shareholder, China’s Jangho, made a move but its $3.25-a-share was rejected. JP Morgan analyst David Low has outlined in a new client note on Healius that a revised bid from the Chinese group was the most likely next step in deal activity. “We would expect other interested parties to wait for this to transpire, and the associated Foreign Investment Review Board process, before making an offer as it will clarify Jangho’s position,” Mr Low said. “We believe the dependability of domestic health service earnings and the stability of government funding could be attractive to potential suitors.”
Infratil Ltd (IFT):
Infratil has raised its expectations for FY20 earnings after its deal to buy Vodafone NZ, in conjunction with Brookfield, passed key regulatory approvals faster than anticipated. In a notice to the market today, Infratil said it expects the Vodafone acquisition to contribute eight months of the year, compared to earlier expectations of just seven. The company expects the $NZ3.4 billion ($3.25bn) transaction to complete by July 31 after the NZ Overseas Investment Office and Commerce Commission gave the deal the green light. Intratil now expects earnings between $655 million to $695m, from earlier forecasts of between $635m to $675m.
Nearmap Ltd (NEA):
Momentum is building across North America for local aerial imaging company Nearmap, with the value of its contracts in the continent almost doubling over the last 12 months. The $1.7 billion company said its contracts from the region had brought in $US22.7 million ($32.6 million) in the 2019 financial year ahead of its results in August. This value was 76 per cent higher than the $US12.9 million Nearmap recorded in the previous period and chief executive Rob Newman said he was "extremely proud" of the development. While North America provided the most growth, Australian contracts made up the bulk of the value at $57.9 million.
New Hope Corporation Limited (NHC):
South east Queensland mining company New Hope is off the hook for covering over $130 million of debts from Northern Energy Corporation and Colton Coal, a Supreme Court judgement has ruled. New Hope commenced proceedings against Wiggins Island Coal Export Terminal (WICET) and other parties in the NSW Supreme Court in February this year, seeking to prove that it was not bound by a deed of cross guarantee. A deed of cross-guarantee is a guarantee between a parent company and one or more of its wholly owned subsidiaries for each other’s liabilities.
Noni B Limited (NBL):
Shares in retailer Noni B have edged higher by as much a 6 per cent in Friday’s trade after confirming its guidance for a 21pc earnings boost. The chain today said the integration of retail fashion brands from its Specialty Fashion Group was progressing, and online sales were boosted over the period. For the full year, it expects earnings of $45million, up from $37.2m in the year previous. Shares touched as much as $2.89 in morning trade, but have settled flat to $2.73 at lunch.
Santos Ltd (STO) & Oil Search Limited(OSH):
shares are edging higher in Friday’s trade amid talk in the market that Santos could be considering an acquisition of its $10.6 billion Australian-listed rival. The move would capitalise on the expected departure of its longstanding and well-regarded chief executive Peter Botten and the current political uncertainty in Papua New Guinea, which has been weighing on its share price. The price of Oil Search shares has fallen to about $7.14 from around $8.30 in January and more than $9 a year ago as fears grew about gaining approval for a planned $US13bn PNG LNG expansion after Papua New Guinea’s then prime minister, Peter O’Neill, resigned following a string of desertions from his government. Shares today are higher by 2 per cent to $7.30.
Transurban Group (TCL):
Transport giant Transurban could rake in an extra $100 million in annual revenue from the M4 Tunnels in Sydney which open tomorrow. Motorists will be able to use the new M4 Tunnels to travel between Homebush to Haberfield, bypassing Parramatta Road from tomorrow, for $4.27. The majority of extra revenue is expected to be from extensions on M4 trips at an additional 51 cents per kilometre, which would equate to a 50 per cent boost in revenue generated from tolls on the M4, analysts at Macquarie Group estimated. Transurban shares were trading 0.9 per cent lower at $15.27 each at 11.20am on Friday, after hitting an all-time high on a daily close basis of $15.41 a share yesterday. Macquarie analysts maintained their neutral recommendation on the stock, saying they expect government forecasts to prove conservative, lifting confidence in the outlook. “Our expectation is traffic will beat estimates as the road captures Concord Road entries and exits, as well as ‘rat run’ traffic,” the analysts said.
Virgin Australia Holdings Ltd (VAH):
Virgin Australia has not ruled out buying back a 35 per cent stake in the Velocity frequent-flyer program it sold to Singapore-based fund manager Affinity in 2014. The airline yesterday reported to the Australian Securities Exchange that Affinity was seeking to sell the stake it bought for $336 million five years ago. According to the statement, Affinity had requested various exit options for the sale of its stake but no timeline had been established. Despite Virgin Australia’s challenging financial situation, a spokeswoman said nothing had been ruled out with regards to the sale. She added that the group remained committed to the long-term growth of the Velocity business and expected to remain the majority investor.
（Source: AIMS）
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