4 DAYS AGO | 9.58AMQBE prime AIG target: Credit Suisse QBE...

4 DAYS AGO | 9.58AMQBE prime AIG target: Credit Suisse
QBE Insurance is among “potential acquisition targets” for AIG, according to Credit Suisse.
“We looked at the accretion math and rationale for five different deals that could make sense for AIG to pursue (HIG, QBE, CNA, RSA, THG) and conclude that these deals — alongside a lesser amount of share repurchase — are reasonably competitive with a scenario where AIG buys back all of what it generates,” Credit Suisse analysts say in a report.
They note that QBE would offer “geographic diversification” by adding a “strong Australian business” and “a region with improving pricing”.
It would also offer “access to US middle market distribution” and “cost savings” in North America and Europe.
On the negative side, they note that QBE is in the middle of a profitability turnaround plan which would “add to the complexity of an integration.”
And there is “revenue overlap” in the Global Corporate businesses of AIG and QBE.
FacebookTwitterGPlus
SARAH-JANE TASKER4 DAYS AGO | 9.32AMCrownBet slams Tabcorp-Tatts merger
The James Packer-backed CrownBet has fired another shot in its attempt to stop Tabcorp’s (TAH) akeover of Tatts Group (TTS), with the launch of an appeal against the regulatory approval of the deal.
CrownBet yesterday filed an application for a judicial review of the Australian Competition Tribunal’s decision to authorise the merger between Tabcorp and Tatts.
Read more
FacebookTwitterGPlus
4 DAYS AGO | 9.25AMWhitehaven production falls short
Whitehaven Coal FY17 saleable coal production of 20.8 million tonnes has undershot the company’s 21-22 million tonne guidance for the period.
While falling short of expectations, it is Whitehaven’s largest ever full-year saleable production volume, and its June-quarter production of the same grade was up 7 per cent year-on-year.
WHC last flat at $2.87.
FacebookTwitterGPlus
4 DAYS AGO | 9.00AMWestpac raised, CBA cut: Goldman Sachs
Goldman Sachs has downgraded CBA cut to “neutral” vs. “buy”, while upgrading Westpac to “buy” vs. ”neutral”.

Goldman makes a deposit ... and a withdrawal.

While CBA remains a “premium franchise”, Goldman Sachs sees “better value elsewhere”.
Ahead of APRA’s capital guidelines this month, the broker also notes that CBA’s capital ratio is below its peers.
But it sees value in Westpac (WBC) as it’s trading at a 6 per cent discount to peers vs. a 15-year average of 1 per cent.
And it says macroprudential impacts are “being too heavily discounted” and the volume impact of APRA’s restrictions “are not as harsh as originally feared.”
Goldman Sachs’ $35.77 target price on Westpac implies a 22 per cent total shareholder return over the next 12 months.
Overall on banks, the firm expects near-term earnings to be supported by higher net interest margins.
FacebookTwitterGPlus
5 DAYS AGO | 8.55AMNorthern Star tips top-end guidance
Gold miner Northern Star Resources posted FY17 gold production of 514 735oz at the top end of its guidance between 485 000-515 000oz.
This comes on the back of a record total June quarter output from the company’s entirely domestic operations, namely its Jundee, Kalgoorilie and Paulsens mines. Peer Resolute Mining also posted a production guidance beat yesterday on better-than-expected yields from its Australian and African operations.
The share prices of most major gold miners strengthened yesterday as the commodity’s spot price jumped 1 per cent in risk-off trade, Northern Star (NST) jumping 1.7 per cent to $4.69.
FacebookTwitterGPlus
5 DAYS AGO | 8.43AMAnalyst rating changes
Westpac raised to Buy vs. Neutral — Goldman Sachs
Commonwealth Bank of Australia cut to Neutral vs. Buy — Goldman Sachs
Incitec Pivot raised to Buy vs. Neutral — UBS
MNF Group initiated at Overweight; $6.15 target price — Morgan Stanley
Fortescue initiated at Hold; $5.50 target price — HSBC
Charter Hall Retail raised to Neutral vs. Underweight — Credit Suisse
BT Investment Management raise to Outperform vs. Neutral — Macquarie
Royal Wolf Holdings cut Hold vs. Buy — JPMorgan
FacebookTwitterGPlus
DAMON KITNEY5 DAYS AGO | 8.37AMFinance chiefs confident in uncertainty
The nation’s chief financial officers have flagged a fresh spurt of confidence, in defiance of global uncertainty and local politician inertia, with their outlook buoyed by low interest rates, the softer dollar and improved demand in Asia for Australian exports.
Deloitte’s CFO Sentiment report for the first half of 2017 found 83 per cent of CFOs were optimistic about the financial prospects of their companies and 25 per cent were more optimistic than six months ago, up five percentage points.
Read more
FacebookTwitterGPlus
5 DAYS AGO | 7.30AMASX set to open higher
The Australian market looks set to open half a per cent higher after Wall Street’s Dow Jones closed at a record high following Federal Reserve Chair Janet Yellen’s testimony before Congress.
At 7am (AEST), the share price futures index was up 27 points, or 0.48 per cent, at 5,652.
US markets responded positively to the Fed chief’s signalling that the central bank will gradually tighten policy and unwind its massive balance sheet. The US economy is healthy enough for the Fed to raise rates and begin winding down its massive bond portfolio, though low inflation and a low neutral rate may leave the central bank with diminished leeway, Ms Yellen told Congress. The Dow Jones Industrial Average rose 0.57 per cent to 21,532.14, a record high, while the S & P 500 gained 0.73 per cent and the Nasdaq Composite added 1.10 per cent.
Locally, in economic news today, the Australian Bureau of Statistics releases lending finance figures for May.
In equities, Whitehaven Coal and Northern Star Resources are expected to give quarterly updates.
The Australian market yesterday closed lower, with rising iron ore prices unable to protect local shares from the fallout from the latest political drama in the US and concerns about the future of the Trump administration’s economic agenda.
The benchmark S & P/ASX200 index lost 55.1 points, or 0.96 per cent, to 5,673.8 points, The broader All Ordinaries index fell 50.8 points, or 0.88 per cent, to 5,717.7 points.
AAP
FacebookTwitterGPlus
5 DAYS AGO | 6.57AMDow climbs to record close
US stocks and government bonds rallied and the dollar fell, after Federal Reserve Chairwoman Janet Yellen addressed a slowdown in inflation.
In testimony on Capitol Hill, Ms Yellen said she expects consumer prices to allow the central bank to keep gradually raising interest rates, but that the Fed would alter its plans if weak inflation proved more persistent.
Inflation has slowed in recent months, and some analysts and investors said Ms Yellen’s comments suggested that the Fed might be more cautious with future rate increases. Consumer-price index data for June is scheduled for release on Friday.
The Dow Jones Industrial Average rose 123 points, or 0.6 per cent, to 21532, a new closing high. The S & P 500 climbed 0.7 per cent — with all 11 sectors rising — and the Nasdaq Composite advanced 1.1 per cent.
Australia’s sharemarket is set to follow suit. At 7am (AEST) the SPI futures index was up 26 points.

Wall Street rallied overnight. Pic: AP
The US moves were the latest swings caused by comments from the world’s largest central banks. Bonds have steadied in recent days after a two-week sell-off that was driven by concerns about how quickly global central banks would scale back monetary stimulus.
US government bonds strengthened Wednesday, with the yield on the 10-year Treasury note falling to 2.325 per cent, according to Tradeweb, from 2.362 per cent yesterday. The WSJ Dollar Index, which tracks the currency against a basket of 16 others, edged down 0.3 per cent, extending declines from a day earlier.
Dow Jones Newswires
FacebookTwitterGPlus
5 DAYS AGO | 6.55AMDollar heads toward US77c
The Australian dollar is again heading upwards against its US counterpart, which has remained steady, and toward US77 cents.
At 6.35am (AEST), the Australian dollar was worth US76.79 cents, up from US76.44 cents yesterday.
Westpac’s Imre Speizer said the Australian dollar enjoyed a boost after Federal Reserve chair Janet Yellen’s start of two days of testimony before Congress.
“The Australian dollar extended a multi-day rally from 0.7645 to 0.7685, receiving a decent boost after Yellen’s testimony,” he said in a morning note. “Fed Chair Yellen’s speech to Congress was largely a repeat of recent missives, apart from a subtle change in language regarding inflation.
“She described the recent softness in inflation as ‘partly the result’ of temporary factors such as telecommunication and pharmaceutical price drops.
“That suggests slightly less confidence that inflation will rebound.”
Mr Speizer said he could see the Australian dollar breaking higher toward US77 cents.
AAP
FacebookTwitterGPlus
5 DAYS AGO | 6.50AMUS needs only ‘gradual’ rate hikes
Federal Reserve Chair Janet Yellen said that even as the US economy grows stronger and employment expands, she foresees only “gradual” interest rate increases in the next few years.
Facing sometimes tough questions from legislators, Ms Yellen presented the Fed’s required semi-annual report to Congress — possibly for the last time if President Donald Trump decides not to reappoint her for a second term at the helm of the US central bank.
She cautioned that possible changes in the administration’s economic policy and spending are a “source of uncertainty” in the country’s economic outlook.
Another big unknown is whether stubbornly low inflation will finally move closer to the Fed’s two per cent target rate, from the current 1.4 per cent.

Janet Yellen testifies
Sluggish US inflation and wage increases have baffled and worried economists given the very low unemployment rate, which would normally drive prices and earnings higher.
But Ms Yellen once again expressed the view held by many US central bankers that the low pace of price increases is “partly the result of a few unusual reductions in certain categories of prices,” such as cell phone service and prescription medicines.
The Fed is watching developments carefully, she told the House Financial Services Committee during the first of two days of testimony on Capitol Hill. She appears before the Senate Banking Committee tonight (AEST)
AP
FacebookTwitterGPlus
5 DAYS AGO | 6.45AMCanada raises rates
The Bank of Canada has raised its key interest rate for the first time in nearly seven years, responding to what it sees as “above-potential” economic growth.
The bank lifted the key overnight rate by a quarter point, from 0.50 per cent to 0.75 per cent, the first such move since September 2010.
Analysts had expected an increase even though inflation stood only at 1.3 per cent in May.
“The bank acknowledges recent softness in inflation but judges this to be temporary,” it said, adding that it considers the timing of the rate hike “appropriate.” “Canada’s economy has been robust, fuelled by household spending. As a result, a significant amount of economic slack has been absorbed,” the bank said.
“The very strong growth of the first quarter is expected to moderate over the balance of the year, but remain above potential,” it said.
The central bank said it estimates that Canada’s real GDP growth will hit 2.8 per cent this year, and then dip to 2.0 per cent in 2018 and 1.6 per cent in 2019.
It also noted the “solid pace” of growth in the US economy — another Group of Seven nation that has recently raised rates — and that “above-potential growth is becoming more widespread in the euro area.” “I think the most important thing here is that the economy clearly no longer needs as much stimulus as we have been giving it,” central bank governor Stephen Poloz told a news conference.
AFP

FacebookTwitterGPlus
5 DAYS AGO | 6.40AMEuropean markets upbeat on Wall St, Yellen
Europe’s main stock markets rose overnight, buoyed by higher prices on Wall Street after Federal Reserve chief Janet Yellen pledged a “gradual” approach to interest rate increases.
The Fed chair “left the door cracked open for a softer stance on rate hikes (or the lack thereof),” said Briefing.com analyst Patrick O’Hare.
Ms Yellen, in prepared testimony ahead of a congressional hearing, said that she would “carefully monitor” US economic conditions as the labour market tightens but that inflation was lagging behind the Fed’s targets.
Further comments during Ms Yellen’s two-day congressional testimony will be pored over for further clues about future monetary policy.
Oil prices, which have seen wild swings in recent months, bounced back from losses last week with gains of more than one per cent on bets that US stockpiles had fallen.
But investors remained wary as the turmoil surrounding US President Donald Trump intensified when his son Donald Jr released emails showing he had embraced Russia’s efforts to support the tycoon’s presidential campaign against Hillary Clinton.
London closed up 1.2 per cent, Frankfurt ended 1.5 per cent higher and Paris closed up 1.6 per cent.
AFP

FacebookTwitterGPlus

• Share on Facebook
• Share on Twitter
• Share on email
• Share more...

FROM THE HOMEPAGE
Harrison attacks crushing court loss

SAM BUCKINGHAM-JONES
Amber Harrison, the former mistress of Seven boss Tim Worner, responds to today’s damning court judgment.
Slain Australian ‘hated guns’

CAMERON STEWART
The Sydney woman shot dead by US police hated America’s gun culture, but moved there to marry “the love of my life”.
Super-ministry to elevate Dutton

DAVID CROWE
Malcolm Turnbull’s move to set up a Homeland-style ministry to oversee security will elevate Peter Dutton to powerful new post.
Buck’s death woman ‘in ADF’

SIMONE FOX KOOB
The woman found dead in a Melbourne apartment after a buck’s night was reportedly a member of the Defence Force.
Lib MP ‘off the reservation’

ROSIE LEWIS
Craig Kelly’s claim that renewable energy will kill people this winter has been rubbished by his Liberal colleagues.
Qatar beats the blockade

RICHARD SPENCER
Five weeks after Qatar was isolated by its Gulf neighbours, the world’s richest country is thriving. Here’s how.
‘Keep out of AFL staff sex lives’

REBECCA URBAN
High-profile feminist Catharine Lumby blasts the AFL and says she’s alarmed about moves to legislate consensual relationships.
Game on in Thrones return

JUSTIN BURKE
The first episode in the new Game of Thrones season raises the pace of murder and mayhem | Warning: spoilers.
mce-anchor





MORE STORIES
Plastic bag ban: answers needed


Coles is under pressure to reveal how many plastic bags it’s using after the Woolworths Group revealed its figures.
Adani to hurt NSW coal: report

ANDREW LEESON
A new report has urged NSW to oppose subsidies for the Adani coal mine, as it could cost the state $10bn in royalties.
Uber swerves towards Macau exit

DAN STRUMPF
Uber has signalled it will suspend operations in Macau, in the latest retreat for the ride-sharing giant.
Dollar hovers above US78c

JAMES GLYNN
The Australian dollar is hovering above US78c after extending its week-long rally, helped by softness in the greenback.
Artists, go forth and Procreate

JASON GAGLIARDI
Procreate has become the go-to app for digital painting and sketching.

• Branch Manager, Strategic Policy & Data Analytics
  Department of Education and Training
  Location: Canberra, ACT
• Assistant Secretary (Chief Finance Officer) Associate Secretary
  Department of Defence
  Location: Canberra, ACT
• Assistant Secretary Information Communications and Technology Security
  Department of Defence
  Location: Canberra, ACT
• Assistant Secretary Corporate and Business Enablement
  Department of Defence
  Location: Canberra, ACT
• Policy Officer
  Department of Education and Training
  Location: Canberra, ACT
• Branch Manager – Various Positions
  Department of Education and Training
  Location: Canberra, ACT
• Group Manager – Various Positions
  Department of Education and Training
  Location: Canberra, ACT
• Global Health and Safety Manager
  Austin Engineering Ltd
  Location: Brisbane, QLD
• Head Helicopter Systems Division
  Department of Defence
  Location: Canberra, ACT
• Audit Intermediate Accountant
  Hays
  Location: Brisbane, QLD