ASB Securities Morning Brief for Monday, 25 May 2015
Monday, 25 May 2015

New Zealand Headlines

New Zealand Market Report: New Zealand shares rose, led by Coats Group after it said earnings were on track. Nuplex Industries advanced after it flagged it would lift its dividends. The NZX 50 Index rose 7 points, or 3.6 percent, to 5776. Within the index, 26 stocks rose, 19 fell and five were unchanged. Turnover was $128 million... Read more

Dollar heads for 1.2% weekly decline as rate cuts considered... Read more

New Zealand consumer confidence slipped in May as sentiment about current and future conditions eased.... Read more

Banks foreclosed on more than 700 properties in the last year when financially strapped homeowners could no longer afford repayments. While the number of mortgagee sales has plummeted, an economist warns those who extended their mortgage terms or took repayment holidays during the last recession could be exposed during the next downturn.... Read more

NZ can afford the future cost of superannuation — English... Read more

KiwiSaver 'marginal at best' - IRD report. KiwiSaver has cost the taxpayer more than $6 billion and its success in helping people who really need a boost in their retirement savings has been described as "marginal, at best" in a report released by the Inland Revenue Department... Read more

KiwiSavers will have to leave $1000 in accounts. First home buyers who want to use their KiwiSaver savings to get on the property ladder will have to leave at least $1000 in their accounts in future in order to keep them open... Read more

Simon Swallow says all the options have suddenly become bad for QROPS transfers to KiwiSaver. Is there something you can do?... Read more

Teaching kids about money - how to handle it, when to save it and how to make it - is increasingly becoming a top priority for the major banks. A survey of six banks shows that all now offer a range of services and material for youngsters keen to start saving - from apps and games to specific youth banking websites... Read more

Fonterra unit investors kick unit values after interim result. The value of Fonterra's investment unit has dropped 20 per cent since the co-op's interim result on March 25... Read more

Chinese dairy giant Bright Dairy's Pure Canterbury infant formula powder sales behind targets... Read more

Chinese take milk battle to Fonterra... Read more

New Zealand wool prices jumped to multi-year highs at auction even as the volume on offer rose 78 percent, amid strong demand from exporters... Read more

Kiwi sheep farmers score lucrative Danish contract... Read more

Prime Minister John Key is confident Taranaki's economy will bounce back quickly from the twin effects of the low dairy payout forecast and the subdued price of oil. Key was in New Plymouth on Sunday at the closing of the two day Central North Island Regional National Party conference... Read more

CBRE New Zealand retail services division has strengthened its retail activity by clinching the leasing agency for two major shopping centres... Read more

Comvita lifts full year profit 28% to record as Asian tourists help drive sales growth. Comvita shares last traded at $4.15 and have gained 12% since the start of the year. ... Read more

Serko's annual loss widens, targets profitability in 2017... Read more

Ryman Healthcare, New Zealand's largest listed retirement village builder and operator, posted a 24% gain in annual profit as the value of its properties increased and revenue rose. Shares in the company advanced 0.1% to $8.07 and have slipped 5.4 percent so far this year.... Read more

Spark grumpy about new telecommunications levy. One of New Zealand's biggest telecommunications companies is so grumpy about a levy in the budget it's going to highlight it separately on its bills. The government raises $50 million a year from a telecommunications development levy but was supposed to reduce it to $10m by 2016... Read more

Transport Minister Simon Bridges takes over as head of the International Transport Forum as the organisation tackles ways to boost global trade and tourism at its annual gathering in Leipzig, Germany... Read more

Glenn gives uni $5m boost. Sir Owen Glenn has called on the Government to change the way philanthropic donations are taxed to encourage more people to "invest in their own country". The multimillionaire, 75, criticised successive governments for "dragging a ball and chain" on the issue, and ignoring his advice to get more people to consider philanthropic investments for their money... Read more

Investors mull SCF legal action. Meeting at Ellerslie Racecourse today follows a number of others around the country with $100k already raised... Read more

FMA opens MBIE's offshore financial service provider can of worms... Read more

Judge denies brother look at Erceg trust documents. Michael Erceg's brother has been denied access to documents that would reveal who got what from two trusts set up by the late multimillionaire and liquor magnate. Erceg was the founder of ready-to-drink beverage company Independent Liquor and was estimated to be worth $620 million at the time of his death almost a decade ago.... Read more

Opinion - Gareth Morgan: Reserve Bank warns of risks to financial stability... Read more

Opinion - Tom Hartmann: Three stages of retirement.... Read more

Opinion - Norman Gemmell: Budget 2015: How will the economy be affected?... Read more

Opinion -Bernard Hickey: Budget 2015: Bill English's Robin Hood Budget a surprise... Read more





Australian Headlines

Australian Market Report: The Australian share market has ended the week with another poor performance by the banks, which kept a lid on the market and saw it close with little change. The All Ordinaries closed five points higher at 5,668, while the ASX 200 was up just two points at 5,665.... Read more

The Australian dollar is higher as the US dollar weakened amid speculation about when the US Federal Reserve will hike interest rates. The Australian dollar was worth US79.12c at 5pm (AEST), up from US79c yesterday... Read more

Budget set to again face Senate hurdles. Joe Hockey's second budget may have won an initial round of applause from voters but that does not mean it will get an easy passage through parliament. A clutch of crossbench senators will likely hold sway on whether key items such as the treasurer's childcare package and pension reform will get across the line.... Read more

Why it could be a good time to buy. With all the talk of housing bubbles, it’s good to be cautious about the property market but for some people this could actually be the right time to buy... Read more

Will housing bubble pop in 2017?... Read more

The Abbott government had to "recalibrate" its paid parental leave policy since it couldn't get support for the generous scheme. Although it took the policy to two elections, mandates now appeared not to matter, Small Business Minister Bruce Billson said on Sunday... Read more

Symond says negative politics has stopped us spending. Negative politicians have made Australians too cautious about what they do with their money, says one of the nation’s most successful businessmen.... Read more

OECD urges higher taxes on wealthy to address growing income gap... Read more

MP glad committee won't look at iron ore. Tony Abbott's parliamentary secretary doesn't think an inquiry into iron ore would have found the truth of what is happening with resources pricing.... Read more

Wet weather and operational problems contributed to a fall in Australian gold production in the March quarter. Gold output in Australia fell seven per cent in the three months to 69 tonnes, Surbiton Associates director Sandra Close said... Read more

Gold producer Norton Gold Fields has been granted a trading halt by the ASX, with its shares placed in pre-open.... Read more

The wife of high profile fund manager Kerr Neilson has sold 10 million shares worth $73 million in Platinum Asset Managment in a block trade undertaken by Bell Potter Securities. The sale of the shares by Mr Neilson’s wife, Judith, emerged on Friday... Read more

Tlou Energy to outline entitlement offer. ... Read more

Browse planets align for Woodside.... Read more

TNG Limited has been granted an ASX trading halt in relation to a material capital raising.... Read more

Brazilian mining giant Vale's move to massively expand its low-cost operations is a clear reminder Australia will lose market share if it does not remain competitive, the head of Gina Rinehart's WA mine Roy Hill says. Vale yesterday announced China will help bankroll S11D, a massive expansion of its Brazilian operations, adding new supply to an already glutted market... Read more

Bank of Queensland backs franchise model as ‘core’, but owner-managed branches drop 20% within 3 years... Read more

Mint Payments’ partnership with Bank of New Zealand has resulted in the successful deployment and enhancement of the bank’s “PayClip” payments product.... Read more

Funeral homes and cemeteries operator InvoCare has withdrawn a proposed termination benefits package for former chief executive Andrew Smith following concerns by some larger shareholders.... Read more

Former WA premier and tourism minister Richard Court believes the State has "dropped the ball" on tourism because the resources boom made it "too easy" to generate wealth.... Read more

How the Rosewall family's stockbroking company BBY collapsed... Read more

The Australian arm of defence contractor Harris Corp has landed a contract with the local Defence Force to support its combat radio rollout worth $77 million.... Read more

Opinion - Malcolm Maiden: BHP's $US25 million fine rings the bell on corporate sponsorship... Read more

Opinion - Robert Wickham: For Australian start-ups, it's more than just ‘having a go’... Read more

Opinion - Victoria Thieberger: What keeps top fund managers awake at night... Read more

Opinion - Michael West: Iron ore inquiry loses out to more important matters – like a fence... Read more





International Headlines

U.S. Market Report: First-quarter earnings reports are winding down, and most companies appear to have dodged the dreaded year-over-year decline. That should free investors to refocus their concerns on broader economic data in the week ahead. Stocks finished the week mixed with the Dow Jones Industrial Average DJIA, -0.29% declining 0.2% and the S&P 500 Index SPX, -0.22% ticking up nearly 0.2%. The Nasdaq Composite Index COMP, -0.03% gained 0.8%.... Read more

North/South Americas Market Report: North and South American markets finished mixed to lower as of the most recent closing prices. Shares in Brazil fell as the Bovespa dropped 1.33%. The S&P 500 lost 0.22% while the IPC in Mexico closed unchanged... Read more

European Market Report: European markets finished mixed as of the most recent closing prices. The FTSE 100 gained 0.26%, while the DAX led the CAC 40 lower. They fell 0.42% and 0.07% respectively... Read more

Asian Market Report: Asian markets finished broadly higher on Friday with shares in China leading the region. The Shanghai Composite is up 2.83% while Hong Kong's Hang Seng is up 1.68% and Japan's Nikkei 225 is up 0.30%... Read more

The US Senate's move to pass fast-track legislation that could speed up the creation of a landmark Pacific trade deal has injected fresh momentum into talks, with negotiators saying they are in the final stages of discussions after more than five years of wrangling... Read more

Yellen: Fed can't risk 'overheating the economy'... Read more

Time Warner Cable Inc. is in talks about a potential sale to either Altice SA or Charter Communications Inc., people with knowledge of the matter said. Talks with both companies are expected to continue through the weekend, and an agreement with either suitor could be reached as soon as next week, said the people, who asked not to be identified discussing private information... Read more

As Google faces an antitrust probe from European regulators, some analysts are questioning whether the California tech giant's dominance has already peaked. While Google remains one of the world's biggest companies with overwhelming dominance of internet searches, its prospects are less rosy in a tech landscape rapidly shifting to mobile devices and social media, say some industry watchers... Read more

Clarabridge, a Reston-based technology company that analyzes customer feedback for companies such as Verizon, Marriott, Choice Hotels and PetSmart, has acquired a Belgian firm called Engagor for an undisclosed amount.... Read more

GM Ignition Probe Said Advancing as U.S. Mulls Criminal Case... Read more

Borders are closing and banks are in retreat. Is globalisation dead? In the days before the Great Recession, the liberalisation of world trade seemed a certainty: now fears over ‘hot money’ and migration have changed the mood... Read more

QE Great for Europe Stock Markets, Not So Much for Pension Funds. Deutsche Lufthansa AG scrapped its dividend this year partly because of charges tied to its pension fund. Investors have been shunning the shares -- and those of peers that are likely to follow suit.... Read more

Greece said Sunday that it won’t have the money it is due to repay to the International Monetary Fund next month unless it strikes a deal with international creditors over further rescue funding. Interior Minister Nikos Voutsis told privately owned television station Mega that Greece is scheduled to repay EUR1.6 billion ($1.76 billion) to the IMF between June 5-19, but the payments cannot be met. “This money will not be given,” he said. “It does not exist.”... Read more

German finance minister sees no need to discuss ‘alternatives’ on Greece... Read more

Unemployment is a big threat to eurozone economy... Read more

Barclays paid star trader £170m in five years following financial crisis. Jonathan Hoffman is seeking $83m in unpaid bonuses from his days at Lehman Brothers... Read more

Email mistake reveals Bank of England's EU exit project... Read more

Bank of England under pressure to publish planned Brexit risks report. Andrew Tyrie says MPs will demand to interview officials involved in Project Bookend, set up to investigate impact of EU referendum... Read more

Qatar to unveil £50m British horseracing deal. Qatar’s royal family is to back the racing industry through a new sponsorship deal spread over 10 years... Read more

Russian gas holding Gazprom has announced that work is to begin on the construction of the Turkish Stream pipeline in June, despite the lack of an intergovernmental agreement with Turkey. Observers say the monopoly’s decision to launch a major export project without having signed binding contracts with the countries involved could lead to problems further down the line... Read more

Russia's payment card to be called Mir... Read more

A Chinese scheme to build an east-west railway across South America, cutting across parts of the Amazon rain forest, has moved a step closer after Peru agreed to study the proposal. The scheme would link Peru's Pacific coast with Brazil's Atlantic shores... Read more

Chinese investors' borrowing to trade on the country's stock markets -- the force behind their extraordinary recent performance -- has surpassed 2 trillion yuan for the first time, figures showed Friday, highlighting the risks in the rally... Read more

German luxury-auto maker Audi AG is betting on connected cars in China to attract and keep customers as demand for high-end cars wanes.... Read more

Opinion/Analysis - Larry Elliott: Will George Osborne's productivity plan help make Britain a world-beater? When chancellor says he wants economy to find another gear, it’s not so much speed at which UK is expanding that concerns him, it is quality of that growth... Read more

Opinion - Brent Arends: This is how Greece should handle its crisis... Read more

Opinion - Emmanuel Mourlon-Druol: The UK is stuck between a rock and a hard place... Read more

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