Lively Mayne Report edition and great value offer
February 6, 2009
This week's Mayne Report edition was sent to subscribers earlier this afternoon and included the following stories:
1. Rupert show the way in writing down goodwill
2. $35 billion State government borrowing programs part of mad scramble for limited cash
3. The capital raising scramble - full list
4. Media companies sinking under debt
5. Has Queensland Labor really dropped $20m in Suncorp?
6. The 94 ASX300 companies that fell below 50c-a-share
7. Putting Westfield on notice for treating small shareholders badly
Subscription price cut from $99 to $77
The better half, Paula Piccinini, is getting more involved in The Mayne Report these days and has ordered we cut the subscription price to $77.
This represents great value and will give you access to all our weekly editions and special updates after AGMs through until June 30, 2009.
As the newly appointed marketing manager, Paula would be really excited if you signed up.
So, if you're reading this without being a subscriber, why not commit to a free trial or take up our special $77 subscription offer. Alternatively, if you've had enough, click here to unsubscribe from this email list.
The one subscriber story we're giving away for free today (see below) goes to the heart of the debate about Australia's financial strength:
State government borrowing programs part of mad scramble for limited cash
The Australian Office of Financial Management sold $600 million worth of 6 years bonds between 10.15am and 10.30am this morning and managed to get it away at an attractive 3.92%. Not bad, but let's see if the price stays so cheap with the remaining $23.4 billion to be borrowed by the Feds before June 30.
The Rudd Government is now competing for limited cash with all those desperate corporates raising equity and all those banks hitting the international markets with their government guarantees, but just how much capacity is left if things get really bad?
The Future Fund's December 31 update reveals it has already ploughed $9 billion into bonds and has only $24 billion in cash left, which is barely higher than the forecast Federal Government deficit of $22 billion for this year.
And Australia's foreign reserves are already massively below most comparable countries as this Wikipedia list shows. As of November, we were down to just $US30 billion which was ranked 42nd in the world and leaves us behind the likes of Indonesia, Thailand, Mexico, Libya, India, Peru and Romania.
Meanwhile, here is a rundown of the borrowing challenges faced by the various state borrowing authorities in the current financial year:
Treasury Corporation of Victoria: $4.35 billion in 2008-09
Queensland Treasury Corp: raised a staggering $13.8 billion in 2007-08, lifting the overall debt figure to $43 billion and was orginally projecting a record $16.3 billion for 2008-09.
NSW Treasury Corporation: a 2008-09 funding requirement of $6.8 billion but all but $4.9 billion was pre-borrowed last financial year in a sensible move.
WA Treasury Corporation: latest update as of December 31 forecasts record $6.8 billion borrowing program for 2008-09.
SA Financing Authority: $8.7 billion in loans outstanding at the end of last financial year and is now expected to borrow more than $2 billion this financial year.
Surely, this huge borrowing load just makes it completely reckless for the Federal Government to join the party with a $22 billion deficit this year, rising to $35 billion next financial year.
The media and many financial commentators simply don't realise the huge $35 billion borrowing challenge faced by the states this year and the fact that they've barely been able to raise a dime since the Federal Govenment guaranteed offshore bank borrowing.
Why would investors risk lending money to a debt-addicted state government when they can borrow from the banks using the Federal Government's guarantee.
Rather than introducing this $42 billion stimulus package, the Feds should be guaranteeing state debt and focusing on helping the states deliver their existing infrastructure programs.
Rudd's extreme greed hypocrisy
Click here to read a hard hitting story we've contributed to this afternoon's Crikey edition on Kevin Rudd, Frank Lowy, Rupert Murdoch, extreme capitalism, greed, tax havens, political donations and extraordinary hypocrisy.
Challenging the press gallery to get tougher on reckless bailout
And have a listen to this very rigorous debate with The Age's Michelle Grattan and The Australian's Lenore Taylor this morning on Fran Kelly's Radio National Breakfast program. Lenore didn't like the line that journalists are being way too soft and focusing too much on the politics.
Other radio this week
Monday, Feb 2: interview with Libby Gore on 774 ABC Melbourne responding to earlier Lindsay Tanner contribution about Federal budget disaster.
Tuesday, Feb 3: interview with Mike Smith on 4BC Brisbane discussing Kevin Rudd and 'donation day'.
Wednesday, Feb 4: afternoon business chat with Libby Gore on 774 ABC Melbourne. Discussing the extraordinary $42 billion package and the reaction from the opposition, senate inquiry and John Brumby fast tracking developments in a huge day of politics and finance.
There has also been a pre-record for 4BC on Saturday night and we're locked in for ABC Tassie and 2CC in Canberra for Monday morning.
The Mayne Report Rich List
Following an extensive update and overhaul, we are now continuing our research adding new names each week to The Mayne Report Rich List, even as we witness the greatest destruction of wealth in history. Our huge list now includes those who have fallen below the $10 million threshold, but here are the latest additions, including a famous former billionaire's wife who has revealed details of her ill-gotten stash in the latest Women's Weekly:
Len Poulter: founder of Australia's largest specialty meat retailer Lenards. Celebrating their 20th year, after opening his first store in Brisbane in 1987, he successfully franchised the business into 184 stores Australia wide, pushing his wealth above $10 million.
Fisken family: Archibald Fisken, a Scottish immigrant, first acquired some property with his uncle near Ballarat. He built a homestead in 1858 and was a great horseman. He tended cattle there and regularly mustered them 20km to market, selling them to hungry gold miners. Since, 'Lal Lal Estate' has been operated by 4 generations of Fiskens producing high quality wool. Higher rainfall and location has helped the Fisken family expand their dynasty into around 12,500 Merinos.
Mark Greig: owner of project marketing company, Greig Property Group, has recently been appointed marketing agent for the $1 billion luxury waterfront Calypso Bay development on Jacobs Well on the Gold Coast.
Josephine Armstrong: a former school teacher and substantial Liberal Party benefactor who in the recent Federal election donated $600,000 over two installments. She made more than $30 million from a 2006 sale of some land in Perth, at the peak of the market.
Eileen Bond: known as 'big red', the former wife of disgraced Alan Bond is living in an 108 year-old mansion in Perth's exclusive Peppermint Grove. With a couple of cottages in England and a property in Sydney, combined with an impressive private art collection that would not be out of place in any gallery, her wealth is well above $10 million, much to the chagrin of former Bond Corp shareholders.
That's all for now.
Do ya best, Stephen Mayne
1. Rupert show the way in writing down goodwill
2. $35 billion State government borrowing programs part of mad scramble for limited cash
3. The capital raising scramble - full list
4. Media companies sinking under debt
5. Has Queensland Labor really dropped $20m in Suncorp?
6. The 94 ASX300 companies that fell below 50c-a-share
7. Putting Westfield on notice for treating small shareholders badly
Subscription price cut from $99 to $77
The better half, Paula Piccinini, is getting more involved in The Mayne Report these days and has ordered we cut the subscription price to $77.
This represents great value and will give you access to all our weekly editions and special updates after AGMs through until June 30, 2009.
As the newly appointed marketing manager, Paula would be really excited if you signed up.
So, if you're reading this without being a subscriber, why not commit to a free trial or take up our special $77 subscription offer. Alternatively, if you've had enough, click here to unsubscribe from this email list.
The one subscriber story we're giving away for free today (see below) goes to the heart of the debate about Australia's financial strength:
State government borrowing programs part of mad scramble for limited cash
The Australian Office of Financial Management sold $600 million worth of 6 years bonds between 10.15am and 10.30am this morning and managed to get it away at an attractive 3.92%. Not bad, but let's see if the price stays so cheap with the remaining $23.4 billion to be borrowed by the Feds before June 30.
The Rudd Government is now competing for limited cash with all those desperate corporates raising equity and all those banks hitting the international markets with their government guarantees, but just how much capacity is left if things get really bad?
The Future Fund's December 31 update reveals it has already ploughed $9 billion into bonds and has only $24 billion in cash left, which is barely higher than the forecast Federal Government deficit of $22 billion for this year.
And Australia's foreign reserves are already massively below most comparable countries as this Wikipedia list shows. As of November, we were down to just $US30 billion which was ranked 42nd in the world and leaves us behind the likes of Indonesia, Thailand, Mexico, Libya, India, Peru and Romania.
Meanwhile, here is a rundown of the borrowing challenges faced by the various state borrowing authorities in the current financial year:
Treasury Corporation of Victoria: $4.35 billion in 2008-09
Queensland Treasury Corp: raised a staggering $13.8 billion in 2007-08, lifting the overall debt figure to $43 billion and was orginally projecting a record $16.3 billion for 2008-09.
NSW Treasury Corporation: a 2008-09 funding requirement of $6.8 billion but all but $4.9 billion was pre-borrowed last financial year in a sensible move.
WA Treasury Corporation: latest update as of December 31 forecasts record $6.8 billion borrowing program for 2008-09.
SA Financing Authority: $8.7 billion in loans outstanding at the end of last financial year and is now expected to borrow more than $2 billion this financial year.
Surely, this huge borrowing load just makes it completely reckless for the Federal Government to join the party with a $22 billion deficit this year, rising to $35 billion next financial year.
The media and many financial commentators simply don't realise the huge $35 billion borrowing challenge faced by the states this year and the fact that they've barely been able to raise a dime since the Federal Govenment guaranteed offshore bank borrowing.
Why would investors risk lending money to a debt-addicted state government when they can borrow from the banks using the Federal Government's guarantee.
Rather than introducing this $42 billion stimulus package, the Feds should be guaranteeing state debt and focusing on helping the states deliver their existing infrastructure programs.
Rudd's extreme greed hypocrisy
Click here to read a hard hitting story we've contributed to this afternoon's Crikey edition on Kevin Rudd, Frank Lowy, Rupert Murdoch, extreme capitalism, greed, tax havens, political donations and extraordinary hypocrisy.
Challenging the press gallery to get tougher on reckless bailout
And have a listen to this very rigorous debate with The Age's Michelle Grattan and The Australian's Lenore Taylor this morning on Fran Kelly's Radio National Breakfast program. Lenore didn't like the line that journalists are being way too soft and focusing too much on the politics.
Other radio this week
Monday, Feb 2: interview with Libby Gore on 774 ABC Melbourne responding to earlier Lindsay Tanner contribution about Federal budget disaster.
Tuesday, Feb 3: interview with Mike Smith on 4BC Brisbane discussing Kevin Rudd and 'donation day'.
Wednesday, Feb 4: afternoon business chat with Libby Gore on 774 ABC Melbourne. Discussing the extraordinary $42 billion package and the reaction from the opposition, senate inquiry and John Brumby fast tracking developments in a huge day of politics and finance.
There has also been a pre-record for 4BC on Saturday night and we're locked in for ABC Tassie and 2CC in Canberra for Monday morning.
The Mayne Report Rich List
Following an extensive update and overhaul, we are now continuing our research adding new names each week to The Mayne Report Rich List, even as we witness the greatest destruction of wealth in history. Our huge list now includes those who have fallen below the $10 million threshold, but here are the latest additions, including a famous former billionaire's wife who has revealed details of her ill-gotten stash in the latest Women's Weekly:
Len Poulter: founder of Australia's largest specialty meat retailer Lenards. Celebrating their 20th year, after opening his first store in Brisbane in 1987, he successfully franchised the business into 184 stores Australia wide, pushing his wealth above $10 million.
Fisken family: Archibald Fisken, a Scottish immigrant, first acquired some property with his uncle near Ballarat. He built a homestead in 1858 and was a great horseman. He tended cattle there and regularly mustered them 20km to market, selling them to hungry gold miners. Since, 'Lal Lal Estate' has been operated by 4 generations of Fiskens producing high quality wool. Higher rainfall and location has helped the Fisken family expand their dynasty into around 12,500 Merinos.
Mark Greig: owner of project marketing company, Greig Property Group, has recently been appointed marketing agent for the $1 billion luxury waterfront Calypso Bay development on Jacobs Well on the Gold Coast.
Josephine Armstrong: a former school teacher and substantial Liberal Party benefactor who in the recent Federal election donated $600,000 over two installments. She made more than $30 million from a 2006 sale of some land in Perth, at the peak of the market.
Eileen Bond: known as 'big red', the former wife of disgraced Alan Bond is living in an 108 year-old mansion in Perth's exclusive Peppermint Grove. With a couple of cottages in England and a property in Sydney, combined with an impressive private art collection that would not be out of place in any gallery, her wealth is well above $10 million, much to the chagrin of former Bond Corp shareholders.
That's all for now.
Do ya best, Stephen Mayne