The environment (including climate change/global warming, water resources, drought, famine) is the most important problem facing the World and Australia. China is the most important region to Australia for economic purposes; Indonesia is most important for security purposes; and Japan is the country Australia can most effectively work with on both. The Number One for Government Policy over the next ten years should be monitoring a balanced Budget and no increase in Public Debt, according to a special Roy Morgan survey for the Future Summit 2008. Full Article ( PDF, Size: 212KB)

On Tuesday 13 May, Westpac (WBC) and St George (SGB) announced details of their merger agreement. They also took the opportunity to provide guidance as to next steps and the potential synergies that could result from the deal. An interesting aspect of this transaction is the apparent speed with which the SGB board and management have capitulated in the face of WBC’s offer. That fact that the board is prepared to accept a scrip bid for control at a lower price than its last equity raising in November ($35) is evidence of a massive reconsideration of SGB’s potential to prosper or perhaps even survive as a standalone organisation. While unable/unwilling to articulate why, SGB insisted in its analyst briefing yesterday that the WBC scrip offer was a good deal for shareholders. This analysis of the proposed Westpac/St George Bnk merger quotes Roy Morgan Research Full Article ( PDF, Size: 215KB)

WBC has agreed to pay SGB shareholders 1.31 WBC shares (ex 70¢ 1H08 dividend) for every one SGB share, which at today’s close, values SGB shares at $32.88 (1.6% discount to SGB’s current cum 1H08 dividend share price). The SGB Board has indicated their intention to recommend the merger proposal, subject to an independent experts report and no superior proposal emerging. WBC expects the deal to be EPS positive by year three of the merger (i.e. 2011), and we estimate FY11F EPS +0.2%, but more accretive to free cash flow. Synergies were not detailed, but include cost, revenue and funding cost benefits. This analysis of the proposed Westpac/St George Bnk merger quotes Roy Morgan Research Full Article ( PDF, Size: 343KB)

The impending merger of Westpac and St George will create a bank with 5.04 million personal customers (14+) in Australia compared to the current market leader the CBA with 6.88 million personal customers (14+) in Australia. Leadership will be retained by the CBA in all states except SA where the merged entity would be marginally ahead. The compatibility of Westpac and St George personal customer profiles will increase the prospects for a successful merger. Full article.

Roy Morgan Research provides the industry currency in readership figures. It is the most influential survey on newspaper and magazine readership in Australia and ensures selection of the most appropriate publications to reach Population 14+ markets. Full article.

A comparison of the opinions of Future Summit participants and those of the Australian population as well as today's article regarding Roy Morgan CEO, Michele Levine's presentation to the Future Summit in Sydney. Full Article ( PDF, Size: 9,602KB)

Special Morgan Poll qualitative research conducted on May 3/4, 2008, looked at concerns electors have about how the ALP Government and L-NP Opposition are handling their new jobs and also concerns electors have about how Prime Minister Kevin Rudd and Opposition Leader Brendan Nelson are handling their new jobs. Full article.

On the eve of the Federal Budget, ALP support is 47% (down 5.5% in a week and 7.5% since late April) - its lowest level since the ALP won the Federal election on November 24, 2007. L-NP support is 37%, Greens 9%, Family First 1% and Others 6%, according to a special telephone Morgan Poll taken late last week and over last weekend (May 7-11, 2008). Despite the drop in ALP support the ALP would still be re-elected with an increased majority if the election were held today. Full article.