Morning Headlines

Heat rises on Pacific trade deal

New roadblocks to Australia joining a vast US-led Pacific trade zone are emerging after a Reserve Bank of Australia board member joined criticism of the scheme’s investment provisions and a top US official warned farmers are unlikely to get any better access to the valuable US sugar market. The Fin

Fund may foot Ellendale bill

The State Government’s Mining Rehabilitation Fund could be forced to cover the estimated $30 million environmental clean-up of the Ellendale diamond mine after the Kimberley asset was put into administration by listed owner Kimberley Diamonds. The West

Rio boss sees shoots of next boom in downturn

Rio Tinto chief Sam Walsh has hinted that the seeds of the next mining boom are now being sown.

He has also reignited the debate with Andrew Forrest on the reasons behind the collapse in iron ore prices, saying the volume of opinions seemed to be loudest by those higher up the cost curve, as is Mr Forrest’s Fortescue Metals compared with Rio. The Aus

Perth leads the way at the till

Perth has some of the world’s highest day-to-day living costs, with even a bottle of water pricier than in Paris. The West

Asciano chair to discuss deal with investors

Asciano chairman Malcolm Broomhead will hold talks on Friday with investors who are seeking reassurance over Brookfield Infrastructure Group’s $9 billion takeover offer for the ports and rail group after one estimate suggested up to half the proposed bid price could be offered in shares. The Fin

FMG cost targets unsustainable

Fortescue Metals Group’s ambitious production costs targets are not sustainable beyond about two years, and the strategy could affect the quality of its ore, analysts say. The Fin

Climate authority urges huge cuts to emissions

The Climate Change Authority has urged huge cuts to Australia’s carbon emissions of 30 per cent by 2025 and as much as 60 per cent by 2030, defying criticism of such ambitious targets from Environment Minister Greg Hunt and industry groups. The Aus

The Australian Financial Review

Page 1: New roadblocks to Australia joining a vast US-led Pacific trade zone are emerging after a Reserve Bank of Australia board member joined criticism of the scheme’s investment provisions and a top US official warned farmers are unlikely to get any better access to the valuable US sugar market.

Page 5: China’s positive influence on the Australian economy appears to have officially peaked, say economists who caution that the lack of alternative drivers of growth escalates the need for an urgent rethink about making companies and workers more competitive.

Page 6: Trade Minister Andrew Robb has made market access for Australian farmers, including into the United States, Canada, Japan and Mexico, a key bargaining point in the Trans-Pacific Partnership.

Page 11: Australian tourism operators remained concerned about the value of the dollar, with the exchange rate not having fallen much against those of key inbound markets such as New Zealand, the United Kingdom and Europe even though it is lower against the US dollar.

Page 12: The federal government’s chief climate change adviser has reaffirmed his call for Australia to cut greenhouse gas emissions by 30 per cent by 2025, with more cuts of 40 to 60 per cent by 2030.

Page 17: Asciano chairman Malcolm Broomhead will hold talks on Friday with investors who are seeking reassurance over Brookfield Infrastructure Group’s $9 billion takeover offer for the ports and rail group after one estimate suggested up to half the proposed bid price could be offered in shares.

Page 19: Loyalty focus ramped up Virgin Australia Holdings will expand the remit of its Velocity Frequent Flyer program to providing advice to other companies about effective marketing campaigns after making its first-ever acquisition and appointing a new chief executive.

Page 23: Socks and jocks maker Pacific Brands is debt free for the first time in at least 11 years, after selling off iconic brands such as Volley, Grosby and Hard Yakka and opening dedicated Bonds and Sheridan retail stores.

Fortescue Metals Group’s ambitious production costs targets are not sustainable beyond about two years, and the strategy could affect the quality of its ore, analysts say.

Telstra on Thursday launched a new video- and phone-based medical service it hopes will help reduce the spread of infectious diseases by bringing healthcare into people’s homes.

The Australian

Page 2: Australia’s second-tier export markets are booming as our top three markets in China, Japan and South Korea turn down.

The Minerals Council of Australia has called for some environmental organisations to be stripped of their charity status in a formal complaint that has been lodged with regulators.

Page 4: Taxpayers may have paid a $30 million inducement to the sellers of the Ayers Rock Resort in a sudden and unexplained “ploy” to secure short-term finance, the Indigenous Land Corporation has told Tony Abbott.

Page 7: The Climate Change Authority has urged huge cuts to Australia’s carbon emissions of 30 per cent by 2025 and as much as 60 per cent by 2030, defying criticism of such ambitious targets from Environment Minister Greg Hunt and industry groups.

Page 19: Shareholders’ ability to sue failing companies could be substantially boosted following a court ruling allowing investors to argue they had been misled by the company even if they had not read the prospectus before buying shares.

Rio Tinto chief Sam Walsh has hinted that the seeds of the next mining boom are now being sown.

He has also reignited the debate with Andrew Forrest on the reasons behind the collapse in iron ore prices, saying the volume of opinions seemed to be loudest by those higher up the cost curve, as is Mr Forrest’s Fortescue Metals compared with Rio.

Page 21: Analysts at Morgan Stanley believe New Zealand retailer Briscoe’s $NZ1.80 bid for Kathmandu undervalues the adventure goods retailer’s business and a higher offer may be required to win over shareholders.

The West Australian

Page 14: Tony Abbott’s pledge of a “decent debate” on gay marriage is in tatters after the Government’s Senate leader told frontbench supporters to quit the ministry if they could not abide by party policy.

WA’s peak council lobby group has its first woman president, with Shire of East Pilbara president Lynne Craigie elected to the role.

Page 18: Families tackling the daily challenges for the 1200 WA children with type 1 diabetes will get plenty of support from a new $2.8 million centre in Perth’s northern suburbs.

Page 22: The State Government’s extraordinary legislative bid to seize the $1.7 billion proceeds of the 20-year Bell Group liquidation is set to be referred to an Upper House committee after a Liberal MP expressed serious reservations about the plan.

Page 26: Perth has some of the world’s highest day-to-day living costs, with even a bottle of water pricier than in Paris.

Business: The State Government’s Mining Rehabilitation Fund could be forced to cover the estimated $30 million environmental clean-up of the Ellendale diamond mine after the Kimberley asset was put into administration by listed owner Kimberley Diamonds.

The competition regulator has prevented Coles from dominating the groceries market in suburbs north of Mandurah by forcing it to give up a retail site.

The iron ore spot price last night slumped more than 6 per cent to a two-month low of $US55.63 a tonne to reignite fears a prolonged period above $US60/t was nothing but wishful thinking.

The Federal Government has not ruled out changes to its new regulations on foreign investment in agriculture after complaints from some of the biggest companies in the sector.

Austal is on the verge of delivering a warship to the US Navy which met with production delays. The shipbuilder said the littoral combat ship — the first under a 10-vessel $US3.5 billion ($4.6 billion) contract — had completed US Navy acceptance trials.