08/07/2016 - 06:21

Morning Headlines

08/07/2016 - 06:21

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AAA: Six months to get budget under control

A threatened downgrade of the nation’s AAA credit rating was a wakeup call to the entire Parliament, not just the government, that debt and deficit needed to be reined in, Treasurer Scott Morrison says. The Fin

Online pioneer Kogan’s disappointing debut

Online retail pioneer Ruslan Kogan is looking forward to proving the doubters wrong after Kogan.com shares slumped almost 17 per cent in a disappointing $168 million sharemarket debut. The Fin

Gas shortage a $100m hit to AGL

AGL Energy says its 2017 gas profit will be at least $100 million lower than last year following a $35 million hit from costly spot purchases in the first week of the new financial year. The Fin

Full steam ahead for the superannuation changes

Lobby groups say measures aimed at winding back generous superannuation tax concessions are unlikely to be derailed if the Liberal Party is unable to win an outright majority in either house of Parliament. The Fin

UK heading for recession, says Northern Trust

Britain will slip into recession within the next six to 12 months, says the London-based head of Northern Trust’s non-US asset business, as uncertainty around the country’s decision to leave the European Union forces investors and consumers to put their plans on hold. The Fin

Millions held up in NDIS glitch

A technology bungle has delayed millions of dollars worth of payments due to thousands of people in the $22 billion National Disability Insurance Scheme. The Aus

UK property freeze could chill Oz

Concerns are mounting that the reverberations from fund management houses freezing billions of dollars worth of British open-ended property funds could spill over into the Australian commercial property market. The Aus

Watchdog confident big four banks will settle rate rigging allegations

ASIC is confident it will reach a legal settlement with the big four banks over interest rate rigging allegations when the Commonwealth Bank joins the other three in facing legal action for rate setting manipulation. The Aus

Mediscare puts power sale on hold

Colin Barnett has poured cold water on the proposed privatisation of Western Power in the wake of Labor’s successful Mediscare election campaign, saying the public is not ready to sell the utility. The West

 

 

The Australian Financial Review

Page 1: A threatened downgrade of the nation’s AAA credit rating was a wakeup call to the entire Parliament, not just the government, that debt and deficit needed to be reined in, Treasurer Scott Morrison says.

The coveted AA- credit ratings relied on by Australia’s banks to borrow billions overseas every year and re-loan to individuals and businesses will be lost if Australia’s sovereign rating is cut.

Page 7: Treasurer Scott Morrison has played down the threat to banks and the potential increased cost of Commonwealth borrowing from Standard & Poor’s AAA warning.

Page 11: Jailed former Rio Tinto executive Stern Hu has had his jail sentence cut twice since being convicted and is set to be free in early 2018, according to newly released court files.

Billionaire Andrew Forrest has lost a court appeal aimed at preventing sand mining on his family cattle station in Western Australia’s Pilbara region.

Page 12: A former Aussie Home Loans broker could go to jail for up to a year after admitting he submitted fake home loan applications to Westpac, National Australia Bank and ANZ Banking Group.

Page 17: Online retail pioneer Ruslan Kogan is looking forward to proving the doubters wrong after Kogan.com shares slumped almost 17 per cent in a disappointing $168 million sharemarket debut.

The veracity of CIMIC’s financial accounts have been called into question by Morgan Stanley who warned that the construction group’s reported profits could be exceeding underlying profits by more than 30 per cent.

Page 19: Mining companies need to act faster to eradicate the ‘‘excesses of the boom’’ in order to survive commodity price volatility and global economic uncertainty, according to EY.

Two of the stars of Australia’s recent gold boom, Saracen Mineral Holdings and St Barbara, have continued their strong performance with record production of the yellow metal.

AGL Energy says its 2017 gas profit will be at least $100 million lower than last year following a $35 million hit from costly spot purchases in the first week of the new financial year.

Page 20: Medibank Private investors say alerting the market to a technology blunder that is unlikely to have a financial impact marks a conservative beginning for new chief executive Craig Drummond and a possible shift in the insurer’s approach to stakeholder relations.

Page 21: Lobby groups say measures aimed at winding back generous superannuation tax concessions are unlikely to be derailed if the Liberal Party is unable to win an outright majority in either house of Parliament.

Britain will slip into recession within the next six to 12 months, says the London-based head of Northern Trust’s non-US asset business, as uncertainty around the country’s decision to leave the European Union forces investors and consumers to put their plans on hold.

 

 

The Australian

Page 5: A technology bungle has delayed millions of dollars worth of payments due to thousands of people in the $22 billion National Disability Insurance Scheme.

Page 19: Concerns are mounting that the reverberations from fund management houses freezing billions of dollars worth of British open-ended property funds could spill over into the Australian commercial property market.

ASIC is confident it will reach a legal settlement with the big four banks over interest rate rigging allegations when the Commonwealth Bank joins the other three in facing legal action for rate setting manipulation.

Page 21: Wine lovers and exporters around the Pacific Rim will have reason to pop the cork this week after officials slashed red tape on shipments in the region, easing an expensive bottleneck.

Page 22: Spanish contractor Duro Felguera says it is owed more than $100 million by Korean giant Samsung for subcontractor work at Gina Rinehart’s $10 billion Roy Hill iron ore mine that made its first shipment in December.

Page 23: The chief executive of the Australian Bankers’ Association, Steven Munchenberg, has acknowledged there are problems in the unloved banking sector but says the industry is decisively dealing with its issues without the need for a royal commission.

Page 24: Samsung Electronics expects its second-quarter operating profit to come in at about 8.1 trillion Korean won ($9.3bn), marking the company’s most profitable quarter in more than two years and underscoring the rebound in demand for its smartphones.

Page 28: Airservices Australia has earmarked up to 900 jobs for redundancy as it begins a wide-ranging transformation process to slash costs more than $100 million.

Page 29: Virgin Australia’s plans to phase out Tigerair’s fleet of Airbus A320 aircraft will help it save costs but analysts warn it could hamper growth at the low-cost carrier and cause capacity constraints.

Page 31: Commonwealth Bank has warned the Reserve Bank only has up to four rate cut “bullets” left, escalating the need for reform as the “wealth effect” of ever-increasing house prices wanes.

 

 

The West Australian

Page 5: The WA greyhound racing industry was last night in shock after the bombshell dropped on its NSW counterparts. But Greyhounds WA chief executive David Hobbs said the local industry would continue to flourish and denied it had the systemic problems associated with racing for more money and many more tracks in the Eastern States.

Page 12: Colin Barnett has poured cold water on the proposed privatisation of Western Power in the wake of Labor’s successful Mediscare election campaign, saying the public is not ready to sell the utility.

Page 23: The big numbers of Perth’s record-breaking Fringe World have rolled through the wider economy, a review of the summer arts festival reveals.

Page 52: The French Government has promised tax changes in a grab for lucrative London banking business displaced by Britain’s decision to quit the EU.

Page 58: The mega-merger between the London Stock Exchange and Germany’s Deutsche Boerse could run into trouble as the pair are believed to be braced for a row over the location of the joint entity’s headquarters.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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