Morning Headlines

Lowe: RBA can only do so much

Reserve Bank of Australia governor Philip Lowe has thrown responsibility for the nation’s biggest economic challenges – including low wage growth, poor infrastructure, and the high cost of housing – back at politicians, telling them his primary job is to keep inflation alive. The Fin

BHP’s Henry slams Grylls over mining tax plan

The man at the helm of BHP Billiton’s vast iron ore assets, Mike Henry, has warned that regional West Australians will be hit the hardest by a mining tax that would also threaten its dividend payout, expansion projects and community spending. The Fin

Big four find ally in new RBA boss

Reserve Bank of Australia governor Philip Lowe has defended banks against charges of refusing to pass on interest rate cuts but warned that bank profits could start to fall because of tougher competition. The Fin

US investors take a shine to Aussie gold

The increasing scale and strength of Australian gold stocks has attracted a swathe of US investors to the sector over the past 18 months, with the company’s chief executives tipping the run to continue. The Fin

Soul Pattinson keeps faith in TPG despite stock hit

Listed investment company Washington H. Soul Pattinson has backed its massive investment in under-pressure telco TPG after the internet and mobile phone group lost 25 per cent of its value this week. The Aus

Profits fuel attack over utilities sale

The Government was forced to defend selling off all or part of Western Power and the Water Corporation yesterday after the key utilities posted record returns to taxpayers in their annual reports. The West

Wesfarmers regains $50b, fuelled by coal

Wesfarmers’ value yesterday cracked $50 billion for the first time in a year, as its shares clawed back more ground in their gradual recovery from November’s three-year low. The West

The Australian Financial Review

Page 1: Reserve Bank of Australia governor Philip Lowe has thrown responsibility for the nation’s biggest economic challenges – including low wage growth, poor infrastructure, and the high cost of housing – back at politicians, telling them his primary job is to keep inflation alive.

Communications Minister Mitch Fifield says the price NBN is charging to deliver data over the national broadband network, which is threatening future profits of telecommunications companies, is ‘‘not set in stone’’ and will be reduced.

Page 3: Former BBY executive chairman Glenn Rosewall labelled an email he sent to a psychic in 2011, warning the firm was ‘‘possibly insolvent’’ unless it raised capital, as ‘‘hypothetical,’’ the NSW Supreme Court has heard.

Page 5: US President Barack Obama says he is optimistic that Congress will ratify the Trans-Pacific Partnership trade pact later this year, despite growing signs this is becoming increasingly unlikely.

Page 7: Federal Education Minister Simon Birmingham said that because Commonwealth school funding was expected to grow faster than school costs for the next four years, there was a ‘‘growing pot of money’’ which would ease the way to a new school funding deal with the states.

Page 8: Reserve Bank of Australia governor Philip Lowe has defended banks against charges of refusing to pass on interest rate cuts but warned that bank profits could start to fall because of tougher competition.

Page 9: Westpac chief executive Brian Hartzer has thrown down the gauntlet to critics of the banks, saying they are different to other businesses and the returns they deliver are necessary to attract international capital.

Page 12: The man at the helm of BHP Billiton’s vast iron ore assets, Mike Henry, has warned that regional West Australians will be hit the hardest by a mining tax that would also threaten its dividend payout, expansion projects and community spending.

Page 16: Chinese real estate agents who previously sold only Australian property to their clients are switching their focus to the United States and Europe in response to higher taxes and tougher lending requirements.

Page 17: Premier Investments retail chief Mark McInnes says Smiggle, the children’s stationery brand acquired eight years ago, could eventually become as well known as Lego or Disney, fuelling years of sales and profit growth.

The managing director of Australia’s biggest brick supplier says real estate prices in Sydney are close to their peak in this cycle, and there’s not much more upside.

The Bank of Japan’s surprise decision to target the level of Japanese bond yields has another purpose beyond figuring into the central bank’s inflation ambitions.

Page 19: The increasing scale and strength of Australian gold stocks has attracted a swathe of US investors to the sector over the past 18 months, with the company’s chief executives tipping the run to continue.

Page 20: Bush clothing outfitter R.M. Williams has slipped into the red after embarking on ambitious growth plans under its new owner L Capital Asia, the private equity arm of luxury goods house LVMH.

Page 21: Platinum founder Kerr Neilson has told shareholders that his stock-picking confidence is ‘‘based on understanding rather than complacency’’ as he fights back outflows, sub-par investment returns and rising short interest in his company.

Suncorp Group has warded off a shareholder push against its executive pay deal with a restructured short-term bonus plan.

Page 22: The long-running battle between the ANZ Bank and Indian billionaires Pankaj and Radhika Oswal has been settled, with the bank preparing to take a $145 million hit to walk away from the matter.

Page 27: Virgin is hoping to capture some of the premium demographic’s dollars, partnering with Virgin Active’s new majority owners, South African private equity group Brait, in a $200 million global expansion push for luxury gym arm The Collection.

The Australian

Page 6: The federal Health Department has ramped up its policymaking capability after the Coalition government endured a tumultuous first term of reviews and industry stoushes.

Page 7: One of the most famous Aboriginal artworks, Michael Nelson Tjakamarra’s Five Stories, has been sold overseas for a record price.

Page 19: John Gandel, one of Australia’s most influential property investors, yesterday quashed concerns his near $500 million shock selldown from Charter Hall Group and its subsidiary retail landlord, Charter Hall Retail REIT, reflected a peak of the market exit strategy.

Page 21: BHP Billiton will weigh up an advertising blitz similar to the one that helped destroy the first Rudd government as it seeks to counter the “red herrings and furphies” behind the West Australian Nationals’ $5-per-tonne iron ore tax proposal.

Listed investment company Washington H. Soul Pattinson has backed its massive investment in under-pressure telco TPG after the internet and mobile phone group lost 25 per cent of its value this week.

Australia’s dairy farmers, still suffering through the worst milk prices in years and successive slashes to their payments, should not expect a revival in global milk fortunes this year. However, a return to sustainable pricing is on the horizon, the world’s biggest dairy exporter, New Zealand’s Fonterra said yesterday.

Oroton Group chief executive Mark Newman believes his company’s flagship fashion label has hit a sweet spot in the “affordable luxury’’ sector after two years of weaning the business off aggressively discounted sales and promotions, while its investment in GAP was winning over shoppers in the middle market and should soon emerge profitable.

Page 22: Former Nokia CEO Stephen Elop has made his first public comments since joining Telstra’s management team earlier this year, declaring the telco is ready to weather the disruption the NBN is bringing to the industry.

Vocus Communications’ $807m takeover of Nextgen Networks has received the green light from the competition watchdog, with the deal likely to bring an end to the rampant consolidation in the telecommunications sector in the past few years.

Page 23: Westpac will try to regain community trust by removing all product-related incentives for the bank’s 2000 tellers from next month.

Page 24: Western companies that for years pumped money into Iraq’s oilfields, lured by the prospect of its huge crude reserves and post-war ambition to boost output, now face a reckoning.

Page 26: Retail property heavyweight Scentre Group has outlined plans for more than $1 billion worth of developments next year, putting a new mall in Coomera in Queensland and a major expansion of its Newmaket centre in Auckland, New Zealand, on the agenda.

The West Australian

Page 9: The Government was forced to defend selling off all or part of Western Power and the Water Corporation yesterday after the key utilities posted record returns to taxpayers in their annual reports.

Page 14: The competition watchdog has targeted WA franchisor Pastacup for allegedly failing to declare a director’s history of overseeing two company collapses.

Page 24: WA’s population is growing at its slowest rate in 13 years, with thousands of the State’s residents leaving for work in other parts of the country.

Page 62: The State Government has given the green light to plans to create a major irrigation precinct on an historic cattle station near Fitzroy Crossing.

The corporate watchdog has carried out a police-backed search in Perth at the office of listed company Excalibur Mining. About 10 personnel from the Australian Securities and Investments Commission and the Australian Federal Police on Wednesday searched the West Perth premises and at least one other location.

Equipment supplier Emeco Holdings is set to become a first mover in consolidation of mining services by proposing today a merger with two east-coast contractors.

Metals X has settled its $230 million claim against one-time joint venture partner Tanami Gold for $3 million.

Page 63: Australia’s biggest brick maker turned out a record 670 million bricks last financial year but would have done even better if WA had lived up to its record.

Page 66: Wesfarmers’ value yesterday cracked $50 billion for the first time in a year, as its shares clawed back more ground in their gradual recovery from November’s three-year low.