Morning Headlines

Regulating profits ‘dangerous’

Commonwealth Bank of Australia chief executive Ian Narev has warned politicians against regulating bank profitability while admitting the nation’s largest bank could have done a better job with aggrieved customers after scandals in its financial planning and insurance arms which Labor says justify a royal commission into the sector. The Fin

Anchorage Capital blames Woolies for Dick Smith strategy

Collapsed electronics retailer Dick Smith inherited its controversial rebate strategy from its former owner Woolworths, says the private equity director behind the Dick Smith float. The Fin

Companies ASIC backs BBSW move

The threat of jail time for traders found guilty of manipulating important financial benchmarks is needed to restore public and international trust in Australia’s markets, the corporate watchdog says. The Fin

Korea’s SK confident of Caldita gas after rocky period

Giant Korean conglomerate SK Group believes the Caldita gas field off Australia’s north coast is shaping up to be one of its most promising overseas energy investments, after the venture came close to collapse last year following the plunge in commodity prices. The Fin

Family feud over $2.5bn estate headed for civil trial

A family dispute over the late construction magnate Len Buckeridge’s $2.5 billion estate could be headed for a civil trial after the West Australian Supreme Court was told yesterday that mediation between the 22 parties to the litigation failed to resolve the matter. The Aus

Business Council warns tougher competition rules are a global ‘outlier’

The nation’s peak business group is urging the government to redraft its proposed tougher competition law, revealing advice from a former Federal Court judge that it is an “outlier” compared to similar rules in other countries. The Aus

Japanese giant’s ore tax warning

Japan’s largest steelmaker, and a foundation customer and joint venture partner for the original Pilbara iron ore developments in the 1960s and 70s, has written to Colin Barnett to oppose WA Nationals leader Brendon Grylls’ $5-a-tonne tax plan. The West

Ditching aged care lifts RAC

Better insurance sales and its exit from residential aged care has pushed the RAC to a big profit rise as the motoring mutual forges deeper into new territory. The West

Pilbara sales on move as buyers look ahead

The Pilbara, one of Australia’s most deflated property markets, is showing signs of life as businesses expand into its industrial estates. The West

The Australian Financial Review

Page 1: Commonwealth Bank of Australia chief executive Ian Narev has warned politicians against regulating bank profitability while admitting the nation’s largest bank could have done a better job with aggrieved customers after scandals in its financial planning and insurance arms which Labor says justify a royal commission into the sector.

The global economy is expected to grow 3.4 per cent next year, 0.1 percentage point less than in the IMF’s previous world economic outlook six months ago, largely because of disappointing growth in the US and the shockwaves from Brexit.

Page 3: A radical plan by the Western Australian government for the world’s two biggest miners, BHP Billiton and Rio Tinto, to pay in advance a key mining tax has been firmly rejected by the companies.

Page 5: The Turnbull government believes it can significantly slash $25 billion of student debt from a disastrous vocational education student loans scheme as part of a package of reforms to the sector aimed at better aligning training incentives with industry needs.

Collapsed electronics retailer Dick Smith inherited its controversial rebate strategy from its former owner Woolworths, says the private equity director behind the Dick Smith float.

Page 6: Reserve Bank Governor Philip Lowe has assured a smooth transition from the Glenn Stevens-era by holding the cash rate steady at 1.5 per cent, but his statement has fuelled debate about whether the central bank is quietly concerned about rising house prices.

Page 7: Australia has surpassed the US in female labour force participation and women’s representation on boards after lagging behind the country for the past 25 years, new research has revealed.

Page 8: The House of Representatives economics committee will write to the Commonwealth Bank seeking more information after chief executive Ian Narev conceded nobody had been sacked over life insurance scandals emanating from CommInsure.

Page 10: A $200 million solar-powered mega-greenhouse backed by private equity fund KKR in northern South Australia – which supplies Coles with 16,000 tonnes of tomatoes annually – was able to keep operating through the recent power blackout.

Distributed renewable energy generated and consumed at the local level has the potential to strengthen the electricity grid, not weaken it, AGL Energy CEO Andy Vesey says.

Page 11: The number of Australian small businesses using Quickbooks has jumped 61 per cent in the past year to 53,000, but the cloud accounting software provider remains well behind rivals Xero and MYOB.

Page 15: The threat of jail time for traders found guilty of manipulating important financial benchmarks is needed to restore public and international trust in Australia’s markets, the corporate watchdog says.

The chief executive of US-based Janus Capital Group, Dick Weil, says a merger with Henderson Group will help the newly created $US322 billion ($419.4 billion) fund manager become truly global and compete against low-cost index funds squeezing fees across the asset management industry.

Page 17: Competition tsar Rod Sims is getting set to take the microscope to an expected $1.6 billion deal by Woolworths to sell its petrol station network to an existing operator in what is already a fairly concentrated market.

A New York hedge fund that made huge bets last year on the mining sector bottoming out is set for a payday of about $25 million in the $689 million takeover of mining services firm Bradken, whose chairman says a pickup in demand is still some way off.

Hong Kong-listed Chinese milk company Ausnutria Dairy Corporation has bought 75 per cent of natural medicines manufacturer Nutrition Care Pharmaceuticals for $30 million, reinforcing China’s insatiable demand for Australian retail products.

Page 18: Presto has become the first major casualty of Australia’s streaming wars with shareholders Foxtel and Seven West Media calling it quits on the business amid a highly competitive market.

Giant Korean conglomerate SK Group believes the Caldita gas field off Australia’s north coast is shaping up to be one of its most promising overseas energy investments, after the venture came close to collapse last year following the plunge in commodity prices.

Page 19: The country’s longest-standing financial services chief executive, Morgan Stanley Australia head Steve Harker, is stepping down after 18 years in the top job.

The Australian

Page 1: Commonwealth Bank chief executive Ian Narev has vowed to “put things right by the customer” after issuing a public apology for years of failures, promising more compensation for clients in a bid to head off a royal commission into the banks.

Page 2: Education Minister Simon Birmingham will today move to shut the rort-ridden VET FEE-HELP student loans scheme that has ransacked more than $6 billion from the public purse in four years.

Page 3: A family dispute over the late construction magnate Len Buckeridge’s $2.5 billion estate could be headed for a civil trial after the West Australian Supreme Court was told yesterday that mediation between the 22 parties to the litigation failed to resolve the matter.

Page 5: Qantas has struck a world-first deal with sharing economy giant Airbnb that will allow the airline’s 11.4 million frequent flyers to earn points when they book accommodation.

Page 6: The administrators of Arrium steelworks in Whyalla are negotiating with the South Australian government and the Clean Energy Finance Corporation to create an independent power source and end the operation’s reliance on the state power grid.

Six years after Labor environment minister Peter Garrett declared an end to phosphate mining on Christmas Island to protect threatened species, the company behind the mine has applied to expand operations in a bid to sustain the remote territory’s faltering economy.

Miner BHP Billiton says there is a problem for major companies and heavy industry in South Australia obtaining a long-term, secure electricity supply at a reasonable price, warning that the state’s power market was not as competitive as in other jurisdictions.

Page 7: Employers have urged the Turnbull government to restore funding to the Commonwealth Ombudsman to monitor the use of coercive powers by the national building watchdog.

Page 19: The nation’s peak business group is urging the government to redraft its proposed tougher competition law, revealing advice from a former Federal Court judge that it is an “outlier” compared to similar rules in other countries.

Page 21: Tabcorp chief executive David Attenborough is confident the wagering group will return to growth over the crucial Spring Racing Carnival.

Page 22: The $976.1 million takeover of Bradken by Japan’s Hitachi Construction Machinery will be a “very cheap” buy that will likely disappoint many of the company’s long-term shareholders, former Bradken chief executive Brian Hodges says.

Page 23: The head of US company APR Energy has urged the parliamentary committee into the big four banks to grill ANZ chief Shayne Elliott over the company’s role in the “grave injustice” that allowed the bank to seize gas turbines APR had leased to failed contracting firm Forge Group.

Page 24: Bass Pro Shops has struck a deal to acquire Cabela’s for about $US4.5 billion ($5.9bn) in cash, uniting two of the biggest sellers of outdoor sports gear and rivals that have spent decades building over-the-top megastores.

Page 25: McDonald’s chief executive Steve Easterbrook, aiming to slim down the “golden arches” and boost profits, has turned to the market where he can do something big, fast — China.

The West Australian

Page 1: Japan’s largest steelmaker, and a foundation customer and joint venture partner for the original Pilbara iron ore developments in the 1960s and 70s, has written to Colin Barnett to oppose WA Nationals leader Brendon Grylls’ $5-a-tonne tax plan.

Page 16: WA is leading the world in research into underwater acoustic technology that it is hoped will detect sharks as they near beaches.

Page 17: The Peppermint Grove superblock that was to have been Pankaj and Radhika Oswal’s home will be marketed to national and international buyers as Perth’s answer to Sydney’s Point Piper or Melbourne’s Toorak.

Page 25: Better insurance sales and its exit from residential aged care has pushed the RAC to a big profit rise as the motoring mutual forges deeper into new territory.

Fremantle Port has recorded a dip in underlying earnings but could still be worth more than $2.4 billion based on last month’s sale of the Port of Melbourne.

Page 26: Ratings agency Fitch has joined Moody’s and Standard and Poor’s in lowering the credit rating for mining equipment provider Emeco from CC to C.

Page 27: Perth-founded DVD rental and streaming service Quickflix has been given another lifeline after a US media company bought the business for $1.3 million.

RCR Tomlinson managing director Paul Dalgleish has sold $5.2 million of the engineering company’s stock.

Less than half of Gage Roads Brewing shareholders have taken part in a share offer that is part of a $10 million capital raising.

Page 28: The Pilbara, one of Australia’s most deflated property markets, is showing signs of life as businesses expand into its industrial estates.

Page 29: Growth opportunities in Cockburn, including plans for the new Fremantle Dockers training centre, have attracted international investment in the area.

Page 75: A progressive coastal village north of Perth is taking shape after more than a decade of planning. Jindee, Perth-based Estates Development Company’s flagship project, is described as “radically different” from other developments of its kind. The 112ha site, 37km north west of Perth, sits between the ocean and Marmion Avenue.