Morning Headlines

Alarm over Shorten’s Trump-lite

Business has slammed Labor leader Bill Shorten for using 457 visa holders as a ‘‘proxy punching bag’’ in an effort to tap into community fears about immigration after he stepped up his criticism of foreign workers yesterday. The Fin

Banks hit by populism: Turner

David Turner, outgoing chairman of Commonwealth Bank of Australia, says widespread bank bashing in Australia is part of the same antiestablishment groundswell behind Brexit and the election of Donald Trump in the United States. The Fin

BHP warns WA tax grab would cost jobs

BHP Billiton would have to further cut dividends or slash capital spending by as much as 20 per cent if the WA National Party’s iron ore tax proposal goes ahead, which could force it to choose between mine expansions in its Western Australian iron ore business or copper at South Australia’s Olympic Dam. The Fin

Trump win worth $10bn to budget

Soaring iron ore prices since Donald Trump’s surprise US election victory would deliver a $10 billion boost to the federal budget if maintained over the next two years, lifting Turnbull government hopes that the economy will benefit from the US embracing fossil fuels and infrastructure-led. The Aus

Iron ore rally could continue as Pilbara braces for severe cyclones, supply disruption

The looming start of what is forecast to be the worst cyclone season to hit Australia’s iron ore-rich Pilbara region in years could provide further support to the ongoing and unexpected rally in iron ore prices. The Aus

Liberal MP pours cold water on TAB sale bid

Government backbencher Murray Cowper has spoken out against a building political consensus for selling the TAB.

The Australian Financial Review
Page 1: Business has slammed Labor leader Bill Shorten for using 457 visa holders as a ‘‘proxy punching bag’’ in an effort to tap into community fears about immigration after he stepped up his criticism of foreign workers yesterday.

Page 4: Big data should mean lower average insurance premiums, according to a new report by the Actuaries Institute. But it could also make some people uninsurable – and some previously uninsurable people insurable again.

Australians should be able to access ‘‘self-service’’ welfare without the help of Centrelink or other bureaucrats, as technology increases the scope and cuts the cost of online transactions, a government minister says.

Page 5: High-skilled Australian manufacturing workers in medical technology and aerospace are 38 to 40 per cent cheaper to employ than their US counterparts, the head of the Advanced Manufacturing Growth Centre says.

Bill Shorten is hitting the hustings this week across Queensland to hammer home his message that Labor won’t make the Democrats’ mistake of forgetting the negative impact of trade deals on blue-collar workers.

The renewed confidence in mining stocks has boosted the paper wealth of the industry’s top brass by more than $5.5 billion since January.

Page 6: The federal government’s $2.5 billion Emissions Reduction Fund – centrepiece of the Coalition’s Direct Action climate policy – is in danger of stalling next year as the fund runs out of money and companies steer clear because of the regulatory burden.

Page 9: The Guinean government has distanced itself from the Frenchman Rio Tinto paid $US10.5 million for his ‘‘unique help’’ in securing one of the world’s largest iron ore deposits in 2011, claiming it was unaware Francois Polge de Combret represented the Anglo-Australian mining giant at the time.

The release of one Crown Resorts employee detained in China suggests the preliminary investigation into the other 17 people being held in custody has been concluded, according to lawyers and others involved.

Page 11: Warren Buffett is once again the second-richest person on the planet, and he has President-elect Donald Trump to thank. Buffett added $US6.2 billion ($8.2 billion) to his fortune this week, leading gains for the world’s wealthiest as he leapt over Spain’s Amancio Ortega and Amazon.com founder Jeff Bezos to reclaim the No. 2 spot on the Bloomberg Billionaires Index.

Page 13: David Turner, outgoing chairman of Commonwealth Bank of Australia, says widespread bank bashing in Australia is part of the same antiestablishment groundswell behind Brexit and the election of Donald Trump in the United States.

BHP Billiton would have to further cut dividends or slash capital spending by as much as 20 per cent if the WA National Party’s iron ore tax proposal goes ahead, which could force it to choose between mine expansions in its Western Australian iron ore business or copper at South Australia’s Olympic Dam.

Page 15: Soccer mums and hard-core four-wheel-drive enthusiasts are equal drivers of soaring demand for automotive parts and accessories for the growing number of 4WD and sports utility vehicles on Australia’s roads, as a new $45 million company heads towards the ASX.

Executives at global property giant Goodman Group want to pocket $142 million in shares – close to 20 per cent of the company’s operating profit – without giving investors a say at their annual meeting on Thursday.

The Sydney entrepreneur making a hostile takeover for SurfStitch Group has slammed the troubled company for making overpriced acquisitions and says he wants to break up and sell off the business.

Page 16: Private equity firms will target industries including health and allied services, leisure, childcare, and technology this fiscal year, in both public and private markets, despite challenges in the listed space.

Australian Prudential Regulation Authority chairman Wayne Byres has hosed down any expectations that the final calibration of Australian bank capital ratios is imminent, describing 2017 as a ‘‘year of consultation’’ on proposed measures to make Australian banks ‘‘unquestionably strong’’ and suggesting final rules won’t be in place for another 12 months.

Page 17: Machine learning and artificial intelligence will help banks reduce regulatory compliance costs and incidents of bad advice, said Westpac Banking Corp chief executive Brian Hartzer, as the application of ‘‘regtech’’ gathers pace around the globe.

Fintech start-ups using the corporate regulator’s ‘‘innovation hub’’ are being awarded financial services licences in almost half the time of traditional processes, the Australian Securities and Investment Commission’s John Price said.

Page 18: Cranes and trailers sold off by bankrupt mining contractors are proving a boon for auction group GraysOnline as it sells less consumer goods and focuses on machinery and equipment, targeting buyers in Asia and the Middle East.

Never one to mince words, Central Petroleum chief executive Richard Cottee has warned that economic ‘‘carnage’’ will result without reforms to open up Northern Territory as a gas supply province.

Page 20: Global markets will be guided by signs of the evolution of Donald Trump’s policy positions this week, after his surprise victory in the race for the White House triggered euphoric buying of shares and revived a sell-off in bonds.

Acclaimed global investor Leah Zell, the founder of Lizard Investors, has quietly formed a bearish view on Woolworths, telling a high-profile conference in Chicago last month the company’s restructuring might be too little, too late.

The Australian

Page 1: Soaring iron ore prices since Donald Trump’s surprise US election victory would deliver a $10 billion boost to the federal budget if maintained over the next two years, lifting Turnbull government hopes that the economy will benefit from the US embracing fossil fuels and infrastructure-led growth.

Social media posts, private school records and immigration data are being used by the Australian Taxation Office as part of an increasingly sophisticated crackdown on tax cheats that yielded nearly $10 billon last year.

Page 2: Asia-Pacific leaders could be asked to consider a trade pact including China and Russia but not the US at the APEC summit in Peru next weekend.

Page 6: Australia could unlock up to $2 trillion tied up in capital city house prices by pursing a regional development strategy to increase the number of centres with populations above 100,000 and tap undeveloped areas of the nation.

Page 7: A Turnbull government minister has asked the head of a leading university to explain its reasoning for a decision to “refuse to invest in any company directly involved in the fossil-fuel industry’’.

Page 18: US president-elect Donald Trump may foster a more friendly deal-making environment than expected as optimism for stronger growth in the world’s biggest economy offsets lingering uncertainty about policies and trade with Asia.

One of the nation’s top fund managers has warned that a crisis of confidence among top sharemarket-listed company boards stopping them from investing in their core operating businesses could have far-reaching consequences for the nation.

Former British Prime Minister Tony Blair was among a shortlist of consultants internally assessed by Rio Tinto during the process that eventually saw French banker Francois de Combret paid $US10.5 million to help seal a $US700m deal in 2011 so the mining giant could keep its Simandou iron ore tenements in Guinea.

The looming start of what is forecast to be the worst cyclone season to hit Australia’s iron ore-rich Pilbara region in years could provide further support to the ongoing and unexpected rally in iron ore prices.

Page 18: The federal government is facing what is believed to be an unprecedented legal test of the Australia-US Free Trade Agreement, with the government likely to fight a $US260 million ($344.6m) demand for compensation from Florida-based APR Energy.

One of the ASX’s most controversy-plagued companies, Moly Mines, is locked in a $53 million-plus battle with Metro Mining for control of Queensland bauxite play Gulf Alumina.

Page 19: The booming food and agricultural sector continues to gain momentum, with a new report from the Rural Bank showing the value of Australian agri-food exports in the past year has climbed to $46 billion.

Australian hardware giant Bunnings has learnt a valuable lesson from Woolworths’ disastrous push into hardware via its failed Masters chain, promising British hardware professionals it would not show the same type of arrogance Woolworths did when it entered the Australian hardware sector and destroyed more than $3 billion in shareholder value.

Page 20: The banking regulator has failed to end speculation in the market about incoming capital rules, with investors facing uncertainty about the sustainability of lofty dividend payments.

Page 21: The listed Charter Hall Retail REIT has appointed Michael Gorman to its board with the real estate veteran bringing crucial experience as the fund faces a potential threat from the rival SCA Property Group.

Crowdfunding platform Doma-Com is finalising the purchase of a small cattle property after withdrawing its ambitious bid for the S. Kidman & Co stations empire earlier this year.

The West Australian

Page 3: The State Government will use the final days of Parliament this week to curb the pay packets of public utility bosses, which have leapt up to 45 per cent on its watch.

Page 4: Expensive parking, high rents, antisocial behaviour and the loss of tens of thousands of office workers are contributing to a retail slump in Perth’s CBD, where about one in four shops sit vacant in prominent arcades.

West Australian women are feeling the brunt of the collapsing State jobs market, with new figures showing an explosion in the number unable to get the part-time hours of work they want.

Page 5: The March State election is shaping as a slugfest over jobs, with the Liberal Party yesterday launching an attack advertisement pointing out the major infrastructure projects Labor has opposed.

Page 7: Brendon Grylls’ mining tax would shrink the State and national economy, cost 2900 jobs across his home electorate and wipe another 3400 from the rest of WA, modelling of his proposal to be released today shows.

Page 12: The Tourism Council will today launch its pre-election push for more government funding for tourism marketing, branding and events.

Page 16: Government backbencher Murray Cowper has spoken out against a building political consensus for selling the TAB.

Page 19: The search for a site for Perth’s second airport appears to have stalled. A parliamentary inquiry has been told a study to identify a preferred site has been “parked” for several months.

Page 49: Widely touted electricity reforms aimed at sending regulation of Western Power to the Eastern States and paving the way for WA’s next wave of renewable energy projects are officially dead.

One of the State’s oldest and most conservative institutions, the Western Australian Cricket Association, is continuing to shake off its staid reputation by appointing its first female deputy chair.

Page 50: Donald Trump’s pledge to rebuild America was probably music to the ears of Rio Tinto chief executive Jean-Sebastien Jacques and BHP Billiton boss Andrew Mackenzie. After all, replacing the US’ ageing infrastructure will require plenty of the raw materials that the two miners dig out of the ground.