06/12/2016 - 06:24

Morning Headlines

06/12/2016 - 06:24

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Morning Headlines

Big banks crank up home loan interest rates

Commonwealth Bank of Australia, the nation’s largest mortgage lender, National Australia Bank and Westpac are turning up the heat on property buyers by cracking down on loopholes or cranking up variable and fixed term interest rates. The Fin

DUET investors buoyed by CKI’s $7.3b offer

Cheung Kong Infrastructure’s $7.3 billion takeover proposal to DUET Group has been warmly received by investors, underscoring that foreign investment approval rather than price may be the biggest hurdle to a deal. The Fin

Telstra names tech veteran Denholm as its new COO

Telstra has lured technology veteran and Tesla Motors director Robyn Denholm home from Silicon Valley to be its chief operating officer, after a five-month search for a replacement for Kate McKenzie. The Fin

Power row engulfs Asia bank

The Turnbull government is fighting the Asian infrastructure bank to which it has pledged almost $5 billion over lending guidelines that support “socially acceptable” renewable power but shut out nuclear, coal and gas electricity generation, which are the backbone of Australia’s energy exports. The Aus

NAB odd one out on ASIC approval

National Australia Bank is the only big four bank yet to call for the industry’s Banking Code of Practice to be approved by the Australian Securities & Investments Commission, which gives the corporate watchdog the powers to enforce the code. The Aus

Wheels fall off Perth’s growth

The Perth economy has endured one of its toughest years on record, with only the health sector preventing the city from going backwards. The West

Chinese takeover bid for WA gas pipeline

WA’s key piece of energy infrastructure could become foreign-owned under a $7.3 billion offer for DUET Group, raising further questions about Premier Colin Barnett’s privatisation plans. The West

 

 

The Australian Financial Review

Page 1: The federal Nationals and the Queensland government are urging the Commonwealth to give Indian multinational Adani a concessional loan to help finance a $2 billion rail link for its proposed coal mine, but the push risks sparking rows within the Coalition and between federal and state Labor.

Bellamy’s Organic is dumping stock in China after weak sales during a recent shopping festival, pushing the online price of its infant formula down 50 per cent to below levels in Australia.

Page 2: An unexpected rise in inventories may have prevented the economy from contracting last quarter, when it was weighed down by weak profits and below-average wages growth.

Page 3: Commonwealth Bank of Australia, the nation’s largest mortgage lender, National Australia Bank and Westpac are turning up the heat on property buyers by cracking down on loopholes or cranking up variable and fixed term interest rates.

Australian chief executives are lasting longer in the job than their global counterparts and more are rising up the ranks than being parachuted in, a report finds.

Page 4: Employees categorised as managers and professionals are the worst affected by a $1 billion loophole that allows employers to use salary sacrificed contributions to reduce their own liabilities, Industry Super Australia says.

Page 5: The building industry has flagged further amendments may be required for the Turnbull government’s newly restored Australian Building and Construction Commission, as employers hit out at the mess created by the government’s compromises with the Senate crossbench.

Page 6: The man chosen to lead newly privatised Ausgrid is closely eyeing the potential for the NSW electricity distributor to move into residential and grid-scale batteries as he looks to capitalise on its technical expertise and strong brand.

Page 7: The Turnbull government must take decisive action to overhaul its existing Direct Action climate policies, including the adoption of a form of emissions trading scheme, as part of the 2017 climate review, according to industry experts.

Page 9: As China sought to play down the significance of Donald Trump’s phone call with Taiwanese leader Tsai Ing-wen, the President-elect unsettled relations further by lashing out at Beijing over its economic policies and actions in the South China Sea.

Page 11: Cheung Kong Infrastructure’s $7.3 billion takeover proposal to DUET Group has been warmly received by investors, underscoring that foreign investment approval rather than price may be the biggest hurdle to a deal.

Nature’s Care has ditched plans for an $800 million-plus sale and the Sydney company will instead go it alone under its current private ownership by the Wu family.

Page 13: Furniture retailer Steinhoff Asia Pacific boosted profits three-fold in 2016, but a 75 per cent jump in borrowings has raised questions about debt levels ahead of its $361 million acquisition of Fantastic Holdings.

Australia’s largest car parts supplier, Bapcor, has lifted its takeover bid for New Zealand’s Hellaby Holdings by 9 per cent to try to bring a quick resolution to a takeover battle that began in late September.

Page 14: The suspension of copper exports from Mongolia to China is not the only border sensitivity facing Rio Tinto, whose Mongolian copper mine is facing a delicate renegotiation of its power contract with a Chinese power utility.

Global Traffic Network chief executive William Yde believes the $US15 million ($20 million) acquisition of US-based Radiate Media gives the traffic report provider an opportunity to build a business bigger than the four countries it is already in combined.

Telstra has lured technology veteran and Tesla Motors director Robyn Denholm home from Silicon Valley to be its chief operating officer, after a five-month search for a replacement for Kate McKenzie.

Coles is offering loyalty card holders discounts of up to 15 per cent on big basket shops to reinvigorate sales and avoid being trumped for the first time in years by a resurgent Woolworths.

Page 17: Commonwealth Bank of Australia is developing artificial intelligence technology to help with cyber security, fraud detection and regulatory compliance, in a sign banks are attempting to put the power of big data to use in reducing risk.

Page 18: Start-up founders have hit out at the Labor Party for refusing to support the passage of a long-awaited crowdsourced equity funding (CSEF) bill, resulting in the legislation being pushed back until February at the earliest.

Telstra’s chief scientist, Hugh Bradlow, has tipped quantum computing as the space race of this century and says Australia’s University of NSW is in a strong position to come out on top.

Page 19: ASX-listed BrainChip, which has developed human-like artificial intelligence technology, is poised to announce a range of new clients including casino groups, big manufacturers, airports and US government departments, which will use its smarts to detect problems in real time, and even prevent terrorist attacks.

Page 23: UGL’s top shareholder, Allan Gray, will reveal its intentions for its 19 per cent stake in the contractor on Tuesday, determining the final outcome of CIMIC’s $524 million hostile takeover bid for the firm.

Boutique fund manager Pengana has cracked the $2 billion mark as investors have become more comfortable with absolute return style funds according to chief investment officer Russel Pillemer.

 

 

The Australian

Page 1: The Turnbull government is fighting the Asian infrastructure bank to which it has pledged almost $5 billion over lending guidelines that support “socially acceptable” renewable power but shut out nuclear, coal and gas electricity generation, which are the backbone of Australia’s energy exports.

Voters are looking to the federal government to concentrate on jobs, economic growth and the budget as Malcolm Turnbull ends the year with his support as Prime Minister falling to its lowest level since he seized power.

National Australia Bank and Westpac have hiked interest rates on more than $100 billion of loans, targeting property investors, as lenders move to offset pressure on profits.

Page 4: Disunity has broken out within the Coalition over a government review of climate change policies, with senior frontbencher Christopher Pyne flatly rejecting any carbon pricing for the energy sector.

Page 19: Energy network operator Duet Group is in play, with a counterapproach from China’s State Grid and Singapore Power considered likely after a formal $7.3 billion cash bid from Cheung Kong Infrastructure.

As a barometer of the booming dairy-exports-to-China market, a decision by former mining services magnate Bill McDonald to quit his fledgling infant-formula empire, Camperdown Dairy International, to return to coalmining had all the early warning signs of a brewing storm.

Fairfax Media and Nine Entertainment have held talks about transactions that would circumvent current media regulations, as the Turnbull government’s proposed reforms of the sector face strong opposition from Labor, the Greens and parts of the industry.

Page 21: Victorian businesses will pay more for gas and jobs will be lost as a result of the state’s ban on onshore gas exploration and production, Shell Australia managing director Andrew Smith has warned.

Page 22: The corporate regulator will review trading in Bellamy’s Australia shares before the infant milk formula group issued its shock profit warning last week that stripped half a billion dollars from its market value as its stock sank 50 per cent, with the chairman vowing to restore investor confidence in the company.

Page 23: National Australia Bank is the only big four bank yet to call for the industry’s Banking Code of Practice to be approved by the Australian Securities & Investments Commission, which gives the corporate watchdog the powers to enforce the code.

Page 29: HP boss Dion Weisler has just capped off a frantic 12 months for the company with a trip home and a growing belief that the PC and printer maker can not only weather the continued slump in the overall market but also eke out growth

 

 

The West Australian

Page 6: It was shaping as the harvest to smash all records. And while some have done very well this year, a great number of farmers have stumbled in sight of the finish line. A once-in-50-year frost has touched most of WA’s grain farmers. In some cases it has turned what should have been a bumper year into a disaster.

Page 10: The Perth economy has endured one of its toughest years on record, with only the health sector preventing the city from going backwards.

Page 12: The mining industry says the endorsement by a Left-leaning, anti-coal think tank of Nationals leader Brendon Grylls only proves the economic damage awaiting WA from his $5-a-tonne tax on iron ore.

Head contractors on large State Government projects will soon be subject to a code of conduct after Cabinet approved the plan yesterday.

Page 14: Industry groups say a review of climate change policies has to keep energy affordable as it was confirmed a carbon price on emissions from electricity generators is under consideration.

Page 16: Almost 310,000 West Australian workers have had their superannuation nest eggs short-changed, potentially depriving them of millions of dollars in retirement.

Page 22: WA’s key piece of energy infrastructure could become foreign-owned under a $7.3 billion offer for DUET Group, raising further questions about Premier Colin Barnett’s privatisation plans.

Dacian Gold has finally got a capital raising away, announcing yesterday it closed a $26 million placement at $2.50.

Toro Energy managing director Vanessa Guthrie has quit the company as the WA uranium developer waits for a change in the market to advance its Wiluna projects.

Gina Rinehart has further tightened the belt at Hancock Prospecting, slashing executive pay by 60 per cent, or $20 million, after halving it last year with a $30 million cut.

Page 47: Georgiou Group has blamed the fall-off in resources work for a 50 per cent drop in annual profit at the family-owned construction company.

Page 48: Proxy advisers. Even the critics agree they have a role to play in corporate Australia — the arguments start around how they perform that role.

Page 49: Shares in Kidman Resources jumped yesterday after the company announced a massive initial lithium resource at its Earl Grey project.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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