08/12/2016 - 06:18

Morning Headlines

08/12/2016 - 06:18

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Morning Headlines

Bunnings chief to renovate Wesfarmers

Outgoing Bunnings boss John Gillam will advise Wesfarmers on asset sales, acquisitions and the arrival of Amazon after stepping down from leading the conglomerate’s most profitable business. The Fin

Western Australia posts worst economic result since 1989

Western Australia’s economy has suffered its second largest contraction on record but a defiant Premier Colin Barnett has insisted conditions are improving. The Fin

Next big dilemma for Cairns

Gordon Cairns is proving to be a man of action in the boardrooms of corporate Australia, but his next big problem looms large as marauding online giant Amazon prepares to roll out its general merchandise and fresh food offer in Australia next year. The Fin

Budget turmoil as GDP slumps

The nation’s worst economic performance since the global financial crisis threatens to upset the government’s budget planning and force a reluctant Reserve Bank to reconsider the case for further interest rate cuts. The Aus

CBA hits back in claims row

Commonwealth Bank’s under-pressure life insurance arm CommInsure says it has not found any evidence of wilful misconduct or wrongfully rejected claims in any of its internal or independent reviews. The Aus

ATO sought early advice on Bell Act

Former solicitor-general Justin Gleeson was consulted about the constitutional problems with WA’s audacious attempt to seize control of the Bell Group liquidation six months before the plan was spectacularly defeated in the High Court. The West

WA gas crisis risk in two years

WA could be hit with a domestic gas supply crunch within two years if there are delays to a processing plant at Chevron’s $45 billion Wheatstone LNG project near Onslow. The West

 

 

The Australian Financial Review

Page 1: The Turnbull government’s decision to rule out a carbon scheme for the electricity sector rejects advice from its handpicked expert, who will recommend an emissions intensity scheme as the most effective way to transition to a secure and lower-cost energy supply.

Outgoing Bunnings boss John Gillam will advise Wesfarmers on asset sales, acquisitions and the arrival of Amazon after stepping down from leading the conglomerate’s most profitable business.

Treasurer Scott Morrison has doubled down on his demand for Parliament to back planned company tax cuts and rejected calls for extra government spending after presiding over the economy’s weakest quarter since the global financial crisis in 2008.

Page 2: The Productivity Commission says the $1.1 million maximum fine for breaching consumer laws is ‘‘too low’’ compared with what companies can gain.

Page 3: Engineering and design consultancy GHD has been recognised as a gender equality leader for fostering a culture of men working part-time and setting ambitious targets for female representation in a traditionally male-dominated industry.

Page 4: Western Australia’s economy has suffered its second largest contraction on record but a defiant Premier Colin Barnett has insisted conditions are improving.

Page 5: Deputy Prime Minister and Nationals leader Barnaby Joyce has backed federal financial support for Indian company Adani Group’s $16.5 billion Carmichael mine.

Page 6: Tax Office officials say they were not pressured to drop or alter a High Court challenge to WA legislation that would have deprived taxpayers of funds from the liquidation of the Bell Group.

Page 8: EnergyAustralia managing director Cath Tanna says politicians shouldn’t be rushing to rule out a carbon price but should be spending more time trying to understand the problem of transitioning to a clean energy sector.

Unprecedented industrial action at Esso Australia that threatened to shut off gas to the south-east of the country has been terminated.

Page 10: Aircraft manufacturer Boeing became the latest big business victim of President-elect Donald Trump’s Twitter rampages, underlining how the billionaire will use political influence in an unprecedented fashion to intervene in the market economy.

Page 11: The man tipped to be the finance minister of Italy in any future eurosceptic government has said that the least traumatic way to break up the euro is for Germany to leave first.

Page 13: TPG Telecom chairman David Teoh says building mobile networks in Australia and Singapore, the company’s own fibre-to-the-basement network and corporate sales will be the pillars of his long-term strategy to boost profits and mitigate shrinking margins on the national broadband network.

Rio Tinto chairman Jan du Plessis has made the startling admission that there are some aspects of the company’s executive pay that even he doesn’t understand.

Page 15: EnergyAustralia has made a $1.5 billion pledge to underpin new renewables projects as managing director Cath Tanna seeks to improve the carbon credentials of the electricity retailer, which is also a major coal-fired generator.

Origin Energy’s planned float of its conventional petroleum business has got a lukewarm reception from analysts, with RBC Capital Markets describing it as ‘‘a half-way house towards the ideal outcome’’ and suggesting the sale of the Queensland LNG project may still be on the cards.

BHP Billiton’s new Mexican asset could be delivering 10 per cent of the company’s oil production within a decade.

Page 16: Iluka Resources has opted to push ahead with its $425 million takeover of mineral sands rival Sierra Rutile despite identifying issues with two of the London-listed company’s tailings dams.

Rio Tinto chief executive Jean-Sebastian Jacques says he is confident a border dispute with China over copper exports from Mongolia can be resolved quickly.

Page 17: Customer-owned banks are hopeful the government will respond soon to a Senate committee report, which this year called for them to get access to a broader range of funding instruments that will help them better compete with big bank rivals.

China has selected 21 investment management institutions for its pension insurance fund, bringing it one step closer to investing up to $US290 billion ($390 billion) in its financial markets.

Almost 10 years after the GFC, investors remain gun-shy of risk strategies with derivative overlays despite their ability to cap investment losses.

Page 23: The long-running beer dispute at Carlton & United Breweries has ended as the brewer reached a deal with unions to reinstate sacked maintenance staff on their full pay and conditions.

Gordon Cairns is proving to be a man of action in the boardrooms of corporate Australia, but his next big problem looms large as marauding online giant Amazon prepares to roll out its general merchandise and fresh food offer in Australia next year.

South Korea has emerged as a key new market for local tourism operators as Asia’s love affair with Australia continues, pushing international visitor spending to almost $40 billion in the past year, according to new figures.

 

 

The Australian

Page 1: The nation’s worst economic performance since the global financial crisis threatens to upset the government’s budget planning and force a reluctant Reserve Bank to reconsider the case for further interest rate cuts.

Business leaders say the unexpectedly weak GDP figures should provide a wake-up call for governments and corporations on the dangers that lie ahead if they fail to convince the community of the need for urgent reforms to stimulate investment.

Page 2: Scott Morrison is prepared to fly to Beijing to intervene on Australia’s behalf in a dispute with the Asian infrastructure bank that is threatening to cut off lending that would help our energy exports.

Page 4: A three-month slump in construction, a major factor in the worst quarterly economic growth recorded for almost a decade, is just a “pothole” before a more permanent downturn late next year as building approvals weaken and the property market softens, economists have warned.

Page 19: Evidence of a stalling economy should be a wake-up call for financial markets and policymakers, economists have warned, as Australia faces a significant challenge to meet its long-term growth rates.

The field has narrowed for the next chief executive of $46 billion Perth-based conglomerate Wesfarmers after the architect of its profit juggernaut Bunnings, John Gillam, announced his shock departure yesterday after 20 years with the company.

The nation’s energy watchdog has warned that increased gas-fired electricity generation is set to stretch short-term domestic gas supply as renewable power takes market share from coal faster than expected, potentially inflating already high gas prices.

Page 21: TPG Telecom executive chairman David Teoh has played down concerns about the telco’s declining share price, reassuring shareholders it has a game plan in place to tackle the disruption in the market caused by the National Broadband Network.

Page 23: Commonwealth Bank’s under-pressure life insurance arm CommInsure says it has not found any evidence of wilful misconduct or wrongfully rejected claims in any of its internal or independent reviews.

Australian insurers Suncorp and QBE are expected to further lift premiums on NSW compulsory third-party policies despite having already pushed through increases of between 5 per cent and 10 per cent over the past two years.

High-profile board members at three of the major banks are on course to avoid a “strike” against their executive remuneration policies at looming annual meetings, despite governance experts raising several concerns about practices.

Page 24: The Danish family behind the Lego plastic-brick empire is shaking up the company’s ownership structure, elevating an executive widely credited for rescuing the toy maker from the brink of bankruptcy to manage all-things Lego and explore new business ventures.

The US Justice Department is investigating whether advertising agencies inappropriately steered business-producing commercials to their in-house production units over independent companies by rigging the bidding process for those contracts, sources said.

Page 25: Masayoshi Son, the billionaire who controls Sprint, said yesterday he would invest $US50 billion ($67bn) in the US and create 50,000 new jobs, following a 45-minute private meeting with Donald Trump.

Page 32: Capital expenditure by Australia’s miners has continued to plummet, with spending on new projects falling to the lowest level since the global financial crisis.

 

 

The West Australian

Page 3: Mark McGowan will today reveal plans to save tens of millions of dollars from the State Budget by culling WA’s best-paid bureaucrats.

Page 4: Treasurer Scott Morrison has made a plea for Parliament to pass the Federal Government’s $50 billion plan for company tax cuts after revelations the economy went backwards for just the fourth time in the past 25 years.

WA’s peak business lobby has elevated payroll tax relief to the top of its wish list for the State election amid claims it is a handbrake on employment.

Page 12: Former solicitor-general Justin Gleeson was consulted about the constitutional problems with WA’s audacious attempt to seize control of the Bell Group liquidation six months before the plan was spectacularly defeated in the High Court.

Page 14: Roy Hill boss Barry Fitzgerald says the Pilbara iron ore miner will make an effort to recruit newcomers to the mining industry as it looks to find another 500 to 600 new workers in the next 18 months.

Page 17: WA’s biggest residential heritage project — the $70 million refurbishment and redevelopment of Fremantle’s Dalgety woolstores — is finished and ready for occupants.

Page 54: Richard Goyder says Bunnings boss John Gillam’s shock decision to step down after 12 years at the helm of the hardware juggernaut will not affect Wesfarmers’ history of “seamless” leadership successions.

Oil and gas junior Transerv Energy’s shares were smashed and co-founder Stephen Keenihan quit as managing director yesterday amid news that Origin Energy was withdrawing the sale of its Perth Basin assets.

Page 55: WA could be hit with a domestic gas supply crunch within two years if there are delays to a processing plant at Chevron’s $45 billion Wheatstone LNG project near Onslow.

A last-ditch rescue for collapsed iron ore miner Pluton Resources is in doubt after one-time Pluton receiver KordaMentha forced its major backer into provisional liquidation in Hong Kong.

The reclusive chairman of TPG, iiNet’s parent company, has moved to reassure shareholders after its recent price plunge, telling them it has “tremendous opportunities” ahead.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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