16/12/2016 - 06:23

Morning Headlines

16/12/2016 - 06:23

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Morning Headlines

Yellen rate hikes rattle markets

The US Federal Reserve’s forecast for three interest rate rises in 2017 has rattled markets, raising fears that rising rates and bond yields could take the air out of high asset prices, including shares, that have been inflated by almost a decade of easy money from central banks around the globe. The Fin

Banks vow to fight ASIC veto power

Plans to give the corporate regulator extra powers to ban financial products to protect unsophisticated investors are so contentious the government could end up with a repeat of the row over the Future of Financial Advice laws, a senior lawyer says. The Fin

Santos opens ‘credibility gap’ with shock raising

Santos has insisted its surprise $1.5 billion equity raising was not driven by any asset problem or credit rating risk as some investors struggled to understand the need for the move that has raised early questions around management credibility under new chief executive Kevin Gallagher. The Fin

Analysts doubtful on consortium’s Tatts bid

The board of Tatts Group will likely struggle to recommend a takeover bid from a Macquarie-led consortium over the Tabcorp bid it has already backed, due to questions on the valuation the consortium has placed on Tatts’ wagering division. The Fin

Foxtel, Village’s landmark win to block pirates

Film distributor and cinema chain Village Roadshow and subscription television group Foxtel have struck a landmark blow against content piracy in Australia after the Federal Court ordered that several pirate websites be blocked. The Aus

Worst jobless rate for 15 years hits Premier

Colin Barnett has conceded there are many West Australians who want to work more but cannot, as WA’s official unemployment rate hit a 15-year high just three months from the State election. The West

WA misses Qantas job openings, says union

A WA union claims Perth has missed out on dozens of extra jobs with scheduled heavy maintenance work on Qantas’ new 787 fleet to be done in Los Angeles. The West

Nahan to face court on power pay deal

A US-based power efficiency company is taking Energy Minister Mike Nahan to court, alleging he acted outside his powers when he slashed payments to the group. The West

 

 

The Australian Financial Review

Page 1: The US Federal Reserve’s forecast for three interest rate rises in 2017 has rattled markets, raising fears that rising rates and bond yields could take the air out of high asset prices, including shares, that have been inflated by almost a decade of easy money from central banks around the globe.

James Packer’s Crown Resorts has dramatically scaled back its international ambitions, beating a hasty retreat from China after agreeing to sell most of its shares in Macau casino operator Melco Crown Entertainment, and declaring it will concentrate on its strong Australian casinos business.

The co-founder of Nasdaq-listed Australian tech giant Atlassian, Scott Farquhar, has warned the government not to sugar-coat the impact of disruption when selling its innovation agenda to voters, arguing Australia must be prepared for short-term jobs pain for long-term gain.

Page 2: Carol Schwartz, a high-profile businesswoman involved in retail, property and philanthropy, will replace Heather Ridout on the Reserve Bank of Australia’s nine-member board.

Page 4: Households are confronting a perfect storm for higher interest rates next year as global borrowing costs surge following a more aggressive US Federal Reserve, inflationary Trumpenomics and the growing threat of a AAA downgrade as early as next week.

Page 5: The federal Treasury has done no modelling to gauge the impact of a credit rating downgrade on borrowing costs, which could come as soon as Monday.

The Reserve Bank of Australia has poured cold water on the idea that getting rid of $100 notes would curb criminal activity.

Page 6: Retirement products to be offered by superannuation funds will be required to generate a level of income that is greater than that produced by standard private pensions and give retirees the ability to withdraw a lump sum or leave a bequest, under proposals published by the government on Thursday.

Page 7: Plans to give the corporate regulator extra powers to ban financial products to protect unsophisticated investors are so contentious the government could end up with a repeat of the row over the Future of Financial Advice laws, a senior lawyer says.

Hollywood production studios have won big in the fight against piracy but will be forced to share the cost burden of blocking notorious sites such as The Pirate Bay.

Page 11: A former Melbourne schoolgirl has returned to her home town seeking $US50 million ($67 million) to build a series of plants around the world to turn plastic waste into diesel fuel and gas, helping to keep plastic out of landfill and create a new energy source at the same time.

The Construction, Forestry, Mining and Energy Union has backed down on its threats of industrial action at AGL Energy’s Loy Yang power station, putting an end to a whirlwind eight hours that saw AGL responding with an indefinite shut down and the Victorian government intervening to avert significant damage to the state’s energy supplies.

The Australian Energy Market Commission will require power generators to boost their ability to provide a more stable electricity supply into the National Electricity Market to avoid a repeat of the South Australian blackout in September.

Page 12: Goldman Sachs promoted company veterans David Solomon and Harvey Schwartz as presidents and co-chief operating officers, setting up the two men to compete to replace chief executive Lloyd Blankfein.

Page 15: Santos has insisted its surprise $1.5 billion equity raising was not driven by any asset problem or credit rating risk as some investors struggled to understand the need for the move that has raised early questions around management credibility under new chief executive Kevin Gallagher.

The Chinese majority owner of vitamins group Swisse Wellness has moved to full ownership with a $311 million buyout of the remaining 17 per cent of the company, in a move that triggers the exit of long-serving chief executive Radek Sali after nine years at the helm.

Page 17: David Teoh’s TPG Telecom has won an auction for spectrum allowing it to become Singapore’s fourth mobile network provider.

CIMIC executive chairman Marcelino Fernandez Verdes has been paid a $3 million ‘‘special bonus’’ by the construction group’s board for ‘‘outstanding performance’’, including its successful hostile takeover of contractor UGL.

New Aurizon chief executive Andrew Harding has moved swiftly to reshape the rail group’s senior management team, replacing chief financial officer Keith Neate with Aurizon finance executive Pam Bains.

Page 17: The board of Tatts Group will likely struggle to recommend a takeover bid from a Macquarie-led consortium over the Tabcorp bid it has already backed, due to questions on the valuation the consortium has placed on Tatts’ wagering division.

Page 18: Coal miners like Whitehaven, Yancoal and Stanmore will earn significantly more for their product in the new year, but the latest price rise has a cloud over it.

Fuels retailer Caltex Australia has forecast its core profit will decline this year more than the market was expecting, hit by a collapse in earnings from the slimmed-down refining business.

Troubled mining equipment rental group Emeco Holdings has moved to placate investor fears about its ability to continue as a going concern after dissident creditors sunk a crucial merger and recapitalisation.

Page 19: As many as two in five self-managed superannuation funds hold either residential or commercial property, although such investments still make up a small portion of the overall portfolios of schemes.

Suncorp has tapped Microsoft managing director Pip Marlow to take on the newly created position of CEO strategic innovation.

Page 20: Orica chairman Malcolm Broomhead has warned sections of the public have lost confidence in capitalism and free enterprise, and business must improve explaining its contribution to society.

Page 21: Australia’s largest car parts supplier, Bapcor, is moving ever closer to gaining control of New Zealand’s Hellaby Holdings, with a NZ stockbroking firm urging its clients, who represent more than 10 per cent of the remaining shares, to accept the raised $336 million bid.

 

 

The Australian

Page 1: The Australian businessman heading Donald Trump’s Manufacturing Council, Andrew Liveris, nominates tax cuts, cheap energy, elimination of red tape, worker reskilling and integrated supply chains as the keys to reviving US manufacturing and jobs.

Page 4: A union advertisement claiming pensioners will lose “hundreds of dollars” a week from January 1 is based on a well-off couple with at least $708,000 in assets on top of their family home.

Page 6: A federal judge has blasted the construction union’s “egregious” record of repeated, wilful lawbreaking, declaring its “willingness to disregard the industrial laws of this country seems to know no bounds”.

Page 19: Film distributor and cinema chain Village Roadshow and subscription television group Foxtel have struck a landmark blow against content piracy in Australia after the Federal Court ordered that several pirate websites be blocked.

James Packer has taken the chips off the table of his Macau investment with the sale of up to $2.8 billion of Melco Crown shares, as he beefs up his balance sheet to refocus on his Australian assets.

Page 21: Continued profit growth from Caltex Australia’s fuel supply and marketing business has helped insulate the group from a sharp downturn in the fortunes of its refining arm.

Origin Energy will try to muscle in on the West Australian gas market currently controlled by Alinta Energy and Wesfarmers, with the company quietly taking steps to become the latest entrant into the scene.

Orica chairman Malcolm Broomhead has called for business in Australia to regain the trust of communities in an impassioned speech at the explosives company’s annual general meeting yesterday.

Page 23: National Australia Bank chairman Ken Henry will today call for a bipartisan and credible approach to repairing the budget, as the nation faces the prospect of losing its coveted AAA credit rating.

Page 25: Yahoo revealed a newly discovered data breach affected more than a billion users, dwarfing the scope of another recently disclosed hack and raising fresh questions whether Verizon Communications will follow through with its acquisition of the internet company.

 

 

The West Australian

Page 6: Colin Barnett has conceded there are many West Australians who want to work more but cannot, as WA’s official unemployment rate hit a 15-year high just three months from the State election.

Page 17: People are deserting WA at the fastest rate on record but the State’s baby boom is continuing to grow the population.

Page 28: The Australian Wheat Board’s former chairman did not know about $US223 million in secret kickbacks to Saddam Hussein’s regime but could have discovered the truth and stopped the payments, a judge has ruled.

Page 55: A WA union claims Perth has missed out on dozens of extra jobs with scheduled heavy maintenance work on Qantas’ new 787 fleet to be done in Los Angeles.

Page 65: A US-based power efficiency company is taking Energy Minister Mike Nahan to court, alleging he acted outside his powers when he slashed payments to the group.

James Packer’s Crown Resorts has called out worryingly weak gaming turnover at its Burswood casino as it yesterday announced a dramatic overhaul that cans the billionaire’s international ambitions and refocuses the group back on Australia.

But today’s reality for 1-Page is very different. Yesterday one of its major shareholders, Perth-based Merchant Opportunities Fund — which owns more than 6 per cent of the company — moved to remove four directors from the company’s board, replacing them with two backed by Merchant.

Page 66: Baby formula maker Bellamy’s is facing a string of class actions connected to its negative trading update that led to more than $500 million being wiped from its market value.

Tropicana’s joint venture partners say they expect to get back to regional exploration in a big way next year after tightening the mine plan at the remote gold mine, adding to its reserves and flagging a potential mine life extension.

Yellowcake production could be on the horizon for Toro Energy, which today recorded a victory in its bid to expand the Wiluna Uranium Project.

The Federal Government has removed an environmental roadblock to AusGroup commercialising port facilities off Darwin for oil and gas clients.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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