05/01/2017 - 06:23

Morning Headlines

05/01/2017 - 06:23

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Morning Headlines

Trump tax cuts threaten Australian competitiveness, say chairmen

Lack of action over the corporate tax rate has been flagged by leading business figures as an increasing concern for 2017 with the prospect of lower US taxes under President Donald Trump threatening to undermine the competitiveness of local companies and discourage investment in Australia. The Fin

Sugar row risk to economy: FIRB chair

The bitter dispute in Australia’s sugar industry, which has threatened to split the federal Coalition, could damage foreign investment and the economy if international companies are treated as ‘‘second class’’, warned the head of Australia’s Foreign Investment Review Board. The Fin

Miners ramp up tax fight on eve of WA poll

A BHP Billiton and Rio Tinto-backed mining lobby will restart its aggressive advertising blitz against a mining tax proposed by West Australian Nationals leader Brendon Grylls this weekend as part of a fresh assault leading into the state election in March. The Fin

Coalition backs $100bn growth plan for coal

The federal government is backing a $100 billion investment target to expand the Australian coal industry as it blasts the “hypocrisy” of environmentalists who want to halt new mines, escalating a fight over attempts to mandate more solar and wind power. The Aus

Bank reforms put on hold as talks delayed

A major overhaul of banks’ opaque calculation of risk-taking has hit the skids after the world’s senior regulators canned a meeting to finalise new rules that could push up interest rates on billions of dollars worth of mortgages and business loans. The Aus

Alcoa losing faith in Warro

Alcoa has cast further doubts about the Warro project’s prospects by writing off $US52 million ($72 million) from the value of its investment in the onshore gas field in the Perth Basin. The West

Tianye restructure stalls Super Pit deal with Barrick Gold

Barrick Gold may have to wait until at least the end of the month to close the $US1.3 billion sale of its half of the Kalgoorlie Super Pit, as its Chinese suitor conducts a corporate restructure amid talks to find a way through tough new capital control laws in China. The West

 

 

The Australian Financial Review

Page 1: Over one-third of the cranes building Australia’s next wave of apartments due for completion in the coming two years sit in postcodes ‘‘blacklisted’’ by lenders, raising concerns about settlement failures across the country.

Lack of action over the corporate tax rate has been flagged by leading business figures as an increasing concern for 2017 with the prospect of lower US taxes under President Donald Trump threatening to undermine the competitiveness of local companies and discourage investment in Australia.

The biggest miners on the ASX are tipped to report a $US6 billion jump in combined revenues next month, triggering a rebound in profits and dividends across the sector.

Page 3: A storm is brewing in Gloria Jean’s coffee cups after a local reusable coffee cup maker alleged the international cafe franchise had breached intellectual property laws by copying the design of its cups.

Page 5: The bitter dispute in Australia’s sugar industry, which has threatened to split the federal Coalition, could damage foreign investment and the economy if international companies are treated as ‘‘second class’’, warned the head of Australia’s Foreign Investment Review Board.

The Australian Tax Office has fired a warning shot at politicians who claim deductions on second residences in response to media reports of so-called double dipping.

Page 6: Some of the biggest losers from the end of Western Australia’s mining boom might finally have something to celebrate. After eye-watering drops in median house prices in Pilbara, there is a growing view that values in Port Hedland and Karratha have found a bottom.

Page 7: The former Treasury official charged with reviewing oil and gas royalties has promised a dispassionate inquiry while acknowledging the ‘‘emotive’’ nature of the debate over corporate tax.

A BHP Billiton and Rio Tinto-backed mining lobby will restart its aggressive advertising blitz against a mining tax proposed by West Australian Nationals leader Brendon Grylls this weekend as part of a fresh assault leading into the state election in March.

Liberal MP Warren Entsch will push the government to form a full-blown banking tribunal and make banks pay three times the cost of any damages to fund it.

Page 11: Ford Motor says it will cancel a planned $US1.6 billion factory in Mexico and will invest $US700 million at a Michigan factory as it expands its electric vehicle and hybrid offerings.

Page 13: Henry Bateman – the son of Primary Health Care founder Ed Bateman – has snared several big backers for his burgeoning medical centres business, including mining heir Angela Bennett.

Bellamy’s Australia shareholders linked with Kathmandu founder Jan Cameron are agitating to spill the board of the baby formula company with the help of a group of wealthy Tasmanian families.

Page 15: Santos appears at risk of losing its whole stake in a highly-promising gas exploration venture in the Northern Territory as a result of a dispute with unlisted partner Tamboran Resources that is nearing a critical arbitration decision.

Shares in chicken grower Ingham’s could rise by as much as 15 per cent over the next 12 months as it slashes costs and its supermarket partners continue to try to grow fresh food sales.

National Australia Bank is looking to take a piece of the $590 billion self-managed superannuation fund market pie, launching a lower-cost service that customers can access without having to go through a financial adviser.

Page 16: Underneath the blistering outperformance of iron ore and coking coal during 2016, some lesser-known commodities staged handsome price rises, thanks to an underlying recovery in oil and iron ore which coincided with a pullback in business investment.

Iron ore has a tough act to follow in 2017. After surging last year in a rally that caught out many investors, the commodity faces a challenge as supply concerns re-emerge, with Vale bringing on the industry’s biggest project and holdings at China’s ports at a record level.

Page 17: Speculation is rife that new banking rules may be tougher than expected, after a meeting of central banking chiefs to rubber-stamp the final version of capital reforms was postponed.

Hunter Hall has established an independent board committee to consider a takeover bid from investment firm Washington H. Soul Pattinson, which Hunter Hall says is at a material discount to the company’s current share price.

ANZ Banking Group’s $1.8 billion sale of its stake in Shanghai Rural Commercial Bank will boost the bank’s capital ratio but at the cost of lower earnings, say bank analysts.

 

 

The Australian

Page 1: The federal government is backing a $100 billion investment target to expand the Australian coal industry as it blasts the “hypocrisy” of environmentalists who want to halt new mines, escalating a fight over attempts to mandate more solar and wind power.

Page 2: Power giant AGL has been warned it risks damaging its reputation with the public and government if it fails to strike a fair-priced power deal to keep open Victoria’s Portland Alcoa aluminium smelter and secure thousands of regional jobs.

Electricity demand fell by about 1 per cent nationwide in the past six months, but supply plunged by nearly one-quarter in the same time, market analysis conducted by investment bank Morgan Stanley says.

Page 3: Households are carrying more debt than ever before but interest bills are consuming less income than at any time since 2003.

Page 4: Record cattle and sheep prices, climbing land values and an unprecedented cropping season have stemmed the flood of foreign investors seizing control of Australia’s best and biggest farms.

Page 5: Health insurers have warned that the government’s plan to simplify policies through its “gold, silver, bronze” initiative could further fuel an increasing trend of young people shunning the system.

Page 13: A major overhaul of banks’ opaque calculation of risk-taking has hit the skids after the world’s senior regulators canned a meeting to finalise new rules that could push up interest rates on billions of dollars worth of mortgages and business loans.

The board of embattled organic baby food maker Bellamy’s faces a battle for control of the company after a dissident group of shareholders revealed it was seeking to roll the incumbent board and install its own directors.

Suncorp has increased home loan and small business interest rates just days into the New Year, broadening the industry’s recent repricing to offset rising funding costs and capital requirements.

Page 14: ANZ’s long-awaited progress in offloading its $4 billion portfolio of Asian joint ventures has buoyed hopes chief Shayne Elliott can execute his asset sale program without too much pain as he turns his mind to more difficult deals.

Page 15: Insurance Australia Group’s cost-saving strategy of shedding business in the commercial insurance market — which has been through a period of severe pricing irrationality — has also helped keep a lid on the group’s catastrophe reinsurance bill for the new year.

Shares of Alumina, Alcoa’s Australian junior bauxite and alumina partner, have fallen from an 18-month high after it flagged $US64 million ($88.4m) worth of write-downs and $US72m of coming cash costs related to Alcoa’s closure of a South American mine and refinery and a write-down of an onshore West Australian gas-field.

 

 

The West Australian

Page 5: An expansion of the State Government’s first-homebuyers grant and loan assistance program has prompted hundreds of inquiries in its first week.

Page 6: Opposition Leader Mark McGowan has sparked a fight with the Turnbull Government while allying himself to local environmentalists in unveiling an election commitment to cancel the construction of Roe Highway stage 8 and redirect funding to other “congestion busting” road projects.

Labor’s decision that it would tear up the Roe 8 contract is reckless, silly and will cost hundreds of jobs along with more than $1 billion of Commonwealth infrastructure funding, Barnett Government ministers say.

Page 17: The Shire of Exmouth council has been suspended for six months after a Corruption and Crime Commission investigation found significant issues in relation to procurement and tendering processes.

Page 47: Alcoa has cast further doubts about the Warro project’s prospects by writing off $US52 million ($72 million) from the value of its investment in the onshore gas field in the Perth Basin.

Perth Airport has seized $14.5 million in security provided by a construction company in a dispute over an upgrade of the facility.

Barrick Gold may have to wait until at least the end of the month to close the $US1.3 billion sale of its half of the Kalgoorlie Super Pit, as its Chinese suitor conducts a corporate restructure amid talks to find a way through tough new capital control laws in China.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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