12/09/2008 - 06:42

Today's Business Headlines

12/09/2008 - 06:42

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$3bn costs delay Newmont mine; Jobs surprise adds to RBA rate dilemma; NAB woes aren't over, ABN warns; ANZ Capital chief leaves in lending review; Grylls says no deal with Labor unless Carpenter is in charge

$3bn costs delay Newmont mine
Development costs at the huge Boddington gold and copper mine in Western Australia look likely to blow out to about $3 billion, as skilled labour shortages and inflation continue to bite the sector. The Australian

Jobs surprise adds to RBA rate dilemma
A surprise drop in the unemployment rate and solid job gains have dampened prospects for an October rates cut as the economy proves unexpectedly resilient amid increasingly nervous financial markets. The Fin Review

NAB woes aren't over, ABN warns
National Australia Bank may make further writedowns on its exposure to collateralised debt obligations that could force it to undertake a capital raising, according to ABN AMRO. The Australian

ANZ Capital chief leaves in lending review
The fallout from ANZ's securities lending review and the bank's entanglement with collapsed brokers Opes Prime is continuing, with ANZ Capital managing director David Tonuri leaving the bank. The Australian

Grylls says no deal with Labor unless Carpenter is in charge
Nationals leader Brendon Grylls yesterday made himself a player in Labor's debate over Alan Carpenter's future, with an extraordinary warning that any deal he struck to form a government with the ALP would be invalid if Mr Carpenter was dumped as leader. The West

 

THE WEST AUSTRALIAN:

Page 3: The extent of Perth's doctor shortage has been exposed by a survey showing one in five general practice clinics are so busy they turn away new patients.

Page 7: Alan Carpenter will try to head off moves against his leadership at a special meeting of Labor MPs today at Parliament where there is expected to be robust debate about the party's poor election performance.

Nationals leader Brendon Grylls yesterday made himself a player in Labor's debate over Alan Carpenter's future, with an extraordinary warning that any deal he struck to form a government with the ALP would be invalid if Mr Carpenter was dumped as leader.

Business: National Australia Bank is facing renewed pressure to make at least $500 million in fresh write-downs against a portfolio of complex credit instruments as it prepares to rule off its accounts later this month.

The sharemarket skidded to its lowest close since the start of the US sub-prime crisis, as investors punished financial stocks and ignored signs of life in the economy.

Ausdrill chief executive Ron Sayers has spent another $21 million to beef up his stake as investors reacted to the likelihood of Macmahon's hostile takeover bid failing by slicing 19 per cent off the target's share price.

US steel group Cleveland-Cliffs is poised to mop up the 14.81 per cent of Portman it does not already own for just $115 million less than it paid to buy the lion's share of the WA iron ore miner three years ago.

Rio Tinto has emerged as the mystery buyer of a 10.9 per cent stake in uranium hopeful Extract Resources in a major endorsement of the WA junior's flagship Rossing South project in Namibia.

The founder of listed debt collector Repcol and long-time backer of listed microbrewer Gage Roads, Peter Di Prinzio, has picked up another swag of shares in the brewer to boost his stake to more than 16 per cent.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: A surprise drop in the unemployment rate and solid job gains have dampened prospects for an October rates cut as the economy proves unexpectedly resilient amid increasingly nervous financial markets.

Macquarie Group is facing a major reputational hit from last month's disastrous float of the BrisConnections toll road, as estimates of the bank's potential exposure exceed $500 million.

Page 3: The Victorian government's investment arm has defended its involvement in a $5 billion capital raising by industry super fund owned Members Equity Bank.

 

THE AUSTRALIAN:

Page 1: Brendan Nelson could face a leadership spill as early as next Tuesday following Peter Costello's declaration he does not want the job.

The man who will determine who holds power in Western Australia, Nationals leader Brendon Grylls, has warned Labor's factions to back off from threats to dump Alan Carpenter, saying he will not help the ALP to form a minority government if the premier is removed.

The Australia stock market has collapsed to its lowest level in two-and-a-half years, taking investors' losses since last year's record high to more than $500 billion.

Page 2: The economy is refusing to slow down as expected with the jobless rate dropping to its second lowest level in 34 years.

Business: Australian markets have received another severe buffeting from the twin forces of the global financial crisis and falling commodity prices.

The fallout from ANZ's securities lending review and the bank's entanglement with collapsed brokers Opes Prime is continuing, with ANZ Capital managing director David Tonuri leaving the bank.

National Australia Bank may make further writedowns on its exposure to collateralised debt obligations that could force it to undertake a capital raising, according to ABN AMRO.

Development costs at the huge Boddington gold and copper mine in Western Australia look likely to blow out to about $3 billion, as skilled labour shortages and inflation continue to bite the sector.

 

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