17/09/2008 - 06:53

Today's Business Headlines

17/09/2008 - 06:53

Bookmark

Save articles for future reference.

Worried investors fear worse to come; Global share rout as insurer teeters; Stokes signs up to 'no conflict' gag; Babcock denies exposure to collapse; Woodside warns on forcing Shelf split

Today's Business Headlines

Worried investors fear worse to come
Investors in the Australian sharemarket yesterday tried to weigh the fallout of the Wall Street banking crisis against Chinese demand for resource commodities, driving down the market by as much as 2.7 per cent in early trading before sparking a partial recovery despite speculation that New York was set for another night of big losses. The West

Global share rout as insurer teeters
US regulators and a syndicate of Wall Street investment banks were last night putting together a $US76 billion ($A92 billion) rescue package for insurance giant American International Group. The Fin Review

Stokes signs up to 'no conflict' gag
Staff at Perth's daily newspaper are bracing for change after the tabloid's fierce critic, Seven Network boss Kerry Stokes, finally won his bid for two seats on the board of the paper's parent company, West Australian Newspaper Holdings. The Australian

Babcock denies exposure to collapse
More than 33 per cent was wiped off the market value of infrastructure funds house Babcock & Brown despite it telling the market it had no exposure to toppled US investment bank Lehman Brothers. The West

Woodside warns on forcing Shelf split
Woodside Petroleum has raised the stakes in its dispute with the competition watchdog, warning yesterday that some of the international partners in the North West Shelf project might stop selling gas to WA customers if they are banned from marketing it collectively. The West

 

THE WEST AUSTRALIAN:

Page 1: Investors in the Australian sharemarket yesterday tried to weigh the fallout of the Wall Street banking crisis against Chinese demand for resource commodities, driving down the market by as much as 2.7 per cent in early trading before sparking a partial recovery despite speculation that New York was set for another night of big losses.

New WA opposition leader Eric Ripper pledged yesterday to reconnect his party to the community after being elected to the post unopposed.

Page 3: Woodside Petroleum has raised the stakes in its dispute with the competition watchdog, warning yesterday that some of the international partners in the North West Shelf project might stop selling gas to WA customers if they are banned from marketing it collectively.

Page 9: WA's farming groups are pushing for trials of genetically modified canola under a new government, but opponents warn that unleashing the controversial technology will ruin the state's clean and green image.

Page 11: Economists believe Australia should be able to avoid the recession that is almost certainly going to engulf the US economy amid further turmoil on global sharemarkets and fears the world's biggest insurer may follow investment bank Lehman Brothers into bankruptcy.

Business: US regulators and banks were last night attempting to shore up a $US70 billion ($85.5 billion) financial lifeline for teetering insurance giant American International group to avert the spread of the meltdown sweeping Wall Street after the collapse of investment bank Lehman Brothers and shock sale of Merrill Lynch.

As many as one in three proposed office tower developments in the CBD may be delayed for years because of the credit crunch, leaving desperate businesses with the bleak prospect of a dearth of space and relentlessly rising rents.

Just as the undertakers prepared to move in for mass funerals among resources stocks yesterday, BHP Billiton and Rio Tinto sprang back into life in afternoon trading to provide two of the few positives on a bleak day for share investors worldwide.

More than 33 per cent was wiped off the market value of infrastructure funds house Babcock & Brown despite it telling the market it had no exposure to toppled US investment bank Lehman Brothers.

West Australian Newspapers Holdings chairman Peter Mansell yesterday insisted he could work with billionaire Kerry Stokes, despite the Seven Network's outspoken criticism of the incumbent directors during its failed board spill.

BHP Billiton has warned that its profits are exposed to any economic slowdown in China.

Aggrieved investor Mick Shemesian has threatened Cape Lambert Iron Ore with legal action if the WA cashbox fails to give a written undertaking by tomorrow afternoon not to push ahead with a $250 million Sierra Leone iron ore deal without shareholder approval.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: US regulators and a syndicate of Wall Street investment banks were last night putting together a $US76 billion ($A92 billion) rescue package for insurance giant American International Group.

Page 3: Unions are set to win enhanced rights of entry to workplaces under the federal government's long-awaited changes to industrial relations law.

Page 5: US financial woes and tumbling sharemarkets have boosted expectations that the Reserve Bank of Australia will cut the official cash rate by as much as half a per cent when it meets next month.

 

THE AUSTRALIAN:

Page 1: Malcolm Turnbull has set about restoring the Opposition's economic credibility after ousting Brendan Nelson as Liberal leader and assuring colleagues he will not purge his predecessor's supporters.

World share markets plunged yesterday as fears of widespread default intensified and the viability of the giant American Insurance Group was threatened by a downgrading of its credit rating.

Shockwaves from the Lehman Brothers collapse were being felt in Queensland yesterday, where the state Government revealed it had a $30 million exposure to the failed bank.

Staff at Perth's daily newspaper are bracing for change after the tabloid's fierce critic, Seven Network boss Kerry Stokes, finally won his bid for two seats on the board of the paper's parent company, West Australian Newspaper Holdings.

Business: More than 200 years after it was born at the base of a buttonwood tree, Wall Street as we have known it is ceasing to exist.

Asian markets shuddered yesterday from the delayed shock of the Lehman Brothers collapse, but the blow may soon rebound on corporate and financial borrowers everywhere as Japanese banks rein back offshore expansion plans.

Goldman Sachs last night posted a 70 per cent drop in fiscal third-quarter net income on declining client activity and asset valuations as return on equity fell.

The Australian stock market fell to its lowest level in more than two-and-a-half years yesterday, in the wake of a plunge in US shares and turmoil on markets around the globe.

BHP Billiton executives logged about half the pay in the past financial year that Rio bosses did in theirs, mainly because BHP's $US160 billion ($203 billion) takeover bid has bolstered Rio shares and executives' awards.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options