03/10/2008 - 06:42

Today's Business Headlines

03/10/2008 - 06:42

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Emu tower struggles to sign up a builder; WA, Qld the winners in harvest, too; PM unlocks $20bn future fund; Analysts tip China slowdown to hit iron; Global economy fears overshadow bailout support

Today's Business Headlines

Emu tower struggles to sign up a builder
The $1 billion Capital Square project on the old Emu Brewery site in Mounts Bay Road is shaping up as the latest casualty of the fickle building market, with developers Saville Australia and Babcock & Brown having failed to lock in a builder for their much-vaunted luxury apartment tower. The West

WA, Qld the winners in harvest, too
Mining powerhouses Western Australia and Queensland are growing the nation's most promising grain crops this year, adding farm profits to their bounty from the resources boom, while the other states prepare for a patchy or poor harvest. The Fin Review

PM unlocks $20bn future fund
Prime Minister Kevin Rudd has agreed to fast-track plans to unlock the nation's $20 billion infrastructure fund in an attempt to head off the effects of the global financial crisis. The Australian

Analysts tip China slowdown to hit iron
The looming threat of a global recession and slowing Chinese growth may mean lower than expected gains to next year's benchmark iron ore prices, Merrill Lynch analysts warned yesterday. The West

Global economy fears overshadow bailout support
The approval by the US Senate of a $US700 billion ($890 billion) bank rescue package failed to ease fears about a global economic slowdown as jittery investors awaited a second vote on the controversial proposal in the House of Representatives. The Fin Review

 

THE WEST AUSTRALIAN:

Page 1: Householders have been warned to brace for huge increases in gas prices after a leading industry figure said yesterday that wholesale prices had trebled over the past year or so and would inevitably be passed on to consumers.

Hundreds, or even thousands, of WA jobs could be at risk amid mounting speculation that the Commonwealth Bank is preparing a multi-billion-dollar takeover bid for BankWest.

Page 3: Doubts are growing over whether fishing bans on five of WA's popular fish species will come into force by an October 15 deadline, with the new fisheries minister yet to give the controversial measure the final go-ahead.

Page 4: One of the nation's biggest banks warned homebuyers yesterday they were not likely to get the full benefit of next week's expected fall in official interest rates as a senior economist predicted Australia could fall into recession unless the Reserve Bank started making deep cuts.

The Australian sharemarket spent another day in limbo yesterday as investors waited for tonight's vote in the House of Representatives on the controversial $US700 billion Wall Street bailout.

Business: The $1 billion Capital Square project on the old Emu Brewery site in Mounts Bay Road is shaping up as the latest casualty of the fickle building market, with developers Saville Australia and Babcock & Brown having failed to lock in a builder for their much-vaunted luxury apartment tower.

The looming threat of a global recession and slowing Chinese growth may mean lower than expected gains to next year's benchmark iron ore prices, Merrill Lynch analysts warned yesterday.

Bans on short-selling cut turnover in the Australian sharemarket only temporarily, according to the latest turnover figures.

Disgruntled investor Mick Shemesian has stepped up the ante in his fight with the board of Cape Lambert Iron Ore, pledging to allow fellow shareholders a say on whether to proceed with a controversial investment in a Sierra Leone iron ore project if his push to have the Tony Sage-led board is successful.

Rio Tinto has moved to inject some competitive tension BHP Billiton's hostile $126 million takeover bid by urging the Australian government to welcome more Chinese investment in the sector.

Grange Resources will pocket $13.4 million to help fund a feasibility study over its flagship Southdown project after Japan's Sojitz Corporation agreed to expand its stake in the magnetite deposit.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: The Rudd government has fast-tracked its multi-billion dollar infrastructure program in an attempt to shield Australia from the global economic slowdown.

The approval by the US Senate of a $US700 billion ($890 billion) bank rescue package failed to ease fears about a global economic slowdown as jittery investors awaited a second vote on the controversial proposal in the House of Representatives.

Page 3: The Australian Securities Exchange has called for naked short selling to be permanently banned, saying its removal will not adversely affect the operation of the stock market.

Summertime comes three weeks early this year except in Queensland and Western Australia, as clocks in NSW, Victoria, Tasmania, South Australia and ACT are wound forward an hour at 2am on Sunday October 5.

Page 4: A major boost to exports from surging commodity prices has delivered one of the biggest trade surpluses on record, but slowing global growth could put a sustained improvement in the nation's export performance at risk.

Page 5: Mining powerhouses Western Australia and Queensland are growing the nation's most promising grain crops this year, adding farm profits to their bounty from the resources boom, while the other states prepare for a patchy or poor harvest.

 

THE AUSTRALIAN:

Page 1: Prime Minister Kevin Rudd has agreed to fast-track plans to unlock the nation's $20 billion infrastructure fund in an attempt to head off the effects of the global financial crisis.

Burned by the meltdown of world markets after the Wall Street bailout was initially rejected by Congress, the US Senate yesterday fell into line with a sweetened version of the $US700 billion ($890 billion) rescue plan, which is now expected to be passed into law tomorrow.

The commodities boom is insulating the Australian economy against the worst of the world financial crisis, with a surge in the value of mining exports supporting the country's second-biggest trade surplus on record.

Page 2: Kevin Rudd has stared down criticism of his refusal to insist banks pass on in full any cut in interest rates, saying his job is to ensure the health of the financial sector.

Page 3: Australians have become increasingly fat while a quarter of the nation continues to drink too much, according to research which quizzed front-line GPs.

Page 4: Kevin Rudd has stared down criticism of his refusal to insist banks pass on in full any cut in interest rates, saying his job is to ensure the health of the financial sector.

World: British conservative Party leader David Cameron says he has the judgement, character and leadership to rebuild the country's battered economy.

Business: The value of the Washington bailout package is now being questioned with fresh doubts about whether it will provide the emergency lifeline to fractured asset markets.

Suspicions that Rio Tinto might turn again to China Inc to secure a route through BHP Billiton's $US140 billion takeover siege will doubtless be reinforced by Tom Albanese's latest address to our nation.

The banking and finance industry is alive with speculation of takeovers, mergers and break-ups touching almost all institutions, as the credit crisis deepens.

The global credit crisis has muddied Fortescue Metals Group's expansion path and the iron ore miner says funding difficulties mean it cannot predict how it will finance its long-term ambitions.

In the latest unexpected deal stemming from the financial crisis, General Electric has turned to Warren Buffet to inject at least $US3 billion ($3.8 billion) in the company.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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