Today's Business Headlines

Varanus gas blast a $2b blow to WA
The explosion on Varanus Island which slashed WA's gas supplies by 30 per cent will cost the State's economy $2 billion by the end of the financial year, the Department of Treasury and Finance has predicted. The West

Recession fears increase
Global financial markets remain fearful that the approved Washington bailout package will prove a failure, as the risk of a US-originated worldwide recession increases. The Australian

Shareholders target boards in executive pay revolt
Corporate boards face a backlash against ballooning executive pay in poorly performing companies and lax hurdles for bonuses and share-based incentives, as world financial turmoil and falling profits reignite the remuneration row in this year's annual general meeting season. The Fin Review

ANZ readies axe over troubled lending arm
ANZ's custodian and private equity operations are among the businesses that could be wound down as the writedown-savaged lender nears completion of a review of its institutional banking arm. The West

Top China official in warning on BHP-Rio tie
A top adviser to the Chinese Government has warned that a $132 billion hostile takeover of Rio Tinto by global mining giant BHP Billiton would be harmful to China and unfair to the global economy. The West

THE WEST AUSTRALIAN

The explosion on Varanus Island which slashed WA's gas supplies by 30 per cent will cost the State's economy $2 billion by the end of the financial year, the Department of Treasury and Finance has predicted.

Multi-million-dollar iron ore operations face costly disruption after the Pilbara train drivers' union said yesterday they had voted to support possible industrial action over a new pay deal.

Colin Barnett has opened the door to a new site for the State's second desalination plant, but said he would back a shift only if it did not delay the project.

Business: ANZ's custodian and private equity operations are among the businesses that could be wound down as the writedown-savaged lender nears completion of a review of its institutional banking arm.

A top adviser to the Chinese Government has warned that a $132 billion hostile takeover of Rio Tinto by global mining giant BHP Billiton would be harmful to China and unfair to the global economy.

THE AUSTRALIAN FINANCIAL REVIEW

Page 1: Corporate boards face a backlash against ballooning executive pay in poorly performing companies and lax hurdles for bonuses and share-based incentives, as world financial turmoil and falling profits reignite the remuneration row in this year's annual general meeting season. Approval of the Bush administration's controversial $US700 billion bank bailout package failed to calm global markets as fears grow of a US recession after the country's biggest loss of jobs in more than five years. Drought assistance climbed above $1 billion in 2007-08 for the first time after some farmers endured their seventh tough year and extra financial support was offered to rural communities ahead of the federal election last year.

Page 3: Treasurer Wayne Swan has called on banks to give borrowers the maximum benefit from tomorrow's expected interest rate cut while keeping enough of a margin to preserve financial stability.

World: The biggest monthly fall in US employment in five years and warnings the economy could shed several million more jobs before any recovery takes hold has doused optimism that the Bush Administration's $US700 billion mortgage rescue package will quickly revive turbulent financial markets.

Markets: Increasing recognition that the global economy is headed for a painful downturn has muffled the cheer for the passage of the US bailout package.

THE AUSTRALIAN

Page 2: Treasurer Wayne Swan has warned that when global markets stabilise, banks will have "absolutely no excuse" not to pass on lower funding costs to families.