Today's Business Headlines

13/10/2008 - 06:52

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Banks anchored against storm; Resources slump blow to earnings; Rio lawyers threaten striking drivers; Fortescue eyes new port with mining giant's rail; Westoz sells 6.9pc into Cooper bid

Today's Business Headlines

Banks anchored against storm
The Rudd government has moved to secure the banks against the global tide of panic by guaranteeing all deposits, as key nations agreed on the need for coordinated action to tackle the world financial crisis but stopped short of declaring what that action should be. The Australian

Resources slump blow to earnings
Corporate Australia's six-year run of earnings growth is set to come crashing to a halt as a dramatic collapse in commodity prices and a slowing domestic economy force stockbroking analysts to slash profit forecasts. The Fin Review

Rio lawyers threaten striking drivers
Lawyers for the mining giant Rio Tinto have warned a major union that it could be sued for millions of dollars in compensation and penalties if any unlawful industrial action occurs at the company's Pilbara iron ore mines. The Fin Review

Fortescue eyes new port with mining giant's rail
Fortescue Metals Group is studying plans for a second iron ore port in the Pilbara, within striking distance of Rio Tinto's flagship Cape Lambert operation, in anticipation of being allowed on its rival's railway lines. The West

Westoz sells 6.9pc into Cooper bid
Cooper Energy's hostile $104 million takeover bid for Incremental Petroleum has gained momentum after the target's biggest shareholder accepted the offer. The West

 

THE WEST AUSTRALIAN:

Page 1: Kevin Rudd has taken unprecedented action to safeguard the national banking system from the global financial crisis, guaranteeing the estimated $700 billion that Australians have in the bank, credit union and building society accounts.

Page 3: Work on the stalled Northbridge Link could start within a year as part of "state-building" proposals the government will pitch to the new federal infrastructure agency.

Page 4: The state and federal governments are attempting to smooth over looming industrial turmoil in the Pilbara by calling on iron ore giant Rio Tinto to meet the mining union over its demands for a unionised deal.

Page 6: Officials from 20 major countries have endorsed a coordinated approach to the financial crisis but failed to announce any concrete steps, underscoring how hard it is to craft a global plan to halt the global economic contagion.

Page 7: Treasurer Wayne Swan has warned that the economic crisis is flowing through to developing economies much faster and more brutally than expected - including those of Australia's major trading partners.

Analysts described the Australian sharemarket last night as "super cheap" but said investors hade been drained of all confidence after a horror week for the bourse that saw $151 billion wiped off the value of local stocks.

Page 9: Falling interest rates had not restored homebuyers' confidence and the market in Perth was the worst in nearly 20 years, estate agents said yesterday.

Business: Fortescue Metals Group is studying plans for a second iron ore port in the Pilbara, within striking distance of Rio Tinto's flagship Cape Lambert operation, in anticipation of being allowed on its rival's railway lines.

Cooper Energy's hostile $104 million takeover bid for Incremental Petroleum has gained momentum after the target's biggest shareholder accepted the offer

As the global financial crisis crashed through sharemarkets last week, Carbon Energy quietly put the stopwatch on what is shaping as a crucial four months for the company headed by WA mining veteran Ian Walker.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: All savings deposits in Australian banks will be guaranteed by the federal government, with Prime Minister Kevin Rudd saying the global financial crisis is entering a "new and dangerous phase".

Corporate Australia's six-year run of earnings growth is set to come crashing to a halt as a dramatic collapse in commodity prices and a slowing domestic economy force stockbroking analysts to slash profit forecasts.

Page 3: Employer groups and unions have rejected a federal government proposal to use performance criteria when selecting default super funds.

Page 4: Lawyers for the mining giant Rio Tinto have warned a major union that it could be sued for millions of dollars in compensation and penalties if any unlawful industrial action occurs at the company's Pilbara iron ore mines.

World: The Bush administration has removed North Korea from its terrorism blacklist.

Markets: The Australian sharemarket will face another tough week, but a government guarantee to safeguard savings deposits may hearten some investors.

 

THE AUSTRALIAN:

Page 1: The Rudd government has moved to secure the banks against the global tide of panic by guaranteeing all deposits, as key nations agreed on the need for coordinated action to tackle the world financial crisis but stopped short of declaring what that action should be.

The Rudd government is working on a stimulus package using its multi-billion-dollar surpluses to pump-prime the economy as it warns that the global financial crisis is moving into a "new and dangerous phase" that will cut Australian growth and push up unemployment.

The Rudd government has backed small business over unions by moving to kill off a compulsory redundancy proposal that it warned could cost employers and taxpayers up to $100 million a year.

Page 2: The White House is already dramatically overhauling its $700 billion ($1.07 trillion) rescue plan for the financial markets, delaying the package's rollout at a time when the world credit markets remain locked up,

Page 3: Australia's big banks ignored the sub-prime crisis in the US and actively took greater risks in the home mortgage market to see off a challenge from rival lenders.

Retailers have attacked the government for not listening to shopkeepers' warnings about a financial downturn and for dampening consumer confidence with inappropriate rhetoric.

Business: Corporate and financial chiefs have applauded the federal government's move to shore up confidence in the financial system by guaranteeing investors' deposits, but warn that the economy and investment markets will take time to recover.

Cooper Energy's hostile $104 million takeover bid for Incremental Petroleum has gained momentum after the target's biggest shareholder accepted the offer.

As governments in the US and western Europe consider plans to buy stakes in struggling banks, policymakers face a potentially daunting price tag and thorny questions about how such programs will be implemented.

Top officials at American International Group knew of potential problems in valuing derivative contracts long before these risky transactions caused the insurer's shareholders severe pain, according to documents released by congressional investigators.

Budding Pilbara iron ore producer Atlas Iron has made two new hematite discoveries at its wholly-owned Pardoo project near Port Hedland in Western Australia.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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