27/10/2008 - 06:40

Today's Business Headlines

27/10/2008 - 06:40

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Aussie dollar hammered as market prepares for another fall; Jobs to go as CBA swings the axe; Toymaker faces cash crunch, pair quit; US looks to fix ailing insurers; Funds call for guarantee

Today's Business Headlines

Aussie dollar hammered as market prepares for another fall
Global financial markets have singled out the Australian dollar for punishment, with the local currency being subjected to its biggest sell-off since it was floated in 1983. The West

Jobs to go as CBA swings the axe
The Commonwealth Bank of Australia will embark on a savage cost-cutting drive to slash at least $370 million off its bottom line, with each tier of the nation's largest bank ordered to find significant cost savings. The Australian

Toymaker faces cash crunch, pair quit
Perth toymaker Brainytoys is at risk of becoming the next victim of the malaise sweeping global economies, with two of the group's directors heading for the exits within days of a warning that it faces collapse without an immediate capital injection. The West

US looks to fix ailing insurers
The Bush administration is considering expanding its rescue of the US financial system by taking stakes in ailing insurers, as European and Asian leaders called for tighter banking regulations amid growing fears about the spreading fallout from the global credit crisis. The Fin Review

Funds call for guarantee
The Rudd Government is resisting calls to extend its bank guarantee scheme to cash management trusts and mortgage funds ahead of crucial talks with the industry this week aimed at unlocking billions of dollars in frozen funds. The Australian

 

THE WEST AUSTRALIAN:

Page 1: Global financial markets have singled out the Australian dollar for punishment, with the local currency being subjected to its biggest sell-off since it was floated in 1983.

The turmoil within the government over the royalties for regions policy took a new turn yesterday, as Treasurer Troy Buswell warned that some metropolitan projects would need to be cut because of the controversial deal between the Liberals and the Nationals.

Page 4: The state government has called on the Commonwealth to delay the start of its emission trading scheme, warning that a 2010 roll-out could force WA's major industries overseas, resulting in massive job losses.

Page 6: The Rudd government will be pressured by mortgage and market-linked investment funds for a similar guarantee to the one given to the nation's banks at a meeting today.

Leaders in Asia and Europe called for new rules and stronger regulation of the global monetary and financial system as China asserted itself on the world stage in the financial crisis following a summit in Beijing at the weekend.

Business: Perth toymaker Brainytoys is at risk of becoming the next victim of the malaise sweeping global economies, with two of the group's directors heading for the exits within days of a warning that it faces collapse without an immediate capital injection.

Pubs owner Compass Hotel Group is expected to come under pressure this week to reaffirm its trading outlook for the year ahead, after its first nine months were plagued by a series of settlement delays and operational hiccups.

The upper echelons of Perth's rich are pouring money into luxury boats and top-notch Christmas celebrations at record pace, seeming unfazed by the economic turmoil.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: The Bush administration is considering expanding its rescue of the US financial system by taking stakes in ailing insurers, as European and Asian leaders called for tighter banking regulations amid growing fears about the spreading fallout from the global credit crisis.

Page 3: The Rudd government is close to finalising a 12-year, $2.5 billion-plus blueprint for the local car industry that will include assistance in the 2008-09 year for the stressed component-making sector.

Page 4: Retirees could be forced to sell shares at rock-bottom prices or breach the rules of their privately funded pensions because of the freeze on mortgage fund withdrawals.

 

THE AUSTRALIAN:

Page 1: The Rudd Government is resisting calls to extend its bank guarantee scheme to cash management trusts and mortgage funds ahead of crucial talks with the industry this week aimed at unlocking billions of dollars in frozen funds.

Page 4: World leaders have vowed to overhaul the global financial system in the face of recession fears, but there are doubts their united front will translate into action.

Page 5: Finance Minister Lindsay Tanner has warned that the financial crisis makes it impossible to predict whether the Rudd Government will be able to deliver a surplus next year.

The ANZ bank has taken the highly unusual step of taking out intervention orders to protect two senior employees who have been stalked by a disgruntled Opes Prime investor.

Business investment remains strong but the end of the boom times may be in sight.

Aussie Home Loans yesterday became the latest lender to lower its variable interest rate ahead of a widely anticipated official rate cut by the Reserve Bank next month.

Business: The Commonwealth Bank of Australia will embark on a savage cost-cutting drive to slash at least $370 million off its bottom line, with each tier of the nation's largest bank ordered to find significant cost savings.

Financial markets are assessing the global growth outlook after fresh fears emerged that the worldwide recession could be more damaging than first expected.

Treasurer Wayne Swan made a hushed visit to the Pilbara yesterday as he prepared to rule on billionaire Andrew '' Twiggy'' Forrest's attempts to get access to BHP Billiton and Rio Tinto's private iron ore railways.

Australia is likely to confront a balance of payments crisis next year as the commodities boom ends with a crash.

The big winners from Friday's guarantee announcement by Treasurer Wayne Swan were the 35 unincorporated foreign bank operations in Australia, with daylight behind them.

One of the problems that occur when a bankrupt ideology trumps sensible governance is that sensible governance doesn't always follow once the bankrupt ideology is exposed.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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