06/07/2009 - 06:47

Today's Business Headlines

06/07/2009 - 06:47

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Reserve under pressure to lower interest rates; NAB sees chance to boost institutional banking unit; Rail access needs ironing out; Focus on two sides of the copper coin; Investors sweat on profits

Today's Business Headlines

Reserve under pressure to lower interest rates
The Reserve Bank is under increasing pressure to make a surprise interest rate cut tomorrow as it emerges that signs of recovery across the global and domestic economies are fading. The West

NAB sees chance to boost institutional banking unit
National Australia Bank wants to repeat its success during the last recession, using the uncertain environment to extend its dominance in business banking by becoming the nation's leading institutional bank. The Australian

Rail access needs ironing out
He has worked with global mining major BHP Billiton and classed Andrew "Twiggy" Forrest as a colleague, so it is not surprising Brockman Resources' boss Wayne Richards hopes he can turn his iron ore company into a significant player. The Australian

Focus on two sides of the copper coin
WA's copper players will be in the spotlight today, with market darling Sandfire Recourses due to unveil much-anticipated drilling results from its project near Meekatharra, while Equinox Minerals is likely to come under pressure after flagging a hot to earnings. The West

Investors sweat on profits
Investors who have seen the value of their shares soar 21 per cent in the past four months may be in for a rude awakening this reporting season if the market rally proves to have been overly optimistic, analysts have warned. The West

 

 

THE WEST AUSTRALIAN:

Page 1: The Reserve Bank is under increasing pressure to make a surprise interest rate cut tomorrow as it emerges that signs of recovery across the global and domestic economies are fading.

Page 3: Big Perth shopping centres are distributing cards warning youths they could be banned from the venues in a bid to crack down on antisocial behaviour.

Page 4: More safety fears have emerged from BHP Billiton's Leinster nickel mine with revelations many workers returning to Perth for their break have not slept for 18 hours by the time they drive home from the airport.

The opposition has accused the state government of forgetting apprentices in its Royalties for Regions program, claiming that some as young as 16 are staying alone in caravans so they can afford to attend classes in Perth.

Page 11: Perth Airport, which critics say is the worst of any Australian capital city, will get a $300 million makeover over the next three years aimed at creating a dramatic improvement for travellers.

Page 15: WA homeowners who default on mortgage repayments would be protected from losing their homes in fire sales under a plan unveiled by the opposition yesterday which prevents financial institutions from selling a property for less than market value.

Page 19: The West Winter Appeal has been boosted with a $70,000 donation from sporting good tycoon Jim Kidd, swelling total contributions to just over $190,000.

Business: Investors who have seen the value of their shares soar 21 per cent in the past four months may be in for a rude awakening this reporting season if the market rally proves to have been overly optimistic, analysts have warned.

WA's copper players will be in the spotlight today, with market darling Sandfire Recourses due to unveil much-anticipated drilling results from its project near Meekatharra, while Equinox Minerals is likely to come under pressure after flagging a hot to earnings.

The Foreign Investment Review Board is reinforcing its reputation as one of Canberra's most secretive bodies, with no sign of its 2007-08 annual report more than a year after the end of the financial year.

Work-related expenses are one of the big-ticket items in tax returns, so they come under scrutiny every year.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: Corporate Australia is bracing for its gloomiest annual earnings season in almost two decades as companies count the cost of the global economic crisis with dividend cuts, hefty write-downs and a cautious take on the year ahead.

The core part of the federal government's economic stimulus package has fallen almost $1 billion short, underlining the difficulty in quickly pumping money into the economy as the government shifts its focus to more complex infrastructure spending later this year.

Professional service firms and investment banks have embarked on the biggest cutback to graduate recruitment in a decade as expectations of subdued economic growth for the next 12 months dramatically reduce demand for new graduates.

Page 3: Tightening credit conditions are causing increasing numbers of companies to collapse, with insolvency practitioners warning that small business will bear the brunt of a tougher climate for borrowing.

The Reserve Bank of Australia is expected to keep interest rates steady when it meets tomorrow, despite a deteriorating labour market and uncertainty over bank mortgage rates.

Page 6: Tax breaks for business to invest in plant, equipment and vehicles appear to be having a positive impact on capital expenditure, or at least tempering the pace of its fall.

 

THE AUSTRALIAN:

Page 1: The G8 summit of world leaders in Italy this week has turned into a high-risk gamble that will shape the success or failure of both the Copenhagen climate change conference and agreement on a global path out of the economic crisis.

Australian-born workers have been shielded from the worst of the global recession, as employers have mainly restricted the economy-wide job losses to migrant workers.

Page 5: There will be a million fewer smokers in Australia if the Rudd government adopts new recommendations that are believed to include a sharp increase in taxes, plain labelling, a ban on internet sales and media campaigns.

Page 6: The owners of the Pacific Adventurer, the ship that leaked thousands of litres of oil into Queensland's Moreton Bay in March, have refused to pay the $34 million cost of the clean-up.

Business: Suncorp could be forced to mark down the price of its banking assets to find a buyer among its regional rivals, with concerns the competition regulator will not allow a top four bank to increase its market position.

National Australia Bank wants to repeat its success during the last recession, using the uncertain environment to extend its dominance in business banking by becoming the nation's leading institutional bank.

The Reserve Bank is expected to keep the official cash rate at 3 per cent tomorrow, against a backdrop of rising unemployment but more positive forecasts that the Australian economy will avoid a deep growth contraction.

He has worked with global mining major BHP Billiton and classed Andrew "Twiggy" Forrest as a colleague, so it is not surprising Brockman Resources' boss Wayne Richards hopes he can turn his iron ore company into a significant player.

Cape Lambert Iron Ore is expected to launch a takeover bid this week for one or two companies that it acquired stakes in through its recent purchase of CopperCo's assets.

China's $US200 billion ($250bn) sovereign wealth fund has bought a 17 per cent stake in Teck Resources, Canada's largest diversified mining company, for $US1.5 billion.

Property developer Lend Lease expects house prices to recover but does not anticipate big rises despite a housing shortage in Australia.

The investment banking fee pool has more than halved for mergers and acquisitions, with hits to the top-line revenue for all the majors advising on transactions in the first half of the year.

When beauty and pharmacy chain Priceline launched Olay's new anti-ageing regenerative cream four months ago, there was a sudden spike in sales.

A decline in the number of jobs advertised on the internet levelled off in June, according to the latest Olivier Job Index.

Australia's securitisation market cannot yet survive on its own, and with the government support program close to running out of allotted funds, some in the market are calling on Canberra to extend its AAA sovereign rating guarantee to mortgage-backed securities.

The Federal Deposit Insurance Corporation has proposed new rules that would place restrictions on private equity investors wanting to buy failed banks, sparking concern from other regulators that the policies could scare away potential investors.

Boeing says it delivered 125 commercial aircraft during the second quarter, four more than it delivered in the first period and one fewer than in the year-earlier quarter.

Wall Street's reputation couldn't be much worse, and that's very good for business at brokerages eager to snag defectors from bigger firms.

Asian officials and scholars are pushing back against the notion that their countries' high savings helped cause the financial crisis by flooding the world with money, arguing that lax US financial regulation bears the brunt of the blame.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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