17/07/2009 - 06:46

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17/07/2009 - 06:46

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China growth may lift world out of recession; Union threat to projects; Perth faces cut for business; Panoramic eyes Barrick base metals; Shares surge by $70bn

China growth may lift world out of recession
The Chinese economic miracle may drag the global economy out of recession after new figures showed stronger than expected growth by the emerging giant, led by its own stimulus package and domestic demand. The West

Union threat to projects
Militant unionist Joe McDonald has fired an ominous shot at the Rudd government, warning that its stimulus projects, such as its $500 million underground railway in Perth, could be paralysed if contractors violate safety codes under the Building and Construction Industry Improvement Act. The Australian

Perth faces cut for business
Airlines have slashed prices for their business class flights to Perth, as the end of the minerals booms cuts demand for top-priced tickets to the mining hub. The Fin Review

Panoramic eyes Barrick base metals
Panoramic Resources is running the ruler over Barrick Gold's copper-gold mine in Queensland as it steps up the hunt for a major acquisition that could transform it from nickel player to diversified miner. The West

Shares surge by $70bn
Australian stocks have surged 7 per cent in the past three days, swelling share portfolios by more than $70 billion, amid confidence the powerhouse economies of the US and China are heading in the right direction to lead sustained global recovery. The Australian

 

THE WEST AUSTRALIAN:

Page 1: The Chinese economic miracle may drag the global economy out of recession after new figures showed stronger than expected growth by the emerging giant, led by its own stimulus package and domestic demand.

Page 4: China has dismissed Australian concerns about detained Rio Tinto executive Stern Hu as "noise" and warned Australia not to interfere in its affairs.

Page 5: Northern suburbs residents are more likely to find bargains at the bowser close to home, with 22 of the 40 cheapest unleaded petrol outlets north of the city.

Page 6: Treasurer Troy Buswell has ordered a government department to keep a running tally industrial action on Perth building sites in a bid to prove to the federal government that its legislative changes are already leading to more strikes.

Page 16: Disabled people who want to work full-time are being denied the chance because there is not enough government funding for support services.

Business: Panoramic Resources is running the ruler over Barrick Gold's copper-gold mine in Queensland as it steps up the hunt for a major acquisition that could transform it from nickel player to diversified miner.

The Matt Birney-chaired Carbon Conscious has struck its first major carbon credits deal after agreeing with Origin Energy to plant and manage up to $169 million worth of mallee eucalypt trees to store greenhouse gas emissions.

Australia's big four banks could be forced to pay up to $1.8 billion in back taxes in New Zealand after National Australia Bank yesterday lost a landmark legal battle in a long-running dispute over a series of structured finance deals dating back nearly a decade.

Extract Resources has hosed down reports it may face a takeover bid from an unknown consortium, saying it has not received an offer and cannot speculate on third-party intentions.

The fate of WA's Ellendale diamond mine and about 130 jobs will be known within six weeks after its UK-listed owner indicated it may put it on care and maintenance.

Perilya shares soared 22 per cent yesterday after the base metals miner said it had axed a deal to supply 11.2 million ounces of silver from its Broken Hill zinc operation to Coeur D'Alene Mines Corp.

Iluka Resources' first-half revenue has plunged 62 per cent as the effect of a decision to cut production because of weak Chinese demand took its toll.

 

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: China's economy has rebounded strongly in defiance of the global recession, delivering an extra boost to the upturn on local and global sharemarkets and fuelling expectations of a broader Asian recovery.

The big four banks are facing a combined $1.8 billion tax liability after New Zealand's High Court ruled that a series of transactions by National Australia Bank had the sole purpose of profiting from tax avoidance.

Employers are having to rethink their training programs by introducing shorter, sharper courses and more creative skilling options as the downturn cuts staff development budgets.

Page 3: Airlines have slashed prices for their business class flights to Perth, as the end of the minerals booms cuts demand for top-priced tickets to the mining hub.

Commonwealth Bank of Australia has become the latest mega-employer to accept that it has to include unions when negotiating enterprise agreements under Labor's new Fair Work workplace laws.

Page 5: The federal government's $43 billion national broadband network has taken its first commercial steps with the release yesterday of tenders for the project's Tasmanian leg.

Page 6: Car buyers are shying from lease financing amid a tightening of credit criteria and tough business conditions in the transport sector.

Page 7: Great Southern use authorised representatives to sell $1 billion of its agricultural investment products to retail investors over the past five years.

Page 11: The Reserve Bank of Australia bought another $2 billion of foreign currency in June, rebuilding the reserves it spent last October when it intervened publicly to support the Australian dollar.

 

THE AUSTRALIAN:

Page 1: China is fulfilling its promise as the likely saviour of the world and Australian economies, yesterday reporting a remarkable 7.9 per cent growth in GDP in the June quarter as Beijing's massive stimulus package kicked in.

Militant unionist Joe McDonald has fired an ominous shot at the Rudd government, warning that its stimulus projects, such as its $500 million underground railway in Perth, could be paralysed if contractors violate safety codes under the Building and Construction Industry Improvement Act.

Page 2: The Reserve Bank has made at least $200 million profit in the past two months by trading the Australian dollar and taking advantage of the currency's volatility, in a move that could improve the government's fiscal position.

Militant unionist Joe McDonald has fired an ominous shot at the Rudd government, warning that its flagship stimulus projects, such as Perth's $500 million underground rail project, could be paralysed if contractors violate safety standards.

Page 4: Former Queensland government minister Gordon Nuttall should be sentenced to a minimum of 10 years in jail for corruptly receiving secret commissions, the crown prosecutor in the case said yesterday.

Page 7: New questions have been raised surrounding the integrity of the NSW Office of Fair Trading after revelations that one of its former officers was secretly sacked for allegedly soliciting favours from the real estate agents he was investigating for the consumer watchdog.

Pressure is building on federal Environment Minister Peter Garrett to extend the life of a contentious phosphate mine on Christmas Island.

Business: Australian stocks have surged 7 per cent in the past three days, swelling share portfolios by more than $70 billion, amid confidence the powerhouse economies of the US and China are heading in the right direction to lead sustained global recovery.

The nation's four big banks are staring at a potential tax bill of almost $NZ2.4 billion ($1.93bn), plus penalties, after the New Zealand High Court ruled against the local National Australia Bank subsidiary over six structured finance transactions.

Confidence is building that China will meet its ambitious full-year growth target of 8 per cent after Beijing's massive stimulus package, underpinned by surging bank lending, delivered a 7.9 per cent surge in GDP in the June quarter.

Bluescope Steel has given a strong sign that things are improving in global steel markets, announcing that it is to restart one of its two blast furnaces at Port Kembla.

China-focused gold miner Sino Gold does not expect its relations in the Asian capital to be dented by the dramatic arrest of four of Rio Tinto's iron ore staff.

The junior end of the uranium sector has sprung to life on renewed interest in yellowcake.
Investors hope they can cash in after Australia's third uranium mine in 20 years was approved this week.

BHP Billiton is not expected to match the strong June-quarter iron ore performance of new bedfellow Rio Tinto, with port and company statistics showing the miner is headed for its worst quarter in iron ore since 2007.

Macquarie Infrastructure Group has succumbed to market demands by slicing $2 billion from the value of its embattled international and domestic toll roads, before making further cuts later this year.

Consolidated Media is set to drop out of the S&P/ASX 100 in less than two months after index manager Standard & Poor's deemed concerted buying by Kerry Stokes and James Packer in the past week had dramatically reduced the stock's liquidity.

The market clearly thinks CSR should de-merge its sugar business, but it reacted negatively to reports CSR was seeking a cornerstone investor in sugar to boost its de-merger prospects.

Big banks that have received government bailouts in the US and Britain are offering handsome pay packages to lure stars and reverse last year's steep losses.

JPMorgan Chase's second-quarter earnings rose 36 per cent on strong investment-banking results, with the profit smashing analysts expectations as Wall Street titan Goldman Sachs did on Tuesday.

The Australian sharemarket posted a third successive day of strong gains, buoyed by energy and banking stocks and a positive lead from offshore bourses.

Westpac Funds Management has given up on its ambition of creating Australia's first residential property trust and instead will offload its entire Defence housing portfolio in piecemeal, estimated to be worth more than $240 million.

 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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