Rio and Chinalco look to heal rift in Mongolia; Labor joins Libs on shop hours; NAB debt doubt hits banks; Inflation keeps pressure on rates; Clean coal strategy not viable for 20 years
Rio and Chinalco look to heal rift in Mongolia
Tinto and Chinalco have begun talks about jointly investing in Mongolia, only months after falling out over one of the largest and most acrimonious non-deals in corporate history. The Age
Labor joins Libs on shop hours
Labor indicated yesterday it would not join the Nationals in blocking the Liberal Party's push to extend shopping hours in the inner city through the expansion of the Perth tourism precinct. The West
NAB debt doubt hits banks
Banks shares were crunched yesterday after National Australia Bank ushered in the banking reporting season by meeting annual profit expectations, but failing to pronounce that the bad-debt cycle had peaked. The Australian
Inflation keeps pressure on rates
Persistent inflation pressures appear set to keep the Reserve Bank of Australia on track to raise interest rates next week as it tightens monetary policy from emergency lows to keep the recovery on a sustainable path. The Fin Review
Clean coal strategy not viable for 20 years
Clean coal power stations are not viable until the carbon price reaches a minimum of $60 a tonne -- a level the Australian government does not anticipate until almost 2030 -- according to an audit by the Rudd government's own global carbon capture and storage institute. The Australian
THE WEST AUSTRALIAN:
Page 1: An emergency audit of accommodation on Rottnest Island has uncovered another five cottages which are structurally unsound in the wake of the tragic death of a three-year-old boy crushed by a falling pillar.
Page 3: Liquor authorities have launched an unprecedented crackdown on hotels and nightclubs, moving to have every Perth nightclub close by 5am.
Page 4: The Reserve Bank may baulk at inflicting a half percentage point rate rise on the nation's mortgage holders after key inflation figures revealed state utility charges are driving up prices while day-to-day costs are barely rising.
Petrol prices in many Perth metropolitan stations soared by almost 15 per cent yesterday and will remain high until the weekend despite a strong Australian dollar buffering against rising international fuel prices, according to FuelWatch.
Page 5: Qantas' credit card payment scheme has earned the airline Choice's top Shonky award this year.
Page 7: Labor indicated yesterday it would not join the Nationals in blocking the Liberal Party's push to extend shopping hours in the inner city through the expansion of the Perth tourism precinct.
Page 11: Emergency clean-up crews have been forced to use an untried method in an attempt to contain the disastrous Timor Sea oil spill in the wake of several failed attempts to plug the leak.
Business: National Australia Bank slipped to a small loss over the past six months after its profits were ravaged by escalating bad debts a series of one-off charges, including looming tax headaches in New Zealand.
The Australian sharemarket extended its losing streak to a third trading session yesterday as mixed signals about the US recovery, the stronger greenback and profit-taking weighed on local shares.
Engineering contractor RCR Tomlinson is pinning its hopes of Kevin Rudd's infrastructure splurge and fatter-margin mining services work as it seeks tier-one status.
Disastrous investments in the US by casino operator Crown that led to write-downs totalling $1.7 billion over the past two years may still generate value for the company's embattled shareholders, chairman James Packer insisted yesterday.
Troy Resources has temporarily halted a boardroom feud to approve a $25 million capital raising and ensure the development timetable for its key gold project Casposo is met.
Telstra chief executive David Thodey said the telco would seek shareholder approval in the event that it agreed to sell some or all of its infrastructure to the federal government for the proposed national broadband network - and would be looking for cash compensation.
Retailers are raising their hopes for healthy Christmas trading, with a bundle of companies yesterday booking better than expected quarterly sales performance and tipping the improvement to continue.
More evidence is needed to support signs of rising demand for metals with recent price gains distorted by Chinese restocking and investment, analysts have warned.
The Australian dollar continued to lose ground yesterday, falling 1.1 per cent against the US dollar and 1.5 per cent against the yen.
THE AUSTRALIAN FINANCIAL REVIEW:
Page 1: Persistent inflation pressures appear set to keep the Reserve Bank of Australia on track to raise interest rates next week as it tightens monetary policy from emergency lows to keep the recovery on a sustainable path.
The federal government has stared down the major banks and industry groups by pushing ahead with controversial laws that make it harder for creditors to put people into bankruptcy.
A doubling in bad debts to small and medium-sized businesses has made National Australia Bank reluctant to say the bad debt cycle has peaked, but its strong annual result led analysts to predict the banking sector had turned the corner on problem loans.
Telstra has confirmed it will put any deal with the National Broadband Network Company to a shareholder vote, as it dismissed most of the Rudd government's telecommunications reform package and said it would seek cash compensation rather than equity in the $43 billion broadband network.
Page 3: Commonwealth Bank of Australia chief executive Ralph Norris came under attack from a parliamentary committee last night for the bank's "inexplicable" delay in contacting the clients of Storm Financial facing margin calls.
Page 5: The federal government will set up a $560 million Centre for Renewable Energy to promote commercial opportunities for solar, wind and geothermal energy and biofuels.
Page 11: A surprise rise in rents in the September quarter has sparked fresh concerns that the nation's housing shortage could add to pressure on inflation and interest rates.
Page 12: Utility costs soared by the most in almost three decades over the past year as regulators cleared the way for providers of basic services to recover spending on upgrades and new projects.
Page 17: A mountain of debt and the failure into the United States have forced Macquarie Media Group to launch a "repositioning" plan, including a $294 million rights issue and the removal of Macquarie Group as its manager.
Troy Resources has signed off on a fully underwritten rights issue to raise about $25 million as the warring factions on the goldminer's board edge closer to a settlement that could avoid a messy shareholder meeting and potentially a public board spill.
THE AUSTRALIAN:
Page 1: The highest rate of inflation for a year guarantees a further interest rate increase at the Reserve Bank's Melbourne Cup Day board meeting next week, although the bank's executive is likely to face a fight from Treasury secretary Ken Henry if it pushes for a 50-basis-point rise.
China and Australia will use the visit of Vice-Premier Li Keqiang, who arrives in Sydney tonight and is on course to become the Premier in two years, to re-boot the relationship that has hit the rocks this year.
Clean coal power stations are not viable until the carbon price reaches a minimum of $60 a tonne -- a level the Australian government does not anticipate until almost 2030 -- according to an audit by the Rudd government's own global carbon capture and storage institute.
Page 2: Australia's policy on Chinese investment in resources has, if anything, become murkier since Chinalco's controversial $US19.5 billion Rio Tinto rescue package fell through earlier this year, prompting renewed calls for more clarity.
Page 3: Australia's former high commissioner to India has blamed lax government immigration and education policies for the damaging collapse of private colleges catering to Indian students.
Page 4: Commonwealth Bank boss Ralph Norris last night apologised to Storm investors who suffered losses as a result of the bank's failings and said he would ensure that problems identified were not repeated.
Telstra will soon cut its broadband prices as it reacts to falling customer take-up of its fixed-line broadband services.
Inflation is easing. But not fast enough for the Reserve Bank, which is set to lift its official interest rate again just before Tuesday's 3pm Melbourne Cup start. Another 25-basis-point rise, possibly the last rate hike this year, would be aimed at the central bank's stubbornly high measure of underlying inflation.
Page 5: Much of the Rudd government's $327 million splurge on state school upgrades in Tasmania has gone to unviable schools that need to be closed or merged, says the island's peak business group.
Australia's house prices spiked in the September quarter with a 3.7 per cent jump -- the fastest quarterly increase since 2003, according to residential research group Australian Property Monitors.
The National Australia Bank has stopped short of declaring that future interest rate rises will be capped to moves by the Reserve Bank, but chief executive Cameron Clyne said there was no "immediate plan" to hit customers with lending rates above the official increases.
Page 6: Kevin Rudd's plan to seize greater control of urban planning policy has attracted a cool reception from states, with premiers warning they are unwilling to hand power to Canberra.
Page 7: West Australian Premier Colin Barnett has once again outflanked his Nationals coalition partners by promising to regulate -- and not legislate -- to abolish Perth's archaic shopping hours.
Low-cost carrier Jetstar has thrown down the gauntlet to fee-gouging banks by launching a low-rate credit card that also offers flight rewards.
Business: Banks shares were crunched yesterday after National Australia Bank ushered in the banking reporting season by meeting annual profit expectations, but failing to pronounce that the bad-debt cycle had peaked.
Telstra expects to reach agreement with the government on the national broadband network by December, but chief executive David Thodey says any deal on selling assets must provide fair value for shareholders.
Fears escalated yesterday that the sharemarket is headed for a sustained period of weakness after a strong rally since March as the Australian dollar came under further pressure.
The new boss of Merrill Lynch in Australia, Craig Drummond, has accused proponents of international "dark pools" of stealing liquidity from the domestic capital markets and potentially hurting the funding prospects of local corporates.
So much for the gloom and doom common in the business community only a few months ago. Australia is "in a very sweet spot", according to Graham Bradley, the new president of the Business Council of Australia, thanks to the demand for its resources, the resilience of the economy and many other home grown advantages.
Crown executive chairman James Packer apologised to shareholders yesterday for the disastrous performance of the gaming company's foray into the US market, but says there is still hope of salvaging something from assets whose carrying value had been slashed to zero.
India's central bank took a first step toward tightening monetary policy by holding interest rates steady, but in a surprise move it also required banks to set aside more bonds as reserves.
In a stark reminder of how some battered financial firms remain dependent on government lifelines, GMAC Financial Services and the Treasury Department are in advanced talks to prop up the lender with its third helping of taxpayer money.
Myer's bankers are bracing for a last-minute flurry of institutional applications to buy shares in the company's initial public offering, which closes this afternoon.
Offshore investors will again look to Australia as the country continues to enjoy premium growth compared with the rest of the world.
Shareholders in Boral yesterday overwhelmingly waved through the group's remuneration report after last year's stunning 58 per cent vote rejection.
Troy Resources is set to unveil a $25 million rights issue today as major shareholder and former chairman John Jones looks to have won his fight to block an institutional placement and reduce the power of chief executive Paul Benson.
The The Australian sharemarket closed in the red yesterday after bank stocks led a broad sell-off.
