Warning of crisis 'worse than GFC' – The Aus; Optimism fades as Westpac wields axe – The Fin; Fresh start – The West; Abbott locks in $500m car cuts – The Fin; Barnett asked to explain deals with Chinese – The West
Warning of crisis 'worse than GFC'
The World Bank has warned that the globe risks a deeper recession than the 2008-09 crisis, with any recovery likely to be longer as Europe’s debt problems and slowdowns in key countries such as India threaten growth. The Aus
Optimism fades as Westpac wields axe
Commonwealth Bank of Australia chief financial officer David Craig says he has little cause to be optimistic about the Australian economy's immediate prospects as Westpac Banking Corp insiders estimated it would shed about 600 staff this year. The Fin
Fresh start
Labor's leader-in-waiting Mark McGowan has made a pitch to WA's so-called mortgage belt, telling voters he understands their hopes and dreams because he is “one of them”. The West
Abbott locks in $500m car cuts
Opposition Leader Tony Abbott has vowed to stick with plans to axe $500 million in car industry subsidies, staring down a fierce internal Coalition revolt and heavy lobbying from the automotive sector. The Fin
Barnett asked to explain deals with Chinese
Colin Barnett is under pressure to respond to claims the state government signed a contract with the developers of the Oakajee port project that favoured business for Chinese companies over local business. The West
THE WEST AUSTRALIAN:
Page 1: Labor's leader-in-waiting Mark McGowan has made a pitch to WA's so-called mortgage belt, telling voters he understands their hopes and dreams because he is “one of them”.
Page 6: Right faction boss Joe Bullock said yesterday he hoped his power within the Labor Party was not waning amid speculation incoming leader Mark McGowan could ditch the unionist's preferred stance on shopping hours.
Page 10: The World Bank says the global economy is teetering on the edge of a new financial crisis that could be deeper and longer lasting than the chaos that surrounded the collapse of Lehman Brothers in 2008.
Colin Barnett is under pressure to respond to claims the state government signed a contract with the developers of the Oakajee port project that favoured business for Chinese companies over local business.
Page 19: The state government is facing millions of dollars in compensation claims from motorists and other road users who claim poor roads and inadequate signs contributed to serious accidents.
Business: BHP Billiton has used the platform of its December-half production report to remind the market that its nickel and aluminium divisions are not immune from the squeeze on profits caused by the sharp price declines for the metals.
Wesfarmers says insurance premiums are on the rise, after the latest spate of natural disasters prompted it to warn of a likely 67 per cent drop in divisional first-half earnings.
ANZ staff are warning of a surge in fraud after the bank cut one-sixth of the employees from the unit that polices its customer accounts.
Greece is close to a deal with private creditors that would give them cash and securities with a market value of about 32 euro cents for each euro of government debt, according to Bruce Richards, a hedge fund manager on the creditors' committee.
The peak mining body has called for a state government blueprint to guide infrastructure development as WA faces its biggest potential growth spurt since the gold rush more than a century ago.
Nexus Energy is expected to announce a deal with Royal Dutch Shell over the Crux field in the Browse Basin off the Kimberley coast after placing its shares in a trading halt this morning.
THE AUSTRALIAN FINANCIAL REVIEW:
Page 1: Opposition Leader Tony Abbott has vowed to stick with plans to axe $500 million in car industry subsidies, staring down a fierce internal Coalition revolt and heavy lobbying from the automotive sector.
Commonwealth Bank of Australia chief financial officer David Craig says he has little cause to be optimistic about the Australian economy's immediate prospects as Westpac Banking Corp insiders estimated it would shed about 600 staff this year.
BHP Billiton's dream run of post-financial crisis earnings growth appears to be coming to an end, with lower commodities prices set to restrict earnings growth despite rising production.
The World Bank has warned that the international economy could be pitched into a downturn deeper than that following the global financial crisis if Europe's debt woes cause financial markets to freeze up.
Page 3: Western Australia's Labor leader-elect, Mark McGowan, has distanced himself from the Gillard government, saying he is prepared to stand up for the state's rights on issues such as the mining tax in preference to a cosy relationship with Canberra.
Page 9: The Reserve Bank of Australia may need to cut interest rates further if it wants to jolt consumers out of their pessimistic mood.
Page 15: BHP Billiton has posted record iron ore production from its West Australian mines, bringing its output to an annualised rate of 178 million tonnes, but warned tough operating conditions continued to plague its smaller nickel and aluminium divisions.
Page 36: Wesfarmers Insurance has slashed first-half earnings by 74 per cent after a severe string of natural disasters blew out its claims budget by $28 million.
Page 37: An aggressive book-cleaning operation by Commonwealth Bank of Australia after its 2008 takeover of Bankwest that allegedly resulted in scores of business failures is set to be investigated by federal Parliament.
Page 41: Westfield Group has lost a court case to prevent superannuation fund UniSuper from voting to wind up the trust that owns Perth's $560 million Karrinyup shopping centre.
THE AUSTRALIAN:
Page 1: The World Bank has warned that the globe risks a deeper recession than the 2008-09 crisis, with any recovery likely to be longer as Europe’s debt problems and slowdowns in key countries such as India threaten growth
A bloodless rejuvenation of West Australian Labor will see former minister Mark McGowan given the task of toppling the nation’s most popular premier in an election just 14 months away.
Mining companies have been accused of excluding Australian manufacturers from bidding for work on massive resources projects by using Chinese design specifications in tender documents for key steel contracts.
Page 2: The review of Labor’s Fair Work Act will focus strongly on productivity after business leaders raised concerns that it was not part of the inquiry’s original terms of reference.
Page 4: Tony Abbott has confirmed that the opposition will slash $500 million from subsidies to the motor vehicle industry and rejected the reported push from several of his frontbenchers to rethink the plan.
The Greens have warned Labor that alterations to the Constitution to acknowledge indigenous Australians must not simply tinker ‘‘around the edges’’, making it difficult for the government to find a unified position to put to voters.
Business: BHP Billiton has joined Rio Tinto and Fortescue Metals Group in posting record December-quarter iron ore production but has warned that industrial relations, a strong dollar and weak metal markets could weigh on profits this financial year.
He may not be one of Rio Tinto’s high-profile executives, but the eyes of many in the mining giant’s Perth office, the West Australian government and the state’s pastoral industry are now firmly on Allan Jackson.
Three months into his campaign to break the Australian Securities Exchange’s near 25-year dominance of the domestic trading market, the boss of rival exchange Chi-X is continually reminding himself of the financial adage that liquidity begets liquidity.
Australian banks could recoup most of their higher wholesale funding costs by jacking up key mortgage and commercial business lending rates, according to new research by Deutsche Bank.
Telstra's stellar run on the stockmarket is unlikely to continue this year, with Commonwealth Bank analysts declaring the stock has reached its full value and downgrading it to a hold.
Copper and gold miner OZ Minerals is hopeful of expanding its limited portfolio of assets this year, tipping targets to return to the market at a more reasonable value.
Rare-earths miner Lynas has announced a significant resource upgrade at its West Australian project, but the key focus for the company remains an operating licence for its Malaysian facility.
Wesfarmers' insurance arm has become the latest in a string of insurers to downgrade earnings after failing to contain damages claims from a spate of natural disasters.
New economic research suggests international carbon trading prices could remain depressed until at least 2020, with a UN-backed program averaging $8.23 per tonne over the period and the European Union’s scheme reaching only $18.50 — significantly below Australia’s $23 starting price.
THE SYDNEY MORNING HERALD:
Page 1: Australia should brace for a return to the "ugliest" of times if the latest World Bank warning of a new financial crisis proves correct, a leading economist says.
Page 2: Charlie Teo expects to ruffle some feathers after his Australia Day address next week.
Page 3: Almost half of Australians now have private health insurance - and the private health insurance industry is reaping the benefits, boosting its revenue from premiums by more than $1.25 billion last financial year.
World: Mitt Romney, one of the richest men to run for president, says he "probably" pays an effective federal income tax rate of about 15 per cent - little more than most American workers struggling to make ends meet in the toughest economic conditions for 70 years.
Business: The Australian dollar hit a record against the pound this week, and economists think it could go higher.
Sport: The man who presided over the country's last golden era of cricket, Trevor Hohns, believes Australia can return to the top of the Test rankings within two years.
THE DAILY TELEGRAPH:
Page 1: The man chosen to give the NSW Australia Day speech will tell his audience: "Racism is still very much alive in Australia."
Page 2: Her father is never one to shy away from attention, but the daughter of Bob Katter made sure her date with a Sydney court went largely unnoticed yesterday.
Page 3: Australia's biggest bank has more than doubled the money it makes on home loans since the height of the global financial crisis.
World: A trans-Atlantic legal showdown could determine whether Gerry Adams, the Irish republican chief long at the centre of Belfast war and peace, faces trial over his IRA past.
Business: The World Bank has slashed its global growth forecasts, warning there could be a worldwide recession worse than three years ago.
Sport: Fox Sports has moved quickly to snatch Matthew Johns in the wake of his dramatic refusal to rejoin Channel 9's The Footy Show.
THE AGE:
Page 1: Independent MP Andrew Wilkie warns he will withdraw his support of the Gillard government if his pokie reform plan is watered down.
After 52 consecutive games on Centre Court Roger Federer banished to Hisense Arena.
Victoria at the centre of economic slowdown with building activity faltering and jobs outlook deteriorating.
Page 2: World Bank warns of worse financial crisis than the GFC.
Page 3: Greens to push for end to five year mandatory sentences for Indonesian fishermen charged with people smuggling.
World: China's leaders warned of corruption among military brass.
Business: ANZ to cut its fraud squad amid fears it could lead to surge in bank fraud.
Sport: Hewitt and Roddick set for classic encounter at Australian Open.
