Today's business headlines

Belgian downgrade, but Italy lifeline eases turmoil

The International Monetary Fund has prepared a crucial lifeline that would give Italy some breathing space to turn its finances around in the event its debt crisis worsened. The West

NBN could cost $50bn, with returns at risk

Capital spending on the National Broadband Network will top $50 billion and slower-than-expected development of digital video content could put at risk the financial returns for the ultra-fast network, a confidential report to Labor states. The Aus

Minister silent on fire manager

Environment Minister Bill Marmion has shirked questions about the reinstatement of a senior Department of Environment and Conservation manager described by the coroner as extremely incompetent, saying it was not his job to appoint or dismiss public servants. The West

Global uncertainty hits Qantas

Qantas Airways is poised to walk away from its controversial plan to establish a new premium airline in Asia as the economic turmoil spreading from Europe shakes management confidence in the project.. The Fin

Doubts cast on Sundance deal

Sundance Resources chief George Jones plans to fly to China to meet the proponents of a proposed $1.65 billion takeover offer after the financing bank failed to produce supporting documentation by the weekend deadline. The Aus

THE WEST AUSTRALIAN:

Page 4: Environment Minister Bill Marmion has shirked questions about the reinstatement of a senior Department of Environment and Conservation manager described by the coroner as extremely incompetent, saying it was not his job to appoint or dismiss public servants.

Page 7: British embassies in the eurozone have been told to draw up plans to help British expatriates through the collapse of the single currency, amid renewed fears for Italy and Spain.
Page 12: This week's budget update will show the federal government still on track for a 2012-13 surplus, despite the euro crisis wiping a whopping $7 billion over four years off expected capital gain tax revenue since May.

Page 14: Bankwest is being sued for defamation by a former media manager who is claiming the head of corporate affairs at the bank badmouthed him to colleagues.

Page 19: The RAC fears Perth could be left with an inadequate public transport system by the end of the decade unless the state government fast tracks its network plans.

Business: The International Monetary Fund has prepared a crucial lifeline that would give Italy some breathing space to turn its finances around in the event its debt crisis worsened.

Speculation over the future of Alchemy Resources swirled at the weekend after the junior explorer's board resigned en masse on Friday.

Australia's downbeat consumer is starting to invade the boardroom discussions of some of the biggest companies in the US, with global food giant Campbell's Soup the latest to bemoan the reluctance of Aussie shoppers to spend money.

THE AUSTRALIAN FINANCIAL REVIEW:

Page 1: Qantas Airways is poised to walk away from its controversial plan to establish a new premium airline in Asia as the economic turmoil spreading from Europe shakes management confidence in the project.

State treasurers have warned of rising borrowing costs as the European debt crisis forces investors to dump their bonds indiscriminately, driving up yields on their securities.

The Gillard government's mid-year budget review will show it has met its goal of returning to surplus in 2012-13, but slumping revenues and disaster spending have blown a hole of more than $7 billion in the current year's deficit.

Seven West Media chief executive David Leckie has taken a swipe at his television rivals' ratings and revenue ambitions, predicting that Seven will dominate the TV industry next year despite the big ratings Nine Network will generate with its coverage of the London Olympics.

Page 3: The federal government has agreed to fix restrictive dividend rules after it bungled reforms last year which were supposed to make it easier for 40 per cent of large companies to pay dividends to their shareholders.

Page 6: Fundraising tensions are building within the Liberal Party, as its wealthy West Australian division baulks at a cash grab by the national secretariat.

Page 10: Australia's plan to cut its emissions by 5 per cent below 2000 levels could result in a loss of national income up to 2 ½ times the global average.

IPCC scientists have cut back on the forecasts of greenhouse gases expected to build up in the atmosphere over time, as delegates at the United Nations climate conference in Durban search for a new deal on emissions.

Page 17: Telstra has given ground to its rivals and the regulator in an attempt to get clearance for its $11 billion deal with the federal government over the national broadband network.

Analysts have taken a red pen to their 2012 earnings estimates and valuations for Woodside Petroleum after Friday's investor update which revealed guidance on 2012 production that was as much as 20 per cent below some expectations.

Page 18: Virgin Australia will temporarily cease flying to Abu Dhabi from February and rely on alliance partner Etihad Airways as the Australian carrier's long-haul fleet begins lengthy heavy maintenance checks.

Page 19: The Brickworks board will come under pressure from shareholders to share their voting intentions on the nomination of Robert Fraser to the board of the group's cross shareholding partner, Washington H Soul Pattinson, at tomorrow's annual general meeting.

Page 20: Rio Tinto's management team is expected to provide details on its aluminium division restructure and updates on iron ore pricing and its expansion projects in Western Australia and Guinea at its annual investor seminar in Sydney today.

Page 55: Australia's residential building sector is predicting a rise in new home starts next year, tempered by a substantial increase in construction costs, according to an industry report.

THE AUSTRALIAN:

Page 1: Water Minister Tony Burke has defended the government’s unprecedented $8.9 billion push to divert water from farmers in the Murray-darling Basin to the environment as necessary to save the nation’s food bowl, despite evidence the plan could cause significant damage to regional communities.

Tony Abbott is poised to win up to five Victorian seats at the next election as Julia Gillard’s home state turns sharply against the Prime Minister and Labor, according to private Liberal polling.

Capital spending on the National Broadband Network will top $50 billion and slower-than-expected development of digital video content could put at risk the financial returns for the ultra-fast network, a confidential report to Labor states.

Wayne Swan has vowed to make even deeper spending cuts than expected to meet Labor’s budget surplus target after the global market turmoil blew a $7 billion hole in capital gains tax revenue.

Page 2: Bushfire experts warned West Australian Emergency Services Minister Rob Johnson more than a year before last week’s devastating blaze in the sea-change community of Margaret River that homes were highly vulnerable to fire and residents were under-prepared.

Page 4: Labor parliamentarians have reacted scornfully to Kevin Rudd’s call for greater power for the party’s rank and file.

One of the biggest left-wing unions has promised to fight Julia Gillard’s decision to support selling uranium to India at this week’s ALP national conference.

Tony Abbott is under more pressure over how he would fund his promise to back Labor’s plan to lift the superannuation guarantee from 9 per cent to 12 per cent, having rejected the new tax on mining profits, which was designed to help pay for the increase.

Business: Three of the biggest private investors in the Sydney pub market are poised to launch a $200 million hotel leisure fund and have ambitions to build a national portfolio of pub assets.

Wayne Swan has warned that the threat to the Australian economy is intensifying as European leaders struggle to find a solution to the worsening debt crisis.

Speculation of a renewed takeover tilt at Qantas, perhaps from a private equity bidder, has intensified after revelations that a group of wealthy investors had recently eyed a stake in the airline.

Sundance Resources chief George Jones plans to fly to China to meet the proponents of a proposed $1.65 billion takeover offer after the financing bank failed to produce supporting documentation by the weekend deadline.

Australian Securities & Investments Commission chairman Greg Medcraft has defended his period as head of securitisation at French bank Societe Generale, which is subject to US lawsuits alleging false and misleading statements over subprime mortgage transactions.

THE SYDNEY MORNING HERALD:

Page 1: Nurses employed to screen emergency calls have been instructed to cancel more ambulance requests in a bid to contain escalating demand.

Page 2: Planning in NSW has become so complex and dysfunctional that planners have found it easier "not to make a decision" and to just leave things as they are in a system that rewards those with the deepest pockets, the profession's urban planning body says.

Page 3: Sydney motorists will have to share the roads with a rapidly increasing number of trucks this summer because of repeated failures to move freight containers by rail.

World: Egypt's first parliamentary elections since the fall of the dictator Hosni Mubarak - meant to be a cause for celebration - are caught in a standoff between the ruling military council and protesters that shows no sign of ending.

Business: Australia's banks are fighting the efforts of international financial authorities to make it easier to trace accounts holding the ill-gotten loot of dictators, terrorists and criminals.

Sport: Cricket Australia has come under fire for its "inappropriate" injury management strategies as John Inverarity's selection panel was yesterday accused of cheapening the value of the baggy green with its plans for a rotation policy for the Test summer.

THE DAILY TELEGRAPH:

Page 1: Teenagers are becoming so obsessed with video games they are giving up on school and turning violent, prompting calls to label their addiction a mental health disorder.

Page 2: A new $7 billion hole in the budget will have to be plugged by savings if Treasurer Wayne Swan is to deliver a surplus in May.

Page 3: Almost $1 billion will be set aside by the federal government to entice struggling NSW parents to keep their kids in school until year 12.

World: Belgian politicians reached a deal on the 2012 budget at the weekend, ending a 19-month deadlock that prevented the formation of a stable government and led to a debt downgrade, a negotiator said.

Business: It's not all doom and gloom for superannuation balances, despite the massive plunge super funds have taken during the latest share market falls.

Sport: The NSW production line shows no signs of slowing down, with yet another teenage debutant rewriting the history books.

THE AGE:

Page 1: Murray-Darling Basin is in peril if plans to return water to the system are scaled back, says basin authority. Lachlan Murdoch denies being present during alleged offer to former senator about a special relationship in return for crossing the floor. Budget surplus still on track despite eurozone crisis wiping $7 billion from tax revenue.

Page 2: Gillard government not aware of any pending US action against WikiLeaks founder Julian Assange. Horror fire ads designed to scare people into action. Age reporters win top Walkley award.

Page 3: Baillieu government to reap bonanza from new poker machine taxes. Desal plant to be expanded at Flemington racecourse to produce water to irrigate the track. Asylum seekers released on bridging visa hoping for a new life. Melbourne artists shine at ARIA.

World: Pakistan orders CIA out after NATO air strikes kill at least 25 soldiers.

Business: Thrifty Australian consumers causing concern in US boardrooms.

Sport: Victory ends tumultuous week on a happy note beating Gold Coast 3-2.

THE HERALD SUN:

Page 1: New Year revellers face taxi shortage. Young Jack among children moving to the new $1 billion Royal Children's Hospital on Wednesday.

Page 2: Herald Sun deputy editor Jill Baker wins Walkley Award for her story on beating breast cancer.

Page 3: Kylie shimmers at ARIA Hall of Fame. Fugitive Afghan soldier who wounded three diggers suspected of being a murderer who has been on the run for a decade.

World: New NASA rover blasts off for Mars.

Business: ASIC investigates 35 alleged cases of insider trading.

Sport: Victory win takes heat off coach Mehmet Durakovic - for now.