RBA races to rescue of plunging dollar; Japan shares hit 26-year low; More funds put in deep freeze; Tougher lobster laws to lift prices; Miners cut costs as metals plummet
RBA races to rescue of plunging dollar
The Reserve Bank was forced to shore up the beleaguered Australian dollar yesterday for the second time in four days, another major fund manager froze more than $3 billion in savings and the sharemarket hit a four-year low as the fallout from the global financial turmoil continued to spread. The West
Japan shares hit 26-year low
A 26-year low in the Japanese sharemarket headlined a dramatic day of trading across Asia yesterday as investors dumped stocks on growing recession fears as interventions by the Reserve Bank of Australia, plus the threat of them by Group of Seven economies, failed to stem the excessive volatility on global currency markets. The Fin Review
More funds put in deep freeze
The retirement savings of a further 60,000 Australians were frozen yesterday as the government appeared powerless to stem the tide of investor funds flowing into guaranteed bank deposits. The Australian
Tougher lobster laws to lift prices
Lobster fishermen have warned the price of western rock lobsters must rise if the industry is to remain viable after the state government imposed tough restrictions for the next two years in response to worrying decline in juvenile stocks. The West
Miners cut costs as metals plummet
WA's mining sector is slashing exploration and development budgets to deal with plunging metal prices, with heavy job cuts likely to continue as medium-cap companies struggle to remain profitable. The West
THE WEST AUSTRALIAN:
Page 1: The Reserve Bank was forced to shore up the beleaguered Australian dollar yesterday for the second time in four days, another major fund manager froze more than $3 billion in savings and the sharemarket hit a four-year low as the fallout from the global financial turmoil continued to spread.
Page 3: A 24-hour sports channel to be launched next year on free-to-air television is set to revolutionise the Australian broadcasting landscape.
Page 4: The giant Pilbara railways of Rio Tinto and BHP Billiton should be opened to competing iron ore producers, the federal government ruled yesterday, in a move that will provide a huge boost to Andrew Forrest's Fortescue Metals Group and other miners.
Colin Barnett wants the federal government to kick-start the mothballed Northbridge Link project by splitting the $263 million cost to sink the railway line between the city and the entertainment precinct.
Page 5: Construction union boss Kevin Reynolds will be grilled at the Industrial Relations Commission today over his claims that some workers would have the right to vote in the union election only if they had paid their fees six months in advance.
Lobster fishermen have warned the price of western rock lobsters must rise if the industry is to remain viable after the state government imposed tough restrictions for the next two years in response to worrying decline in juvenile stocks.
Page 6: Australian superannuation funds have recorded another batch of dire returns, with a typical fund delivering the worst 12-month result since compulsory super began.
Page 19: Five major WA shopping centres worth a total of more than $550 million, including the blue-ribbon Floreat Forum and the popular Centro Galleria, are about to change hands.
Business: WA's mining sector is slashing exploration and development budgets to deal with plunging metal prices, with heavy job cuts likely to continue as medium-cap companies struggle to remain profitable.
Lion Nathan has put 20-year-old Pemberton winery Smithbrook Wines up for sale, joining fellow wine giants Constellation Brands and Foster's in moving to quit "non-core" assets in an increasingly tough market.
The takeover battle for Incremental Petroleum has been blown wide open after Texan oilman Malone Mitchell yesterday launched an $84 million cash bid for the Perth oil and gas stock to try to thwart a rival offer from Cooper Energy.
Joe Gutnick, the one-time Great Central Mines chief was yesterday appointed executive chairman of North Australian Diamonds and immediately lent the cash-stripped Perth tiddler up to $600,000 at 10 per cent interest, to keep it afloat.
Kalgoorlie-Boulder Resources has been forced to restructure its proposed reverse takeover by interests associated with Paul Poli because of the volatile sharemarket conditions.
The financial crisis threatening the resources sector, forcing companies to review earnings forecast and stifling project growth, was not rubbing off on Neptune Marine Services, the Perth oil and gas services company claimed yesterday.
Resolute Mining is expected to confirm today that its $51 million capital raising remains on track, despite having to restructure the original mooted one-for-three rights issue in light of the savage market downturn.
THE AUSTRALIAN FINANCIAL REVIEW:
Page 1: A 26-year low in the Japanese sharemarket headlined a dramatic day of trading across Asia yesterday as investors dumped stocks on growing recession fears as interventions by the Reserve Bank of Australia, plus the threat of them by Group of Seven economies, failed to stem the excessive volatility on global currency markets.
One of Australia's largest fund managers, Colonial First State, yesterday became the latest institution to freeze withdrawals from its mortgage funds as it emerged that the federal government has paved the way to borrow up to $20 billion to stabilise the financial system.
Page 5: Andrew Forrest's Fortescue Metals Group has won the right to use the Pilbara rail lines built by rivals BHP Billiton and Rio Tinto, in a controversial federal government decision aimed at encouraging big companies to share essential infrastructure.
THE AUSTRALIAN:
Page 1: The retirement savings of a further 60,000 Australians were frozen yesterday as the government appeared powerless to stem the tide of investor funds flowing into guaranteed bank deposits.
Fears of the global financial crisis are driving people from the Rudd government's carbon reduction plans, with most Australians now either against an emissions trading scheme or wanting it delayed beyond 2010.
PBL Media could be forced to sell prize assets - including the Carsales.com.au auto website - after former owner James Packer revealed he would stop providing financial support to the debt-laden group.
Page 2: The state and territories are expected to gain full control of community mental health services and hundreds of millions of dollars of commonwealth funding, as the Rudd government retreats from John Howard's 2006 intervention in the crisis riddled sector.
Unionists are threatening rolling stoppages, including 48-hour strikes, across Telstra as the giant telco seeks to sign employees on to a non-union deal that promises a 12.5 per cent pay rise over three years.
Page 3: The former chief executive of failed fuel technology group Firepower, who has been charged with child sex offences, has allegedly been attempting to milk thousands of dollars out of investors with the promise of locating a secret $38 million stash.
Page 5: Big businesses that deliberately delay paying their bills to smaller companies will be hunted down and prosecuted by the competition watchdog.
Business: Asian equities markets suffered one of their worst days on record yesterday as nervous investors cast aside renewed efforts to stabilise the financial system.
The global financial storm is rolling across the Persian Gulf, with Kuwait's central bank guaranteeing bank deposits and cobbling together a hasty bailout for one of the country's largest banks.
Australia's major banks could be forced to shun the government's guarantee covering their bank bills, the cost of which could lead to lower yields for investors.
