2009-03-25 Business and Finance News (vsx.com.au)

Dollar slips as market mulls US economic recovery
LONDON AFP - The dollar dipped on Wednesday as investors weighed prospects for a US economic recovery in light of Washingtons plan this week to cleanse banks of bad assets- analysts said. ...
Wed 25th March 2009 - 11:32pm

HSBC says 1-200 staff face axe in Britain
LONDON AFP - HSBC said Wednesday it could axe up to 1-200 workers in Britain as Europes biggest bank strengthened measures to withstand the global financial crisis. ...
Wed 25th March 2009 - 11:17pm

China Dongxiang Delivers Spectacular 2008 Annual Results
Hong Kong- Mar 25- 2009 - ACN Newswire - The leading international sportswear brand enterprise in the PRC- China Dongxiang Group Co.- Ltd. China Dongxiang or the Company stock code- 3818- together with its subsidiaries the Group today announced its annual results for the year ended 31December 2008 the period under review. ...
Wed 25th March 2009 - 10:26pm

IMF says no immediate aid for Zimbabwe
The IMF said it would only provide aid to Zimbabwe when the new unity government proved its commitment to sound policies and settled outstanding debts. ...
Wed 25th March 2009 - 10:15pm

RBA ups pressure for EFTPOS revamp
The head of the Reserve Bank says he is prepared to regulate more forcefully if industry does not take steps to improve the EFTPOS and ATM systems. ...
Wed 25th March 2009 - 09:46pm

GM could miss deal deadline
DETROIT- Michigan AFP - Struggling US automaker General Motors appears unlikely to reach key agreements ahead of a March 31 deadline after its union and bondholders went public with a spat over concessions. ...
Wed 25th March 2009 - 08:57pm

HSBC says 1-200 staff face axe in Britain
LONDON AFP - HSBC said Wednesday it could axe up to 1-200 workers in Britain as Europes biggest bank reacts to the financial crisis. ...
Wed 25th March 2009 - 08:54pm

China Dongxiang Delivers Spectacular 2008 Annual Results
Hong Kong- Mar 25- 2009 - JCN Newswire - The leading international sportswear brand enterprise in the PRC- China Dongxiang Group Co.- Ltd. China Dongxiang or the Company stock code- 3818- together with its subsidiaries the Group today announced its annual results for the year ended 31 December 2008 the period under review. ...
Wed 25th March 2009 - 08:54pm

Oil prices ease in Asian trade- hovering near $53
SINGAPORE AFP - Oil prices fell in Asian trade Wednesday after rising to four-month highs on hopes of a US economic recovery- analysts said. ...
Wed 25th March 2009 - 08:51pm

Obama touts economic progress at press grilling
WASHINGTON AFP - US President Barack Obama told his crisis-weary nation he sees signs of economic progress but pleaded for -amp quotpatience -amp quot as he battles to overcome the worst financial maelstrom in decades. ...
Wed 25th March 2009 - 08:38pm

N Qld most vulnerable tourism region
A new report has found far north Queensland is Australias most vulnerable tourism region. ...
Wed 25th March 2009 - 08:35pm

Inditex posts net 2008 profit of 1.25 billion euros
MADRID AFP - Spains Inditex- Europes largest clothing retailer and marketer of the Zara brand- reported stable 2008 net earnings of 1.25 billion euros Wednesday but said the fourth quarter showed a 3.6 percent drop to 410 million euros. ...
Wed 25th March 2009 - 08:26pm

Romania agrees $27-bln loan from IMF- EU- World Bank
BUCHAREST AFP - Romania has reached agreement with the International Monetary Fund- the European Union- the European Bank for Reconstruction and Development and the World Bank on a 20-billion-euro 27-billion-dollar loan- an IMF official said on Wednesday. ...
Wed 25th March 2009 - 08:17pm

HSBC says 1-200 staff face axe in Britain
LONDON AFP - HSBC said on Wednesday that it could axe up to 1-200 workers in Britain as Europes biggest bank reacts to the financial crisis. ...
Wed 25th March 2009 - 07:58pm

Crisis 'could have long-term benefits'
The global financial crisis could ultimately benefit Australians by encouraging them to save- the head of the government's Future Fund has said. ...
Wed 25th March 2009 - 07:37pm

Financial crisis hits Australia Zoo
Queenslands Australia Zoo has announced it is cutting jobs and freezing expansion plans because of the current economic climate. ...
Wed 25th March 2009 - 07:35pm

Newport Quays lawsuits settled
A number of lawsuits brought against the developers of the Newport Quays apartment project have been settled in the Federal Court. ...
Wed 25th March 2009 - 07:34pm

Facebook vows improvements after user backlash
Faced with a torrent of complaints over its latest redesign- the social networking hub Facebook has vowed a series of improvements to eliminate clutter and make the website more user friendly. ...
Wed 25th March 2009 - 07:31pm

Financial crisis hits Australia Zoo
Queenslands Australia Zoo has announced is it cutting jobs and freezing expansion plans because of the current economic climate. ...
Wed 25th March 2009 - 07:22pm

New NAB chief takes aim at bastard image
The new head of the National Australia Bank NAB says banks only have themselves to blame for losing the trust of the community. ...
Wed 25th March 2009 - 06:39pm

Housing grant behind affordable home surge- Real Estate Institute
The Real Estate Institute of Queensland says there has been a surge in sales of homes costing less than $500-000. ...
Wed 25th March 2009 - 06:34pm

Mortgage payments 'falling in priority'
A survey has challenged the view that mortgage payments are a top priority- with about a third of respondents saying they'd skip a payment to pay their bills. ...
Wed 25th March 2009 - 06:29pm

ACCC approves Rio- Chinalco deal
The Australian competition watchdog has given the green light for Chinese state-owned Chinalco to take a strategic stake in Rio Tinto. ...
Wed 25th March 2009 - 06:27pm

ANZ to expand operations in China
Australia and New Zealand Banking Group has announced plans to expand its footprint in China as part of its push to become a regional banking power in Asia. ...
Wed 25th March 2009 - 06:25pm

Market up despite Wall St falls
Australian stocks have risen to their highest level since mid-January- despite falls on Wall Street overnight. ...
Wed 25th March 2009 - 06:10pm

More time for mine expansion comment
South Australians will have an extra six weeks to comment on a draft environmental impact statement EIS on a proposed expansion of the Olympic Dam mine. ...
Wed 25th March 2009 - 05:48pm

Stocks surge despite Wall Street falls
Australian stocks have risen to their highest level since mid-January- despite falls on Wall Street overnight. ...
Wed 25th March 2009 - 05:39pm

Bleak outlook for B -amp B investors
The administrators charged with sifting through the remains of Babcock -amp Brown Ltd B -amp B have offered little hope of returning value to its investors. ...
Wed 25th March 2009 - 05:31pm

Qantas axes 90 top management positions
Qantas has embarked on a second wave of redundancies- axing 20 per cent of its top management and maintaining a pay freeze for executives. ...
Wed 25th March 2009 - 05:30pm

Economic crisis 'may have bottomed'
National Australia Bank Ltd NAB chief executive Cameron Clyne says the global financial crisis may have bottomed in the US and UK- but he could not sure. ...
Wed 25th March 2009 - 05:22pm

NAB takes hard line on further rate cuts
National Australia Bank Ltd NAB chief executive Cameron Clyne says bank funding costs may continue to increase for the foreseeable futures. ...
Wed 25th March 2009 - 05:21pm

Australia shares close at 10-week high banks lead
MELBOURNE- March 25 - Australian shares rose 0.8 percent to a 10-week closing high on Wednesday- led up by the top banks on hopes a U.S. plan to rid banks of toxic assets would help to stabilise the global financial system. ...
Wed 25th March 2009 - 05:17pm

Fufeng Group Limited HKG-0546 Strong Performance in MSG and Xanthan Gum Market
Hong Kong- China- Mar 25- 2009 - ABN Newswire - During the financial crisis- Fufeng Group Limited HKG-0546 remains in a strong position in their financial profile and continue to maintain their leadership in MSG and Xanthan gum market. There are significant growths in company revenue rising from FY2007 RMB 2-445 million to FY2008 RMB 3-585 million and Earning per share rising from FY 2007 RMB 2.8c to FY 2008 RMB 17.75c. ...
Wed 25th March 2009 - 05:14pm

Aussie dlr retreats from highs risk appetite wanes
SYDNEY- March 25 - The Australian dollar recoiled from multi-month highs on Wednesday as investors turned wary about whether recent sharp gains can be sustained- after risk appetites appeared to wane once more. ...
Wed 25th March 2009 - 05:13pm

Polo licence expiry 'risk for Oroton '
The expiry of OrotonGroup's Polo Ralph Lauren licence could be an earnings risk for the retailer that reported a decent first half profit- analysts say. ...
Wed 25th March 2009 - 04:57pm

Beer sales expected to fall
Shares in alcoholic beverages firms were lower in intraday trading after federal parliament failed to validate a tax increase on ready-to-drink beverages. ...
Wed 25th March 2009 - 04:43pm

Murdoch regains top BRW rich list title
Rupert Murdoch has regained top spot in the annual BRW top 200 executive rich list- even though the crisis has eroded the value of executive stockholdings. ...
Wed 25th March 2009 - 04:34pm

Australian shares rise to ten-week closing high
MELBOURNE- March 25 - Australian stocks rose 0.8 percent to a ten-week closing high on Wednesday- led by banks amid optimism a plan to help rid U.S. banks of toxic assets could spark a recovery in the global financial sector. ...
Wed 25th March 2009 - 04:26pm

HealthLinx secures $3m from Copulus
Diagnostics developer HealthLinx Ltd has secured a new funding facility of up to $3 million from its largest shareholder- the Copulos Group. ...
Wed 25th March 2009 - 04:21pm

Swan guarantees states borrowing
The Federal Government has agreed to temporarily guarantee state borrowings in a bid to ensure major infrastructure projects can be funded as the global financial crisis threatens to derail key projects. ...
Wed 25th March 2009 - 04:21pm

ACCC wont oppose Chinalcos Rio bid
The competition regulator has announced it will not oppose Chinalcos proposal to lift its stake in Rio Tinto. ...
Wed 25th March 2009 - 04:15pm

Babcock and Browns administrators cant guarantee returns
Administrators for failed investment group Babcock and Brown say it is likely to be several months before the companys creditors will know if they will get any return on their money. ...
Wed 25th March 2009 - 04:11pm

Asian Markets Overview of March 25
Sydney- Australia- Mar 25- 2009 - ABN Newswire - Asian markets extended strong gains Tuesday. However- investors were still cautious although US shares jumped nearly 7 a day earlier. On Wednesday most major indices in Asia opened modestly lower following the weak lead of Wall Street.Asia Economy WatchSingapores Finance Minister said the nations economy is expected to bottom by the end of the third quarter. ...
Wed 25th March 2009 - 04:10pm

ACCC won't oppose Rio- Chinalco deal
The competition watchdog says it won't oppose plans by the Chinese government-owned Chinalco to buy a significant stake in global miner Rio Tinto. ...
Wed 25th March 2009 - 03:54pm

Credit crunch curbs appetite for debt
Australian households stopped taking on new debt after the global credit crunch struck in mid-2008- a new snapshot of the nation reveals. ...
Wed 25th March 2009 - 03:53pm

Qantas cuts 90 top management positions
Qantas will slash 20 per cent of its senior management jobs and maintain a salary freeze for executives as it battles against the global economic slowdown. ...
Wed 25th March 2009 - 03:47pm

Qantas cuts 90 top management positions
Qantas Airways will slash 90 senior executive jobs due to the global economic slowdown. ...
Wed 25th March 2009 - 02:59pm

Tram overpass work to start soon
Work on the South Road tram overpass at Glandore in Adelaide is to begin in May. ...
Wed 25th March 2009 - 02:57pm

Global crisis may be at end- NAB chief
National Australia Bank Ltd NAB chief executive Cameron Clyne says the global financial crisis may have bottomed in the US and UK- but he could not sure. ...
Wed 25th March 2009 - 02:56pm

Japanese exports plunge as demand falls
Japan has announced another record fall in exports as the global economic downturn crushes demand for its cars and high-tech goods. ...
Wed 25th March 2009 - 02:55pm

Tram overpass work to start soon
Work on the South Road tram overpass at Glandore in Adelaide is to begin in May. ...
Wed 25th March 2009 - 02:34pm

Tram overpass work to start soon
Work on the South Road tram overpass at Glandore in Adelaide is to begin in May. ...
Wed 25th March 2009 - 02:30pm

Obama rejects Chinas call for new global currency
WASHINGTON AFP - US President Barack Obama has defended the dollar as -amp quotextraordinarily strong -amp quot and rejected Chinas call for a new global currency as an alternative to the dollar. ...
Wed 25th March 2009 - 02:26pm

Govt guarantee shores up state infrastructure spending
The Federal Government has agreed to temporarily guarantee state borrowings in a bid to ensure major infrastructure projects can be funded as the global financial crisis threatens to derail key projects. ...
Wed 25th March 2009 - 02:21pm

Australias Qantas to axe 90 top posts
SYDNEYAFP AFP - Australian airline Qantas said Wednesday it will cut 90 senior management positions and maintain a salary freeze due to -amp quotcommercial challenges -amp quot posed by the global financial crisis. ...
Wed 25th March 2009 - 02:16pm

Qantas to slash 90 management jobs
Qantas has announced it will cut 90 senior management positions and maintain its salary freeze. ...
Wed 25th March 2009 - 02:13pm

Qantas to slash 90 management jobs
Qantas has announced it will cut 90 senior management positions and maintain its salary freeze. ...
Wed 25th March 2009 - 02:12pm

Australias Qantas to axe 90 management posts
SYDNEY AFP - Australian airline Qantas said Wednesday it will cut 90 senior management positions and maintain a salary freeze due to -amp quotcommercial challenges -amp quot posed by the global financial crisis. ...
Wed 25th March 2009 - 01:55pm

Qantas cuts 90 top management positions
Qantas Airways will slash 90 senior executive jobs due to the global economic slowdown. ...
Wed 25th March 2009 - 01:45pm

CityView Corporation Limited ASX-CVI Announces Joint Venture To Acquire Crude Oil Refinery
Perth- Australia- Mar 25- 2009 - ABN Newswire - CityView Corporation Limited ASX-CVIPINK-CTVWF announces today that the Board of Deanshanger Project Limited -amp quotDeanshanger -amp quot has granted its approval to participate in a joint venture -amp quotDPL Energy Limited -amp quot with CityView to acquire a crude oil refinery from Tagore Investments S.A. ...
Wed 25th March 2009 - 01:40pm

No guarantee yet for B -amp B investors
Administrators of the defunct Babcock -amp Brown Ltd B -amp B say it's too early to determine if investors will see any return on their money. ...
Wed 25th March 2009 - 01:36pm

Australian shares rise Island Sky- WDS gain
MELBOURNE- March 25 - Australias benchmark share index rose 0.8 percent on Wednesday- with gains in oil producers helping offset a fall on Wall Street- as optimism lingered that global economic woes can be alleviated. ...
Wed 25th March 2009 - 01:27pm

Obama touts economic progress
US President Barack Obama says he has seen signs of progress in the crippled economy but warns that recovery will take time and patience. ...
Wed 25th March 2009 - 01:19pm

Australian Market Report of March 25- Buying Spree Ends
Sydney- Australia- Mar 25- 2009 - ABN Newswire - Wall Street closed lower yesterday as investors locked in profits after the buying spree on the stock market Monday. Yesterday the Australian shares ended modestly higher despite a strong lead overseas. The market in late trading gave up some of its early gains as investors started to pocket their profits in recent rallies. The benchmark S -amp ampP-ASX200 index was up 0.8- or 29. ...
Wed 25th March 2009 - 01:19pm

Aussie dollar shies from highs awaits RBA speech
AUSTRALIAN CREDIT-FOREXSNAPSHOT FOREIGN EXCHANGE AT 0147 GMTagainst previous Sydney close AUD 0.6991-940.7062-66 AUDNZDR1.2391-4081.2350-66 AUDJPYR 68.50-55 6 ...
Wed 25th March 2009 - 12:53pm

Obama defends US dollar
US President Barack Obama has defended the American dollar as -amp quotextraordinarily strong -amp quot and rejected China's call for a new global currency as an alternative. ...
Wed 25th March 2009 - 12:52pm

Republic Gold Limited ASX-RAU Amayapampa Project Diamond Drilling Program Completed
Brisbane- Australia- Mar 25- 2009 - ABN Newswire - The Directors of Republic Gold Limited ASX-RAU today announce that the Company has completed the diamond drilling programme at Amayapampa Gold Project -amp quotProject -amp quot and has completed most of the surface trench and pit sampling programme. Further trench and pit sampling was required to extend the original work into new areas- not previously considered mineralised. ...
Wed 25th March 2009 - 12:45pm

Pike River Coal Limited NZE-PRC Ventilation Shaft Restoration Underway
Auckland- New Zealand- Mar 25- 2009 - ABN Newswire - Restoration of Pike River Coal Limiteds NZE-PRCPINK-PKRRF ventilation shaft- blocked by a rock fall in the lower 30 metre zone- is underway.An experienced Australian Alimak contractor has started work on driving a new shaft called an Alimak raise- to divert around the rock fall by intersecting the main shaft at about 50 metres above its base. ...
Wed 25th March 2009 - 12:43pm

Decision on Storm Financial due Thursday
Creditors of Storm Financial will have a clearer idea of the failed advisory firm's future on Thursday- when a court decides on a wind-up order. ...
Wed 25th March 2009 - 12:33pm

JPMorgan revises outlook on RBA rates
JPMorgan has revised its outlook for official interest rates- saying the RBA is likely to cut rates in the wake of further bad news on the global economy. ...
Wed 25th March 2009 - 12:26pm

ACL calls for urgent loan
The Launceston car parts manufacturer ACL Bearing is seeking an $8 million Government loan to prevent it from closing. ...
Wed 25th March 2009 - 12:23pm

ACL calls for urgent loan
The Launceston car parts manufacturer ACL Bearing is seeking an $8 million Government loan to prevent it from closing. ...
Wed 25th March 2009 - 12:20pm

Midday Market Roundup 25-03-09
The market is up 28 outperforming the 25 point fall predicted by the SFE Futures this morning. BHP and RIO both down 1.7 and 1.0. Financials and property both up - banks all up after yesterdays gains - NAB outperforming - up 4.1. Macquarie Group down 1.8 today - a couple of brokers suggest it has done its dash - Both Royal Bank of Scotland and Citi cut their recommendation to Hold from Buy due to its recent outperformance. The stock is up 47 so far this month.The Dow was down 115. Up 21 at best. Down 129 at worst. Held onto most of the gains from Mondays trading. No positive economic data or corporate data to lift the market. Financials down 6.5 - led the market down. Geithner asks Congress from more sweeping powers to close down failing companies. Energy and tech stocks down 2.2 and 1.6. Asian markets up. European markets mixed. -amp 160BHP and RIO both down in ADR form overnight - 5.37 and 2.10 respectively. Metals down. Oil up. Bonds down. A $ flat.No major announcements this morning.The ANZ- at the Asian investor conference- note the following points- Further rate cuts will take place in 2009. Seems likely the cash rate will fall to 2 by 2H09. Their underlying business is performing well. FY09 cash earnings expected to be around FY08 levels. Strong year-to-date deposit growth.Murchison Metals MMX give a litigation update.Woodside Petroleum WPL announce a price for their dividend reinvestment plan.DUET Group DUE said its 79.9 owned Multinet has secured funding to refinance $135 million in medium term notes.Citadel Resource Group CGG in a trading halt.Oil Search- Santos- Beach Petroleum and Eastern Star Gas flying on takeover speculations with consolidation in the Coal Seam Methane CSM space.Equinox EQNup another 5c to 222c this morning. It remains in uptrend and one of the best copper price exposures. Chinese Copper imports were up 44 in February in what looks like stockpiling ahead of the stimulus package kicking it much like iron ore at the end of last year. The copper price is up 27 from recent lows whilst LME stockpiles have dropped 8. EQN is up 50.Telstra - Suggestions a major institutional fund manager who lost a mandate has recently sold 200m shares...helping explain the recent share price weakness.Some people wondering why CSL has been such a poor performer. It seems 7 shareholders FMR LLC and FIL has been selling relentlessly on market...and they still have 6.Other...Merrill Lynch have downgraded Wesfarmers WES from Neutral to UNDERPERFORM on the back of coal prices and the expectation of lower returns from supermarkets after Woolworths -amp quotupped the ante....potentially putting its own returns at risk in order to strategically disadvantage its competition - namely Coles... we think a Coles turnaround is unlikely -amp quot. They say 2010-2011 will be tough years. They have a 1650c target price down from 1750c.Merrill Lynch have also downgraded WorleyParsons WOR to UNDERPERFORM on expectations that capital expenditure in the oil -amp 38 gas industry will fall 20 in 2009 and 18 in the metals -amp 38 mining sector. 85 of EBITDA come from those sectors.CPI inflation in the UK came in at 3.2 against expectations of 2.64th Q GDP Number Final out in the US tomorrow night. Expecting a 6.2 fall although some brokers forecasting -6.6. A weak number could potentially pop the recent bubble.McKinsey report that with a drop off in capex in the oil -amp 38 Gas sector over the last year and ahead we risk another oil price spike the moment the global economy starts to recover. -amp 160The Dow Jones futures suggest an 11 point rise on Wall Street tonight.Information provided to you by Marcus Today ...
Wed 25th March 2009 - 11:44am

Origin unveils carbon reduction plan
Origin Energy Ltd has unveiled plans to capture a portion of carbon dioxide output from the Lang Lang BassGas plant in Victoria for commercial reuse. ...
Wed 25th March 2009 - 11:43am

Barclays appoints Australian CEO
Barclays Global Investors BGI- one of the world's largest investment managers- has appointed Will Britten as chief executive of its Australian business. ...
Wed 25th March 2009 - 11:42am

WDS shares slump after profit downgrade
Shares in pipeline builder WDS Ltd slumped 19 per cent after the engineering group cut its full-year profit forecast. ...
Wed 25th March 2009 - 11:29am

Local market up in early trade
The Australian share market is trading higher- with strong performances by retail and financial stocks. ...
Wed 25th March 2009 - 11:25am

Magnetic Resources ASX-MAU 2KM Uranium Zone With Grades Up To 0.03 U3O8 At Lake Seabrook- WA
Perth- Australia- Mar 25- 2009 - ABN Newswire - Soil and auger sampling over a radiometric anomaly at Magnetic Resources ASX-MAU Lake Seabrook uranium project has identified a 2km-long uranium anomaly with values up to 293ppm 0.03 U3O8 in shallow salt lake sediments. ...
Wed 25th March 2009 - 11:21am

Kairiki Energy Limited ASX-KIK Enters Agreements To Farm-Out Its Mineral Tenements
Perth- Australia- Mar 25- 2009 - ABN Newswire - Kairiki Energy Limited ASX-KIKPINK-KAIRF is pleased to advise that it has entered into term sheet agreements to farm out its minerals tenements- as outlined below- to third parties effective immediately. ...
Wed 25th March 2009 - 11:19am

Locke confirmed as US commerce secretary
The US Senate has confirmed Gary Locke- the first ever Chinese-American governor of a US state- to be President Barack Obama's commerce secretary. ...
Wed 25th March 2009 - 10:54am

Google search gets semantic
Google has modified its globally popular internet search service to understand relationships between words. ...
Wed 25th March 2009 - 10:51am

UK PM calls for regulation- spending
Britain's Prime Minister Gordon Brown has called for global financial regulation and insists countries must spend to beat the crisis. ...
Wed 25th March 2009 - 10:50am

NZ telco hires hacker
A telecommunications company in New Zealand has hired a former computer hacker to give advice to its internet customers on how to avoid cyber-crime. ...
Wed 25th March 2009 - 10:39am

World hotel prices slump- survey
Hotel prices around the world fell in the fourth quarter of last year- with the steepest declines seen in the United States and Canada- a survey shows. ...
Wed 25th March 2009 - 10:33am

New Tourism Minister considers downturn challenges
The Member for Southport- Peter Lawlor- says the economic downturn is presenting serious challenges to the tourism industry. ...
Wed 25th March 2009 - 10:33am

Obama to tout economic progress
US President Barack Obama says he has seen signs of progress in the crippled economy but warns that recovery will take time and patience. ...
Wed 25th March 2009 - 10:32am

Sanyo predicts $1.3b loss
Japanese electronics giant Sanyo says it is expecting to post an annual net loss of $1.3 billion- although the company had earlier forecast a significant profit. ...
Wed 25th March 2009 - 10:32am

Australian shares little changed- BHP declines
MELBOURNE- March 25 - Australias benchmark share index was little changed on Wednesday- with declines in BHP Billiton BHP offsetting rises in banks- amid caution over whether U.S. government moves to shore up the economy will succeed. ...
Wed 25th March 2009 - 10:23am

WDS lowers profit forecast
Construction and contract mining firm WDS Ltd has cut its full-year profit forecast by as much as 22 per cent on delays in coal seam gas works. ...
Wed 25th March 2009 - 10:22am

Goldman Sachs hopes to return money soon
Goldman Sachs hopes to return its $US10 billion $A14.4 billion investment from the government as soon as possible. ...
Wed 25th March 2009 - 10:22am

Fall in commodity prices will affect budget- CCI
The West Australian Chamber of Commerce and Industry CCI says the states iron ore industry is well-placed to withstand any cut in commodities prices. ...
Wed 25th March 2009 - 10:17am

Obama pleads for patience with economy
US President Barack Obama says he has seen signs of progress in the crippled economy but warns that recovery will take time and patience. ...
Wed 25th March 2009 - 09:54am

Aussie ease on U.S. bank plan doubts eye RBA speech
SYDNEY- March 25 - The Australian dollar AUD retreated from multi-week highs on Wednesday as investors started to question the likely success of the U.S. governments plans to spend up to $1 trillion to rid banks of toxic assets. ...
Wed 25th March 2009 - 09:51am

Doubts over ground staff jobs
A Tasmanian company taking over Jetstars ground operations in Hobart and Launceston says it will not employ all of the airlines ground staff. ...
Wed 25th March 2009 - 09:33am

Union launches petition to keep ANZ jobs
As ANZ prepares to move 100 jobs to New Zealand from Australia- a union says ANZ's operation in NZ is sacking workers the bank had said would be redeployed. ...
Wed 25th March 2009 - 09:10am

US Govt seeks new financial regulatory powers
The US Government is moving to tighten financial regulations by asking Congress for the power to seize and- if necessary- close big non-bank institutions whose collapse could potentially devastate the US economy. ...
Wed 25th March 2009 - 08:56am

Global Trade To Fall in 2009
The Americans have finally started on fixing their stricken banks- which will spread to the dud ones in Europe- the UK and Japan and investors went wild with a huge market rally.But while this was happening there was a very timely reminder of the realties of the wider global economy.Fixing the broken US banking system and their hobbled peers in Europe- the UK and Japan- is the first order issue- halting the global recession and the slumps in all major economies wont get any traction until that is done.So while markets soared- we learned that as night follows day- if global growth is going to be negative- so will global trade.In fact global trade is facing its biggest ever fall this year.For a country dependant on trade like Australia- it is very gloomy news for a country who has built up its power and huge foreign exchange reserves off the back of being an export machine like China- it is also very gloomy news.That makes the news extra gloomy for Australia.The International Monetary Fund and the World Bank both reckon the global economy will see growth shrinking by between 0.5 and 1- perhaps a bit more. That would make the recession to deepest since The Great Depression.Now the World Trade Organisation sees world trade shrinking by a massive 9 this year- more than treble the 2.8 reduction forecast in January by a nervous IMF.The slump in trade- outlined by the WTO -amp 160in its look at world trade would be the biggest fall since World War 2.The World Bank estimated earlier this month that worldwide industrial production may fall by up to 15 in 2009- driving the contraction in global growth.The WTO said that in the wake of the -amp quotdramatic worsening -amp quot of the financial crisis in the last six months- real global output growth slowed by about half to 1.7 last year and will fall by between 1 and 2 this year. -amp quotThis is the first decline in total world production since the 1930s- and its impact is magnified in trade- -amp quot the report said. -amp 160 -amp quotBut WTO economists warn that the extraordinary turbulence of world markets in recent months and the continued uncertainty about the near-term trajectory of the global economy makes gauging the preliminary 2008 trade estimates and 2009 projections unusually difficult -amp quotThe report- along with the estimates from the IMF and World Bank- will be considered at the G-20 Leaders meeting next week- for a countries dependant on exports like Australia- Japan- Germany- South Korea- Taiwan- Brazil and a host of other nations- its a depressing read.The volume of developed country exports will fall 10 this year while trade-dependent developing countries will see export volumes shrink 2-3. - the WTO said. -amp quotEconomic contraction in most of the industrial world and steep export declines already posted in the early months of this year by most major economies - particularly those in Asia - make for an unusually bleak 2009 trade assessment- -amp quot the WTO said in its survey.The WTO said world trade dropped sharply in the last half of 2008 to show growth of just 2 over the whole year- after rising 6 in 2007. -amp 160December saw a dramatic plunge in trade volumes as major economies slumped into deep recessions with industrial production and exports falling sharply.Those falls have continued into January and February- according to the flow of economic figures from central banks and governments. If anything the fall has accelerated.Australian for instance faces a $A20 billion drop in the value of coal exports from next Wednesday- April 1- as new pricing for coking and thermal coal contracts kicks in- iron ore will see around $A10 billion dropped off- according to the most pessimistic of forecasters.WTO Director-General Pascal Lamy noted in the report that production of many goods is sourced all over the world- so there is a multiplier effect- with trade falling even faster as demand drops. -amp quotGovernments must avoid making this bad situation worse by reverting to protectionist measures which in reality protect no nation and threaten the loss of more jobs- -amp quot Lamy said.He said the use of protectionist measures- now being monitored by the WTO- was on the rise and risked choking off trade as an engine of recovery.Since the recession began to take hold in the last quarter of 2008 there has been little cause for optimism about the trade outlook in 2009 the financial crunch and banking crisis have choked off the flow of trade credit- slumping asset prices and rising unemployment have forced consumers to cut purchases of cars- consumer goods- mobile phones- computers etc- business has chopped its investment plans- hurting a widening range of suppliers- and weak commodity prices are hurting a range of countries from Australia to countries in Africa.In US dollar terms world merchandise goods exports rose 15 in 2008 to $US15.8 trillion- while exports of services rose 11 to $US3.7 trillion. Germany was again the worlds biggest exporter in 2008- with merchandise exports of $US1.47 trillion- just ahead of China at $US1.43 trillion.For Australia- the WTO comments on China bear reading- -amp quotNot even China- with its dynamic economy- can insulate itself from global downturn when most of its main trading partners are in recession. -amp quotChinas exports to its top six trading partners treating the EU as a single partner represented 70 of the countrys total exports in 2007. -amp quotAll of these trading partners are currently experiencing economic contraction or slowdown and are likely to exhibit weak import demand for some time. -amp quotThats the other gloomy news for Australia. ...
Wed 25th March 2009 - 08:49am

Wall St ends lower amid investor hesitations
Wall Street has not managed to extend yesterdays strong gains- with investors taking time out to gauge if the US Governments plans to shore up the economy will be enough. ...
Wed 25th March 2009 - 08:48am

OrotonGroup Outperforms Competition
Luxury retailer OrotonGroup has posted a 20 lift in first-half profit and says it has a healthy foundation for future growth.The sharp improvement is in contrast to the gloomy news coming from other companies in the same retail sector in offshore economies- such as Tiffanys which reported a 76 slump in quarterly profit this week.OrotonGroups shares rose sharply on the news- finishing up 41c- or 18.6- to $2.70.The clothing and accessories company said net profit was $12.5 million for the half year to January 24- compared with $10.4 million in the prior corresponding period.That puts it on track to top the $16.7 million earned in 2008- which was up 76 from the previous years depressed results.Revenue was up 11.4 to $74.36 million after being ahead 10 in the first few of months of the year when the AGM was held in early December.It was a very different result to that reported overnight in the US by the larger luxury group- Tiffanys.Tiffanys turned to Warren Buffett for $US250 million in financial help earlier this year- the 76 drop in quarterly earnings made that easier to understand.Same store sales at US outlets open at least a year contracted by a third- more than in Europe or Asia- in the quarter and net profit fell to $US31.1 million- on revenues that dropped 20 in the quarter.The company lowered its outlook and forecast an 11 fall in revenues over the rest of the year.Tiffany had 206 stores and boutiques- worldwide including 76 in the US. One in New York is said to have been responsible for up to 10 of all sales. -amp 160But bankers- brokers and others have cut back on their purchases of trinkets and baubles- as have their trophy wives- partners and others who are no longer rich. Mortgage payments now rank higher than a trinket from Tiffanys.Against that result and similar ones from other upmarket retailers and supplier- the OrotonGroup performance was pretty solid.Its also a very different result from the small rises in profit and lower sales reported by Myer and especially David Jones.Chief executive Sally Macdonald said the result was pleasing in what was considered to be the weakest economic climate for many years. -amp quotCoupled with the structural changes that we have implemented over the past 24 months- and our focused strategy of being leaders within our competitive segments- we have a healthy foundation for the future- -amp quot she said in a statement to the ASX.A cost reduction program announced in fiscal 2007 had helped drive expenses down to 47 of sales in the first half- from 50.3 of sales at the same time last year.OrotonGroup increased its interim dividend to 16c fully franked- from 15c in the first half of 2008. -amp quotThe increased interim dividend reflects the strength of the companys position today with minimal bank debt- strong cash flow generation and a healthy balance sheet- -amp quot the company said in yesterdays statement.Like-for-like sales for the group rose 12- compared to growth of 14 in first half of 2008- with like for like sales for the Oroton brand up 20 and Polo Ralph Lauren sales 5 higher. -amp quotOur like for like results demonstrate the strength of our assets as well as our ability to navigate through volatile trading conditions- -amp quot Ms Macdonald said.Group earnings before interest and tax was $18 million- up 17.8- as the EBIT margin improved to 24.5 of sales from 23.3.The group opened ten new stores and closed two stores in the half- taking the total number of stores from 59 to 67. -amp 160More are being opened this half. ...
Wed 25th March 2009 - 08:46am

Govt considers lifeline for abattoir
The Tasmanian Government has not ruled out paying for power and waste treatment at the King Island abattoir. ...
Wed 25th March 2009 - 08:45am

Myer Up
Australias other department store operator Myer Group has reported 2.3 rise in first half net profit- after a fall in sales as consumers tightened their belts.The group says it expects more of the same this half- with sales down around 2.5 in the first few weeks of the current half.Myer is owned by private equity group- TPG- the Myer family and management.The retailer said net profit for the six months to January -amp 16024 was $79.84 million- up from $78.02 million in the first half of fiscal 2008. -amp 160Group sales revenue was $1.54 billion- down from $1.63 billion- excluding GST charges and revenue deferred under customer loyalty programs.Goods sales totalled $1.76 billion- down 3.7- as previously announced in the sales statement last month.First half earnings before interest and tax EBIT rose 6.3 to $161.30 million- from $151.76 million.Myer said in its profit statement that -amp quotThe half of saw sales budgeted to fall 5- but ultimately fell 3.7. -amp quotThe outlook for the balance of FY09 is not dissimilar to the first half and we are planning for a slight further deterioration in sales to be down 5. To date in H2 FY09- sales have been down around 2� . -amp quotWe confirm previous guidance- anticipating that FY09 profits are likely to be similar to FY08- demonstrating the relative resilience of Myers business model to the current challenging market conditions. -amp quotWe remain on track to deliver full year EBIT of 7 cents in the dollar at the end of the Turnaround Phase in July 2010 up from 1.8 cents at acquisition- as previously advised- -amp quot the company said yesterday. -amp quotThe half-year was characterised by weak consumer sentiment and a downward spiral in equity markets. -amp quotLower interest rates on mortgages- some relief in petrol prices and the December stimulus package- did not alleviate the decline in consumer spending patterns- particularly in the discretionary areas. -amp quotCosmetics- womenswear and accessories were strong- benefiting from our large and growing range of Australian and international brands and designers. -amp quotHomeware and furniture categories did not perform as well- reflecting a consumer willing to delay larger discretionary and luxury purchases. -amp quotAs consumer sentiment deteriorated- Myers strategy was to increase targeted promotional sales- improve store appearance and shift advertising to price points- which was rewarded with an improved second quarter. -amp quotSales declined 3.7 to $1.762 billion in the first half-year- with a drop of 4.8 in quarter one and 2.8 in quarter two as our strategy encouraged Christmas and Stocktake sales spending- aided to a degree by the Government stimulus. -amp quotThe business also benefited from an improved in-stock position and better in-store execution. -amp quotLike-for-like sales declined 3.7- after taking into consideration four new stores and the refurbishment of our Geelong- Doncaster and flagship stores in Melbourne and Sydney. -amp quotSales in Queensland- Western Australia and New South Wales were resilient with Victoria being much tougher. Specific stores in lower socio economic catchments continue to underperform the average. -amp quotCapital expenditure was up 38 to $57 million in the first half. Net debt was steady on $652 million and Myer had $244 million in cash as at January 24. -amp quotNet debt increased slightly to $652 million from $643 million in January 2008- following a significant reduction from $979 million at acquisition. All banking covenants are comfortably met and no debt repayments are due for 3 � years. -amp quotWe have $224 million cash on deposit and a $250 million committed revolving credit line was unused at the half-year end. -amp quotGiven the strong cash position- $250 million in unused working capital facilities and comfortable debt covenants- we see no reason at this stage to slow down our capital expenditure program. -amp quotHowever- we do have flexibility built into our plans should we decide to make adjustments in the future. -amp quotWe remain committed to our store expansion program- which will see the Myer chain of stores grow from 60 stores at acquisition to 80. -amp quotWe currently have 65 stores and construction of our new store at Top Ryde in NSW has commenced. -amp quotThis follows the opening of four new stores in 2008- which are trading in line with expectations. During FY08 we signed nine leases for new stores. -amp quotWe are experiencing several landlord delays and others could arise as a result of issues facing the property sector. As such we have built flexibility into our planning. -amp quotWe continue to make good progress in our refurbishment program- with our Geelong- Doncaster and Sydney store refurbishments completed during the period. -amp quotThis program reflects our long-term focus and aims to reinforce the Myer brand proposition- while at the same time supporting future sales growth. -amp quotThe refurbishment of our Myer Sydney store to international class standard was completed in time for Christmas. -amp quotThe major rebuild of Myer Melbourne is progressing with phased delivery of the store due to commence and work has recently begun on the refurbishment of our stores in Castle Hill and Blacktown. -amp quot -amp 160 ...
Wed 25th March 2009 - 08:44am

Mining- OZL- Pure- New Hope
Shares in debt-ridden Melbourne miner- OZ Minerals finished down yesterday- but not out as investors reacted negatively to the delay from the Foreign Investment Review Board to the $2.6 billion takeover offer from Chinas Minmetals.OZ shares plunged 15 at the opening yesterday to a low of 50c- before they struggled higher to end at 53.5- a loss of 9.3 on the day.The FIRB inquiry was extended to June 22- leaving OZ Minerals- the worlds second-biggest zinc miner- at the mercy of its lenders to extend a March 31 deadline on $1.3 billion in debt or face collapse.The shares are now about 39 below the 82.5c a share offered by Minmetals- reflecting uncertainty over the deals fate.Investment analysts- lobbyists and academics- expect the deal to be approved eventually- possibly with conditions as it involves a full takeover by a state-owned Chinese company.Deutsche Bank analysts told clients yesterday that FIRBs extension could be because of concerns over the ownership of assets by a Chinese state-owned firm.The analysts also suggested that FIRB needed time to assess the deal and apply appropriate conditions- likely to be job retention related. -amp quotThe delay was unexpected- however we assume the deal will be approved by June 22 with major job losses the likely outcome if FIRB rejects Minmetals bid- -amp quot Deutsche said in a client note.National Party politician- Barnaby Joyce has lumped Minmetals deal in with the more controversial deal of Chinalcos $US19.5 billion tie-up with global miner Rio Tinto.Thats also being reviewed by FIRB and has been extended.OZs minerals are not as strategic as Rio Tintos iron ore and other mining assets being world class mines- but the approval and need for cash is far more important. . ...
Wed 25th March 2009 - 08:43am

Fed to begin buying US government debt
The Federal Reserve this week will begin buying up to $US300 billion $A425.68 billion in government debt- an effort aimed at lowering interest rates. ...
Wed 25th March 2009 - 08:39am

Google search gets semantic
Google has modified its globally popular internet search service to understand relationships between words. ...
Wed 25th March 2009 - 08:37am

Late rush tipped for best job in the world vote
Tourism Queensland says more than 460-000 people have voted on the wildcard entries for the best job in the world campaign and they are expecting a last minute rush before the cut-off this morning. ...
Wed 25th March 2009 - 08:35am

Deutsche Bank CEO compensation falls 90
Deutsche Bank AG said that compensation for Chief Executive fell 90 per cent in 2008- as he and the company's four other top managers refused bonuses. ...
Wed 25th March 2009 - 08:33am

Ford CEO compensation valued at $25m
Ford Motor Co President and CEO received compensation valued at $US17.7 million $A25.12 million in 2008- down more than 22 per cent from the prior year. ...
Wed 25th March 2009 - 08:31am

Bankruptcy becoming middle class phenomenon
Australias bankruptcy rates have increased by 261 per cent over nearly 20 years- according to a study by the Melbourne Law School. ...
Wed 25th March 2009 - 08:24am

EU finance chief backs US dollar
A top European economic official says the US dollar will remain unchallenged as the top reserve currency- despite China's challenge. ...
Wed 25th March 2009 - 07:53am

US seeks power to shut collapsed firms
US Treasury and Federal Reserve chiefs asked Congress for unprecedented powers to seize financial companies in a bid to maintain economic stability. ...
Wed 25th March 2009 - 07:50am

Zimbabwe says US dollar prices falling
Zimbabwe officials said that consumer prices fell- in the first sign that a switch to the US dollar has tamed the devastating hyperinflation of recent years. ...
Wed 25th March 2009 - 07:18am

Obama wants to shut collapsed firms
US President Barack Obama will ask Congress to hand him the power to close collapsed finance firms outside the banking sector which pose an economic risk. ...
Wed 25th March 2009 - 07:18am

British inflation shoots higher
British 12-month inflation climbed to 3.2 per cent in February from 3.0 per cent in January owing to higher food and drink prices- official data shows. ...
Wed 25th March 2009 - 07:17am

US finance chiefs face bailout questions
The Federal Reserve chairman and the secretary of the treasury are expected to answer questions on the latest bank bailout efforts in a rare joint appearance. ...
Wed 25th March 2009 - 07:14am

Oil prices dip after striking four-month highs
LONDON AFP - Oil prices slid Tuesday on profit-taking after hitting four-month peaks a day earlier as investors cheered a US government plan to clear toxic assets from bank balance sheets. ...
Wed 25th March 2009 - 06:33am

Ryanair to expand in Spain despite crisis- OLeary
MADRID AFP - Irish low-cost airline Ryanair is to open 39 new Spanish routes in 2009 despite a sharp drop in tourism due to the global economic crisis- chief executive Michael OLeary said Tuesday. ...
Wed 25th March 2009 - 05:14am

French govt to block Valeo boss golden parachute
PARIS AFP - The French government vowed Tuesday to oppose a -amp quotgolden parachute -amp quot for the departing boss of troubled auto parts supplier Valeo at the centre of a fresh row over executive perks at bailed-out firms. ...
Wed 25th March 2009 - 04:29am

Zimbabwe says US dollar prices falling
HARARE AFP - Zimbabwe said Tuesday that US dollar prices are falling after years of hyperinflation- as the national statistics agency said it had stopped calculating data in the now-obsolete local currency. ...
Wed 25th March 2009 - 04:12am

Russia-Ukraine tensions flare after EU gas deal
MOSCOW AFP - Russia Tuesday shelved planned governmental talks with Ukraine after its West-leaning neighbour signed a gas network agreement with the European Union that prompted fury in Moscow. ...
Wed 25th March 2009 - 03:10am

US Fed- Treasury urge overhaul of financial rules
WASHINGTON AFP - US Treasury and Federal Reserve chiefs on Tuesday asked Congress to overhaul rules giving them authority to also seize non-bank financial companies whose collapse could devastate the economy. ...
Wed 25th March 2009 - 02:57am

South Africa cuts rates by full point to 9.5
JOHANNESBURG AFP - The South African Reserve Bank on Tuesday cut its benchmark interest rate by a full point to 9.5 percent- citing an improved inflation outlook and worries over the global economic slowdown. ...
Wed 25th March 2009 - 02:45am

Bulgarian winemakers look upmarket to fight crisis
PLOVDIV- Bulgaria AFP - Bulgarian winemakers are hoping that a move upmarket will win them new customers in Europe and as experts warn that sales to Russia- traditionally their biggest market- are in decline. ...
Wed 25th March 2009 - 01:38am

EU nations agree mobile phone tariff cuts
STRASBOURG AFP - The 27 EU nations and Euro MPs on Tuesday agreed new cuts to mobile phone tariffs for visitors in Europe- fixing the maximum cost of a -amp quotroaming -amp quot call at 35 cents a minute from 2011. ...
Wed 25th March 2009 - 01:16am

French govt to block Valeo boss golden parachute
PARIS AFP - The French government vowed Tuesday to oppose a golden parachute for the departing boss of troubled auto supplier Valeo at the centre of a fresh row over executive perks at bailed-out firms. ...
Wed 25th March 2009 - 12:59am

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