SYDNEY, Oct 23 (Reuters) - Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Leading mining company BHP Billiton<BLT.L> said yesterday its capital investment program would remain in place despite China's decelerating economic growth rate. 'We remain confident that the ongoing industrialisation and urbanisation of China...will continue to drive strong longer term demand,' BHP said. The upbeat assessment came in the wake of the announcement by takeover target Rio Tinto<RIO.L> that it was reviewing its capital expenditure after China's growth rate dropped below 10 percent for the first time in five years. Page 22.
Global iron ore producers BHP Billiton, Rio Tinto and Brazil's Vale have sent senior representatives to a major international commodities conference in China despite being excluded from the conference agenda for the first time in eight years. The 8th China International Steel and Raw Materials Conference in Qingdao, a key event in the lead up to iron ore price negotiations, has this year changed its focus to new suppliers. West Australian company Fortescue Metals Group <FMG.AX> is among the few iron ore producers invited. Page 22.
Troubled rail and ports operator Asciano has received a fresh approach from prospective buyers TPG and Global Infrastructure Partners, which made an unsolicited A$2.9 billion offer for the heavily indebted company in August. Asciano chairman Tim Poole said the two private equity firms contacted the company on Monday. 'They at some point in the future may like to have another discussion, and we left it at that,' Mr Poole said. He said the two takeover aspirants had promised they would not launch a hostile bid. Page 23.
Seven Network has introduced an online weather channel for its American digital video recorder, TiVo. The 24/7 Sunrise Weather channel is the first new service for the Internet-enabled device since Seven launched the A$699 TiVo in July, offering free-to-air television channels. The chief executive of Seven's TiVo sales division, Robbee Minicola, said yesterday that the new channel 'demonstrates how a once-only purchase of a TiVo media device can drive continued value without any need for subscription services'. Page 23.
THE AUSTRALIAN (www.theaustralian.news.com.au)
A restructure by Australia and New Zealand Banking Group <ANZ.AX> announced last month is expected to reduce more staff numbers than the previous estimate of 500 job cuts. It is now understood the restructure, which will reorganise the bank along regional lines and reduce the number of management layers to seven from 12, will cause at least 1000 staff losses as the ANZ moves to cut costs in the face of the credit crisis. An ANZ spokesman said yesterday the bank would focus on getting into 'the best possible shape' to weather the economic slowdown. Page 17.
The embattled Premium Income Fund (PIF) has reported its first share trade with a parcel of shares worth A$35,000 after its float a week ago. Prior to the collapse of MFS, PIF units were valued at A$1 each, but yesterdays sale at 45 cents was considered reasonable given the price represented the three-year target share price set by Wellington Capital, PIFs new manager. An analyst at Property Investment Research said the lack of interest in the fund, formerly managed by failed financier MFS, 'shows market sentiment is just non-existent.' Page 17.
Coalminer Macarthur Coal yesterday reported a 19 percent increase in first-quarter output at its Queensland mines. Macarthur said production was recovering from the impact of floods at its Coppabella mine earlier this year, but sales had dropped to 1.09 million tonnes from 1.23 million tonnes because of depleted stockpiles. An ABN AMRO analyst said the production report generated a 'good and robust' commentary on the market as Macarthur's share price rose 10 percent to finish the day at A$7. Page 18.
A dispute over gas prices between West Australian gas retailer Alinta and participants in the North West Shelf joint venture has moved to arbitration. The dispute arose following an attempted gas price increase by the venture participants as a result of a change in market conditions. Alinta, a subsidiary of Babcock & Brown Power, buys gas at wholesale before selling at a retail margin. BBP said yesterday the confidential arbitration process would 'most likely become public over the course of the next few weeks'. Page 22.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Following pressure from investors, Macquarie Group yesterday moved to make public its management agreements with satellites Macquarie Airports, Macquarie Infrastructure Group and Macquarie Communications. Macquarie also announced that its executives would no longer sit on the boards of the listed funds, giving investors the right to nominate their own directors. The moves, which increase the possibility of the funds being taken over, have been praised by corporate governance advisers. Page 27.
Australian exports of aluminium oxide, the country's third largest mineral export, are expected to be hit as aluminium producers in China move to cut back production is the face of a deteriorating export outlook for the metal and a deepening construction downturn. The price of aluminium has fallen 38 percent since July, and it is believed the average cost of production in China is already 16 percent above the spot price. One industry expert said the poor outlook for aluminium will continue until the end of 2010. Page 28.
Shares in online recruitment website Seek are under pressure because of expectations that the global economic malaise will suppress employment demand. Despite arguments by the James Packer-backed company that it would benefit from the increasing trend towards Internet classified advertising and advertisers' preference for cheaper media amid the slowdown, Seek shares yesterday dropped 28 cents to close at A$4.15. A Deutsche Bank analyst said demand for Seek's major job categories had declined 10 percent over the past year. Page 31.
THE AGE (www.theage.com.au)
The Federal Government's bank deposit guarantee could have an adverse effect on the property market, mortgage finance companies have warned. Mortgage fund manager Perpetual said yesterday that redemption requests from its A$2 billion Wholesale Monthly Income Fund had increased slightly in the wake of the deposit guarantee. Perpetual head of investments, Richard Brandweiner, said the ability of non-bank funds to lend money to property developers was being affected. Page B1.
The European Commission may make an early decision on BHP Billiton's A$109 billion takeover bid for an unwilling Rio Tinto, according to speculation yesterday. However, European Union observers were sceptical the antitrust ruling, due by January 15, could be made as speedily as the approval of regulators in Australia and the United States. The rumours caused Rio Tinto's share price to climb 5.4 percent to A$78.40, while BHP Billiton's shares finished the day down 7 percent at A$27.25. Page B1.
Australias business leaders will attempt to raise awareness of the United Nations Millennium Development Goals at a summit that opens in Melbourne tomorrow. Prominent companies including Macquarie Bank, ANZ Bank, IBM, KPMG and IAG will be represented at the Business for Millennium Development summit, which will focus on promotion of human rights and poverty alleviation. The event's chief executive, Mark Ingram, said 'the summit is designed...to transplant a global movement here to Australia.' Page B1.
An Australian energy expert has proposed the creation of a scheme that would allow coal exporters to pay farmers to store carbon in plants and the soil, enabling the companies to promote their coal as carbon neutral. Andrew Richards said payments could similarly be made to renewable energy developers, resulting in a 'green' label for Australian coal comparable to 'the Heart Foundation tick of approval'. Australia last year exported A$24 billion worth of coal, making it the world's biggest coal exporter. Page B2. -- . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Leading mining company BHP Billiton<BLT.L> said yesterday its capital investment program would remain in place despite China's decelerating economic growth rate. 'We remain confident that the ongoing industrialisation and urbanisation of China...will continue to drive strong longer term demand,' BHP said. The upbeat assessment came in the wake of the announcement by takeover target Rio Tinto<RIO.L> that it was reviewing its capital expenditure after China's growth rate dropped below 10 percent for the first time in five years. Page 22.
Global iron ore producers BHP Billiton, Rio Tinto and Brazil's Vale have sent senior representatives to a major international commodities conference in China despite being excluded from the conference agenda for the first time in eight years. The 8th China International Steel and Raw Materials Conference in Qingdao, a key event in the lead up to iron ore price negotiations, has this year changed its focus to new suppliers. West Australian company Fortescue Metals Group <FMG.AX> is among the few iron ore producers invited. Page 22.
Troubled rail and ports operator Asciano has received a fresh approach from prospective buyers TPG and Global Infrastructure Partners, which made an unsolicited A$2.9 billion offer for the heavily indebted company in August. Asciano chairman Tim Poole said the two private equity firms contacted the company on Monday. 'They at some point in the future may like to have another discussion, and we left it at that,' Mr Poole said. He said the two takeover aspirants had promised they would not launch a hostile bid. Page 23.
Seven Network has introduced an online weather channel for its American digital video recorder, TiVo. The 24/7 Sunrise Weather channel is the first new service for the Internet-enabled device since Seven launched the A$699 TiVo in July, offering free-to-air television channels. The chief executive of Seven's TiVo sales division, Robbee Minicola, said yesterday that the new channel 'demonstrates how a once-only purchase of a TiVo media device can drive continued value without any need for subscription services'. Page 23.
THE AUSTRALIAN (www.theaustralian.news.com.au)
A restructure by Australia and New Zealand Banking Group <ANZ.AX> announced last month is expected to reduce more staff numbers than the previous estimate of 500 job cuts. It is now understood the restructure, which will reorganise the bank along regional lines and reduce the number of management layers to seven from 12, will cause at least 1000 staff losses as the ANZ moves to cut costs in the face of the credit crisis. An ANZ spokesman said yesterday the bank would focus on getting into 'the best possible shape' to weather the economic slowdown. Page 17.
The embattled Premium Income Fund (PIF) has reported its first share trade with a parcel of shares worth A$35,000 after its float a week ago. Prior to the collapse of MFS, PIF units were valued at A$1 each, but yesterdays sale at 45 cents was considered reasonable given the price represented the three-year target share price set by Wellington Capital, PIFs new manager. An analyst at Property Investment Research said the lack of interest in the fund, formerly managed by failed financier MFS, 'shows market sentiment is just non-existent.' Page 17.
Coalminer Macarthur Coal yesterday reported a 19 percent increase in first-quarter output at its Queensland mines. Macarthur said production was recovering from the impact of floods at its Coppabella mine earlier this year, but sales had dropped to 1.09 million tonnes from 1.23 million tonnes because of depleted stockpiles. An ABN AMRO analyst said the production report generated a 'good and robust' commentary on the market as Macarthur's share price rose 10 percent to finish the day at A$7. Page 18.
A dispute over gas prices between West Australian gas retailer Alinta and participants in the North West Shelf joint venture has moved to arbitration. The dispute arose following an attempted gas price increase by the venture participants as a result of a change in market conditions. Alinta, a subsidiary of Babcock & Brown Power, buys gas at wholesale before selling at a retail margin. BBP said yesterday the confidential arbitration process would 'most likely become public over the course of the next few weeks'. Page 22.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Following pressure from investors, Macquarie Group yesterday moved to make public its management agreements with satellites Macquarie Airports, Macquarie Infrastructure Group and Macquarie Communications. Macquarie also announced that its executives would no longer sit on the boards of the listed funds, giving investors the right to nominate their own directors. The moves, which increase the possibility of the funds being taken over, have been praised by corporate governance advisers. Page 27.
Australian exports of aluminium oxide, the country's third largest mineral export, are expected to be hit as aluminium producers in China move to cut back production is the face of a deteriorating export outlook for the metal and a deepening construction downturn. The price of aluminium has fallen 38 percent since July, and it is believed the average cost of production in China is already 16 percent above the spot price. One industry expert said the poor outlook for aluminium will continue until the end of 2010. Page 28.
Shares in online recruitment website Seek are under pressure because of expectations that the global economic malaise will suppress employment demand. Despite arguments by the James Packer-backed company that it would benefit from the increasing trend towards Internet classified advertising and advertisers' preference for cheaper media amid the slowdown, Seek shares yesterday dropped 28 cents to close at A$4.15. A Deutsche Bank analyst said demand for Seek's major job categories had declined 10 percent over the past year. Page 31.
THE AGE (www.theage.com.au)
The Federal Government's bank deposit guarantee could have an adverse effect on the property market, mortgage finance companies have warned. Mortgage fund manager Perpetual said yesterday that redemption requests from its A$2 billion Wholesale Monthly Income Fund had increased slightly in the wake of the deposit guarantee. Perpetual head of investments, Richard Brandweiner, said the ability of non-bank funds to lend money to property developers was being affected. Page B1.
The European Commission may make an early decision on BHP Billiton's A$109 billion takeover bid for an unwilling Rio Tinto, according to speculation yesterday. However, European Union observers were sceptical the antitrust ruling, due by January 15, could be made as speedily as the approval of regulators in Australia and the United States. The rumours caused Rio Tinto's share price to climb 5.4 percent to A$78.40, while BHP Billiton's shares finished the day down 7 percent at A$27.25. Page B1.
Australias business leaders will attempt to raise awareness of the United Nations Millennium Development Goals at a summit that opens in Melbourne tomorrow. Prominent companies including Macquarie Bank, ANZ Bank, IBM, KPMG and IAG will be represented at the Business for Millennium Development summit, which will focus on promotion of human rights and poverty alleviation. The event's chief executive, Mark Ingram, said 'the summit is designed...to transplant a global movement here to Australia.' Page B1.
An Australian energy expert has proposed the creation of a scheme that would allow coal exporters to pay farmers to store carbon in plants and the soil, enabling the companies to promote their coal as carbon neutral. Andrew Richards said payments could similarly be made to renewable energy developers, resulting in a 'green' label for Australian coal comparable to 'the Heart Foundation tick of approval'. Australia last year exported A$24 billion worth of coal, making it the world's biggest coal exporter. Page B2. -- . ng COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.