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)
Not published Jan 2
THE AUSTRALIAN (www.theaustralian.news.com.au)
Investment banks in Australia have cut hundreds of jobs in the past few weeks after the number of corporate transactions fell dramatically due to the global financial crisis. The number of deals performed by the banks during 2008 was only a third of the number completed during 2007. Despite this, bankers believe the sector will recover this year, with UBS's co-head of investment banking, Guy Fowler, saying blue chip companies are looking for acquisitions and will be able to take advantage of the weak. Page 15.
ING has advised investors in its OneAnswer superannuation platform that a fund in which a portion of their investments is placed has frozen redemptions for up to a year. The A$1.4 billion fund, run by AMP Capital, froze withdrawals on October 10. Although distributions from the allocated pension will not be disrupted, ING advised investors that withdrawals from, and switches to, this fund are temporarily suspended. AMP Capital is Australia's largest arranger and manager of fixed income investments. Page 16.
Troubled Australian miner OZ Minerals is believed to be trying to sell its Martabe gold project in Indonesia by the middle of this month as the company seeks to pay off lenders. OZ may receive more than US$250 million for the project, although it has recently been valued at less than this by analysts at Deutsche Bank and Citi. OZ chief executive Andrew Michelmore said the company was seeking to pay lenders before a deadline at the end of February without losing control of its Prominent Hill copper and gold project. Page 16.
Qantas Airways may cut its Sydney to Mumbai service after a disagreement with the Australian and International Pilots Association over meal allowances. The union refused to renew a concession which allowed pilots to fly longer hours than those outlined in the pilots' enterprise agreement. Flights to Mumbai from Sydney must now change crews in Melbourne before continuing to Mumbai. The union said Qantas had only asked for the concession to be extended the day before it was due for renewal. Page 17.
THE SYDNEY MORNING HERALD (www.smh.com.au)
After spending the past two months helping receivers Ferrier Hodgson with the winding down of asset and fund manager Allco Finance Group, David Clarke has ended his association with the company. Mr Clarke joined Allco as chief executive 18 months ago, and last year helped to create a plan which would have reduced the group's debts through asset sales. The plan failed after the financial crisis made such asset sales unachievable, and receivers were appointed at the start of November. Page 23.
Babcock & Brown Wind Partners (B&B Wind) has ended its management agreement and exclusive financial advisory agreement with former parent company Babcock & Brown (B&B) . B&B Wind's senior management team will retain their current roles and are now directly employed by B&B Wind. B&B had previously been paid a substantial fee for managing the company. B&B Wind is expected to soon complete moves reducing its portfolio to 41 wind farms in four countries. Page 23.
Analysts say the next reporting season for company results in February is likely to produce disappointing figures as falling consumer and industrial sales, lower business investment and confidence, and rising unemployment affect profits. However, analysts also believe that the market is starting to give a better indication of the absolute value of companies. Combined with a number of indicators which are seen as cautiously optimistic, analysts say it may be a good time for investors taking a long term view. Page 23.
THE AGE (www.theage.com.au)
The cost of toilet paper is likely to rise as a result of anti-dumping legislation aimed at preventing cheap imports from hurting local manufacturers. An Australian Customs Service investigation found that imported toilet papers were undercutting local manufacturers' prices by as much as 40 percent and Kimberley-Clark Australia and SCA Hygiene Australasia have complained over toilet paper 'dumping'. Many cheap imports are from China and India and have been sold as the Select brand in Woolworths and Safeway supermarkets. Page B10.
National Australia Bank's (NAB) Cameron Clyne has officially taken over from John Stewart as chief executive of the group, after effectively running the bank since November 2008. Mr Clyne, 40 years old, joined NAB in late 2004 to introduce Six Sigma across the organisation, and gradually moved into running his own line business in New Zealand in 2007. The new boss says he is ready for the future and has 'one clear, unambiguous goal and that is to improve total shareholder return of the group.' Page B10.
Analysts say Australian commercial television networks are likely to face increasing challenges as they delay creating strategies to respond to viewer and advertiser fragmentation. The networks are starting to lose viewers to both pay TV and the internet, a situation which will continue to worsen with the creation of the national broadband network. Industry observers have accused the networks of wasting current opportunities for digital multi-channelling, while asking for further digital spectrum. Page B11.
Mark Poynter, a member of the Institute of Foresters of Australia, has accused the Victorian Government of placing the stateÂ’s timber industry in jeopardy by creating four new national parks in northern Victoria. Mr Poynter also said the creation of the parks is little more than a symbolic gesture towards the electorate's concerns over environmental issues, but will instead generate worse outcomes, encouraging the use of imported wood with dubious origins. Page B11. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Not published Jan 2
THE AUSTRALIAN (www.theaustralian.news.com.au)
Investment banks in Australia have cut hundreds of jobs in the past few weeks after the number of corporate transactions fell dramatically due to the global financial crisis. The number of deals performed by the banks during 2008 was only a third of the number completed during 2007. Despite this, bankers believe the sector will recover this year, with UBS's co-head of investment banking, Guy Fowler, saying blue chip companies are looking for acquisitions and will be able to take advantage of the weak. Page 15.
ING has advised investors in its OneAnswer superannuation platform that a fund in which a portion of their investments is placed has frozen redemptions for up to a year. The A$1.4 billion fund, run by AMP Capital, froze withdrawals on October 10. Although distributions from the allocated pension will not be disrupted, ING advised investors that withdrawals from, and switches to, this fund are temporarily suspended. AMP Capital is Australia's largest arranger and manager of fixed income investments. Page 16.
Troubled Australian miner OZ Minerals is believed to be trying to sell its Martabe gold project in Indonesia by the middle of this month as the company seeks to pay off lenders. OZ may receive more than US$250 million for the project, although it has recently been valued at less than this by analysts at Deutsche Bank and Citi. OZ chief executive Andrew Michelmore said the company was seeking to pay lenders before a deadline at the end of February without losing control of its Prominent Hill copper and gold project. Page 16.
Qantas Airways may cut its Sydney to Mumbai service after a disagreement with the Australian and International Pilots Association over meal allowances. The union refused to renew a concession which allowed pilots to fly longer hours than those outlined in the pilots' enterprise agreement. Flights to Mumbai from Sydney must now change crews in Melbourne before continuing to Mumbai. The union said Qantas had only asked for the concession to be extended the day before it was due for renewal. Page 17.
THE SYDNEY MORNING HERALD (www.smh.com.au)
After spending the past two months helping receivers Ferrier Hodgson with the winding down of asset and fund manager Allco Finance Group, David Clarke has ended his association with the company. Mr Clarke joined Allco as chief executive 18 months ago, and last year helped to create a plan which would have reduced the group's debts through asset sales. The plan failed after the financial crisis made such asset sales unachievable, and receivers were appointed at the start of November. Page 23.
Babcock & Brown Wind Partners (B&B Wind) has ended its management agreement and exclusive financial advisory agreement with former parent company Babcock & Brown (B&B) . B&B Wind's senior management team will retain their current roles and are now directly employed by B&B Wind. B&B had previously been paid a substantial fee for managing the company. B&B Wind is expected to soon complete moves reducing its portfolio to 41 wind farms in four countries. Page 23.
Analysts say the next reporting season for company results in February is likely to produce disappointing figures as falling consumer and industrial sales, lower business investment and confidence, and rising unemployment affect profits. However, analysts also believe that the market is starting to give a better indication of the absolute value of companies. Combined with a number of indicators which are seen as cautiously optimistic, analysts say it may be a good time for investors taking a long term view. Page 23.
THE AGE (www.theage.com.au)
The cost of toilet paper is likely to rise as a result of anti-dumping legislation aimed at preventing cheap imports from hurting local manufacturers. An Australian Customs Service investigation found that imported toilet papers were undercutting local manufacturers' prices by as much as 40 percent and Kimberley-Clark Australia and SCA Hygiene Australasia have complained over toilet paper 'dumping'. Many cheap imports are from China and India and have been sold as the Select brand in Woolworths and Safeway supermarkets. Page B10.
National Australia Bank's (NAB) Cameron Clyne has officially taken over from John Stewart as chief executive of the group, after effectively running the bank since November 2008. Mr Clyne, 40 years old, joined NAB in late 2004 to introduce Six Sigma across the organisation, and gradually moved into running his own line business in New Zealand in 2007. The new boss says he is ready for the future and has 'one clear, unambiguous goal and that is to improve total shareholder return of the group.' Page B10.
Analysts say Australian commercial television networks are likely to face increasing challenges as they delay creating strategies to respond to viewer and advertiser fragmentation. The networks are starting to lose viewers to both pay TV and the internet, a situation which will continue to worsen with the creation of the national broadband network. Industry observers have accused the networks of wasting current opportunities for digital multi-channelling, while asking for further digital spectrum. Page B11.
Mark Poynter, a member of the Institute of Foresters of Australia, has accused the Victorian Government of placing the stateÂ’s timber industry in jeopardy by creating four new national parks in northern Victoria. Mr Poynter also said the creation of the parks is little more than a symbolic gesture towards the electorate's concerns over environmental issues, but will instead generate worse outcomes, encouraging the use of imported wood with dubious origins. Page B11. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1800; sydney.newsroom@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.