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)
--The Australian Stock Exchange (ASX) and the Australian Securities and Investments Commission are considering ways to make it easier for small to medium sized enterprises to raise equity capital. ASX General Manager Malcolm Starr revealed yesterday it had been proposed to extend the shareholder approval period for raising capital from its current level of three months to a maximum of 12 months. The move would enable small companies to obtain shareholder approval 'well before' capital is needed, according to Mr Starr. Page 1.
--An internal appointment is the most likely outcome of the current recruitment search for a new chief executive of telecommunications company Telstra, according to observers. Chairman Donald McGauchie and the company's nominations committee have already eliminated all North American candidates from the final shortlist of candidates to replace departing CEO Sol Trujillo. The appointment of the new CEO may be announced later this week when the Telstra board meets, say analysts. Pg 12
--Low-cost airline Jetstar will deploy an additional three aircraft to the key link of Singapore to fly routes where parent Qantas does not already operate, chief executive Bruce Buchanan said yesterday. The expansion is a part of a pan-Asian strategy to grow Jetstar's international presence and to compete with rival Tiger Airways. The three new A370s will bring the total number of aircraft deployed in the Singapore market to 10.
'We are going to put a lot more aircraft up there and go for a bunch of different markets,' said Mr Buchanan. Page 12.
---South Australian Agribusiness ABB Grain has received support from its largest shareholder to combine with Canadian agribusiness Viterra. US-based Third Avenue Management said the joining of the two businesses would liberate growers from the risk of local weather patterns and create a potentially more profitable entity. Third Avenue portfolio manager Amit Wadhwaney said on Friday that ABB would compliment Viterra because 'like Viterra, ABB has excellent management' and ABB would help 'offset Canadian weather.' Page 13.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--The Reserve Bank of Australia (RBA) is expected to acknowledge a deepening of the recession for the Australian economy when it releases its statement on monetary policy on Friday. The board meets tomorrow and analysts believe that rising unemployment rates and worsening economic conditions will alter the banks forecast on the anticipated length and severity of the recession. Two weeks ago RBA governor Glenn Stevens conceded Australia was in recession but the bank is yet to officially recognise this in its forecasts. Page 19.
--Rio Tinto subsidiary Energy Resources of Australia (ERA), has indicated that it expects to ship further uranium to China following its first successful sale last year.
ERA chief executive Rob Atkinson said yesterday that the Chinese anticipated a huge increase in the use of nuclear power in the next few years, and the China National Nuclear Corporation has reportedly held preliminary talks with a number of Australian uranium miners about potential supply. 'It is still a small market compared to our other customers but very positive,' said Mr Atkinson. Page 19.
--The chief executive of the Australia and New Zealand Banking Group has defended the decision by Australia's major banks to not pass on the full benefit of the latest cut to official interest rates. According to Mr Smith debt was now being refinanced at rates of up to 1.8 percent compared to as little as 0.15 percent several years ago. 'Every little bit of stress that we can remove from our borrower, that's got to be good for us -- it will reduce the potential bad debt level,' Mr Smith said yesterday. Page 21.
--Analysts have warned that diversified investment bank Macquarie Group will be forced to take up to A$2.7 billion of fresh writedowns on its listed and unlisted specialist funds. The bank recently booked a profit for the year to March down 52 percent on the previous 12 months and almost cut its dividend by half, and analysts foresee more poor results ahead. 'Macquarie has already taken significant writedowns against their listed investments, but further risks to these investments remain,' Deutsche Bank analyst James Freeman said Friday. Pg 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--The Australia and New Zealand Banking Group's (ANZ) bid to expand its Indian operations may be damaged by its association with a fraudulent cheque scam. As a previous owner of Indian banking network Grindlays, ANZ became involved in a long-running legal action relating to fraudulent cheques that eventually cost it more than A$280 million. An unnamed source quoted in India's Economic Times on Friday said regulators may be uncomfortable about issuing clearance to ANZ because of the previous cheque fraud. Page 23.
--Supermarket chains Woolworths and Coles are targeting the market-share held by independent fresh food retailers as the two rivals battle to bolster their profit margins. Speciality fresh food retailers annual sales of A$9.3 billion are under threat as both Woolworths and Coles press their own, new fresh foods campaigns to consumers. According to Tristan Harris, general manager of buying and marketing for independent food retailer Harris Farms, the supermarket chains 'are picking up some of the low hanging fruit.' Page 23.
--Telecommunications companies Telstra and Hutchison commenced a court battle on Friday over control of a jointly owned 3G mobile phone network. In 2005 Telstra paid Hutchison A$450 million for half of its 3G network and a six-member board was established, made up of three representatives from each company. A clause in the contract specified that should ownership of either company change, the other could install a chairman and hold a casting vote. Telstra is arguing that the proposed Hutchison merger with Vodafone is effectively a change of ownership. Page 23.
THE AGE (www.theage.com.au)
--The profits of Australian health companies may be vulnerable to the efforts of the Obama Administration to restrain growth in US health-care costs, analysts have warned. Medical device makers Cochlear and Resimed, plasma products maker CSL and laboratory operator Sonic Healthcare are considered to be exposed to the US government's Medicare and Medicaid reform programs. Credit Suisse analysts have warned that the Obama Administration's efforts could put further pressure on pricing and profitability. Page B3.
--The number of Melbourne homes for sale via auction has fallen 56 percent on the same time last year, according to the latest statistics from the Real Estate Institute of Victoria (REIV). The REIV figures showed that the majority of property heading to auction was from the city's fringes, and the A$162 million of property sold via auction over the past weekend was less than half of the week's private sales of A$409 million. Page B3.
--The West Australian state government yesterday split with Federal Coalition Leader Malcolm Turnbull in his opposition of the proposed deal between miner Rio Tinto and Chinese resources company Chinalco. 'It's important for us to engage with our trading partners, and it is important for us to embrace foreign capital investment, in particular in our resources sector,' West Australian Treasurer Troy Buswell said yesterday in a television interview. Page B3.
--Mineral resources company Western Plains Resources is expected to come out of its trading halt today after securing a deal on its South Australian Hawks Nest magnetite project. The company announced yesterday that its new partner is a Chinese group but purposefully did not name the partner. The deal will be subject to Foreign Investment Review Board approval, and may prove contentious according to analysts as the Hawks Nest site sits within the Defence Department Woomera Protected Area. Page B8. -- 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)
--The Australian Stock Exchange (ASX) and the Australian Securities and Investments Commission are considering ways to make it easier for small to medium sized enterprises to raise equity capital. ASX General Manager Malcolm Starr revealed yesterday it had been proposed to extend the shareholder approval period for raising capital from its current level of three months to a maximum of 12 months. The move would enable small companies to obtain shareholder approval 'well before' capital is needed, according to Mr Starr. Page 1.
--An internal appointment is the most likely outcome of the current recruitment search for a new chief executive of telecommunications company Telstra, according to observers. Chairman Donald McGauchie and the company's nominations committee have already eliminated all North American candidates from the final shortlist of candidates to replace departing CEO Sol Trujillo. The appointment of the new CEO may be announced later this week when the Telstra board meets, say analysts. Pg 12
--Low-cost airline Jetstar will deploy an additional three aircraft to the key link of Singapore to fly routes where parent Qantas does not already operate, chief executive Bruce Buchanan said yesterday. The expansion is a part of a pan-Asian strategy to grow Jetstar's international presence and to compete with rival Tiger Airways. The three new A370s will bring the total number of aircraft deployed in the Singapore market to 10.
'We are going to put a lot more aircraft up there and go for a bunch of different markets,' said Mr Buchanan. Page 12.
---South Australian Agribusiness ABB Grain has received support from its largest shareholder to combine with Canadian agribusiness Viterra. US-based Third Avenue Management said the joining of the two businesses would liberate growers from the risk of local weather patterns and create a potentially more profitable entity. Third Avenue portfolio manager Amit Wadhwaney said on Friday that ABB would compliment Viterra because 'like Viterra, ABB has excellent management' and ABB would help 'offset Canadian weather.' Page 13.
THE AUSTRALIAN (www.theaustralian.news.com.au)
--The Reserve Bank of Australia (RBA) is expected to acknowledge a deepening of the recession for the Australian economy when it releases its statement on monetary policy on Friday. The board meets tomorrow and analysts believe that rising unemployment rates and worsening economic conditions will alter the banks forecast on the anticipated length and severity of the recession. Two weeks ago RBA governor Glenn Stevens conceded Australia was in recession but the bank is yet to officially recognise this in its forecasts. Page 19.
--Rio Tinto subsidiary Energy Resources of Australia (ERA), has indicated that it expects to ship further uranium to China following its first successful sale last year.
ERA chief executive Rob Atkinson said yesterday that the Chinese anticipated a huge increase in the use of nuclear power in the next few years, and the China National Nuclear Corporation has reportedly held preliminary talks with a number of Australian uranium miners about potential supply. 'It is still a small market compared to our other customers but very positive,' said Mr Atkinson. Page 19.
--The chief executive of the Australia and New Zealand Banking Group has defended the decision by Australia's major banks to not pass on the full benefit of the latest cut to official interest rates. According to Mr Smith debt was now being refinanced at rates of up to 1.8 percent compared to as little as 0.15 percent several years ago. 'Every little bit of stress that we can remove from our borrower, that's got to be good for us -- it will reduce the potential bad debt level,' Mr Smith said yesterday. Page 21.
--Analysts have warned that diversified investment bank Macquarie Group will be forced to take up to A$2.7 billion of fresh writedowns on its listed and unlisted specialist funds. The bank recently booked a profit for the year to March down 52 percent on the previous 12 months and almost cut its dividend by half, and analysts foresee more poor results ahead. 'Macquarie has already taken significant writedowns against their listed investments, but further risks to these investments remain,' Deutsche Bank analyst James Freeman said Friday. Pg 21.
THE SYDNEY MORNING HERALD (www.smh.com.au)
--The Australia and New Zealand Banking Group's (ANZ) bid to expand its Indian operations may be damaged by its association with a fraudulent cheque scam. As a previous owner of Indian banking network Grindlays, ANZ became involved in a long-running legal action relating to fraudulent cheques that eventually cost it more than A$280 million. An unnamed source quoted in India's Economic Times on Friday said regulators may be uncomfortable about issuing clearance to ANZ because of the previous cheque fraud. Page 23.
--Supermarket chains Woolworths and Coles are targeting the market-share held by independent fresh food retailers as the two rivals battle to bolster their profit margins. Speciality fresh food retailers annual sales of A$9.3 billion are under threat as both Woolworths and Coles press their own, new fresh foods campaigns to consumers. According to Tristan Harris, general manager of buying and marketing for independent food retailer Harris Farms, the supermarket chains 'are picking up some of the low hanging fruit.' Page 23.
--Telecommunications companies Telstra and Hutchison commenced a court battle on Friday over control of a jointly owned 3G mobile phone network. In 2005 Telstra paid Hutchison A$450 million for half of its 3G network and a six-member board was established, made up of three representatives from each company. A clause in the contract specified that should ownership of either company change, the other could install a chairman and hold a casting vote. Telstra is arguing that the proposed Hutchison merger with Vodafone is effectively a change of ownership. Page 23.
THE AGE (www.theage.com.au)
--The profits of Australian health companies may be vulnerable to the efforts of the Obama Administration to restrain growth in US health-care costs, analysts have warned. Medical device makers Cochlear and Resimed, plasma products maker CSL and laboratory operator Sonic Healthcare are considered to be exposed to the US government's Medicare and Medicaid reform programs. Credit Suisse analysts have warned that the Obama Administration's efforts could put further pressure on pricing and profitability. Page B3.
--The number of Melbourne homes for sale via auction has fallen 56 percent on the same time last year, according to the latest statistics from the Real Estate Institute of Victoria (REIV). The REIV figures showed that the majority of property heading to auction was from the city's fringes, and the A$162 million of property sold via auction over the past weekend was less than half of the week's private sales of A$409 million. Page B3.
--The West Australian state government yesterday split with Federal Coalition Leader Malcolm Turnbull in his opposition of the proposed deal between miner Rio Tinto and Chinese resources company Chinalco. 'It's important for us to engage with our trading partners, and it is important for us to embrace foreign capital investment, in particular in our resources sector,' West Australian Treasurer Troy Buswell said yesterday in a television interview. Page B3.
--Mineral resources company Western Plains Resources is expected to come out of its trading halt today after securing a deal on its South Australian Hawks Nest magnetite project. The company announced yesterday that its new partner is a Chinese group but purposefully did not name the partner. The deal will be subject to Foreign Investment Review Board approval, and may prove contentious according to analysts as the Hawks Nest site sits within the Defence Department Woomera Protected Area. Page B8. -- 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.