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)
Michael Luscombe, chief executive of supermarket chain Woolworths, has said that the company will retain its long term strategy, despite expectations of poor sales growth.
Mr Luscombe, who last week announced Woolworths first annual sales guidance downgrade since 2004, said that the retailer would not increase prices to counter the lower sales growth, and would continue with plans for new stores and the launch of a new hardware chain. Page 15.
Clothing manufacturer Pacific Brands has appointed Holly Kramer as general managing director of its homewares director, with the move seen as establishing Ms Kramer as a potential successor to chief executive Sue Morphett. Ms Kramer was previously an executive at telecommunications group Telstra, leaving shortly after the appointment of David Thodey as chief executive. Page 15.
Hospital operator Healthscope will this week go to court to defend allegations that the company bribed doctors in return for pathology referrals. The action has been brought by rival group Primary Health Care, which has said that Healthscope bribed staff at its John Fawkner Private Hospital to gain pathology referrals to its own pathology business, breaching a contract between the former owners of John Fawkner and Primary.
Page 16.
Mark Ashley, managing director of goldmining company Apex Minerals, yesterday admitted that cash was tight, but said were producing more gold now and at the prices were seeing, were cash-flow positive. The company, which undertook a A$109 million rights issue in December, had A$1.2 million in cash at the end of March. Mr Ashley said that the majority of the raised funds had been used to repay convertible notes, pay out creditors, and capital development. Page 16.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining company BHP Billiton's chief executive Marius Kloppers yesterday said that uncertainty created by the Federal Governments planned resource profit tax could see a number of resource projects shelved. Mr Kloppers would not rule out the possible stalling of BHPs A$20 billion Olympic Dam expansion project, saying that if you move the tax rate from 44 percent to 57 percent or possibly more, that doesnt make it any easier.
Page 21.
The spate of capital raisings and equity trading during the past year has helped Australian investment bank profits grow strongly. UBS Australia last week reported that net profit for the 2009 calendar had increased to A$172.6 million compared to the previous years A$35 million, with other investment banks recording similar improvements. Although fees from raisings are expected to fall this year, mergers and acquisition activity in the first quarter was 50 percent higher than last year, according to Thomson Reuters data. Page 21.
Russell Clarke, managing director of Grange Resources, has overseen the companys transformation from a mining project developer to a producer, and says that Grange is now positioned to benefit from growing iron ore projects. Mr Clark says that Grange was helped by its Chinese partner, Shagang International Holdings, throughout the financial crisis while the companies were also negotiating a merger. Page 22.
Leanne Leong, the head of the Commonwealth Bank of Australia's structured finance division, has left the bank following a review of the division. Sources say that the division is to be wound down, following concerns about possible damage to CBAs reputation from the divisions aggressive tax systems, including a controversial A$5 billion operation in low-tax Malta. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Economists from investment bank UBS have estimated that the Federal Governments resource super profits tax could reduce long-term economic growth by 0.5 percentage points. The analysis found that investment growth in the resource sector would be halved to around 30 percent each year. The results are in contrast to mining sector warnings that the tax would put more than A$100 billion of planned projects at risk. Page 1.
Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Authority, has increased its stake in toll road investment group Intoll to almost 9 percent, with analysts saying that the fund may be preparing to make an offer for the group. Intoll was split off from Macquarie Infrastructure Group in January and has stakes in toll roads in Australia and Canada. Page 3.
Liquidators to collapsed company Allco Finance Group last week told a court that former employees should not be paid their entitlements as they had worked for subsidiaries of Allco.
Lawyers representing staff rejected the argument, telling the Federal Court that it would lead to absurd situations, such as a tradesperson providing services to a third party being unable to claim entitlements from their employer. Page 3.
The Federal Government has revealed that it is holding discussions with telecommunications group Telstra, separate to those between Telstra and the National Broadband Network (NBN) Company. The parallel discussions could lead to the Government making an extra payment to Telstra, helping to break the apparent impasse between the NBN and Telstra over the value of Telstras existing network. Page 5.
THE AGE (www.theage.com.au)
Federal Treasurer Wayne Swan yesterday compared the resource sectors response to the proposed resource super profits tax to the 1980s, when the introduction of the Petroleum Resource Rent Tax led to similar claims that the sector would be damaged. Mr Swan said threats and abuse will not alter the governments resolve. They didnt work in the 1980s and they wont now. The Treasurer called for mining companies to participate in consultations with the Government. Page B1.
The Commonwealth Bank of Australia's institutional banking arm says it is no longer looking to acquire a stock broking business, and is instead concentrating on growing its broking and research capabilities organically. The division is aiming to become one of the top five players in the Australian institutional banking market, challenging investment banks such as Deutsche, UBS, Citigroup and Macquarie. Page B3.
Brewing company Lion Nathan last week released a trading update for the fourth quarter, with revenue rising 6.6 percent to A$687.4 million. Lion Nathan National Foods chief executive Rob Murray said the investments Lion Nathan has made in its brands, breweries and people have created a strong and agile business. However, Mr Murray said that the groups wine division was continuing to be negatively affected by the global grape glut and stronger Australian dollar. Page B3.
Nearly A$950 million worth of houses and units in Melbourne were sold at auction during April, a record for the month. The high value comes despite a fall in the number of sales, with 1600 sold last month compared to 2265 in April 2008. The auction clearance rate in the city remains high also, at 72 percent, a slight fall from Marchs rate of 77 percent sold. Page B11. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2010. 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)
Michael Luscombe, chief executive of supermarket chain Woolworths, has said that the company will retain its long term strategy, despite expectations of poor sales growth.
Mr Luscombe, who last week announced Woolworths first annual sales guidance downgrade since 2004, said that the retailer would not increase prices to counter the lower sales growth, and would continue with plans for new stores and the launch of a new hardware chain. Page 15.
Clothing manufacturer Pacific Brands has appointed Holly Kramer as general managing director of its homewares director, with the move seen as establishing Ms Kramer as a potential successor to chief executive Sue Morphett. Ms Kramer was previously an executive at telecommunications group Telstra, leaving shortly after the appointment of David Thodey as chief executive. Page 15.
Hospital operator Healthscope will this week go to court to defend allegations that the company bribed doctors in return for pathology referrals. The action has been brought by rival group Primary Health Care, which has said that Healthscope bribed staff at its John Fawkner Private Hospital to gain pathology referrals to its own pathology business, breaching a contract between the former owners of John Fawkner and Primary.
Page 16.
Mark Ashley, managing director of goldmining company Apex Minerals, yesterday admitted that cash was tight, but said were producing more gold now and at the prices were seeing, were cash-flow positive. The company, which undertook a A$109 million rights issue in December, had A$1.2 million in cash at the end of March. Mr Ashley said that the majority of the raised funds had been used to repay convertible notes, pay out creditors, and capital development. Page 16.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Mining company BHP Billiton's chief executive Marius Kloppers yesterday said that uncertainty created by the Federal Governments planned resource profit tax could see a number of resource projects shelved. Mr Kloppers would not rule out the possible stalling of BHPs A$20 billion Olympic Dam expansion project, saying that if you move the tax rate from 44 percent to 57 percent or possibly more, that doesnt make it any easier.
Page 21.
The spate of capital raisings and equity trading during the past year has helped Australian investment bank profits grow strongly. UBS Australia last week reported that net profit for the 2009 calendar had increased to A$172.6 million compared to the previous years A$35 million, with other investment banks recording similar improvements. Although fees from raisings are expected to fall this year, mergers and acquisition activity in the first quarter was 50 percent higher than last year, according to Thomson Reuters data. Page 21.
Russell Clarke, managing director of Grange Resources, has overseen the companys transformation from a mining project developer to a producer, and says that Grange is now positioned to benefit from growing iron ore projects. Mr Clark says that Grange was helped by its Chinese partner, Shagang International Holdings, throughout the financial crisis while the companies were also negotiating a merger. Page 22.
Leanne Leong, the head of the Commonwealth Bank of Australia's structured finance division, has left the bank following a review of the division. Sources say that the division is to be wound down, following concerns about possible damage to CBAs reputation from the divisions aggressive tax systems, including a controversial A$5 billion operation in low-tax Malta. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Economists from investment bank UBS have estimated that the Federal Governments resource super profits tax could reduce long-term economic growth by 0.5 percentage points. The analysis found that investment growth in the resource sector would be halved to around 30 percent each year. The results are in contrast to mining sector warnings that the tax would put more than A$100 billion of planned projects at risk. Page 1.
Abu Dhabi's sovereign wealth fund, the Abu Dhabi Investment Authority, has increased its stake in toll road investment group Intoll to almost 9 percent, with analysts saying that the fund may be preparing to make an offer for the group. Intoll was split off from Macquarie Infrastructure Group in January and has stakes in toll roads in Australia and Canada. Page 3.
Liquidators to collapsed company Allco Finance Group last week told a court that former employees should not be paid their entitlements as they had worked for subsidiaries of Allco.
Lawyers representing staff rejected the argument, telling the Federal Court that it would lead to absurd situations, such as a tradesperson providing services to a third party being unable to claim entitlements from their employer. Page 3.
The Federal Government has revealed that it is holding discussions with telecommunications group Telstra, separate to those between Telstra and the National Broadband Network (NBN) Company. The parallel discussions could lead to the Government making an extra payment to Telstra, helping to break the apparent impasse between the NBN and Telstra over the value of Telstras existing network. Page 5.
THE AGE (www.theage.com.au)
Federal Treasurer Wayne Swan yesterday compared the resource sectors response to the proposed resource super profits tax to the 1980s, when the introduction of the Petroleum Resource Rent Tax led to similar claims that the sector would be damaged. Mr Swan said threats and abuse will not alter the governments resolve. They didnt work in the 1980s and they wont now. The Treasurer called for mining companies to participate in consultations with the Government. Page B1.
The Commonwealth Bank of Australia's institutional banking arm says it is no longer looking to acquire a stock broking business, and is instead concentrating on growing its broking and research capabilities organically. The division is aiming to become one of the top five players in the Australian institutional banking market, challenging investment banks such as Deutsche, UBS, Citigroup and Macquarie. Page B3.
Brewing company Lion Nathan last week released a trading update for the fourth quarter, with revenue rising 6.6 percent to A$687.4 million. Lion Nathan National Foods chief executive Rob Murray said the investments Lion Nathan has made in its brands, breweries and people have created a strong and agile business. However, Mr Murray said that the groups wine division was continuing to be negatively affected by the global grape glut and stronger Australian dollar. Page B3.
Nearly A$950 million worth of houses and units in Melbourne were sold at auction during April, a record for the month. The high value comes despite a fall in the number of sales, with 1600 sold last month compared to 2265 in April 2008. The auction clearance rate in the city remains high also, at 72 percent, a slight fall from Marchs rate of 77 percent sold. Page B11. --
Keywords: DIGEST AUSTRALIA BUSINESS (Sydney Newsroom +61-2 9373 1816; sydney.newsroom@allreleases.net) COPYRIGHT Copyright Thomson Reuters 2010. 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.