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)
Mining company BHP Billiton's oil division in the Gulf of Mexico will suffer major disruptions to production due to restrictions on drilling announced on the weekend by United States President Barack Obama. The measures follow the long-running spill from a rig in the Gulf operated by BP, and include a six-month moratorium on drilling in the region, and an immediate stop to drilling of existing wells, cutting production at BHP oil fields in the Gulf. Page 15.
Mining company BHP Billiton last week raised concerns about the Browse liquefied natural gas project off Western Australia.
BHP's Michael Yeager said the A$30 billion joint venture, led by Woodside Petroleum, still had numerous technical hurdles to be addressed before it could be considered a viable project.
Analysts say Mr Yeager's comments indicate that a final investment decision on the project could be up to three years away. Page 15.
Mining company Perilya held its annual meeting in Perth on Friday, with managing director Paul Arndt saying the company is looking to make acquisitions. Mr Arndt said the company expects lead and zinc prices will remain stable over the next 18 months. However, with several large zinc mines around the world set to close by 2016, prices for the metal could surge as supply is reduced. Page 15.
The Queensland Government says it will launch its planned initial public offering (IPO) for Queensland Rail National with a lower-than-expected debt-to-capital ratio. Queensland Treasurer Andrew Fraser yesterday said it will have very little debt at IPO and significant available undrawn debt facilities to fund the substantial growth that is anticipated. The state government has come under pressure to justify its proposal after a consortium of coal companies last week made a A$4.85 billion bid for the networks coal and freight assets. Page 17.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities Exchange has privately questioned airline Virgin Blue after the carrier last week issued its second profit downgrade in less than a month. On May 3, Virgin downgraded its profit guidance to between A$80 million and A$110 million, which on Friday was further revised down to between A$20 million and A$40 million. A spokesperson for the airline blamed the downgrades on a really radical decline in yields. Page 21.
The Commonwealth Bank of Australia (CBA) has increased its small business loan book by 8.3 percent over the past year, almost 10 times the growth rate of its rivals, and now has A$25 billion in loans to the sector. Ian Narev, executive general manager of business banking at CBA, said the market for small business is now very competitive, adding that bank margins are likely to be under pressure. Page 23.
A meeting of shareholders in Hong Kong-based company China Sci-Tech Holdings last week approved the acquisition of Queensland's Lady Annie copper mine from Cape Lambert Resources.
China Sci-Tech said the proposed A$135 million purchase had received overwhelming support. Cape Lambert said that it would return between A8 cents and A10 cents a share to its investors once it receives funds from the sale. Page 23.
Richard Goyder, chief executive of conglomerate Wesfarmers , yesterday said consumer confidence was being affected by rising interest rates and fuel prices, as well as continued economic uncertainty. Mr Goyder said he hoped that rates are stabilised for a period of time so that a bit of confidence comes back into the consumer. The board of the Reserve Bank of Australia will meet on Tuesday to discuss interest rates. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Economic modelling by global energy consultants Wood Mackenzie has predicted that Australian coal mining companies would suffer a 15 percent fall in earnings during the first four years of the proposed resource super profits tax. Wood Mackenzie coal analyst Ben Willacy said we dont think it will make any projects unprofitable, but it will definitely distort investment decisions in the future. Page 1.
Global brewing company SABMiller is rumoured to be considering a A$12 billion bid for the beer division of Fosters Group. Last week Fosters announced that it would go ahead with a demerger of its wine and beer businesses. SABMiller is likely to make any bid by itself, as the brewers local partner in brewing joint venture Pacific Beverages, Coca-Cola Amatil, last week said it had no interest in Fosters. Page 3.
A Bloomberg survey of economists has found that most do not believe that the Reserve Bank of Australia will raise official interest rates tomorrow at its monthly board meeting. The Credit Suisse probability index also places the chance of an increase tomorrow at negative 8 percent. Although the spread between the official cash rate and three month swap rate has increased, analysts say this is due to international market volatility and is unlikely to signal a rate rise tomorrow. Page 3.
Luxury car venture The Supercar Club was placed in administration on Friday. Mining entrepreneur Nathan Tinkler, a part-owner of the club, is suing the ventures other major shareholder, Tim Sommers. Mr Tinkler has claimed that he was misled into investing A$1.45 million in the club when Mr Sommers said it was trading at a profit. Mr Sommers has launched a cross-claim and is seeking unpaid wages and severance pay worth more than A$1 million. Page 5.
THE AGE (www.theage.com.au)
Insurance group Suncorp has been warned by the automotive repair industry that plans for a new competitive tendering system may create a backlash from repairers and put the quality and safety of repairs at risk. The Motor Traders Association of New South Wales said the system would encourage repairers to undercut each other, and that it could become more expensive for Suncorp if poor repairs need to be redone. Page B5.
Gold sector consultants Surbiton Associates yesterday disputed claims by the Federal Government that the end of gold productions tax-free status in 1991 had not damaged the industry.
Surbiton said that the change had seen production of gold fall that year, with output stagnating for the next five years. The Government has said that its proposed resource super profits tax would not harm the mining sector, as the introduction of taxation on gold miners had not either. Page B5.
The leader of the Victorian Nationals, Peter Ryan, has accused the state government of bullying and delaying tactics regarding its behaviour towards a regional freight business.
Liquidators to the business, a rail freight company which operated at Morwell, are suing the Government for breach of contract, unconscionable conduct and breaching the Trade Practices Act. Mr Ryan said the Government had avoided resolving the issue, hoping the legal case will go away. Page B5.
An annual survey of tax regimes in the developed world by accountancy firm KPMG has named Australia as the fourth most attractive in which to pay company tax, and the most attractive in which to conduct research and development. The survey ranked Australia behind Mexico, Canada and the Netherlands as a location for business. The report also ranked Melbourne and Sydney first and third for their international research and development tax competitiveness. Page B5. --
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)
Mining company BHP Billiton's oil division in the Gulf of Mexico will suffer major disruptions to production due to restrictions on drilling announced on the weekend by United States President Barack Obama. The measures follow the long-running spill from a rig in the Gulf operated by BP, and include a six-month moratorium on drilling in the region, and an immediate stop to drilling of existing wells, cutting production at BHP oil fields in the Gulf. Page 15.
Mining company BHP Billiton last week raised concerns about the Browse liquefied natural gas project off Western Australia.
BHP's Michael Yeager said the A$30 billion joint venture, led by Woodside Petroleum, still had numerous technical hurdles to be addressed before it could be considered a viable project.
Analysts say Mr Yeager's comments indicate that a final investment decision on the project could be up to three years away. Page 15.
Mining company Perilya held its annual meeting in Perth on Friday, with managing director Paul Arndt saying the company is looking to make acquisitions. Mr Arndt said the company expects lead and zinc prices will remain stable over the next 18 months. However, with several large zinc mines around the world set to close by 2016, prices for the metal could surge as supply is reduced. Page 15.
The Queensland Government says it will launch its planned initial public offering (IPO) for Queensland Rail National with a lower-than-expected debt-to-capital ratio. Queensland Treasurer Andrew Fraser yesterday said it will have very little debt at IPO and significant available undrawn debt facilities to fund the substantial growth that is anticipated. The state government has come under pressure to justify its proposal after a consortium of coal companies last week made a A$4.85 billion bid for the networks coal and freight assets. Page 17.
THE AUSTRALIAN (www.theaustralian.news.com.au)
The Australian Securities Exchange has privately questioned airline Virgin Blue after the carrier last week issued its second profit downgrade in less than a month. On May 3, Virgin downgraded its profit guidance to between A$80 million and A$110 million, which on Friday was further revised down to between A$20 million and A$40 million. A spokesperson for the airline blamed the downgrades on a really radical decline in yields. Page 21.
The Commonwealth Bank of Australia (CBA) has increased its small business loan book by 8.3 percent over the past year, almost 10 times the growth rate of its rivals, and now has A$25 billion in loans to the sector. Ian Narev, executive general manager of business banking at CBA, said the market for small business is now very competitive, adding that bank margins are likely to be under pressure. Page 23.
A meeting of shareholders in Hong Kong-based company China Sci-Tech Holdings last week approved the acquisition of Queensland's Lady Annie copper mine from Cape Lambert Resources.
China Sci-Tech said the proposed A$135 million purchase had received overwhelming support. Cape Lambert said that it would return between A8 cents and A10 cents a share to its investors once it receives funds from the sale. Page 23.
Richard Goyder, chief executive of conglomerate Wesfarmers , yesterday said consumer confidence was being affected by rising interest rates and fuel prices, as well as continued economic uncertainty. Mr Goyder said he hoped that rates are stabilised for a period of time so that a bit of confidence comes back into the consumer. The board of the Reserve Bank of Australia will meet on Tuesday to discuss interest rates. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Economic modelling by global energy consultants Wood Mackenzie has predicted that Australian coal mining companies would suffer a 15 percent fall in earnings during the first four years of the proposed resource super profits tax. Wood Mackenzie coal analyst Ben Willacy said we dont think it will make any projects unprofitable, but it will definitely distort investment decisions in the future. Page 1.
Global brewing company SABMiller is rumoured to be considering a A$12 billion bid for the beer division of Fosters Group. Last week Fosters announced that it would go ahead with a demerger of its wine and beer businesses. SABMiller is likely to make any bid by itself, as the brewers local partner in brewing joint venture Pacific Beverages, Coca-Cola Amatil, last week said it had no interest in Fosters. Page 3.
A Bloomberg survey of economists has found that most do not believe that the Reserve Bank of Australia will raise official interest rates tomorrow at its monthly board meeting. The Credit Suisse probability index also places the chance of an increase tomorrow at negative 8 percent. Although the spread between the official cash rate and three month swap rate has increased, analysts say this is due to international market volatility and is unlikely to signal a rate rise tomorrow. Page 3.
Luxury car venture The Supercar Club was placed in administration on Friday. Mining entrepreneur Nathan Tinkler, a part-owner of the club, is suing the ventures other major shareholder, Tim Sommers. Mr Tinkler has claimed that he was misled into investing A$1.45 million in the club when Mr Sommers said it was trading at a profit. Mr Sommers has launched a cross-claim and is seeking unpaid wages and severance pay worth more than A$1 million. Page 5.
THE AGE (www.theage.com.au)
Insurance group Suncorp has been warned by the automotive repair industry that plans for a new competitive tendering system may create a backlash from repairers and put the quality and safety of repairs at risk. The Motor Traders Association of New South Wales said the system would encourage repairers to undercut each other, and that it could become more expensive for Suncorp if poor repairs need to be redone. Page B5.
Gold sector consultants Surbiton Associates yesterday disputed claims by the Federal Government that the end of gold productions tax-free status in 1991 had not damaged the industry.
Surbiton said that the change had seen production of gold fall that year, with output stagnating for the next five years. The Government has said that its proposed resource super profits tax would not harm the mining sector, as the introduction of taxation on gold miners had not either. Page B5.
The leader of the Victorian Nationals, Peter Ryan, has accused the state government of bullying and delaying tactics regarding its behaviour towards a regional freight business.
Liquidators to the business, a rail freight company which operated at Morwell, are suing the Government for breach of contract, unconscionable conduct and breaching the Trade Practices Act. Mr Ryan said the Government had avoided resolving the issue, hoping the legal case will go away. Page B5.
An annual survey of tax regimes in the developed world by accountancy firm KPMG has named Australia as the fourth most attractive in which to pay company tax, and the most attractive in which to conduct research and development. The survey ranked Australia behind Mexico, Canada and the Netherlands as a location for business. The report also ranked Melbourne and Sydney first and third for their international research and development tax competitiveness. Page B5. --
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.