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)
Business groups are wary that independent 'kingmakers' will have disproportionate power over business and economic policy after an undecided federal election on Saturday. Labor and the Coalition will be doing their best to secure the support of up to four independents and one Green, who will decide which party holds government. The resources and telecommunications sectors are some of the groups that will be most affected by the establishment of a minority government. Page 50.
Pending the outcome of the closest federal election since 1940, experts predict that the future of telecommunications group Telstra and high speed broadband could be modified.
Four independents and one Green, who will decide which major party forms the next government, have expressed support for Labor's A$43 billion National Broadband Network. But in a critical move yesterday, Opposition Leader Tony Abbott indicated that the Coalition's broadband policy may change. Page 50.
Junior miners in Western Australia (WA) yesterday welcomed the election result, with expectations that the mining tax could be scrapped regardless of which party forms a minority government. Smaller mining companies waged an advertising campaign against the Gillard Government's mining tax, and voters in resource-rich states WA and Queensland boosted the Coalition's vote. 'Regional Australia delivered its verdict on the mining tax in this election,' Macarthur Coal chairman Keith De Lacy said. Page 51.
The future of telecommunications group Telstra looks 'wobbly' this week as shareholders in the nation's widest-held stock await the results of the federal election. The A$11 billion deal that Telstra reached with the Gillard Government over the National Broadband Network (NBN) in June will be worthless if Labor cannot form a government. However the independents appear to support the implementation of the NBN. Page 51.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Beverages company Foster's Group could be subject to a takeover approach from London-listed brewer SAB Miller before Foster's goes ahead with a planned demerger of its wine business, according to reports from Britain. Analysts say a move before the demerger would ensure SAB does not lose out to rival brewers, but warn that acquiring the troubled wine business has 'lots of potential downside.' Page 25.
The Australian financial market will see more than 60 companies present earnings results over the next two weeks, the busiest of the reporting season. Among the major companies due to report are BHP Billiton, Woolworths, Westpac Banking Corporation (WBC.AX> and Seven Group Holdings.
Analysts from Goldman Sachs say the first two weeks of reporting season saw mixed results, with chief executives remaining wary of the economic outlook. Page 26.
The Association of Superannuation Funds of Australia yesterday warned that the federal election has placed Labor's proposed increase to the superannuation guarantee levy - from 9 percent to 12 percent - in doubt. The association's chief executive, Pauline Vamos, said the increase to the levy would depend on the fate of the proposed minerals resource rent tax.
'If there's no mining tax, then certainly a lot of the spend around super will have to be relooked at and that would be extremely disappointing for Australia,' Ms Vamos said. Page 27.
Health industry executives say the federal election outcome will prompt a greater focus on rural and regional area health initiatives, as both sides of politics seek to gain the support of key rural independents holding the balance of power. Analysts say a Coalition government is likely to be more favourable to private healthcare providers, although industry sources have called for greater consultation from both sides. Page 27.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Financial markets are expected to slip today ahead of a week of uncertainty, while investors anticipate a speedy resolution to Australia's hung parliament. The Australian dollar is expected to lose about US1c in value and lower trading volumes have been forecast. Cameron Peacock, a market analyst with IG Markets, said the hung parliament came as a surprise to the market, which had mostly priced in a Labor win. Page B1.
Mining giant BHP Billiton will meet with investors this week as it tries to sell its A$43 billion bid for the world's largest potash producer; PotashCorp. BHP has taken out advertisements in the North American press to sell its offer for the Canadian company, and chief executive Marius Kloppers may travel to the United States and Canada to promote the proposal as a 'full and fair' offer. PotashCorp chief Bill Doyle has rejected BHP's 'highly opportunistic' hostile bid. Page B1.
The Australian Securities and Investments Commission (ASIC) has agreed to finance McGrathNicol, the liquidator of the failed Allco Finance Group, to pursue an investigation into alleged breaches of the Corporations Act. McGrathNicol last year raised concerns about the validity of more than A$1 billion of transactions made by Allco to subsidiaries or joint-venture partners, but was unable to fund the inquiries after Allco's collapse in 2008. In McGrathNicol's annual report released on the weekend, it noted that ASIC 'recently agreed' to underwrite the case. Page B3.
Property development company Mirvac Group will begin demolition work on a A$60 million tower in Sydney's Chifley Square as early as this week. Mirvac was expected to begin work on the site in early 2009, but development works stalled due to the financial crisis. Mirvac is expected to post net profit of A$193 million when it reports full year results tomorrow. Page B4.
THE AGE (www.theage.com.au)
National Australia Bank (NAB) planned to launch a takeover bid for AXA Asia Pacific midway through this year, it has been revealed. However, the A$13 billion offer was thrown into chaos when financial services provider AMP launched a surprise offer for AXA in late 2009. The move forced NAB to launch its offer at least six months ahead of schedule; at a time when it was still digesting its A$825 million takeover of life insurer and funds manager Aviva Australia. Page B3.
Westpac Banking Corporation could lose up to A$17 million from the collapse of a New Zealand wine grower. Westpac was the major creditor to the failed Awatere Vineyard Holdings and Awatere Vineyard Estates, which owe creditors over NZ$24 million.
Westpac was the core creditor to Awatere, and is owed $NZ22 million. Other Australian banks are believed to be exposed to New Zealand's struggling wine industry, as four out of five of New Zealand's major banks are Australian owned. Page B3.
Real estate services firm Jones Lang LaSalle (JLL) has released its June quarter report, which highlights a drop in vacancy rates in the Melbourne fringe office market while tenant demand is rising. The demand for office space is expected to push up rents, says JLL director of research Andrew Ballantyne.
'Vacancy has passed the cyclical peak and is expected to tighten below 10 per cent by late 2010,' Mr Ballantyne said. He added that a reduction in leasing incentives will drive rents in late 2010 and into 2011. Page B6.
Tender prices in Melbourne will rise by up to 4 percent this year due to emerging projects on the market, according to property consultant Rider Levett Bucknall. Tender prices in Sydney, Adelaide, Canberra and Darwin are also expected to increase, while prices in Brisbane and Perth are forecast to drop by 1 percent. Research suggests that the increase in tender prices in Melbourne will be driven by the industrial sector.
Page B6.
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)
Business groups are wary that independent 'kingmakers' will have disproportionate power over business and economic policy after an undecided federal election on Saturday. Labor and the Coalition will be doing their best to secure the support of up to four independents and one Green, who will decide which party holds government. The resources and telecommunications sectors are some of the groups that will be most affected by the establishment of a minority government. Page 50.
Pending the outcome of the closest federal election since 1940, experts predict that the future of telecommunications group Telstra and high speed broadband could be modified.
Four independents and one Green, who will decide which major party forms the next government, have expressed support for Labor's A$43 billion National Broadband Network. But in a critical move yesterday, Opposition Leader Tony Abbott indicated that the Coalition's broadband policy may change. Page 50.
Junior miners in Western Australia (WA) yesterday welcomed the election result, with expectations that the mining tax could be scrapped regardless of which party forms a minority government. Smaller mining companies waged an advertising campaign against the Gillard Government's mining tax, and voters in resource-rich states WA and Queensland boosted the Coalition's vote. 'Regional Australia delivered its verdict on the mining tax in this election,' Macarthur Coal chairman Keith De Lacy said. Page 51.
The future of telecommunications group Telstra looks 'wobbly' this week as shareholders in the nation's widest-held stock await the results of the federal election. The A$11 billion deal that Telstra reached with the Gillard Government over the National Broadband Network (NBN) in June will be worthless if Labor cannot form a government. However the independents appear to support the implementation of the NBN. Page 51.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Beverages company Foster's Group could be subject to a takeover approach from London-listed brewer SAB Miller before Foster's goes ahead with a planned demerger of its wine business, according to reports from Britain. Analysts say a move before the demerger would ensure SAB does not lose out to rival brewers, but warn that acquiring the troubled wine business has 'lots of potential downside.' Page 25.
The Australian financial market will see more than 60 companies present earnings results over the next two weeks, the busiest of the reporting season. Among the major companies due to report are BHP Billiton, Woolworths, Westpac Banking Corporation (WBC.AX> and Seven Group Holdings.
Analysts from Goldman Sachs say the first two weeks of reporting season saw mixed results, with chief executives remaining wary of the economic outlook. Page 26.
The Association of Superannuation Funds of Australia yesterday warned that the federal election has placed Labor's proposed increase to the superannuation guarantee levy - from 9 percent to 12 percent - in doubt. The association's chief executive, Pauline Vamos, said the increase to the levy would depend on the fate of the proposed minerals resource rent tax.
'If there's no mining tax, then certainly a lot of the spend around super will have to be relooked at and that would be extremely disappointing for Australia,' Ms Vamos said. Page 27.
Health industry executives say the federal election outcome will prompt a greater focus on rural and regional area health initiatives, as both sides of politics seek to gain the support of key rural independents holding the balance of power. Analysts say a Coalition government is likely to be more favourable to private healthcare providers, although industry sources have called for greater consultation from both sides. Page 27.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Financial markets are expected to slip today ahead of a week of uncertainty, while investors anticipate a speedy resolution to Australia's hung parliament. The Australian dollar is expected to lose about US1c in value and lower trading volumes have been forecast. Cameron Peacock, a market analyst with IG Markets, said the hung parliament came as a surprise to the market, which had mostly priced in a Labor win. Page B1.
Mining giant BHP Billiton will meet with investors this week as it tries to sell its A$43 billion bid for the world's largest potash producer; PotashCorp. BHP has taken out advertisements in the North American press to sell its offer for the Canadian company, and chief executive Marius Kloppers may travel to the United States and Canada to promote the proposal as a 'full and fair' offer. PotashCorp chief Bill Doyle has rejected BHP's 'highly opportunistic' hostile bid. Page B1.
The Australian Securities and Investments Commission (ASIC) has agreed to finance McGrathNicol, the liquidator of the failed Allco Finance Group, to pursue an investigation into alleged breaches of the Corporations Act. McGrathNicol last year raised concerns about the validity of more than A$1 billion of transactions made by Allco to subsidiaries or joint-venture partners, but was unable to fund the inquiries after Allco's collapse in 2008. In McGrathNicol's annual report released on the weekend, it noted that ASIC 'recently agreed' to underwrite the case. Page B3.
Property development company Mirvac Group will begin demolition work on a A$60 million tower in Sydney's Chifley Square as early as this week. Mirvac was expected to begin work on the site in early 2009, but development works stalled due to the financial crisis. Mirvac is expected to post net profit of A$193 million when it reports full year results tomorrow. Page B4.
THE AGE (www.theage.com.au)
National Australia Bank (NAB) planned to launch a takeover bid for AXA Asia Pacific midway through this year, it has been revealed. However, the A$13 billion offer was thrown into chaos when financial services provider AMP launched a surprise offer for AXA in late 2009. The move forced NAB to launch its offer at least six months ahead of schedule; at a time when it was still digesting its A$825 million takeover of life insurer and funds manager Aviva Australia. Page B3.
Westpac Banking Corporation could lose up to A$17 million from the collapse of a New Zealand wine grower. Westpac was the major creditor to the failed Awatere Vineyard Holdings and Awatere Vineyard Estates, which owe creditors over NZ$24 million.
Westpac was the core creditor to Awatere, and is owed $NZ22 million. Other Australian banks are believed to be exposed to New Zealand's struggling wine industry, as four out of five of New Zealand's major banks are Australian owned. Page B3.
Real estate services firm Jones Lang LaSalle (JLL) has released its June quarter report, which highlights a drop in vacancy rates in the Melbourne fringe office market while tenant demand is rising. The demand for office space is expected to push up rents, says JLL director of research Andrew Ballantyne.
'Vacancy has passed the cyclical peak and is expected to tighten below 10 per cent by late 2010,' Mr Ballantyne said. He added that a reduction in leasing incentives will drive rents in late 2010 and into 2011. Page B6.
Tender prices in Melbourne will rise by up to 4 percent this year due to emerging projects on the market, according to property consultant Rider Levett Bucknall. Tender prices in Sydney, Adelaide, Canberra and Darwin are also expected to increase, while prices in Brisbane and Perth are forecast to drop by 1 percent. Research suggests that the increase in tender prices in Melbourne will be driven by the industrial sector.
Page B6.
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.