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)
Chris Delaney, Asia-Pacific president of food manufacturer Campbell Arnott's, has warned that high levels of promotional activity by retailers risks damaging store loyalty and brand loyalty. Mr Delaney would not say whether he believed current promotion levels were damaging, but said 'it's something as owners of our brand we have always got to keep an eye on.'
Promotional activity has been increasing over the past year as supermarket chain Coles has sought to increase market share. Page 14.
Terry Smart, the new chief executive of electronics retailer JB Hi-Fi, has said that although sales growth for the year is currently below guidance, he believes that the company 'will have a good Christmas.' The retailer's sales growth for the first quarter of 12.2 percent was below its target of 17 percent - due to price deflation and strong competition in the sector - but Mr Smart said 'it's too early to call that our targets are not achievable.' Page 14.
Bidders in New South Wales' (NSW) A$8 billion electricity asset privatisation would be 'well aware' of the competition issues that would arise from bids for certain asset combinations, according to Australian Competition and Consumer Commission chairman Graeme Samuel. However, Mr Samuel said there were also potential bids that would 'require further inquiries,' and that the regulator would work with the NSW government and bidders on possible competition issues. Page 15.
Rating agency Moody's Investors Services last week upgraded its credit rating on mining company Rio Tinto from 'Baa1' to 'A3.' Moody's said the change was prompted by the miner's significant reduction in debt following last year's asset sales and capital raising. Rio has reduced its debt from A$46.9 billion at the end of 2007, to A$15.5 billion as at June 30 this year. Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Elmer Funke Kupper, chief executive of Tabcorp, yesterday rejected claims that the company's proposal to split into a casino business and a separate wagering and gaming business was intended to 'gift-wrap' the demerged companies for potential buyers. Analysts say the demerger proposal will make the casino business attractive to Crown, with the wagering business likely to be acquired by Tatts Group. Mr Kupper said the future of the demerged companies would be 'up to those businesses.' Page 22.
Frank Costa, executive chairman of fresh produce business Costa Group of Companies, has said he is considering the partial sale of his company. Mr Costa said he was considering bringing in a partner as part of planning for management succession, and as a way of transferring family wealth. Mr Costa said that while other options such as floating the company were being examined, 'I prefer the joint venture, because it keeps the family involved.' Page 22.
Property developer Harry Triguboff has warned that an increase in official interest rates would seriously damage Australia's property development market. Mr Triguboff said higher rates would further reduce banks' willingness to lend to developers, reducing residential construction and pushing up rents in areas with an undersupply of housing. The board of the Reserve Bank of Australia will meet to consider interest rates next week. Page 22.
The Australian Taxation Office is expected to release its final determination on tax issues surrounding its dispute with private equity firm Texas Pacific Group (TPG) within weeks. Last year, the tax office sought to freeze TPG's bank accounts, after finding that its A$1.5 billion in profit from the sale of retailer Myer should be classed as income rather than a tax-free capital gain. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Toll road operator Transurban will hold its annual meeting tomorrow, with the company's rejection of a A$7.2 billion takeover bid and a proposed A$2 million share plan for chief executive Chris Lynch expected to come under scrutiny. The takeover proposal came from a consortium that included Transurban's two largest shareholders - fund manager CP2 and Canada Pension Plan Investment. CP2 managing director Peter Doherty recently said 'we have to have a change in the way the company is being managed.' Page B3.
Tom Albanese, chief executive of mining company Rio Tinto, yesterday said he had the 'utmost confidence' that the Federal Government would abide by the 'spirit' of the mining tax agreement that Rio, along with BHP Billiton and Xstrata, reached with the Government in July. The miners have expressed concern that they may not be able to claim credits against the new tax from increased state royalties, but Mr Albanese said he was confident that the policy transition group would resolve any issues. Page B3.
The residential property auction clearance rate in Sydney has remained at 56 percent for the second weekend in a row, according to figures from Australian Property Monitors. The highest price on the weekend was for a property at Queen's Park that sold for A$2.4 million. The clearance rate next weekend will be watched closely, with 650 scheduled auctions expected to test the market.
Page B5.
Businessman Duncan Saville has received a A$52.6 million cash return from transport ticketing group Vix ERG, two years after he was handed the business by ERG shareholders as they sought to avoid insolvency. The company's latest financial statement says the sale of assets and 'various major project milestone payments' funded the purchase of A$52.6 million worth of redeemable preference shares owned by Mr Saville. Page B7.
THE AGE (www.theage.com.au)
Federal Treasurer Wayne Swan yesterday welcomed agreements emerging from the weekend's meeting of Group of 20 (G20) finance ministers aimed at preventing a currency war and moving towards exchange rate reforms. Mr Swan said he endorsed the 'broad acknowledgement that market-based currencies are not only good for individual member states but for the G20 as a whole.' Page B1.
Mike Smith, chief executive of Australia and New Zealand Banking Group, yesterday said the bank was still conducting due diligence on South Korea's Korea Exchange Bank (KEB), but that 'hopefully we will come to a conclusion relatively soon.' Speculation that the two groups were close to a deal was heightened on Friday when KEB chairman Richard Wacker said he intended to resign. Page B2.
Three of Australia's major banks will report full-year cash earnings over the next two weeks, with analysts expecting that each will post record profits. The results are expected to heighten pressure on the banks to not raise interest rates outside any moves by the Reserve Bank of Australia. However, bank executives say their funding costs are continuing to rise, and analysts say that higher interest rates are necessary if banks are to maintain earnings growth. Page B2.
Matthias Krups, chairman of construction information group BCI Australia, has said that the construction industry needs to become more aware of the costs it will face from a price on carbon emissions. Mr Krups said construction and property companies 'have to brace themselves for a new age where they may be held accountable and get taxed for the environmental performance of their projects.' 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)
Chris Delaney, Asia-Pacific president of food manufacturer Campbell Arnott's, has warned that high levels of promotional activity by retailers risks damaging store loyalty and brand loyalty. Mr Delaney would not say whether he believed current promotion levels were damaging, but said 'it's something as owners of our brand we have always got to keep an eye on.'
Promotional activity has been increasing over the past year as supermarket chain Coles has sought to increase market share. Page 14.
Terry Smart, the new chief executive of electronics retailer JB Hi-Fi, has said that although sales growth for the year is currently below guidance, he believes that the company 'will have a good Christmas.' The retailer's sales growth for the first quarter of 12.2 percent was below its target of 17 percent - due to price deflation and strong competition in the sector - but Mr Smart said 'it's too early to call that our targets are not achievable.' Page 14.
Bidders in New South Wales' (NSW) A$8 billion electricity asset privatisation would be 'well aware' of the competition issues that would arise from bids for certain asset combinations, according to Australian Competition and Consumer Commission chairman Graeme Samuel. However, Mr Samuel said there were also potential bids that would 'require further inquiries,' and that the regulator would work with the NSW government and bidders on possible competition issues. Page 15.
Rating agency Moody's Investors Services last week upgraded its credit rating on mining company Rio Tinto from 'Baa1' to 'A3.' Moody's said the change was prompted by the miner's significant reduction in debt following last year's asset sales and capital raising. Rio has reduced its debt from A$46.9 billion at the end of 2007, to A$15.5 billion as at June 30 this year. Page 15.
THE AUSTRALIAN (www.theaustralian.news.com.au)
Elmer Funke Kupper, chief executive of Tabcorp, yesterday rejected claims that the company's proposal to split into a casino business and a separate wagering and gaming business was intended to 'gift-wrap' the demerged companies for potential buyers. Analysts say the demerger proposal will make the casino business attractive to Crown, with the wagering business likely to be acquired by Tatts Group. Mr Kupper said the future of the demerged companies would be 'up to those businesses.' Page 22.
Frank Costa, executive chairman of fresh produce business Costa Group of Companies, has said he is considering the partial sale of his company. Mr Costa said he was considering bringing in a partner as part of planning for management succession, and as a way of transferring family wealth. Mr Costa said that while other options such as floating the company were being examined, 'I prefer the joint venture, because it keeps the family involved.' Page 22.
Property developer Harry Triguboff has warned that an increase in official interest rates would seriously damage Australia's property development market. Mr Triguboff said higher rates would further reduce banks' willingness to lend to developers, reducing residential construction and pushing up rents in areas with an undersupply of housing. The board of the Reserve Bank of Australia will meet to consider interest rates next week. Page 22.
The Australian Taxation Office is expected to release its final determination on tax issues surrounding its dispute with private equity firm Texas Pacific Group (TPG) within weeks. Last year, the tax office sought to freeze TPG's bank accounts, after finding that its A$1.5 billion in profit from the sale of retailer Myer should be classed as income rather than a tax-free capital gain. Page 23.
THE SYDNEY MORNING HERALD (www.smh.com.au)
Toll road operator Transurban will hold its annual meeting tomorrow, with the company's rejection of a A$7.2 billion takeover bid and a proposed A$2 million share plan for chief executive Chris Lynch expected to come under scrutiny. The takeover proposal came from a consortium that included Transurban's two largest shareholders - fund manager CP2 and Canada Pension Plan Investment. CP2 managing director Peter Doherty recently said 'we have to have a change in the way the company is being managed.' Page B3.
Tom Albanese, chief executive of mining company Rio Tinto, yesterday said he had the 'utmost confidence' that the Federal Government would abide by the 'spirit' of the mining tax agreement that Rio, along with BHP Billiton and Xstrata, reached with the Government in July. The miners have expressed concern that they may not be able to claim credits against the new tax from increased state royalties, but Mr Albanese said he was confident that the policy transition group would resolve any issues. Page B3.
The residential property auction clearance rate in Sydney has remained at 56 percent for the second weekend in a row, according to figures from Australian Property Monitors. The highest price on the weekend was for a property at Queen's Park that sold for A$2.4 million. The clearance rate next weekend will be watched closely, with 650 scheduled auctions expected to test the market.
Page B5.
Businessman Duncan Saville has received a A$52.6 million cash return from transport ticketing group Vix ERG, two years after he was handed the business by ERG shareholders as they sought to avoid insolvency. The company's latest financial statement says the sale of assets and 'various major project milestone payments' funded the purchase of A$52.6 million worth of redeemable preference shares owned by Mr Saville. Page B7.
THE AGE (www.theage.com.au)
Federal Treasurer Wayne Swan yesterday welcomed agreements emerging from the weekend's meeting of Group of 20 (G20) finance ministers aimed at preventing a currency war and moving towards exchange rate reforms. Mr Swan said he endorsed the 'broad acknowledgement that market-based currencies are not only good for individual member states but for the G20 as a whole.' Page B1.
Mike Smith, chief executive of Australia and New Zealand Banking Group, yesterday said the bank was still conducting due diligence on South Korea's Korea Exchange Bank (KEB), but that 'hopefully we will come to a conclusion relatively soon.' Speculation that the two groups were close to a deal was heightened on Friday when KEB chairman Richard Wacker said he intended to resign. Page B2.
Three of Australia's major banks will report full-year cash earnings over the next two weeks, with analysts expecting that each will post record profits. The results are expected to heighten pressure on the banks to not raise interest rates outside any moves by the Reserve Bank of Australia. However, bank executives say their funding costs are continuing to rise, and analysts say that higher interest rates are necessary if banks are to maintain earnings growth. Page B2.
Matthias Krups, chairman of construction information group BCI Australia, has said that the construction industry needs to become more aware of the costs it will face from a price on carbon emissions. Mr Krups said construction and property companies 'have to brace themselves for a new age where they may be held accountable and get taxed for the environmental performance of their projects.' 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.