2010-03-12 Business and Finance News (vsx.com.au)

Takara Bio to Enter into a Collaborative Research Agreement with University of Pennsylvania- Aiming for a Future Clinical Trial of HIV Gene Therapy
Tokyo- Mar 12- 2010 - JCN Newswire - Takara Bio Inc. announced today that it has executed a collaborative research agreement with University of Pennsylvania on March 11- 2010 to support an HIV gene therapy clinical trial in the United States. Under this agreement- Takara and Carl H. ...
Fri 12th March 2010 - 09:27pm

Chinese oil demand leaps- energy agency
PARIS AFP - Emerging markets are driving unexpectedly strong growth of world oil demand this year with a big boost from China- despite a fall in advanced economies- the International Energy Agency said on Friday. ...
Fri 12th March 2010 - 09:18pm

Revamped Launceston Airport pitches for more Tiger- Jetstar flights
The owner of the Launceston Airport has officially unveiled a $20 million redevelopment that has doubled the airports capacity. ...
Fri 12th March 2010 - 08:41pm

NZ residential property sales normalise
February residential property sales were back to 2009 levels after reaching in January their lowest point for two decades- says the Real Estate Institute of NZ. ...
Fri 12th March 2010 - 08:16pm

Credit- debit card transactions plunge
The total value of credit and charge card transactions posted their biggest fall for a January in five years- Reserve Bank figures released on Friday show. ...
Fri 12th March 2010 - 07:51pm

Escaping the Waterfall train crash
It is fairly unusual for real-life events to intrude into the personal life of a journalist except for fictional reporters- but for me- the Waterfall train crash- south of Sydney- was that event. ...
Fri 12th March 2010 - 07:51pm

ACCC delays decision on AXA APH takeover
Australia's competition watchdog has delayed a decision on two competing bids for AXA Asia Pacific Holdings Ltd. ...
Fri 12th March 2010 - 07:45pm

Japan PM calls for firm steps against strong yen
TOKYO AFP - Japans Prime Minister Yukio Hatoyama on Friday made a rare call for -amp quotfirm steps -amp quot to stem the strength of the yen as the currencys recent advances have hit exporters earnings. ...
Fri 12th March 2010 - 07:31pm

Cape Lambert sells Lady Annie for $135m
Shares in Cape Lambert Resources jumped sharply after the company sold a copper project in Queensland for $135m to a Hong Kong-based firm. ...
Fri 12th March 2010 - 06:59pm

Internet shake-up looms on PIPE sale
An internet industry shake-up is looming after shareholders in PIPE Networks voted to accept a $373m takeover by TPG Telecom. ...
Fri 12th March 2010 - 06:34pm

Fishing boat scuppered on Moreton Bay
A former fishing boat that will form part of an artificial reef in Moreton Bay in south-east Queensland has been sunk two days earlier than planned. ...
Fri 12th March 2010 - 06:26pm

Fortescue new mine plan to cost $9.7b
Iron ore producer Fortescue Metals Group Ltd has put a near $10b price tag on developing its planned 3rd mine after boosting production targets. ...
Fri 12th March 2010 - 05:59pm

IAG says Vic storms blew out budget
The Insurance Australia Group says natural peril costs will exceed its budget for the second half of this financial year after Victoria's severe weather. ...
Fri 12th March 2010 - 05:55pm

WorleyParsons wins North Sea contract
Engineering firm WorleyParsons has won its first major offshore platform contract at a project in the North Sea between Europe and the United Kingdom. ...
Fri 12th March 2010 - 05:54pm

Market finishes marginally higher
The Australian share market finished flat on Friday- after initially making gains on a positive lead from Wall Street overnight. ...
Fri 12th March 2010 - 05:44pm

Nyrstar boosts bid for CBH Resources
Belgium zinc giant Nyrstar NV has made another tilt at Australian miner CBH Resources- boosting its original bid to $213.45 million. ...
Fri 12th March 2010 - 05:42pm

Mitre 10 takeover may spark hardware war
Grocery wholesaler Metcash has won approval from Mitre 10 Group shareholders for its $55m plan to take a controlling interest in the home improvement group. ...
Fri 12th March 2010 - 05:40pm

SE Qld whipped by strong winds
Strong winds have caused blackouts in parts of south-east Queensland. ...
Fri 12th March 2010 - 05:39pm

Australia stocks flat take gains to 5 weeks
SYDNEY- Mar 12 - Australian shares ended flat on Friday but still took gains to five straight weeks- as investors remained confident about the prospects of the domestic economy and the global recovery. ...
Fri 12th March 2010 - 05:15pm

Australia dlr steadies after strong week- debt soft
Near highs vs euro- sterling- NZ $ ...
Fri 12th March 2010 - 04:47pm

A $ hits 13-year high against euro
The fallout from Greece's debt woes have helped propel the Australian dollar to a 13-year high against the euro- experts say. ...
Fri 12th March 2010 - 04:28pm

SE Qld whipped by strong winds
Strong winds have caused blackouts in parts of south-east Queensland. ...
Fri 12th March 2010 - 04:11pm

Mitre 10 shareholders say yes to Metcash
Shareholders in hardware firm Mitre 10 Group have voted in favour of grocery wholesaler Metcash Ltd taking a 50.1 per cent stake in Mitre 10 for $55 million. ...
Fri 12th March 2010 - 03:59pm

PIPE Networks cleared to sell for $373m
Shareholders in telecoms infrastructure firm PIPE Networks Ltd have voted to accept a $373.09m takeover by TPG Telecom Ltd. ...
Fri 12th March 2010 - 03:56pm

Citigroup says bank on path to profit
Citigroup is poised to return to -amp quotsustained profitability -amp quot as it sheds risky assets and focuses on emerging markets- CEO Vikram Pandit said on Thursday. ...
Fri 12th March 2010 - 03:50pm

EPA approves Mid West power plant
Western Australias Environmental Protection Authority has recommended conditional approval of a coal-fired power station in the Mid West. ...
Fri 12th March 2010 - 03:41pm

Fortescue expansion plans to cost $9.7b
Iron ore producer Fortescue Metals Group has raised the production target at its planned 3rd mine and put a $9.71b price tag on a two-stage operation. ...
Fri 12th March 2010 - 03:36pm

New Zealand dollar steadies after weak data
Kiwi steadies after slipping on weak data ...
Fri 12th March 2010 - 03:36pm

SE Qld whipped by strong winds
Strong winds have caused blackouts in parts of south-east Queensland. ...
Fri 12th March 2010 - 03:28pm

SE Qld whipped by strong winds
Strong winds have caused blackouts in parts of south-east Queensland. ...
Fri 12th March 2010 - 03:16pm

Sumitomo opens offer for Nufarm stake
Japan's Sumitomo Chemical on Friday opened its tender offer for 20 of the shares in agricultural chemicals firm Nufarm Ltd at $14.00 per share. ...
Fri 12th March 2010 - 03:15pm

A $ hits 13-year high against euro
The fallout from Greece's debt woes have helped propel the Australian dollar to a 13-year high against the euro- experts say. ...
Fri 12th March 2010 - 03:14pm

Strategic Finance in NZ in receivership
Specialist property financier New Zealand Strategic Finance Ltd is now in the hands of receivers. ...
Fri 12th March 2010 - 02:58pm

Lend Lease WTC class action settled
Property developer Lend Lease said a US class action against a subsidiary filed by workers on the World Trade Center clean-up site in New York had been settled. ...
Fri 12th March 2010 - 02:44pm

NZ retail sales up 0.8 in January
Seasonally adjusted total retail sales rose by 0.8 per cent or $A32.16m in January- pulled ahead by sales of automotive fuel and of vehicles. ...
Fri 12th March 2010 - 02:29pm

Fortescue expansion plans to cost $6.2b
Iron ore producer Fortescue Metals Group Ltd has increased the production target at its planned third mine and put a $A6.24b price tag on a two-stage operation. ...
Fri 12th March 2010 - 02:23pm

Onus on shipbuilders in downturn
Australias Export Finance and Insurance Corporation says it will support Australian shipbuilders during an industry downturn- if builders find credit-worthy clients. ...
Fri 12th March 2010 - 02:15pm

Gorgon contracts head overseas
Australian engineers say they are missing out on the booming Liquefied Natural Gas- LNG- industry because design contracts are being given to overseas firms. ...
Fri 12th March 2010 - 02:14pm

Cape Lambert shares jump after sale
Shares in Cape Lambert Resources jumped more than 10 per cent after the resources and investment company sold a copper project for $135 million. ...
Fri 12th March 2010 - 01:46pm

Asian Markets Overview of March 12- 2010
Sydney- Australia- Mar 12- 2010 - ABN Newswire - Banking shares continued to push the US market higher overnight- despite resources and industrial sectors were hurt by worries that China may tighten its policy to cool the overheating economy after the countrys latest inflation data. Consumer price index for February in China rose a faster-than-expected 2.7 in February from a year earlier. Thursday Asian markets closed mixed. ...
Fri 12th March 2010 - 01:44pm

FIRB approves Macarthur takeover
Australian officials have cleared Macarthur Coal's planned takeover of Gloucester Coal- which would see Singapore's Noble Group take a 24.6 stake in Macarthur. ...
Fri 12th March 2010 - 01:38pm

Business bears brunt of interest margin increase
A Reserve Bank report estimates the major banks have enjoyed a 20 to 25 basis point increase in interest margins during the financial crisis. ...
Fri 12th March 2010 - 01:35pm

Warehouse lifts H1 profit 17
Retailer The Warehouse Group reported adjusted half year net profit edging ahead of last year while overall sales slipped slightly. ...
Fri 12th March 2010 - 01:19pm

Australian companies missing out
Australian engineers say they are missing out on the booming Liquefied Natural Gas LNG industry because design contracts are being given to overseas firms. ...
Fri 12th March 2010 - 12:42pm

Natural peril costs exceed budget- IAG
Insurance Australia Group Ltd says natural peril costs will exceed its budgeted allowance for the second half after the severe weather in Victoria. ...
Fri 12th March 2010 - 12:32pm

Credit- debit card transaction fall 22
The total value of credit and charge card transactions- including advances- fell by 22 per cent in January- RBA figures released show. ...
Fri 12th March 2010 - 12:31pm

Australia dlr consolidates weeks gains rates support
Local dollar parked at $0.9155- much where it ended in New York and in domestic trade on Thursday- but up on last Fridays $0.9069 finish. Good support seen around $0.9110-15 and Aussie seen holding for another test of offers at $0.9190-9200. ...
Fri 12th March 2010 - 12:26pm

Chinese visitor numbers soar
New figures show Victoria is attracting more tourists from New Zealand- China and the United Kingdom than from any other country. ...
Fri 12th March 2010 - 12:14pm

Cape lambert shares jump after sale
Shares in Cape Lambert Resources jumped more than 10 per cent after the resources and investment company sold a copper project for $135 million. ...
Fri 12th March 2010 - 11:32am

New Zealand dollar slips after weak retail data
Kiwi NZDD4 around $0.6991-96- compared with opening level around $0.7000 and an offshore low of $0.6964. Kiwi slid after core retail sales- which excludes fuel and auto-related sales- rose by 0.3 percent in January- missing expectations for 0.9 percent. ID-nSGE62A027 ...
Fri 12th March 2010 - 11:27am

Australia stocks gain 0.4 percent banks lead
WELLINGTON- Mar 12 - Australian shares rose 0.4 percent on Friday- with banks gaining on financial stocks rally in Wall Street and miners climbing on higher commodity prices. ...
Fri 12th March 2010 - 11:22am

Call centre expansion plans
A call centre operator on Tasmanias north-west coast has begun work to expand its Devonport site and create 300 jobs. ...
Fri 12th March 2010 - 10:46am

Fat cat salary upsets staff
Members of the South West Aboriginal Medical Service say their chief executive is sitting on a fat cat salary while the service looks to cut costs by sacking staff. ...
Fri 12th March 2010 - 10:39am

ABN Newswire Stocks to Watch- March 12- 2010
Sydney- Australia- Mar 12- 2010 - ABN Newswire - Iron Road Limited ASX-IRD said that all approvals are in place for commencement of the Companys maiden drilling programme to investigate potential for direct shipping ore at the Gawler Iron Project. The start date for the programme is scheduled for 16 March 2010.Emerging lithium producer- Galaxy Resources Limited ASX-GXY PINK- ...
Fri 12th March 2010 - 10:30am

Airport takes advantage of consumers on parking
The Australian Competition and Consumer Commission ACCC has found Melbourne Airport is making more money from car parking fees than any of the countrys other main airports. ...
Fri 12th March 2010 - 10:27am

Benitec Limited ASX-BLT Graham Patent Granted In Japan
Melbourne- Australia- Mar 12- 2010 - ABN Newswire - Benitec Limited ASX-BLT PINK-BNIKF today announced that a patent -amp quotControl of Gene Expression -amp quot- part of the Graham patent family of RNA interference RNAi patents was granted in Japan.The -amp quotControl of Gene Expression patent -amp quot is a patent in the foundational Graham RNAi patent family and is related to the 099 patent currently under reexamination at the USPTO. ...
Fri 12th March 2010 - 10:25am

US household wealth jumps for first time since recession
WASHINGTON AFP - American household wealth jumped in 2009 for the first time since a brutal recession struck the country- underscoring the impact of an economic recovery- data from the central bank showed Thursday. ...
Fri 12th March 2010 - 10:24am

Australia stocks up 0.3 percent early
WELLINGTON- Mar 12 - Australian stocks rose 0.3 percent in early trade on Friday- after Wall Street rallied late- and miner Cape Lambert Resources CFE soared on a deal to sell its Lady Annie copper project. ...
Fri 12th March 2010 - 10:23am

Atlas Iron Limited ASX-AGO Updates On The Aurox Resources Merger
Perth- Australia- Mar 12- 2010 - ABN Newswire - Atlas Iron Limited ASX-AGO and Aurox Resources Limited ASX-AXO PINK-AUOXF yesterday announced to the Australian Securities Exchange ASX that they have executed a Scheme Implementation Agreement to effect a merger of the two companies by way of Scheme of Arrangement. Atlas will issue Aurox shareholders with one Atlas share for every three Aurox shares they hold upon implementation. ...
Fri 12th March 2010 - 09:54am

Warehouse lifts H1 profit 17
Retailer The Warehouse lifted half year net profit 17.3 per cent to $NZ57.4 million $A44.08 million as a recovery in overall retail spending remains -amp quotpatchy -amp quot. ...
Fri 12th March 2010 - 09:49am

Forum airs water- forestry conflict concerns
A forum in Launceston has heard claims conflicts of interest are dogging the Tasmanian environment. ...
Fri 12th March 2010 - 09:35am

New market push for home-grown veg
Farmers in north-west Tasmania will become the poster boys for a new vegetable marketing push promoting Australian grown produce. ...
Fri 12th March 2010 - 09:17am

Biofuels study in Cooper Basin
South Australian resource company Beach Energy and a US business General Atomics are doing a joint study on producing biofuels in the Cooper Basin. ...
Fri 12th March 2010 - 09:12am

Business warns over jobs future
Business is concerned about the future direction of Tasmanias unemployment rate. ...
Fri 12th March 2010 - 08:51am

Sydney airport ranked countrys worst again
The Australian Competition and Consumer Commission ACCC has slammed Sydney Airport for raising prices despite ranking as the worst-performed airport in the country. ...
Fri 12th March 2010 - 08:38am

Forum airs water- forestry conflict concerns
A forum in Launceston has heard claims conflicts of interest are dogging the Tasmanian environment. ...
Fri 12th March 2010 - 08:20am

Airlines set for Asian recovery- IATA
The global airline industry is heading for far better results this year than expected because of recovery in Asian and Latin American markets- IATA said. ...
Fri 12th March 2010 - 07:53am

EU steel makers complain of iron prices
European steel makers warned on Thursday that big iron ore price increases could slow the region's fragile economic recovery. ...
Fri 12th March 2010 - 07:52am

NZ dollar settles lower after rate decision
WELLINGTON- March 12 - The New Zealand dollar settled off its lows on Friday after the central banks latest monetary statement cooled expectations about the pace of rate rises and investors sought direction in a choppy market. ...
Fri 12th March 2010 - 07:42am

NZ dollar settles lower after rate decision
Kiwi NZDD4 resumes local session around $0.7000 after sinking to a low of $0.6964 in the wake of the Reserve Bank of NZs statement that there was no hurry to raise rates and it may not have to raise rates as high as previously because of financial market conditions and a subdued economy. See ID-nSGE62A03J ...
Fri 12th March 2010 - 07:34am

Our Confidence Boom
This week we have seen -amp 160the importance of confidence underlined as a very important but hard to achieve part of economic policy.In fact confidence is much easier to lose than to retain you only have to look at Japan- the US and UK and much of Europe to see the lack of confidence markets and investors and hundreds of millions of voters have in their governments economic management.In Australia- despite the phony campaigns on budget deficits and government debt- confidence remains high among companies and consumers.In fact both are at or near highs not seen for five to seven years.This is reflecting the improvement in the economy- demand for goods and services- rising share and house prices and falling unemployment.The reports on business from the NAB- and from Westpac and the Melbourne Institute on consumer confidence were all extremely solid.The NABs survey of business conditions was probably the more important- showing demand and activity remains strong- even if there seems to have been a small dip in January and February.As well we saw a strong show of confidence from employers who boosted their job ads last month by a record 19.1- according to the ANZs job ads survey.That was strong for newspaper ads and especially so for internet job advertising.And yesterday -amp 160we had -amp 160further confirmation -amp 160of this tide of optimism from the February labour force figures which not only confirmed that -amp 160the Australian economic recovery is continuing- but that employers and would-be employees are -amp 160now showing more confidence in the future.The unemployment -amp 160rate rose to -amp 1605.3 because the -amp 160initially reported rate for January of 5.3 was revised down to 5.2.As well- -amp 160only a handful of new jobs were created last month- compared with the 54-000 in January.So on the surface- a slowdown.But that didnt tell -amp 160all the story.In fact the real story from the February labour force report from the ABS is -amp 160this growing confidence from employers and employees alike.The revision in the unemployment rate came from a fall in the participation rate down 0.1 to 65.2 and a rise of more than 10-700 people who were looking for work. Of those- more than 9-000 were looking for part time work.In other words- 10-700 people who havent been encouraged enough in recent months to look for work- have rejoined the ranks of those on the hunt for employment its a confidence thing.The number of new jobs increased by just 400- -amp 160well down from the sharp increases of the previous three months especially the 52-700 in January- but that disguised an 11-400 rise in full time employment and a fall of 11-000 in part-time employment.That is classic recovery labour market movement- as employers become more confident about the strength of demand- they employ more people in full time work- usually by shifting people from part-jobs -amp 160.Thats whats happening now.And another- perhaps stronger indicator -amp 160of the continuing strength in demand and activity was the large 2.4 jump in the number of hours worked in February.The rise was almost 36 million hours over the month- and more than reversed the slightly odd fall in January of just over 14 million hours- or 1. -amp 160That confused analysts because it was -amp 160accompanied by a sharp rise in job creation and that fall in the unemployment rate to 5.3.That was a very strong rise and as Macquarie Banks Rory Robertson has pointed out this increase has all but wiped out the loss of working hours in the 2008-09 slowdown-Now we have a small growth in employment- a rise in full time employment- with an associated fall in part time employment- and a strong jump in the hours worked- all classic labour market theory showing up in practice at the same time.And there was another important measure than went the right way- the ABSs quarterly look at labour under utilisation thats people unemployed or under employed by being in part time work or on short hours.The ABS said the -amp quotLabour Force underutilisation rate decreased 0.6 pts to 12.8. The male labour force underutilisation rate decreased 0.7 pts to 11.1 and the female labour force underutilisation rate decreased 0.4 pts to 14.9. -amp quotAnd co-incidentally- the Reserve Bank looked at the performance of the labour market in 2008 and 2009 during the worst of the slowdown in its first all electronic edition of its monthly bulletin- the study -amp 160concluded- -amp quotThe Australian labour market fared relatively well during the 2008-2009 downturn- with the unemployment rate rising by less than expected and labour force participation remaining strong. -amp quotMuch of the weakening in labour demand was reflected in a decline in average hours worked- with firms and their employees negotiating arrangements that preserved jobs. -amp quotThese outcomes were better than might have been expected- based on the experiences of the early 1980s and 1990s recessions. -amp quotAnd that was confirmed in the labour force stats for February.And the AMPs chief economist- Dr Shane Oliver said in a comment yesterday that the labour force figures were much better than they seemed. -amp quotAustralian labour force data was broadly as expected in February with employment close to our forecast of flat and unemployment coming in at 5.3- from a downwardly revised 5.2 in January. -amp quotAfter five consecutive months of strong jobs growth resulting in 197-300 jobs overall- it was inevitable that we would see a somewhat softer month sooner or later and February was it. -amp quotHowever- it is worth noting that the February jobs report is actually better than it looks- full time employment continued to rise- total hours worked rebounded by 2.3 after surprising weakness in January and while unemployment -amp quotrose -amp quot to 5.3 this only because the unemployment rate in January was revised down to 5.2. -amp quotBusiness hiring plans and surging job ads suggest that strong employment growth will resume in the months ahead which will likely push the unemployment rate back below 5 by year end -amp 160 ...
Fri 12th March 2010 - 07:22am

Chinese Inflation Up- Cracks Down Further On Housing
Shock horror- Chinas consumer inflation is now running at 2.7 and house prices boom- bubble- boom and bust yell the western analysts.It was the 4th successive monthly increase in inflation- but followed eight months of falling prices.But the government is worried about property price inflation- yesterday they revealed home buyers will have to put up a 50 deposit when buying land and banned the sale of land for villas.People buying land at auction will have to put up a 20 deposit.That was after residential and commercial real-estate prices in 70 cities climbed 10.7 in the year to February- up from the 9.5 rate in January.Also in January- the government -amp 160reintroduced -amp 160a tax on the sale of houses made within five years of their purchase to slow -amp 160speculative purchases and so-called -amp quotflipping -amp quot.The government said that -amp 160consumer prices increased -amp 1602.1 in January and February- -amp 160from the same period in 2009. -amp 160There will be a lot more of this boom and bust commentary in coming months until China brings inflation under control.But in the meantime Australian taxpayers- shareholders and companies such as BHP and Rio will have a vested interest in cheering on inflation because they will be riding it for every last dollar after all they have a vested interest- and are part of the cause.Producer-price inflation climbed to 5.4 in February from 4.3 in January.Banks extended 700 billion Yang $US112 billion of new loans in February- down from -amp 1601.39 trillion Yang in the previous month and 1.07 trillion Yang in February of last year.Retail sales rose 17.9 in the first two months from a year earlier- and urban fixed-asset investment gained 26.6.Retail sales grew 22.1 in February- but that was boosted by the Lunar New Year holiday.Production grew -amp 16020.7 in the first two months of the year after an 18.5 rise in December.Crude steel production jumped 22.5 in January and February to 102.89 million tonnes- with Februarys figure up 22 at 50.36 million tonnes meaning Januarys figure was a much higher than expected 52.53 million tonnes. -amp 160Iron ore imports rose 5.6 to 49.38 million tonnes. -amp 160Over the first two months of the year ore imports rose 21 to more than 96 million tonnes.No wonder iron ore prices are around record levels- and no wonder the Brazilian exporter- Vale- is asking for a 90 price rise.So after these figures- watch for a rate rise the last rate rise was in December 2007. One will happen in coming months.The central bank has lifted the asset reserve ratio twice and also engineered two small increases in money market rates- while it and the banking regulator have ordered banks to cut lending and to redirect loans to more productive parts of the economy.The one-year lending rate is at 5.31 and deposit rate is at 2.25.China has -amp 160pegged the Yang at about 6.83 per -amp 160US dollar since July 2008 to help exporters.Last weekend- Premier Wen Jiabao pledged to -amp 160hold full-year inflation around 3 and GDP -amp 160growth was again set at the standard 8 a year 10.7 annual rate in the 4th quarter of 2009.Australian companies and taxpayers will be beneficiaries of this inflation and growth..BHP Billion won price rises of 55 for coking coal this week from major buyers in Asia and Europe. -amp 160Chinese steel mills will pay this- and thermal coal buyers will as well when the price rise triggers a rise in steaming coal prices.Iron ore prices in China could rise by 50 or more after BHP- Rio Tinto and Vale of Brazil win big price increases from Japanese and Korean mills- and then tell China they will have to pay.By some estimates- this could boost steel prices in Asia by 30 over the next year.That will lift the cost of cars- building- whitegoods and other products at a time when the government is trying to stimulate domestic demand.So while the price rises will be music to the balance sheets of Australian and other global resource companies- there will be a danger in the price rises boosting inflation further.Chinese spending will fall over the year from last years frenetic levels. But from the governments point of view it will be a steady as she goes year.Apart from the economic reasons- theres a political reason for this as well.Complicating these pronouncements to the annual National Peoples Congress in Beijing is the knowledge that at sometime in the next year- the replacements for the changeover of power in 2012 will be made known.President Hu Jintao and Premier Wen Jiaboa are both to retire in 2012. -amp 160We have seen the start of campaigns from other senior officials for advancement- but so far the likely successors to the two leaders are not known. -amp 160 ...
Fri 12th March 2010 - 07:21am

Myer Profit Up- Confidence Down
A thumbs down from the market for Myer Holdings first interim profit as a listed company for near 25 years.The company reported higher earnings removing the distortions of the costs of the sale and float by private equity late last year but then it warned sales could be flat in the next six months as shoppers no longer have government cash handouts to spend.But Myer maintained its earnings forecast for the full year.Perhaps it was the 38 rise in underlying profit- or the 11.9 rise in Earnings Before Interest and Tax EBIT that allowed it to remain confident.But after sending the shares 6c higher to $3.51- down they went as investors crunched the numbers- savoured the outlook and said no.The shares ended at $3.44- down 3c on the day and a long way from the float price and the years high of $3.98- but well up on its low of $3.12.Clearly a lot of people remain unconvinced that Myer has changed its spots- after spending three years being buffed and polished by the private equity sharks.It seems it was the gloomy outlook that took investors and analysts by surprise.With rival department store group- David Jones due to report its interim profit next week- the contrast will be quite telling.David Jones management was upbeat when revealing its first half sales figures last month and lifted its profit guidance.David Jones places a lot of store in the retailing forecasts of Access Economics- so it was interesting to see that firm this week upgrading its outlook for retailers.Access said it saw Australian retail sales growth accelerating over the next couple of years.It saw retail sales growth- adjusted for inflation- rising from -amp 1602.6 in the 12 months to June 30 to 2.7 -amp 160in the 2011 year -amp 160and 3.8 in 2011-12.And yet Myer was gloomy. -amp quotThe consumer remains wary- -amp quot Myer chief executive Mr Bernie Brookes said in a statement.And- reflecting this Myer- which listed last November- cut its -amp 160full-year sales growth forecast. -amp quotWe remain cautious about the outlook for the second half of FY10. We are entering a period during which we cycle the second and more significant Federal Government Stimulus package- further interest rate rises are widely anticipated- and the consumer remains wary- -amp quot Mr Brooks said in the statement. -amp quotAgainst this backdrop- and despite the sales trend for the first six weeks of the second half 2010 being ahead of the 2 growth reported in the first half 2010- we anticipate total sales growth in the second half of the year to be in the range of 0 to 2 and the full year to be up 1 to 2. -amp quotHowever- the group said it remained confident of achieving its forecast for 11 growth in 2011 earnings before interest and tax -amp 160to $261 million.Including the one-off costs of floating the company- Myers first-half net profit fell 74.4 to $21.3 million for the 26 weeks to January 23- from $83.2 million in the prior corresponding period.The company will pay an interim dividend of 10.5 cents a share.Revenue rose 2 to $1.8 billion. Earnings before interest and tax EBIT were up 11.9 to $181 million- in line with the companys guidance.Mr Brookes seemed happy though with what had happened in the first half.He said in the statement -amp quotOn behalf of the Myer team- I am pleased to report the 7th successive half year of strong profit growth since the acquisition of Myer from Coles Myer Ltd. -amp quotThe 38 increase in net profit after tax is well in advance of the prospectus guidance and- together with our strengthened balance sheet- has led to a dividend being declared- which is at the top of the prospectus range. -amp quotThese 44 months of profit growth have occurred at the same time as the business being re-engineered during the turnaround phase. -amp quotWe are looking forward to the commencement of our store opening program and the launch of our new International standard flagship store in Melbourne. -amp quotFootnote- -amp 160A big contrast to the Myer result and lack of optimism was to be found in the interim figures from Orotongroup- the countrys only wholly upmarket luxury goods retailer- which reported yesterday.It revealed a net profit of $15.4 million for the six months to January 23- up 24 on the previous corresponding period.Group revenue rose a more sedate 9.8 to $81.6 million as same store sales grew 6.3. It was the companys best sales performance in more than five years.Dividend was boosted a healthy 37.5 to 22 cents a share. -amp 160Someone got it right. -amp 160 -amp 160 -amp 160 -amp 160 -amp 160 -amp 160 ...
Fri 12th March 2010 - 07:17am

Violence erupts at Greek demonstrations
Violence erupted on the sidelines of a Greek protest against government austerity measures- with riot police firing tear gas at hooded youths hurling firebombs. ...
Fri 12th March 2010 - 06:30am

Obama to talk trade on visit to Australia
United States president Barack Obama says trade will be one of the key topics when he begins a visit to Indonesia and Australia next week. ...
Fri 12th March 2010 - 06:17am

Obama issues new call on China over yuan
WASHINGTON AFP - US President Barack Obama on Thursday issued a fresh call to China to embrace a -amp quotmarket oriented -amp quot exchange rate for the yuan- saying such a move would help rebalance the global economy. ...
Fri 12th March 2010 - 05:10am

Stolen Swiss bank data at HSBC hits 24-000 clients
GENEVA AFP - A Swiss unit of global banking giant HSBC revealed Thursday that details on 24-000 bank customers may have been leaked in a major security breach that has helped fuel pressure on Switzerland over tax evasion. ...
Fri 12th March 2010 - 03:35am

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