2012_0203 TobinTax - China bounces back - DickSmith
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Business
Wal King was fiercely resistant to the idea of bowing to Hochtief’s whims and change auditors during his 23-year reign at Leighton Holdings. Hewett | Bill Shorten says he is ‘’about outcomes and agnostic about means’’. This was on show as new financial advice rules passed the House.
Dick Smith on outer at Woolworths | Herald Sun
Woolworths says it will restructure Dick Smith and cut 100 stores while the hunt is on for a new buyer. Source: Herald Sun PRIVATE equity firms will be leading the charge for Dick Smith as the consumer electronics business is unloaded by Australia's biggest retailer, industry experts say. Woolworths announced yesterday that it would take a $300 million hit, restructuring the business and culling 100 of the 384 Dick Smith stores while hunting for a buyer.
Woolworths pulls plug on Dick Smith
Total sales at Australia’s largest retailer rose 5.1 per cent to $15.12 billion in the three months ending December, in line with analysts’ forecasts. Photo: Reuters Woolworths’ earnings will decline for the first time in 13 years after Australia’s biggest retailer decided to jettison the Dick Smith electronics chain as part of a longer-term plan to restore profit growth to 10 per cent.Gina Rinehart lines up Fairfax to expand media influence | The Australian
Gina Rinehart is looking to take a strategic shareholding in Fairfax Media. Source: The Australian THE nation's richest person, iron ore billionaire Gina Rinehart, is seeking to expand her influence in the media by taking a strategic shareholding in Fairfax Media. Mrs Rinehart was last night attempting to secure an extra 9.9 per cent stake in the newspaper publisher through a $192 million raid launched after the sharemarket closed.
James Chessell, Lisa Murray and Neil Shoebridge Communications Minister Stephen Conroy says stronger ownership laws are needed to prevent individuals exerting influence over media coverage, following Gina Rinehart’s successful $192 million raid on Fairfax Media. Australia’s richest person became Fairfax Media’s largest shareholder yesterday after upping her stake from 4.9 per cent to about 14.8 per cent, raising concerns that the mining magnate will seek to sway editorial content from the newspaper, digital media and radio group’s board. Mrs Rinehart, who also owns 10 per cent of Ten Network Holdings, would not discuss her investment in Fairfax or confirm widespread speculation that she will ask to join the media company’s board.
Rinehart raid sparks media law row
The iron lady
Rinehart: from mines to media? Australia's wealthiest person, Gina Rinehart, is the focus of speculation after buying a further chunk of Fairfax Media, owner of this site. Video will begin in 5 seconds. She's the richest Australian in history, and could well become the richest individual in the world, but have her billions made Gina Rinehart happy? Jane Cadzow talks to the mining magnate's friends, foes and political associates to reveal a complicated woman with a surprisingly unenviable life.
Markets
Australian governments have for decades poured public money down the throats of car manufacturers with barely a squeak of protest from other industries. But something has changed. Gale Pacific has achieved a net profit of $4.1 million for the first half of 2011-12, representing an increase of 14 per cent compared with the previous corresponding period. This represents earnings per share of 1.4¢.
IMF asks Greece to slash wages
Greek Prime Minister Lucas Papademos (left) faces the task of convincing the country’s politicians to back further austerity measures, including possible wage cuts. Photo: AFP Compiled by Ben Woodhead The International Monetary Fund has asked financially stricken Greece to take a razor to its minimum wage as negotiators leaders raised hopes that talks for private sector debt relief would conclude this week. Greece is in talks with private creditors to have them take losses on their bondholdings and with its international bailout rescuers to receive new loans. “In the coming days, the agreements must be completed,” government spokesman Pantelis Kapsis said on Wednesday.
World
US securities regulators accused Wells Fargo of failing to turn over documents in connection with a probe into the bank’s $US60 billion sale of mortgage-backed securities during the financial crisis. James Murdoch has finally severed all ties with News International, quitting the boards of Times Newspapers Holdings and two other holdings companies associated with the troubled newspaper group. The EU’s competition regulator says it is launching an in-depth probe of Universal Music Group’s planned acquisition of part of the iconic British music company EMI. The notorious Exxon Valdez tanker, responsible for one of the worst oil spills in US history two decades ago, has been bought by an Indian company and is almost certainly to be scrapped.
BBC News - Sarkozy announces French financial transaction tax
Mr Sarkozy faces a presidential election in April, but is currently trailing in the opinion polls behind his Socialist rival, Francois Hollande. In an interview with French television, Mr Sarkozy said he hoped the tax would push other countries to take action. "What we want to do is create a shockwave and set an example that there is absolutely no reason why those who helped bring about the crisis shouldn't pay to restore the finances," he said.
Sarkozy confirms transaction tax as he gets into campaign mode - The Irish Times - Mon, Jan 30, 2012
NICOLAS SARKOZY prepared the ground for his entry into the presidential election campaign last night by announcing measures to create more jobs, ease the housing crisis and make France more competitive. In a prime-time television interview broadcast on eight channels, the French president also confirmed France would “give an example” to Europe by introducing a 0.1 per cent financial transaction tax from August. In a unpopular move that had been resisted by some in his own UMP party, however, Mr Sarkozy said value-added tax on goods and services would rise by 1.6 per cent to 21.2 per cent from October onwards. With French unemployment at a 12-year high and economic growth at a standstill, the economy is set to be the major focus of the election campaign this spring.Your video will play following this advertisement THE big four banks are likely to know by April if their credit ratings have been downgraded by a notch because of their funding dependence on global debt markets, ratings agency Fitch says. The global credit ratings agency yesterday placed the AA ratings of Australia and New Zealand Banking Group (ANZ), Westpac, National Australia Bank (NAB) and Commonwealth Bank (CBA) on ratings watch negative.
Banks face ratings downgrade on funding | News.com.au
NAB weighs up UK options AFR 2012/01/30
At best, investors could hope NAB may soon exit its troubled UK venture, Williams said. At worst, the publicity was serving as a reminder of the “millstone around the bank’s neck”. NAB recently announced another £400 million ($590 million) capital injection into its UK subsidiary, bringing the total to more £1.5 billion in capital injections in the past three years. While the UK business made a small profit of £18 million in fiscal 2011, a recession in Europe increases the risk of rising credit costs and the prospect of losses in fiscal 2012, Citi said.The government released the info on their ‘Stronger Super’ reforms today. The reforms are a great initiative and if they’re implemented properly they’ll potentially give your retirement bank balance a very worthwhile boost. I won’t go through the reforms, you can read about them here . One thing that that is particularly telling though is the estimation in the original government draft on fees.
Is your super costing you more than your mobile phone? | News.com.au Money Stuff Blog
THE battle between retail and industry superannuation funds is heating up, with new analysis showing industry funds have delivered better returns on average over 14 years. For the Industry Super Network, which represents the larger industry funds, such analysis is crucial to its ability to compete effectively with large retail funds, especially those owned by the banks, in the new superannuation environment. Some of the bigger retail funds are now pushing hard into low-fee and more transparent super products as they respond to the government's determination to introduce MySuper: the new, simpler and standardised basic super model for all default superannuation. The Industry Super Network will send copies of its research, which shows the average return from June 1996 to June 2010 was 5.35 per cent per annum for industry funds and only 3.66 per cent for retail funds, to all big companies to reinforce its point that industry super offers better long-term returns.