Maintenance. We are currently updating the site. Please check back shortly
Members login
  • TrustLaw
  • Members Portal
Subscribe Donate

PRESS DIGEST-Australian Business News - Nov 14

Source: Thomson Reuters Foundation - Tue, 13 Nov 2012 20:05 GMT
Author: Reuters
med-dev
Tweet Recommend Google + LinkedIn Email Print
Leave us a comment

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)

Cameron Clyne, chief executive officer of National Australia Bank, said yesterday in a speech in Sydney, he expected Australian banking institutions to face a funding crisis in the near future. "One of the fastest ways to send an economy into recession is to restrict credit  if banks cannot source funding they have to restrict lending. This is a simple equation," Mr Clyne said. Page 17.

--

Supermarket operator Woolworths yesterday signed a five year contract with Israeli software developer Retalix which will see the information technology firm provide point of sale terminals and system support, observers noted. "The agreement will allow us to free up our time so we can shift our attention to new projects addressing future customer wants and needs while Retalix gets on with supporting current projects like store software upgrades," said a spokesman for Woolworths. Page 18.

--

Colin Haggerty, global head of retail at surfwear company Billabong International, yesterday said the company was looking at ways of interacting with its customer base through improved online shopping portals and new in-store features. "We want people to come in Billabong stores to see the latest surf event. We need to bring the brand to a customer experience. We are looking at how in Europe we encourage customers to upload photos and videos," Mr Haggerty said. Page 19.

--

Vittorio Colao, chief executive officer of Vodafone Group , yesterday disclosed strategies aimed at improving overall services and increasing market presence for the struggling mobile phone giant. "We have continued to make progress on our strategic priorities over the last six months, with good growth in data and emerging markets in particular  we remain very positive about the longer-term opportunities, and our Vodafone 2015 strategy reflects our confidence in the future," Mr Colao said. Page 19.

--

THE AUSTRALIAN (www.theaustralian.news.com.au)

A severance payout of A${esc.dollar}1.9 million for former chief executive David Leckie and a weak share price were the main reasons behind shareholder anger at Seven West Media's annual general meeting in Perth, observers noted yesterday. Kerry Stokes, chief executive officer of the media group, argued the weak share price was not indicative of the overall strength of the business saying "our shareholders are hurting - of course I understand that  I understand their frustration". Page 21.

--

Diane Grady, director at steel producer BlueScope Steel and investment house Macquarie Bank[ MBL.UL], yesterday said the disclosure of directors' remuneration packages was one of the reasons behind inflated corporate salaries in the Australian business sector. "The more the individual remuneration is spelled out, the more difficult it is for boards to justify keeping remuneration down," said Ms Grady. Page 21.

--

Lachlan Murdoch, shareholder and chairman of the Ten Network , yesterday expressed his support for the media company's management team in the wake of deteriorating revenues and poor ratings performances in the last 12 months. "At any time this is unacceptable, let alone in a weakened advertising market  The board believes that the company has been responsive and is taking immediate action to address its ratings and financial performance," said Mr Murdoch. Page 22.

--

Australian construction group Leighton Holdings could experience cashflow problems and profit downgrades resulting from issues surrounding the company's Airport Link tunnel project in Brisbane operated by BrisConnections, observers noted yesterday. A spokesman for Leighton said the situation at the toll-road operator was being assessed after it was suspended from trading on the Australian Securities Exchange yesterday. Page 23.

--

THE SYDNEY MORNING HERALD (www.smh.com.au)

A statement released yesterday by the New Zealand Airports Association regarding the tie up of airline services between Australian carrier Qantas and Middle Eastern operator Emirates on the trans-Tasman route, described the deal as having the capacity to "effectively create a duopoly". The statement calls for a "comprehensive, robust and transparent cost-benefit analysis" by the corporate regulator on the effect such an alliance might have on the local industry. Page B3.

--

Telecommunications giant Optus embarked on legal proceedings in Federal Court against rival Telstra over a dispute regarding their respective 4G networks in Brisbane, industry analysts noted yesterday. Optus alleges its competitor acted in a deceptive and misleading manner by "making a representation that Telstra is the only network offering 4G in Brisbane, and a representation that Optus does not have 4G in Brisbane". Page B3.

--

An internal document has warned financial planners at National Australia Bank to prepare for reductions in their commissions-based incomes resulting from tightening regulatory frameworks and slowing market conditions, industry observers noted yesterday. "Whether it's right or wrong to have been sitting on these books, to suddenly have your [the financial planners'] revenue cut in some cases by 50 per cent, it doesn't allow you to continue to live the life you've been budgeting for," said a financial planner at the bank. Page B4.

--

Mackay Sugar, Australia's second largest sugar producer, yesterday announced the start of its A${esc.dollar}120 million cogeneration plant which will eventually supply almost 30 percent of electricity in the region surrounding the town of Mackay, while also reducing the area's carbon dioxide emissions by around 200,000 tonnes a year. "We anticipate a payback over approximately seven years  we expect that this project will remove Mackay Sugar from the list of Australia's top carbon emitters," said the company's business development manger John Hodgson. Page B5.

--

THE AGE (www.theage.com.au)

Jonathan Kearns, head of economic analysis at the Reserve Bank of Australia, yesterday said an increase in housing investment would stimulate the struggling residential building sector, offsetting any volatility caused by an increase in spending on resource projects across Australia at the same time. "Overall, it looks likely that dwelling investment will pick up at a relatively moderate rate in the medium term," Dr Kearns said. Page B3.

--

Richard Denniss, executive director at the Australia Institute think tank, yesterday said the high exchange rate of the Australian dollar has been responsible for a yearly A${esc.dollar}15 billion shortfall in Australian agricultural export revenues since 2003. "It's the elephant in the room  The carbon price is more of a mosquito bite than a cobra strike, the exchange rate is the elephant," Mr Denniss said. Page B3.

--

Michael Emerson, economist at consultants Economic and Market Development Advisors, yesterday said job figures in the financial services sector were expected to weaken in the immediate future as a result of technological advancements and weaker borrowing in the industry. "But by no stretch of the imagination is growth going back to any sort of boom-time, like in 2006-07, before the financial crisis hit, when jobs in the sector grew at 6-8 percent per annum," he said. Page B5.

--

Gail Kelly, chief executive at Westpac Banking Corporation, received a total remuneration package of A${esc.dollar}9.6 million for the last financial year despite her announcement regarding probable redundancies at the bank earlier in the week, industry analysts noted yesterday. "I expect overall the numbers of staff to reduce next year, but probably not at quite the rate we had over the last few years," Ms Kelly said. Page B5.

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of the Thomson Reuters Foundation. For more information see our Acceptable Use Policy.

comments powered by Disqus