The Aussie rallied half-a-US-cent during local trade on Friday hitting a high of 1.0199 after The Reserve Bank of Australia (RBA) signalled in its quarterly monetary policy statement that further rate rises are on the cards.
S non-farm payrolls (employment) rose by just 36,000 in January. While the report was well short of expectations of job gains near 148,000, weakness was attributed to harsh snow storms in the month.
The Aussie market finished higher for the third straight day today with the All Ordinaries index (XAO) rising 0.8 pct or 39.5 pts to 4958.8.
The general insurance industry in Australia has expressed its determination to set a standard definition for a flood to be able to offer improved flood cover through the National Flood Information Database.
Small businesses in Queensland, Victoria, New South Wales, Western Australia and Tasmania are expected to benefit from a $1 billion lending package set aside by the Commonwealth Bank (ASX: CBA) to support businesses across flood and cyclone affected areas.
Xstrata North Queensland is recommencing its Mount Isa Mines operations and is focusing on getting its North Queensland operations back online following Cyclone Yasi.
The recent cyclone in Far North Queensland has caused substantial damage to banana crops which will severely affect availability and prices in the weeks and months to come, according to Australian retail giant Woolworths (ASX: WOW).
A worker’s union called the attention of the Commonwealth Bank of Australia (CBA) on its controversial social networking policy, in which employees could be terminated if their Facebook accounts carry unsavoury remarks about their employer.
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Gaming company Tabcorp Holdings has posted half-year net profit up 2.9% on the first half of 2009-10.Tabcorp told the ASX yesterday that net profit in the six months to December 31 was $265.5 million, up from $257.9 million in the prior corresponding half year.Revenue was $2.2576 billion, up 3.5% from $2.1807 billion.Tabcorp declared an interim dividend of 24c per share fully franked.Tabcorp said its normalised net profit for the half year was $272 million, up 3% on the prior corresponding half.Normalised earnings per share were 42.6c, down 2.1%, following a capital raising, the company said.Investors looked at the figures and liked what they saw, sending the shares up 3%, or 21c, to $7.11.Tabcorp chief executive officer Elmer Funke Kupper said that each of the company's three operating divisions was forecasting an improvement in revenue and earnings performance in the second half of the financial year.The company said the floods cost it $10 million in lost revenue in January."The recent floods put some uncertainty in the immediate outlook for consumer spending in Queensland," Mr Funke Kupper said."Nevertheless, we are expecting to see positive underlying growth in the second half of the year."This gives us confidence that we are on the right path with our investment programs," he said.Tabcorp said the result was boosted by tax credits totalling $9 million, after credits of $16 million in the prior corresponding half year.Normalised net revenue was $2262.9 million, up 3.3%.All three business divisions achieved positive revenue growth, with the strongest growth recorded in Casinos, Tabcorp said.Casinos: EBITDA $201.0 million, up 5.2%. EBIT $153.9 million, up 4.1%. Casino expenses grew by 5.8%.EBITDA at Star City in New South Wales increased 4.1%. Revenues were up 6.5% as the business expanded its product offering and opened new gaming areas on the Main Gaming Floor.The three Queensland properties showed a recovery in performance following a difficult year in 2010. Revenues increased 4.7% and EBITDA grew by 7.0%. All main lines of business showed positive revenue growth.Wagering: EBITDA $187.7 million, up 3.5%. EBIT $151.9 million, up 3.0%. Wagering revenues were up 2.1%. Variable contribution grew by 3.1%. Expenses increased by 2.6%. They continue to be well controlled, with investments in expansion initiatives offset by savings in other areas.Gaming: EBITDA $172.6 million, up 3.0%. EBIT $148.4 million, up 2.3%. Expenses were up 4.6%, driven by costs associated with the investment in the Casinos business. Expenses continued to be well controlled in the Wagering and Gaming divisions.Tabcorp chairman John Story described the result as "sound"."It was pleasing that all three operating divisions recorded positive revenue and earnings growth," Mr Story said."During the half, the company announced further investments in its Queensland casinos and in Wagering. Each of the divisions now has attractive growth programs in place."In October 2010, Tabcorp announced that it would pursue a demerger of its Casinos business from its Wagering, Gaming and Keno businesses. The work to implement the proposed demerger is underway and the target date remains 30 June 2011."The work to implement the proposed demerger is underway and the target date remains 30 June 2011," Mr Story said.Tabcorp said it planned to have a scheme booklet available during April 2011, and to hold an Extraordinary General Meeting in late May or early June to allow shareholders to vote on the demerger proposal.Tabcorp said the recent Queensland floods had affected trading at its Treasury Hotel and Casino in Brisbane, with "a significant downturn in visitation'' during the floods and immediately afterwards."Tabcorp estimates that the immediate revenue impact of the January floods and wet weather was approximately $10 million."Despite the impact from the floods, normalised group revenues grew 2.5 per cent in January 2011 indicating good underlying growth,'' the company said.Tabcorp said its other casino properties experienced minimal impact and continued to operate normally, with Jupiters on the Gold Coast and Star City continuing with the momentum experienced in the first half."The Wagering business was also impacted by the wet weather across Queensland, NSW and Victoria with an increase in the number of abandoned races."
Flood recovery aid for South West Queensland residents affected by Cyclone Yasi and the floods will still be available with more than $5 million in personal hardship assistance payments already made.
Organizations willing to make changes to improve energy efficiency are now qualified for a ACT Government rebate for CitySwitch Signatories on 50 percent of the cost of a NABERS energy rating.
The Australian sharemarket is gaining at lunch and is edging its way closer to the key 5000 pt mark, a level it has not traded above for an extended period of time since 2008.
The Australian economy would go through a phase of soft activities for the first six months of 2011, mainly due to the devastations wrought by the Queensland floods, but the Reserve Bank of Australia (RBA) maintained that a sweeping rebound will be seen by the second half.
Retail banks have announced emergency relief packages providing a number of measures to assist affected customers avoid financial difficulty as a result of Cyclone Yasi.
ABC former presenter, Andy Muirhead enters not guilty plea at Hobart Court Thursday, to two counts of child pornography charges hurled against him by the Australian Federal Police.
The AUD has opened almost half a US centhigher today, supported by high commodity prices.Despite rising tensions in Egypt and the ECB leaving itsrates unchanged in Europe the AUD held onto its recentgains, performing extremely well in mixed overnight trade.
The Australian Dollar has jumped from yesterday's open of 1.0070/80 to highs near 1.0160 after a volatile offshore session.
U.S. stocks drifted just below the flatline Thursday as investors eyed encouraging earnings and stronger January sales among retailers, with a backdrop of continued unrest in Egypt.
US ICSC comparable chain store sales rose by 4.8pct in January from a year earlier. Apparel, wholesale and luxury sales all recorded healthy gains.
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By Greg PeelThe Dow gained 20 points or 0.2% while the S&P added 0.2% to 1307 and the Nasdaq also added 0.2%.Australia's December trade balance surprised economists yesterday by recording a similar surplus to November of about $2bn. Expectations were for $1.6bn. The result gave the Aussie another kicker given, all things being equal, a strong surplus implies pressure on the RBA to raise. However, it will no doubt be a different tale in January when weather impacts really start to make their mark.As we contemplate the effects of lost exports, both resource and agricultural, and lost tourism which is also an “export”, we note the service sector in January was even more dour than the manufacturing sector. The manufacturing sector managed to slightly slow its rate of contraction but service sector contraction picked up pace with the PMI dropping to 45.5 from 46.4 in December.China does not separate out a construction sector number but rather notes manufacturing (55% of the economy) and non-manufacturing (45%). The non-manufacturing PMI slipped to 56.4 in January from 56.5 on Beijing's numbers. Meanwhile the UK service PMI surged to 54.5 (49.7), the eurozone's ticked up to 55.9 (54.2) and the US came in with 59.4 (57.1). That's the best US result since 2005, and services represent over 70% of the US economy.Again we see the “old world” forging ahead as the “new world” eases back. The UK results have been no less than astonishing.Wall Street nevertheless opened weaker last night, spooked by a weak result from Dow component Merck and ongoing uncertainty in Egypt and despite the positive service PMI and surprisingly healthy chain store sales for a snowbound January. But then along came Uncle Ben.The Fed conceded late last year that perhaps it was time to address its longstanding policy of aloof detachment – one which sees the issue of official statements and minutes, appearances before government and financial industry groups, and not much else. Taking a leaf out of the ECB's book, the Fed has decided it's time to open up to “the people”, and as such last night Ben Bernanke participated in a “meet the press” session which to date has been a very rare thing indeed.Unsurprisingly, Bernanke was hammered with questions about QE2 but clearly he needed only to point to the improving US recovery for justification. Indeed, Uncle Ben suggested the US economy was running even better than hoped, and despite recent data supporting that view and despite stock prices quantifying that view Wall Street took this as good news and the market turned around.The indices moved into the black in the last hour ahead of tonight's all important monthly jobs data. Economists are looking for 145,000 new jobs to be added.The strong US services PMI and talk from Uncle Ben helped to push the US dollar index higher, up 0.8% to 77.75. The Aussie nevertheless marched to its own tune of strong surplus and added 0.7 of a cent from 24 hours ago to US$1.0160. Gold suddenly decided last night that yes, the Middle East is a worry and yes, perhaps some safe haven investment might be sensible. It rose US$18.20 to US$1354.50/oz.Oil is playing an uncertain game around this US$90 level in WTI, and last night fell back US16c to US$90.71/bbl. The WTI is no doubt being affected psychologically by the other “big” oil contract – Brent – which is wondering whether or not to push on above US$100/bbl. It was a steady night for base metals in London.Strength in the US dollar was also assisted by last night's ECB monthly monetary policy decision. The central bank left its rate on hold at 1.0% and Jean-Claude Trichet talked down current inflation pressures much to the surprise of economists. It will be a watch and wait game in the eurozone.The SPI Overnight rose 13 points or 0.3%.Rudi will be a guest on BoardRoomRadio's Friday Afternoon Round Table this afternoon which will be available for live video streaming from 3pm and for download from 4pm. [Note: All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.]FN Arena is building the future of financial news reporting at www.fnarena.com . Our daily news reports can be trialed at no cost and with no obligations. Simply sign up and get a feel for what we are trying to achieve.Subscribers and trialists should read our terms and conditions, available on the website.All material published by FN Arena is the copyright of the publisher, unless otherwise stated. Reproduction in whole or in part is not permitted without written permission of the publisher.
Australia's sugarcane crop has suffered devastation as farmers venture out to survey their properties in the wake of category five Cyclone Yasi, whose destructive eye broke land at Mission Beach and passed over Tully, inland bound, last night.Crops have been devastated in Yasi’s wake, the hardest hit being sugarcane – with initial loss estimates at around $500 million for the industry alone. A sugar-growing heartland, sugarcane growers in north Queensland will again bear the brunt of losses,...
The Australian Banana Grower's Council today warned consumers that the Australian banana industry, which escaped flood damage, had suffered devastation as a result of tropical cyclone Yasi.Banana growers across Far North Queensland, in particular Innisfail and Tully, have been the worst affected by the cyclone, according to ABGC Chairman Cameron MacKay.
Office vacancy rates in Melbourne’s central business district are the lowest of all city centers in the country with only 6.3 percent of total office space available for rent.
New data published by the Australian Bureau of Statistics (ABS) on Thursday showed that the country’s trade surplus shrunk to $1.981 billion in the three months leading to December and that number could further slide as the economy starts absorbing the damages wrought by the recent flooding.
Rising costs of oil and jet fuel in the world market pushed Qantas Airways Ltd to increase its fuel surcharge by more than 50 percent, which the national carrier said would applied on specific international flights.
Australia’s two largest telecommunications companies have both reported service outages in the aftermath of Cyclone Yasi.
Channel Seven Sydney Pty Ltd breached the Children’s Television Standards 2009 (CTS 2009) provisions restricting the use of popular personalities and proprietary characters in endorsing commercial services during children’s programming periods, the Australian Communications and Media Authority (ACMA) has found.
US-based magazine Forbes released on Thursday its collection of Australia’s richest and listed as number one is mining magnate Gina Rinehart, with a current net worth of $US9 billion.
Communities across Far North Queensland experienced the full force of Category Five Tropical Cyclone Yasi Wednesday night as it reached landfall.
Canberra continues to report double vacancy rates in the last six months with figures slowing slightly to 13.4 percent from 14.1 percent reports the Property Council of Australia’s Office Market Report.
