Weak start for Aussie market

Beware of the latest share-buying spree Source: Supplied

The Australian market has opened flat as gains for defensive stock offset losses for Westpac and Macquarie banks.

IG market strategist Evan Lucas said Westpac and Macquarie were dragging down the market as both went ex-dividend.

"It's a bit of a weak start, which was expected as commodity prices were a little bit mixed over the weekend and Westpac and Macquarie going ex-dividend was always going to hurt us,'' he said.

Westpac dived $1.051 to $31.80 while Macquarie tumbled 79 cents to $45.18.

The other banks opened mixed. ANZ was flat at $30.13, National Australia Bank jumped 30 cents to $32.77 and Commonwealth Bank gained 51 cents to $71.08.

Defensive stocks such as Wesfarmers and Woolworths opened in positive territory. Wesfarmers was up six cents to $42.39 and at 1038 Woolworths was up 26 cents to $34.96.

The mining giants opened lower. BHP Billiton fell 27 cents to $34.48, Rio Tinto declined 47 cents to $57.98 and Fortescue lost 5.5 cents to $3.855.

By 1052 AEST, Dulux Group shares had jumped four cents to $4.52 after it said first half profit dropped 31 per cent because of costs from its takeover of building products and garage door supplier Alesco.

Explosives and fertiliser maker Incitec Pivot shares had gained six cents to $2.89 after the company said its first half profit had fallen 23 per cent with its fertiliser operations hit by the high Australian dollar.

In economic news, the Australia Bureau of Statistics is due to release March housing finance figures, while the National Australia Bank's monthly business survey is due out on Monday.

On Wall Street on Friday, stocks overcame a choppy day of trading and closed at fresh all-time highs as Group of Seven finance chiefs met in Britain to discuss economic challenges.

The Dow Jones Industrial Average rose 35.87 (0.24 per cent) to 15,118.49, a new all-time closing high.

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Weak start for Aussie market

Beware of the latest share-buying spree Source: Supplied

The Australian share market has opened lower.

At 10:11 AEST the benchmark S&P/ASX200 index was down 8.7 points, or 0.17 per cent, at 5,197.4, while the broader All Ordinaries index was down 7.00 points, or 0.13 per cent, at 5,184.1.

On the ASX 24, the June share price index futures contract was down one point at 5,206, with 6,030 contracts traded.

In economic news on Monday, the Australia Bureau of Statistics is due to release March housing finance figures, while the National Australia Bank's monthly business survey is due out.

In equities news, Dulux Group and Incitev Pivot are both expected to post first half results, while Westfield Retail Trust has its annual general meeting.

In Australia, the market on Friday closed at levels last seen almost five years ago as a weakening local currency boosted the big miners.

The benchmark S&P/ASX200 index was up 7.7 points, or 0.15 per cent, at 5,206.1 points, while the broader All Ordinaries index was up 10.5 points, or 0.2 per cent, to 5,191.1 points.

AAP cdh

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First Aussie note could fetch $3.5m

The first Commonwealth of Australia banknote ever pictured here could fetch $3.5 million. Source: News Limited

AUSTRALIA'S first banknote, printed 100 years ago, is to go on sale this month for $3.5 million.

The 10 shilling note, serial Number M000001 and issued May 1, 1913, is to go on exhibit in the Hall of Honour at the World Stamp Expo in Melbourne from May 10-15 before being offered for private sale.

Coinworks, which deals in rare coins and notes and is handling the sale, said the note symbolised one of the most important periods in the history of Australia - the establishment of the Commonwealth of Australia in 1901 and the subsequent evolution of nationhood.

Coinworks chief executive Belinda Downie said the note was hand numbered at a ceremony held at the Government Printing House in Melbourne.

The note was presented to Judith Denman, the five-year-old daughter of the governor general at the time, by Prime Minister Andrew Fisher and it was found in her effects after she died in 1987.

It was acquired by a private collector in Sydney for $1 million in 2000 and changed hands again in 2008 at auction for $1.9 million.
 

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Headwinds pick up for Aussie mining

In its latest review of the global economic outlook, the International Monetary Fund says China's growth this year is now likely to clock in at 8 per cent. Picture: AFP Source: AFP

THE world's most influential economic group has cut its growth forecast for China as the headwinds for Australia's mining sector intensify.

In its latest review of the global economic outlook, the International Monetary Fund says China's growth this year is now likely to clock in at 8 per cent.

The fund has cut 0.2 percentage points from its previous forecast hard on the heels of official Chinese figures that revealed an unexpected downturn in economic activity so far this year.

It came as BHP Billiton delivered a production update for the first quarter that was generally weaker than expected.

Poor weather and maintenance work dragged on the miner's iron ore and petroleum divisions but the company said it remained on track to hit its full-year production targets.

BHP, the world's third largest iron-ore producer, revealed yesterday it had dug up 40.2 million tonnes of the commodity in the three months to March.

While the tally was 3 per cent higher than it was for the same period a year ago, it was down 5 per cent on the previous quarter.

Petroleum production, the company's second-biggest earnings division, weighed in at 55.42 million barrels of oil equivalent - 2 per cent below the same period last year and 7 per cent down on the previous quarter.

BHP's update follows a bearish production snapshot by rival Rio Tinto, which slashed its copper output by close to one-third following a massive landslide at a copper mine in the US.

Tumbling commodity prices, renewed debate about the health of the Chinese economy and warnings of a pending oversupply of iron ore are all weighing down mining stocks.

The ASX 300 resources index, which tracks the country's mining and energy companies, has plunged 17.2 per cent since the middle of February.

BHP's share price has fallen almost $7 over that time to $32.06 while Rio's is down about $17.50 to $54.59.

In its report, the IMF cut its forecast for global growth this year, from 3.5 per cent to 3.3 per cent, citing the eurozone's continuing economic woes among other problems.

"The potential impact of external risks on Asia remains considerable," the report said.

While the IMF cut its growth projections for China, the group's deputy director of research, Jorg Decressin, said he was not concerned "in any major way" about a hard landing there.

The IMF also predicts Australia's growth will come in at 3 per cent this year and 3.3 per cent next year - numbers broadly in line with Reserve Bank of Australia and Treasury projections.

john.dagge@news.com.au

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These Aussie boots were made for Paris

RM Williams could soon be seen on the catwalks of Paris. Picture: File Source: Supplied

STAY tuned as iconic Aussie bootmaker and lifestyle brand RM Williams could be trotting down the hallowed runways of Paris.

The famous 81-year-old company, renowned for making some of the toughest boots on the planet, has confirmed it has sold a 49.9 per cent share to L Capital Asia, a private equity fund sponsored by French luxury giant LVMH Group.

The deal is believed to be worth about $53 million.

LVMH counts Louis Vuitton, Christian Dior, Marc Jacobs, Tag Heuer, Givenchy, Moet & Chandon and Bvlgari amongst its stable of style stars.

In a clever move, particularly in these days of fashion globalisation, RM Williams owner and chairman Ken Cowley, a former News Limited chief executive, will retain majority control of the company.

The company’s late founder, Reginald Murray Williams, was Mr Cowley’s great friend.

In making the announcement, Mr Cowley said "partnering with L Capital, which is sponsored by one of the globe's most prestigious and revered brand companies, LVMH, will allow the RM Williams name to reach its full potential.

"RM was one of my closest friends and I promised him in 2003, before he passed, that I would take his legacy to the world."

The ‘bush outfitter’ plans to always manufacture product in Australia and with exports to counties already in the double figures and stockists lunging toward 1000, that is the preferred goal.

The brand’s designer Jonathan Ward, has played a big part in taking the label to a desirable and aspirational fashion level.

According to the RM Williams announcement, L Capital Asia had looked at the business performance and potential opportunities the RM Williams brand has to grow even further.

On its website, L Capital Asia describes itself as a company ‘providing growth equity to private companies and helping them build their brands.’

Established brands, in the RM Williams mode, obviously piqued the interest of L Capital Asia and it will be interesting to see it evolve into an even bigger Aussie powerhouse.

And with the Asian market getting bigger, no doubt other reputable Aussie brands will be looking on with great interest, hoping to get picked up too.
 

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US sales data weakens Aussie dollar

Australian Money Source: Supplied

The Australian dollar is marginally higher in response to encouraging housing data.

The local currency rose to 105.23 US cents shortly after the figures were released at 1130 AEST on Monday, from 105.19 US cents beforehand.

The Australian Bureau of Statistics said the total number of housing loan approvals rose two per cent in February, above market expectations of a 1.5 per cent improvement.

The Australian dollar opened weaker, as disappointing US retail sales data and a negative finish on Wall Street pushed the currency back towards 105 US cents.

At 0700 AEST on Monday, the Australian dollar was at 105.06 US cents, down from Friday's local close of 105.46 US cents.

It dipped below 105 US cents during the weekend offshore session, reaching as far down as 104.80 US cents.

The local unit also retreated slightly against the Japanese yen, following significant gains after the Bank of Japan announced a massive stimulus package.

At 0700 AEST, the Australian dollar was at 103.15 Japanese yen, down from 104.82 yen on Friday.

US retail sales fell 0.4 per cent in March, much worse than market expectations of an 0.1 per cent decline.

Also, US stocks ended on a weak note, with the S&P500 off 0.28 per cent and the NASDAQ settling 0.16 per cent lower.

BK Asset Management managing director Kathy Lien said the US retail sales data snapped the recent rally for currencies such as Australian dollar.

"The performance of the commodity currencies today shows that what has risen the fastest can also fall the hardest," Ms Lien said in a research note.

"Next to the Japanese Yen pairs, the worst performing currency pair was the NZD/USD.

"The Australian and Canadian dollars also came under selling pressure."

In economics news on Monday, the Australian Bureau of Statistics will release housing finance figures for February.

The Reserve Bank of Australia will release the minutes of its April board meeting on Tuesday.

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Aussie gold stocks smashed again

Gold bars stacked at the plant of gold refiner and producer Argor-Heraeus in Mendrisio, in the southern Swiss canton of Ticino. AFP PHOTO / FILES / Sebastian Derungs Source: AFP

SHARES in Australia's gold miners are being punished for a second consecutive day after the price of the precious metal was smashed overnight.

The price of gold plunged more than nine per cent to a two-year low in overnight trading - its biggest fall in three decades.

Since last Thursday, gold prices have dropped by more than $US200 to $US1,360.60 an ounce on the Comex division of the New York Mercantile Exchange.

The rout continued in early trading in Australia on Tuesday, with the price falling by more than $US100.

Gold stocks in Australia tumbled nearly 10 per cent amid worries that a prolonged lower gold price will wipe out their margins.

Shares in Australia's largest gold miner, Newcrest Mining, had tumbled seven per cent, or $1.25, to 16.67, following an eight per cent fall on Monday.

Other gold stocks were faring even worse by 1100 AEST.

Evolution Mining, plunged 22.5 cents, or 18.5 per cent, to 99 cents, Alacer Gold was 30 cents, or 10 per cent, weaker at $2.77 and St Barbara shed 10 cents, or 11.1 per cent, to 80 cents.

PanTerra Gold tried to calm investors, saying that the falling gold price would not affect its expected income from its Las Lagunas project in the Dominican Republic.

It had sold at hedged prices of $US1320 an ounce, the company said.

Its shares still lost 0.3 of a cent, or 3.5 per cent, to 8.2 cents.

Fat Prophets resources analyst David Lennox said he could not see gold getting much support in the short term.

Exchange-traded funds were dumping their gold holdings amid a more pessimistic outlook for gold, which was spooking the market, he said.

Rivkin global analyst Tim Radford said investors were favouring US dollars over gold and silver as a currency amid lowered future expectations for global economic growth rates and inflation.

Another factor was Cyprus's plans to sell gold to resolve their debt situation.

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These Aussie boots were made for Paris

RM Williams could soon be seen on the catwalks of Paris. Picture: File Source: Supplied

STAY tuned as iconic Aussie bootmaker and lifestyle brand RM Williams could be trotting down the hallowed runways of Paris.

The famous 81-year-old company, renowned for making some of the toughest boots on the planet, has confirmed it has sold a 49.9 per cent share to L Capital Asia, a private equity fund sponsored by French luxury giant LVMH Group.

The deal is believed to be worth about $53 million.

LVMH counts Louis Vuitton, Christian Dior, Marc Jacobs, Tag Heuer, Givenchy, Moet & Chandon and Bvlgari amongst its stable of style stars.

In a clever move, particularly in these days of fashion globalisation, RM Williams owner and chairman Ken Cowley, a former News Limited chief executive, will retain majority control of the company.

The company’s late founder, Reginald Murray Williams, was Mr Cowley’s great friend.

In making the announcement, Mr Cowley said "partnering with L Capital, which is sponsored by one of the globe's most prestigious and revered brand companies, LVMH, will allow the RM Williams name to reach its full potential.

"RM was one of my closest friends and I promised him in 2003, before he passed, that I would take his legacy to the world."

The ‘bush outfitter’ plans to always manufacture product in Australia and with exports to counties already in the double figures and stockists lunging toward 1000, that is the preferred goal.

The brand’s designer Jonathan Ward, has played a big part in taking the label to a desirable and aspirational fashion level.

According to the RM Williams announcement, L Capital Asia had looked at the business performance and potential opportunities the RM Williams brand has to grow even further.

On its website, L Capital Asia describes itself as a company ‘providing growth equity to private companies and helping them build their brands.’

Established brands, in the RM Williams mode, obviously piqued the interest of L Capital Asia and it will be interesting to see it evolve into an even bigger Aussie powerhouse.

And with the Asian market getting bigger, no doubt other reputable Aussie brands will be looking on with great interest, hoping to get picked up too.
 

View the original article here

US sales data weakens Aussie dollar

Australian Money Source: Supplied

The Australian dollar is marginally higher in response to encouraging housing data.

The local currency rose to 105.23 US cents shortly after the figures were released at 1130 AEST on Monday, from 105.19 US cents beforehand.

The Australian Bureau of Statistics said the total number of housing loan approvals rose two per cent in February, above market expectations of a 1.5 per cent improvement.

The Australian dollar opened weaker, as disappointing US retail sales data and a negative finish on Wall Street pushed the currency back towards 105 US cents.

At 0700 AEST on Monday, the Australian dollar was at 105.06 US cents, down from Friday's local close of 105.46 US cents.

It dipped below 105 US cents during the weekend offshore session, reaching as far down as 104.80 US cents.

The local unit also retreated slightly against the Japanese yen, following significant gains after the Bank of Japan announced a massive stimulus package.

At 0700 AEST, the Australian dollar was at 103.15 Japanese yen, down from 104.82 yen on Friday.

US retail sales fell 0.4 per cent in March, much worse than market expectations of an 0.1 per cent decline.

Also, US stocks ended on a weak note, with the S&P500 off 0.28 per cent and the NASDAQ settling 0.16 per cent lower.

BK Asset Management managing director Kathy Lien said the US retail sales data snapped the recent rally for currencies such as Australian dollar.

"The performance of the commodity currencies today shows that what has risen the fastest can also fall the hardest," Ms Lien said in a research note.

"Next to the Japanese Yen pairs, the worst performing currency pair was the NZD/USD.

"The Australian and Canadian dollars also came under selling pressure."

In economics news on Monday, the Australian Bureau of Statistics will release housing finance figures for February.

The Reserve Bank of Australia will release the minutes of its April board meeting on Tuesday.

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Aussie dollar opens higher

THE Australian dollar has opened higher, rebounding strongly from a disappointing domestic jobs report.

At 7am AEST today, the Australian dollar was at 105.36 US cents, up from yesterday's local close of 105.21 US cents.

The local currency has bounced back after falling near 105 US cents yesterday, when figures showed the nation's unemployment rate rose to a three and a half year high of 5.6 per cent in March.

It recovered lost ground during the offshore session, climbing to 105.8 US cents in European trading before drifting back a bit heading into the start of the local trading day on some profit-taking.

"It has done all right considering the jobs data," Westpac New Zealand senior market strategist Imre Speizer said.

"In fact, where we are right now at 105.39 US cents, it is about where it was before the jobs data was released yesterday.

"Sentiment and some Chinese data has helped lift it back to where it was."

The Australian dollar continued to rise ahead against the Japanese yen in response to stimulus measures announced by the Bank of Japan last week.

At 7am AEST, the local unit was at 104.99 Japanese yen, up from 104.84 yen previously.

With little to offer direction for currency markets in Australia or Asia on Friday, the dollar was expected to trade near current levels for most of the Asian session.

"The next significant set of events will not be until the US data tonight," Mr Speizer said.

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Aussie dollar opens higher

THE Australian dollar has opened higher, rebounding strongly from a disappointing domestic jobs report.

At 7am AEST today, the Australian dollar was at 105.36 US cents, up from yesterday's local close of 105.21 US cents.

The local currency has bounced back after falling near 105 US cents yesterday, when figures showed the nation's unemployment rate rose to a three and a half year high of 5.6 per cent in March.

It recovered lost ground during the offshore session, climbing to 105.8 US cents in European trading before drifting back a bit heading into the start of the local trading day on some profit-taking.

"It has done all right considering the jobs data," Westpac New Zealand senior market strategist Imre Speizer said.

"In fact, where we are right now at 105.39 US cents, it is about where it was before the jobs data was released yesterday.

"Sentiment and some Chinese data has helped lift it back to where it was."

The Australian dollar continued to rise ahead against the Japanese yen in response to stimulus measures announced by the Bank of Japan last week.

At 7am AEST, the local unit was at 104.99 Japanese yen, up from 104.84 yen previously.

With little to offer direction for currency markets in Australia or Asia on Friday, the dollar was expected to trade near current levels for most of the Asian session.

"The next significant set of events will not be until the US data tonight," Mr Speizer said.

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China eyes off Aussie mining

PwC mining leader Jock O'Callaghan says China needs to find ways to meets its urbanisation targets. Picture: AFP Source: PerthNow

PwC mining leader Jock O'Callaghan says China needs to find ways to meets its urbanisation targets. Picture: AFP Source: PerthNow

CASHED-UP Chinese state owned companies are tipped to be the big winners in a year of consolidation within the mining industry after last year's disastrous procession of billion dollar write-downs by some of the mining giants, a new report warns.

The PricewaterhouseCoopers mining report said there will be no repeat of last year's mega-mergers as the mining giants instead focus on delivering shareholder value by developing existing assets.

Commodity prices are expected to stabilise in 2013 but with Chinese demand strengthening as its economy continues to urbanise and meet its 7.5 per cent growth targets iron-ore, copper, coal and nickel are tipped to be among the big winners over the coming years.

PwC mining leader Jock O'Callaghan said commodity prices will continue to be volatile over the short term but remain on an upward trajectory over the medium to long term.

"China still needs the raw materials to meet its urbanisation targets of putting 12 million people a year into new cities that haven't even been built," he said.

"As a result there will be no slowdown in the in the appetite from off-shore to buy-up Australian mining companies or even take minority stakes. This is driven from China but Indian and Japanese companies are also looking for deals."

Almost $US110 billion was spent on mergers and acquisitions last year, but excluding the $54 billion blockbuster merger of Glencore and Xstrata this was the lowest value since 2009 and the volume of deals was down to its lowest level in eight years.

Chinese companies were responsible for only 9 per cent of the deals in 2012 but a greater risk appetite and the countries relentless drive for urbanisation is expected to see Chinese M&A activity rise sharply in the coming five years.

Mr O'Callaghan said the next 12 months will also likely see the majors such Rio Tinto and BHP Billiton sell-out of some of their non-core assets following a series of billion dollar writedowns last year.

"The main game will continue to be the need to reduce transaction risk, boost shareholder value and demonstrate discipline about where and how capital is allocated," he said.

"Miners across the world are operating in a global market where risk factors such as cost and resource nationalism are on the rise and where buying and selling specific assets have political consequences. But good deals find a way to get done."

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CBA free to control Aussie Home Loans

Aussie executive chairman John Symond. Picture: James Croucher Source: National Features

COMMONWEALTH Bank is free to seize control of independent mortgage provider Aussie Home Loans after the competition watchdog gave its blessing to the deal.

The Australian Competition and Consumer Commission's nod frees the bank to increase its stake in the mortgage lender from 33 per cent to full ownership.

"In reaching its view, the ACCC took into account the competitive constraint arising from the presence of a number of alternative suppliers of home loan products and mortgage distribution services," chairman Rod Sims said.

Aussie was set up by John Symond in 1992 as an alternative to the big four banks.

The bank flagged last December that it wanted to lift its stake in Aussie in a deal believed to be worth $200 million.

Mr Symond at the time denied he had sold out to the big banks by allowing the deal with Commonwealth Bank.

The ACCC said while Aussie Home Loans franchisee brokers would still offer mortgages from a range of lenders, there was a chance the bank could entice them to push its products.

However the watchdog said it did not believe this would lead to a substantial lessening of competition as Aussie Home Loans brokers made up six per cent of Australia's mortgage brokers.

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It's still jobs for boys in the Aussie office

MEN are muscling female workers out of the office - even in industries traditionally dominated by women.

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It's still jobs for boys in the Aussie office

MEN are muscling female workers out of the office - even in industries traditionally dominated by women.

View the original article here