China and Iceland ink free trade agreement

Source: AFP

ICELAND has become the first European country to sign a free trade agreement with China, as Beijing looks to gain a foothold in the strategic Arctic region.

The deal is expected to expand trade between the world's second-largest economy and the north Atlantic state, which suffered an economic meltdown in 2008.

The agreement was signed during a visit to Beijing by Icelandic Prime Minister Johanna Sigurdardottir, and follows six years of talks between Reykjavik and Beijing.

"This is a major event in China-Iceland relations," Chinese Premier Li Keqiang said.

"It also signals the deepening of our relationship, especially our economic relationship, which has been lifted to a new height."

A proposal by a Chinese property tycoon to buy 300 square kilometres of land in Iceland became embroiled in controversy and was blocked by Reykjavik in 2011.

China has said it would like to play a larger role in the Arctic.

It has applied for permanent observer status on the Arctic Council, an eight-member body including Iceland that meets to discuss matters concerning the area.

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Dollar slightly higher in quiet trade

THE dollar is higher after traders in the US and Europe welcomed surprisingly strong domestic jobs figures.

At 7am AEDT today, the currency was trading at 103.79 US cents, up from 103.64 cents yesterday.

The Australian dollar rose to 104.02 US cents early this morning, its highest level since February 6, before giving up some of its overnight gains.

Figures released yesterday by the Australian Bureau of Statistics show total employment grew by 71,500 in February, the strongest jobs growth in over a decade.

Bank of New Zealand currency strategist Mike Jones said Reserve Bank of Australia assistant governor Christopher Kent took some of the shine off the currency's rally when he suggested the jobs figure may be "overstated".

But he said the currency had been mostly well supported overnight.

"That took a little bit of steam out of the Aussie but for the most part it has been on a trend higher," Mr Jones said.

With no major economic data due today, Mr Jones said the Australian dollar would take its lead from Asian equity markets and could push back above 104 US cents.

"Equity markets performed well overnight and a positive follow on in Asian equity markets today could promote another wave of Aussie-buying," he said.

"It's probably setting its sights on a move above 104 today."

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Dollar rises on retail trade data

THE Australian dollar rose a quarter of a US cent after the release of better-than-expected retail trade data.

At 11.30am AEDT today, the Australian Bureau of Statistics (ABS) announced that retail trade rose 0.9 per cent in January.

The market had forecast an increase of 0.3 per cent in the month.

At 11.35am AEDT, the currency was at 102.24 US cents, up from 101.99 US cents shortly before the data's release.

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Dollar rises on retail trade data

THE Australian dollar rose a quarter of a US cent after the release of better-than-expected retail trade data.

At 11.30am AEDT today, the Australian Bureau of Statistics (ABS) announced that retail trade rose 0.9 per cent in January.

The market had forecast an increase of 0.3 per cent in the month.

At 11.35am AEDT, the currency was at 102.24 US cents, up from 101.99 US cents shortly before the data's release.

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FBI examining possible Heinz insider trade

• FBI investigating suspicious trade in Heinz
• Trades made one day before the Buffett deal
• Why has Warren Buffett bought beans?

THE FBI is examining possible insider trading in Heinz shares ahead of last week's buyout announcement, after US regulators identified suspicious trades from a Swiss account.

"We're aware of the trading anomalies the day before the announcement," said Federal Bureau of Investigation spokeswoman Kelly Langmesser on Tuesday.

"And we're consulting with the SEC to see if a crime was committed."

The Securities and Exchange Commission said on Friday it had identified highly suspicious Heinz trades made one day before Berkshire Hathaway and 3G Capital announced they were acquiring the condiment giant in a $US28 billion ($27.18 billion) deal.

The SEC said that it had obtained an emergency order to freeze a Swiss bank account suspected of use in the trades.

It said unknown traders earned $US1.7 million in profits through the "irregular and highly suspicious" trades booked on Wednesday.

The SEC says it believes the traders had knowledge of the takeover ahead of the announcement early on Thursday morning in New York.

Langmesser declined to say if the FBI has opened a criminal investigation into the case.

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