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)
Broadband infrastructure builder National Broadband Network Co (NBN Co) was initially reluctant to accept an unexpected offer from Telstra to help attach houses to the network due to disagreements over charging. Telstra's Project 45 would have connected approximately 15,000 homes earlier then planned at a time when NBN Co had downgraded its rollout targets by around 40 percent, citing difficulty in securing skilled labour as one factor. Page 15.
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Television network Ten has offered A$500 million for five-year broadcast rights for cricket in a deal which could benefit regional affiliate Southern Cross Media. The affiliate is currently losing advertising revenue due to the ratings decline experienced by Ten. Spurred by discussions relating to cricket rights, Nine Entertainment Co and regional affiliate WIN Corp continue discussions regarding a potential acquisition of WIN Corp's metropolitan Adelaide and Perth television stations by Nine. Page 17.
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The percentage of home loan borrowers 30 days or more behind on repayments at the end of March increased to 1.66 percent, according to data from credit ratings agency Moody's Investors Services. Although low on an international scale, it shows an upward trend from 2012 figures of 1.44 percent in December and 1.59 percent in March. To help boost profit results for the first half of the 2013 financial year, the big four banks have reduced their reserves covering future bad debts. Page 19.
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Share register company Link Administration Holdings is facing legal action over unpaid royalties. IT company Shearpond founders Mike Perks and Bob Jones claim Link has failed to pay royalties for superannuation administration software since 2007. Link competitor Superpartners is seeking further funds to upgrade its systems, with A$260 million believed to have already been spent. Page 19.
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Commonwealth Bank of Australia is seeking an explanation from Treasury after a confidential request to lower their contribution to a A$266 million levy was accidentally published online. The levy, which in part funds industry regulators such as the Australian Prudential Regulation Authority, Australian Tax Office and Australian Securities and Investment Commission, has doubled since last year primarily due to the SuperStream reforms of the Federal government. Page 19.
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The Australian dollar has fallen against the New Zealand currency, dipping below NZ$1.20 for the first time in almost five years. Positive business confidence, increasing terms of trade and an inflow of funds as the South Island rebuilds are spurring strength against the Australian currency in what analysts believe will become the new trend due to reforms creating a more successful business environment. Page 27.
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A drop in Chinese iron ore demand and increases in global production have triggered forecasts of lower iron ore prices, with Treasury predicting today's US$123.20 a tonne will fall to US$100 a tonne by mid-2015. Rio Tinto is expected to raise iron ore supply from 225 million tonnes annually to 300 million tonnes. BHP Billiton is to raise production from 180 million tonnes to 220 million tonnes and Fortescue Metals Group from 90 million tonnes to 155 million tonnes. Page 29.
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Ken Poonoosamy, managing director of the Mauritius Board of Investment, has met with around 50 Australian telecommunication, technology, law and financial sector companies, touting his country as an offshore haven. Mauritius, with well-developed links with India, is now seeking to build links with countries such as Australia. Page 34.
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THE AUSTRALIAN (www.theaustralian.com.au)
Retailer David Jones comparable store sales to the end of April are down 2.2 percent on the previous year, lower than market expectations of around 1.5 percent. Reporting sales of A$391.1 million for the quarter, David Jones worst quarterly sales outcome since 2011 highlights the continuation of the "fragile" position of the retail sector despite the Reserve Bank of Australia's recent reduction of interest rates to a record low of 2.75 percent. Page 17.
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Television network Ten will expand its target demographic to 25 to 54 year olds, the group that accounts for 48 percent of the audience and attracts up to 60 percent of advertising dollars spent in the television advertising market. Chief executive Hamish McLennan is aiming for the older "young at heart" as younger viewership is moving towards online streaming, pay television and new digital channels and away from the primary channels. Page 17.
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Gas explorer and producer Woodside Petroleum is confident that floating liquid natural gas (FLNG) plants would be economic for the Browse venture. Woodside is expected to inform the Federal and Western Australian governments of the costs related to the abandoned onshore James Price Point option, should it have gone ahead and that FLNG maintenance would be performed in Perth. Woodside partner Shell is currently building a $12.4 billion FLNG plant for its Prelude project. Page 17.
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After due diligence, property investment company GPT Group has abandoned its A$2.94 billion bid for commercial developer Australand as the companies cannot agree on an outcome for the residential component of Australand. Speculation that 59 percent investor CapitaLand was considering a block sale has been rejected, by sources. GPT Group was seeking office and industrial assets, but Australand was unwilling to separate the residential business. Page 17.
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Regulators should have the power to compel infrastructure owners to open access to competitors, according to a Productivity Commission draft report relating to the almost 20-year old Hilmer reforms. The investigation was spurred by iron ore producer Fortescue Metals Group's nine year fight for Pilbara rail access to assets belonging to rivals BHP Billiton and Rio Tinto. Part IIIa of the Competition and Consumer Act has only been used twice in 17 years but provided a template for industry specific companies in rail, gas, electricity and telecommunications. Page 18.
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The new 15 percent tax introduced by Superannuation Minister Bill Shorten in the latest federal budget has caused a drop in new self managed super funds, according to statistics released by the Australian Tax Office. The 5840 new funds created in the March 2013 quarter was fall from the 9748 created in the December 2012 quarter, and is the lowest number since records commenced in June 2008. Page 19.
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Investment management firm BlackRock has sold 2.15 million shares in Australia and New Zealand Banking Group and over 444,000 shares in Commonwealth Bank of Australia. BlackRock is a top three shareholder in Australia's big four banks. It is believed the weakening Australian dollar and last year's 20 percent outperformance by the local banks compared to the broader market has prompted a repatriation of funds. Page 19.
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New charges to be paid by high-frequency traders have been suggested to cover extra costs for the Australian Securities and Investment Commission supervising the messages created by high-frequency traders. The Financial Services Council supports the move stating the purpose of "excessive" messaging was to obtain "information about the intentions of other market participants to their detriment". Page 24.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Former head of electric car manufacturer Better Place, Australian Evan Thornley, has defended the technology, specifying poor management as the cause for the Israel-based company's demise. Investment banks Morgan Stanley and HSBC were among those that collectively invested around US$850 million into the venture. In Australia so far this year, 42 of the 358,165 new cars sold were dedicated electric vehicles, according to the Federal Chamber of Automotive Industry. Page 25.
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Westfield Miranda will receive a A$435 million upgrade, gaining over 100 specialty stores, a cinema and focus on premium services. An expansion by Woolworths will see it take over ground floor space currently utilised by a department store. Overall this year's new development budget for Westfield Group, responsible for 25 percent of the Miranda complex, is between A$1.25 billion and A$1.5 billion. Page 26.
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THE AGE (www.theage.com.au)
Failed cleaning company Swan Services owes A$1.6 million to 2466 staff, however, only 30 percent to 35 percent will receive their entitlements. The remaining employees do not qualify for the Fair Entitlements Guarantee since they are foreigners. Unprofitable contracts and a delay in receiving payments worth an estimated A$2.5 million forced the collapse of the 47 year old business last week. Page 19.
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New South Wales is expected to lead Australia in residential construction growth, according to the Australian Construction Industry Forum's latest report. Residential and commercial growth is forecast to climb 7 percent in both financial years 2013-14 and 2014-15 while engineering construction will plateau as the mining boom peaks. Growth in building activity in the shopping centre subcategory has been triggered by competition from big-box retailers and online outlets. Page 22.
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