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)
Tabcorp is negotiating to extend gambling outlet exclusivity rights to TAB outlets and operations in clubs and pubs in Australia's largest gaming market, New South Wales, with that state's government. A 15 year extension is worth up to A$80 million, according to analyst estimates. The retail outlets took A$2.9 billion from punters in the first three quarters of 2012-13. Page 13.
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Nine Entertainment Co is expected to wait until Monday's deadline before deciding whether to take on rival Ten Network's A$500 million offer for cricket broadcast rights. If Nine enters the contest it is anticipated it will leave the Big Bash for Ten, which will see Nine proposing about A$90 million a year for Test and international one-day cricket. Page 15.
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Exploration and mining firm Brockman Mining has signed a provisional agreement with Tianjin Port Group, a Chinese entity, to assist in the provision of evidence of financial support for its bid to gain access to the Pilbara railway of Fortescue Metal Group. Page 16.
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SingTel Optus chief executive Kevin Russell said Optus would carefully monitor any renegotiations relating to adjusting the NBN infrastructure to stop at street corners rather than reaching homes. Mr Russell has expressed concern Telstra could benefit financially from revisions to the National Broadband Network (NBN) by the Coalition, should it become the Federal government. Page 16.
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BHP Billiton Mitsubishi Alliance (BMA), jointly owned by BHP Billiton and Mitsubishi Corp, has purchased larger trucks, improved staff rostering and will focus on planning, measurement and management in efforts to increase the productivity of its Queensland mines. Production costs in recent years have been high due to flooding, industrial action, wage inflation, increased royalties and the effect of the carbon tax, but costs should drop to between US$110 and US$120 a tonne by 2015, according to Peter O'Conner, an analyst at Merrill Lynch. Page 16.
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If the life insurance industry fails to introduce regulation to prevent practices that benefit financial advisors rather than their clients, such as selling new policies every few years to gain commissions, the Australian Securities and Investments Commission (ASIC) will take action, said ASIC deputy chairman Peter Kell. The Financial Services Council has so far failed to get industry-wide agreement on its proposals for self regulation. Page 17.
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Infrastructure firm Qube Logistics said it is prepared to work with the Federal government enterprise Moorebank Intermodal Company (MIC) to build a shared A$800 million freight hub on Sydney land to be vacated by the Department of Defence in 2015. In parallel, Qube is continuing with plans for a terminal of its own. MIC has held informal discussions with pension funds, port operators and warehouse providers while industry observers expect that consortiums will be formed to bid for operating rights. Page 20.
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Increased competition in the fast-moving consumer goods sector will continue to force prices down, according to Coles head of merchandise John Durkan. Over 70 percent of customers surveyed in April by Coles believed they were paying too much for household essentials. Food price should drop between 3 and 4 percent per annum for the next few years, added Mr Durkan. Page 20.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Iron ore projections suggest this year will see an A$18 billion drop in mining industry revenue, based on expected production of 550 million tonnes and current iron ore prices. The current price of iron ore at US$112.90 a tonne is over 22 percent down on the March quarter average of US$145 per tonne. Page 17.
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Ruralco's proposed takeover of Elders Rural Services has been given the green light by the Australian Competition and Consumer Commission. At least 30 firms have expressed interest in the rural services arm of Elders which has been valued up to A$329 million by analysts. Page 17.
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Don Voelte will replace Peter Gammell as Seven Group Holdings chief executive, chairman Kerry Stokes announced yesterday. Tim Worner will take over from Mr Voelte as head of Seven West Media. Mining equipment subsidiary WesTrac will aim to grow by identifying opportunities created by the current sector downturn, Mr Voelte said. Page 18.
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Wholesale DSL charges applied by Telstra to competitors using its infrastructure have been reduced by up to 15 percent by the Australian Competition and Consumer Commission. Telstra had been charging wholesalers higher rates than those charged to its own BigPond customers. Metro ports will now cost A$24.44 a month and regional ports, A$29.66. Page 18.
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The Australian Securities and Investments Commission (ASIC) yesterday announced it will not introduce a half-second rest requirement for high-frequency trades. The introduction of a trade-order levy in March had reduced the level of small order messages placed and withdrawn in under half a second by 55 percent, stated ASIC chairman Greg Medcraft. There will be a 37 percent increase in the levy from July. Page 19.
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Online sales in Australia reached A$13.5 billion for the year to the end of April, and were 23 percent higher in April this year compared to April last year, according to the National Australia Bank (NAB) Online Retail Sales Index. In March, overall retail sales grew 2.4 percent. Domestic retailers accounted for 72 percent of online purchases, indicating retailers are improving customer engagement methods, said Tiernan White, head of retail at NAB. Page 19.
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The Australian Securities and Investments Commission (ASIC) announced it will assess the use of technology to launder money after Westpac Banking Corporation was caught up in a global US$6 billion money-laundering scam. Chairman Greg Medcraft said ASIC will focus on emerging threats but won't be examining Westpac or money transfer company Technocash. Page 19.
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The Productivity Commission recommended regulation of the minerals exploration industry be streamlined to counteract its productivity decline, noting state government approval procedures are inefficient. The Minerals Council reported Australia's share of global deposit discoveries had dropped by more then half while drilling costs per metre have tripled for mineral and offshore petroleum explorations since 2006. Page 23
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THE SYDNEY MORNING HERALD (www.smh.com.au)
Mining investment projections for 2013-14 have lifted slightly, according to figures released by the Australian Bureau of Statistics. Resources investment may "plateau" rather than collapse, said Paul Bloxham, chief economist at HSBC. Building approvals for April rose to seasonally adjusted 9.1 percent after a drop of 5.5 percent in March. However, capital expenditure for the March quarter, strongly hit by falls in the building and equipment sectors, was down 4.7 percent against economists' expectations of a rise of 0.5 percent. Page 25.
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Optus chief executive Kevin Russell said telco customer service in Australia "seems to have gone backwards" compared to the United Kingdom. Australian telecommunication networks are likely to increase prices in coming months to cover their A$2 billion outlay on wireless data and broadband capabilities, added Mr Russell. Page 29.
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THE AGE (www.theage.com.au)
Industry superannuation funds are "a great Australian success story", according to Industry Super Network (ISN) chief executive David Whiteley. Industry super funds outperformed retail competitors by between an average of 1 percent and 2 percent per year for the last ten years, observed Mr Whiteley. For the year to 31 March, total superannuation assets are estimated to have grown by 13.5 percent to A$1.58 trillion, with industry funds responsible for 19.8 percent of the total, retails funds, 26.3 percent and self-managed superannuation funds, 31.5 percent. Page 24.
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Twitter was a "terrible" platform for disclosure relating to equity markets, said deputy chief of the Australian Securities Exchange Peter Hiom. The scanning of Twitter feeds by trading algorithms before executing trades will create onerous pressure on listed companies to maintain accurate information on the social media network, expanded Mr Hiom. Page 25.
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