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)
Smaller mining companies are running out of funds and may have to merge, sell assets cheaply and raise funds at discounted rates, an Ernst & Young report asserted. From a sample of 354 companies with A$500 million ($476.28 million) or less in market capitalisation, the average is less than two years spending remaining if outlays continue at current levels. Page 21.
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Coles will launch its own credit card, to work in conjunction with loyalty program FlyBuys, and increase customer data mining from usage of the card. With no annual fee, the MasterCard will be issued by GE Capital and will track customer shopping habits to help determine store locations, and enhance promotions and product ranges. Page 23.
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Air New Zealand was likely the most active player behind the 5 percent trade in the shares of Virgin Australia yesterday, according to market sources. The largest trade of 3 percent would bring Air New Zealand's stake in Virgin to 22.9 percent, ahead of Singapore Airlines' 19.9 percent stake. Page 23.
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Funds manager Perpetual's A$220 million attempt to acquire The Trust Company will be subject to approval by the Australian Competition and Consumer Commission as rivals Equity Trustees and IOOF oppose the scheme of arrangement. The merged companies would account for 34 percent of the market, according to IBISWorld. Page 25.
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A report by Indigenous Business Australia and Social Ventures Australia found between A$10 billion and A$40 billion belonging to indigenous organisations could provide a new market for investment and wealth management. Much of the wealth sits in trusts providing low-returns. National Australia Bank's head of indigenous banking and finance, Glen Brennan, said client education and networking provide the most important starting points for progress. Page 25.
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Australian Prudential Regulation Authority chairman John Laker has rejected industry suggestions that Australian banks could be "competitively disadvantaged" by implementing the liquidity coverage ratio policy by 2015. Australian banks already meet the Basel III capital rules, however, there is a risk to liquidity as offshore markets supply about 25 percent of annual funding. Page 25.
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The risks should financial planners not be required to gain tax qualifications will be advertised in a new campaign by the Institute of Chartered Accountants, who support the proposed changes. The status quo is being supported by the Financial Planning Association, who have accused accountants of scaremongering, and the Financial Services Council who have highlighted incompatibilities between the tax requirement and the requirement to act in the best interests of clients. Page 25.
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The availability of only 440 megawatts from AGL Energy's 1280 megawatt Torrens Island power plant on Friday is likely to increase spot prices for electricity. AGL will need and potentially adjust earnings. Ongoing repairs and a tripped unit on Friday night forced the energy provider to rely on wind farms while spot prices for wholesale electricity as high as A$11,090. Page 27.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
Analysts and investors were briefed yesterday on the split of News Corporation by Rupert Murdoch and chief executive-in-waiting Robert Thompson. Mr Thompson said the new News Corp will take the "Murdochian momentum" into the future to tackle the currently volatile advertising market and the decline of print sales. The Australian newspaper now had 50,000 digital subscribers, said News Limited chief executive Kim Williams. Page 17.
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The market value of gold resources company Newcrest Mining has dropped to A$11 billion following by UBS giving it a "sell" recommendation. Fortescue Metals Group has overtaken Newcrest Mining as Australia's third largest miner by capitalisation, behind BHP Billiton and Rio Tinto. Page 17.
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A dark pool operated by Deutsche Bank traded over A$56 million worth of Virgin Australia shares yesterday, generate confusion over the identity of the buyer. Etihad Airways chief executive James Hogan said the airline is focusing on purchasing a 24 percent stake in India Jet Airways rather than increasing their investment in Virgin Australia. Page 17.
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The Big Data Knowledge Discovery project will use methods that predict stock market movements applied to geological data to improve the accuracy of greenfield mining exploration. University of Sydney Professor Dietmar Muller said more accurate information was highly valuable as investment in high risk mining exploration in Australia had dropped significantly over the past year. Page 18.
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A fault has been reported by the National Offshore Petroleum Safety and Environment Authority (NOPSEMA) relating to Woodside Petroleum's Vincent oilfield in Western Australia. The oil mist detector should prevent explosions by monitoring dangerous oil particles in the air, but Woodside did not realise it was incorrectly designed and wired. NOPSEMA received three other reports of accidents and dangerous occurrences for Woodside last year. Page 18.
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Macquarie Group has been appointed to advise Moorebank Intermodal Company, the federal government-owned body working on the development of the A$500 million south-west Sydney logistics facility. The site is expected to handle 1.7 million containers a year and produce economic benefits worth A$10 billion that include reducing traffic congestion and lowering shipment costs. Page 19.
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Tony Reeves, the chief financial officer who guided the separation of Treasury Wine Estates (TWE) from Foster's Group, has rejoined Treasury to help guide the company through a transition in its commercial development, said chief executive David Dearie. TWE is aiming to increase earnings from its high-quality wines by cellaring longer, a change that increased its inventory by A$170 million during the last financial year and lifting prices of highly-prized wines such as Grange Hermitage. Page 19.
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The Global Entrepreneurship and Development Index (Gender-GEDI) has rated Australia second, after the United States (US), finding Australian women possess a high level of financial literacy and strong conviction that women could perform executive roles as well as men. Out of 100, Australia rated at 70, US, 76, while Germany scored 63 and China, 41. Page 19.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
There is speculation that up to 200 more back-office jobs at battling retail chain Target will be lost following cuts in the marketing department last week. Richard Goyder, chief executive of owner Wesfarmers, issued a profit downgrade indicating Target is expecting at best a second-half profit of around A$12 million and could report a loss of A$8 million. Page 23.
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Over half the managers in 173 shopping centres believe sales will fall or at best stay level over the next year, according to Jones Lang LaSalle's monthly sentiment survey conducted nation wide. Vacancy rates for sub-regional shopping centres for May are the highest since the Retail Centre Managers Survey was initiated in 2011, at 3.4 percent over the last 12 months. Page 27.
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THE AGE (www.theage.com.au)
Glencore Xstrata's plans for a A$110 million expansion of its Cobar mining operation have become unclear following the cancellation without explanation of its shaft-sinking contract with construction and contract mining company Macmahon Holdings. The expansion would have added around A$86 million to Macmahon's earnings by the end of 2013-14 and would have employed around 70 people. Page 25.
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Retail property owner and manager Federation Centres has sold a half-share in six of its centres to investment management firm Challenger for A$602 million. Federation will continue to manage the centres, four in New South Wales and one each in Victoria and Western Australia, as part of its strategy of engaging in co-ownership, said chief executive Steven Sewell. Page 26.
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($1 = 1.0498 Australian dollars)
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