Consumer confidence drops despite economic growth
Not even a robust economy has stopped the decline of consumer confidence in the economy over the past month. A survey released monthly by the Westpac Bank and the Melbourne Institute reported a 2.7 percent decrease in consumer confidence in July. The drop came after a 2.5 increase in June.
The report concluded that the swings indicate that Australians are unsure of the near to mid-term economic outlook. The downswing comes despite economic growth of 4.5 percent and steady business confidence.
The Westpac report cited U.S. stock weakness, drought conditions in parts of Australia, and recent interest rate hikes as reasons for the month's decline in confidence.
<< top >>
Qantas eyes Air New Zealand
Qantas' recent praise of Air New Zealand, once an arch-rival, has begun murmurs that Qantas is looking to purchase a stake in Air New Zealand. Air New Zealand, which until the demise of Ansett Airways last year was one of Qantas' main rivals, is a government owned company.
The speculated deal, which is being touted as a "partnership of equals", would see Qantas purchasing a 25 percent stake in the rival airline. The main hurdle to this deal is the upcoming New Zealand election, with the government shying away from any deals that may hurt its reputation before the election.
The New Zealand government stated that it is not involved in any partnership talks and intends to maintain majority ownership of the airline "for the foreseeable future".
<< top >>
Government crackdown on Telcos
In a threat widely seen as the next step in its push to fully privatise Telstra, the federal government warned this month it would heavily fine any non-performing telecommunications companies. Responding to the fear that private telecommunications companies would be more interested in profits than providing service to outback communities, the federal government said it would impose heavy fines on any companies failing to service customers in regional Australia.
Telephone companies, including Telstra, would have to report regularly to a special communications authority and risk fines of up to AUD $10 million for failing to meet government-set service responsibilities.
The quest to privatise Telstra, the former monopoly holder, began in 1997 when the government sold its first chunk of the telecommunications company. The second chunk went on the market in 1999. Now the government wants to sell the remaining 50 percent but has met opposition by parties who claim that regional and country areas would be adversely affected by the free telecommunications market.
<< top >>
Stockbroker on trial for insider trading
A high-profile Australian stockbroker, Rene Rivkin, has been charged with insider trading involving Qantas shares. If convicted, the flamboyant Rivkin could face fines of up to AUD$10 million, five years in jail, or both.
Last November, the Australian Securities and Investment Commission discovered the insider trading. The commission said Rivkin profited from offloading 50,000 Qantas shares he had recently bought after being warned by the head of a smaller airline that Qantas was about to buy the airline.
A trial date has yet to be set.
<< top >>
BHP Billiton lets steel company go private
The last remaining steel assets of the recently merged BHP Billiton went private this month when a large steel mill south of Syndey was floated on the Australian stock exchange as BHP Steel.
Shares in the Port Kembla mill opened at AUD $2.60 and quickly climbed to $3.00. Analysts say the rocketing share price was due to the underlying strengths of the steel mill and a successful "road show" undertaken by the mill's management throughout Asia, Europe and North America.
The mill, which is a cornerstone industry for the city of Wollongong, 80km south of Sydney, will be able to keep the BHP name for three years in order to help market its steel.
<< top >>
|
© Copyright 2001. Galt Western Personnel Ltd.
Unless otherwise specified, you may reprint this article, quote from it,
use it in research or projects, duplicate it or distribute it. Credit
of authorship and source MUST be given to galtglobalreview.com. Ownership
of Copyright remains with Galt Western Personnel Ltd.
|
