BUSINESS

Even after four years after the downfall of his financial services company, MFS, Michael King continues to fight in court.

“There should be consolidation among the regional banks.”

Shares in Jetset Travelworld (ASX:JET), an Australian company engaged in selling of international and domestic travel products and services, soared as the Australian Competition and Consumer Commission gave the tour operator the green light to acquire Stella Travel Services.

The Australian bourse closed at its strongest in three weeks, rising more than 2 per cent, as a remarkably robust local economic data overshadowed a faltering US economy.

The prices of oil rose along with the increases in China's economic indicators on Wednesday.

Australian investments on African mining projects have already reached a high of $20 billion while local resource firms with exploration interests in the continent and listed in the stock exchange had jumped from 2003’s level of 54 into its present size of 160.

AVL Holding GmbH, an Austria-based company engaged in development, simulation and testing technology of powertrains for passenger cars, trucks and large engines, announced today that it has signed a letter of intent to acquire NTC Powertrain Australia, USA and UK.

Building product specialist James Hardie Industries SE would have to shell out a total of $370 million after all as its subsidiary RCI Pty Ltd’s tax appeal before the Federal Court was ordered dismissed on Wednesday.

Queensland may not be seeing new houses due to very high development levies and rising uncertainty in the Queensland planning system.

Shopping strips may be lined up with empty shops due to the staggering increase in rental prices.

International and domestic airline company Jetset Travelworld Limited (ASX: JET) can go ahead with the merger with Stella Travel Services Australia/New Zealand.

Junior mining firm Atlas Iron Ltd (ASX: AGO) revealed on Wednesday an upgrade on its reserves that further supported its target of ramping up productions to 12 million tonnes per annum (MTPA) by the latter part of 2012.

Strong GDP growth published on Wednesday brings rate hikes back onto the Reserve Bank of Australia's agenda although the central bank can still wait, according to Bankwest, a wholly owned subsidiary of the Commonwealth Bank (ASX:CBA).

The Australian bourse was more than 1.5 per cent higher on Wednesday noon as better than expected local economic growth figures boosted investor sentiment.

The construction sector contributed largely to the growth of the Australian economy during the June quarter.

Giant contracting firm Leighton Holdings Ltd (ASX: LEI) announced on Wednesday that it is set to replace the current builder of a landmark project at Dubai International Financial Centre following the finalisation of its $220 million deal with UAE-based Daman Investments.

The Australian debt market holds back with a weak start as the entire trading floor waits for the release of the Gross Domestic Product figures before noon.

Uncertainty in the political arena, slow-paced production growth, and a drop in new orders put on the brakes for manufacturing activities in August.

Canadian firm Potash Corp has scored the apparent tactics of BHP Billiton Ltd to spread ‘doubt and confusion’ about the company’s future following the giant resource firm’s hostile bid for the world’s largest manufacturer of fertiliser.

A report published in a Japanese daily has indicated on Wednesday that BHP Billiton Ltd agreed to cut by seven percent coking coal prices that the company is set to ship into Japan for the last quarter of 2010.

The Commonwealth Bank of Australia (ASX: CBA) is all set for a core banking development project that will put the cost-to-income ratio for its retail banking as the lowest in the world.

In the US overnight, the major indices finished largely unchanged as stronger-than-expected consumer confidence and a rise in home prices helped ease fears that the economy is faltering. Financials were helped by regulatory approval for a Chinese investment in Morgan Stanley.

The Australian Dollar has opened fairly unchanged this morning to be trading at USD0.8920 after trading below USD0.8900 late yesterday.

US consumer confidence rose from 51.0 to 53.5 in August, above expectations for a result near 50.5. The S&P/Case Shiller home price index for 20 metropolitan areas showed a 0.3pct rose in seasonally adjusted terms in June, above forecasts for a 0.2pct gain. But the Chicago purchasing managers index eased from 62.3 to 56.7 in August.

U.S. stocks eked out a tiny advance Tuesday, with AT&T, J.P. Morgan and Merck among the gainers in the conclusion of a bruising month for the market.

Australian economic data released yesterday surprised the market somewhat with Retail Sales, Building Approvals and the Current Account all coming in above expectations.

Housing and business activity data from the largest economy in the world provided the impetus for the Australian dollar to open slightly higher than Tuesday.

The first day of September seems to begin well with the Sydney Futures Exchange.

Australian companies are holding off on investment deals with banks.