Virgin Australia could soon open its doors for foreign investors to come in, with reports that the Richard Branson-controlled airline is nearing completion on efforts to remove ownership caps.
Australia's unemployment rate returned to 5.2 per cent in February, the Australian Statistics Bureau (ABS) reported on Thursday. The rise was expected by analysts as banks, manufacturing companies, construction firms and other Australian companies announced axing of jobs by the hundreds last month.
Despite an initial dip when the February jobs numbers were released, the local share market is trading higher at lunchtime in the East, following positive offshore leads. The All Ordinaries Index (XAO) is firmer by 21.3pts or 0.5pct to 4255.7.
The Australian economy slowed in the 4th quarter of 2012, but we still ended up doing better than many other leading economies.
Australia's construction activity further weakened in February, notwithstanding the rate cuts introduced late last year by the country's central bank, which failed to boost housing and commercial building projects in the past few months.
The 2011 natural disasters, such as the twin earthquake and tsunami that struck Japan, was by far the costliest, with the United Nations disaster risk reduction agency UNISDR estimating the economic cost to be at least $380 billion.
While opening some business opportunities in India, mining giant Rio Tinto (ASX: RIO) is also closing some doors. The company announced on Wednesday that it would shutter its Lynemouth aluminium smelter in Northumberland in England by the end of March.
Investor sentiment remains subdued again today, following falls in offshore markets and weaker than expected local economic growth figures. At lunchtime in the East, the All Ordinaries Index (XAO) is down 36.6pts or 0.9pct to 1258.9.
A replay of February in the Reserve Bank interest rate decision yesterday with no change as the cash rate was left at 4.25% and the reasoning much the same.
Australia's business environment has so far sustained its growth pace, expectedly on the back of the ongoing mining boom, but national data also indicated that regions and business sectors were hardly benefitting from the resources boost.
Rio Tinto (ASX: RIO) will make the largest investment by an Australian company in India through a $2 billion investment at the Orissa iron ore project in India. The project will supply iron ore to India and overseas with the steel making material.
The Australian share market has started the trading day in the red, following weak offshore leads and after China downgraded its 2012 growth forecasts. China has cut its target for economic growth in 2012 from 8pct to 7.5pct, a move which wasn't overly surprising but has given investors a reason to sell. At lunchtime in the East, the All Ordinaries Index (XAO) is down 29.9pts or 0.7pct to 4324.3.
The Financial Services Union (FSU) claimed on Tuesday that Westpac Bank will axe 119 technology jobs and send them overseas as the lender cuts cost. The union said the bulk of the jobs to be lost would come from the Sydney Central Business District and Kogarah units and smaller numbers from Queensland, South Australia and Victoria.
The pick up in the Australian jobs market seems to be accelerating, judging by the latest ANZ job ads survey for February.
While retailing shrinks, car sales remain very buoyant, even after taking into account the extra day in February.
The global automotive industry needs to deal with likely damning economic realities despite growth projections for the sector this year, according to outlooks furnished by analysts.
Every time Australians swipe their credit cards, they pay interest rates to the banks which charge them an average interest of $4,700 a year per card.
The Australian share market has started the trading week in the red, following a lacklustre offshore lead and a report showing company operating profits fell 6.5pct in the fourth quarter, below estimates. At lunchtime in the East, the All Ordinaries Index (XAO) is down 14pts or 0.3pct to 4350.1.
The strong Australian currency is taking its toll on the country's aluminium smelter sector with another plant facing the threat of closure due to high production cost and weak global prices. Mining giant Rio Tinto (ASX: RIO) warned it may shutter its Bell Bay smelter which may cause the loss of 600 jobs.
Economics dominates the week here and offshore, with important data releases in several countries, central bank meetings, the rising price of oil worrying markets and towards the end, the monthly flow of economic data from China.
A report commissioned by Transport Minister Anthony Albanese in 2009 pushed for the construction of a second airport in Sydney due to the anticipated increase of air traffic.
Stealing company money is the top white collar crime in Australian companies, a PricewaterhouseCoopers (PWC) survey released on Thursday said. Almost 50 per cent of Aussie firms reported at least one incident of white collar crime in the past 12 months.
The Australian manufacturing industry appears to be stabilising in the past two months despite the lingering effects of a rising local currency in the sector, according to the latest Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI).
The local share market is experiencing a heavy sell-down today, losing all of yesterday's gains in the first few minutes of trade. US and European markets fell overnight after US Federal Reserve Chairman Ben Bernanke failed to mention another round of economic stimulus, or QE3. At lunchtime in the East, the All Ordinaries Index (XAO) is down 31.9pts or 0.7pct to 4356.2.
Woolworths reported on Thursday a 17 per cent drop in its first half net profit mainly due to the $300 million charge for the restructuring of its Dick Smith consumer electronics division.
"It's like Thailand was 50 years ago," Alexandre de Lesseps told me. We were talking about the next big emerging market to bloom in Asia.
More Australian jobs would likely be placed on the chopping block because of the difficult business environment across the country. This development may reverse the small gains made in January when the country's unemployment rate slightly went down to 5.1 per cent from 5.2 per cent in December 2011.
China, along with many other Asian countries, is buying. This is because, unlike more developed countries whose economies are faltering, China has an economy that is booming.
The debate over out-of-cycle interest rate increases by major Australian banks would likely be revived again when the Reserve Bank of Australia (RBA) releases a report of Friday which would show the widening gap between standard home loan rates and the RBA overnight cash rate.
The Australian share market has started the day's trade on a positive note, after the US Dow Jones Index closed above the 13,000 point level overnight for the first time since May 2008. In early trade, the All Ordinaries Index (XAO) is up 27.7pts or 0.6pct to 4378.9.
