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FRIDAY 23RD SEPTEMBER 2011
IRON ore is set for the first four-year
drop since at least 1982 as supplies surge,
threatening to end record earnings at
Vale, Rio Tinto and BHP Billiton, the
world́s biggest producers, reports this
Global prices may fall 29 per cent to
an average $US123 a metric ton in
2015 from a record $US173 this year,
according to the median estimates of 10
analysts surveyed by Bloomberg News.
The decline contrasts with estimates
for little change in copper and a 10 per
cent increase for aluminum in the same
period, London Metal Exchange futures
Rio Tinto fell 11 per cent, the most in two
years, to close at 3,017 pence in London.
BHP slid 8.3 per cent to 1,731.5 pence.
They led a group of basic... Read more
Jobs to go in banks, says UBS
A REPORT by investment bank UBS suggests
that Australia’s largest banks may be
forced to shed thousands of jobs, hold
wages and slash employee pay as a result
of a slowdown in business and consumer
credit demand, according to The Australian
The reports said that banks will be forced
to make job cuts in part because bank
workforces have hit their highest levels in
more than 15 years on the back of strong
market conditions prior to the global
downturn that have since deteriorated
Already, banks are beginning to act.
Westpac is cutting some 1,000 jobs from
its middle management ranks, while
Commonwealth Bank, ANZ and National
Australia Bank are expected to make
The UBS report found that average salaries
at Australian banks were generally higher
than their global peers, making them
vulnerable for cuts when banks begin to
look for efficiencies, according to The
Australian. Read more
Winners are grinners in Foster’s deal
SHARES in Foster’s jumped more
than seven per cent yesterday after the
brewer accepted an improved $10.7
billion takeover offer from UK-based
beer giant SABMiller.
Ratings agency Moody’s moved
overnight to place the company’s debt
issuer on review for a possible upgrade.
And locally, family owner brewer
Coopers enjoyed its new position as the
largest brewer left in Australian hands.
Against a backdrop of market gloom
the Foster’s story was one of the few
“Overall, it’s quite an attractive deal
given the decline in Foster’s earnings
base, given the disruptions that this
business has had,” City Index chief
market analyst Peter Esho told AAP.
Mr Esho added that the deal was a good
one for shareholders given other stocks
were so cheap at the moment.
In August, the brewer of beers
including VB, Carlton Drought and
Crown Lager reported a full year net
loss of $89 million, a continued decline
in the Australian beer market and
foreshadowed more job cuts.
Shares in Foster’s gained 7.56 per cent,
to $5.26. They earlier reached a record
Moody’s Investors Service has placed
the long-term senior unsecured debt
and issuer rating of brewer Foster’s
Group on review for a possible upgrade.
“The move to put Foster’s ratings on
review for possible upgrade reflects the
potential scale, synergy but particularly
management and innovation benefits
that could be provided to Foster’s
by SABMiller”, Moody’s lead analyst
and vice-president Ian Lewis said in a
statement on Thursday. Read more
Iron ore dump trucks at Fortescue Metals Group’s Cloudbreak mine in Western Australia
Major changes at HP
HEWLETT-PACKARD says it has named Meg Whitman, the
former eBay chief, as president and chief executive officer,
replacing Leo Apotheker at the world’s biggest computer
“We are fortunate to have someone of Meg Whitman’s calibre
and experience step up to lead HP,” said Ray Lane, who was
named executive chairman of the computer giant.
“We are at a critical moment and we need... Read more
Coopers executive chairman Glenn Cooper with
some old Coopers bottles
BHP, Rio dumped as iron ore outlook dims
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