PRESS DIGEST: Australian General News Aug 2 07:43, Thursday, 2 August 2007
(Compiled for Reuters by Media Monitors)
THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)
Qantas Airways may recruit a new chairman for its board externally, after director and former chief executive, James Strong, chose not to contest for the position. Qantas chief executive, Geoff Dixon, yesterday confirmed there was a process under way to replace chairman, Margaret Jackson, and non-executive director, James Packer, both of whom will stand down at November's annual meeting. Strong, who already chairs retailer, Woolworths , and general insurer, Insurance Australia Group , said he was reluctant to take on a prominent position with a third top-50 company. Page 1.
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Australian stocks joined the faltering markets of Japan, Hong Kong, and Shanghai as regional markets followed more than 1 percent falls on United States indices on Tuesday night. The benchmark S&P/ASX200 Index fell 203 points or 3.3 percent to 5941.2, closing under 6000 points for the first time in four months. Among key stocks to post large losses were investment banks, Macquarie and Babc*ck & Brown , and financial services business, Allco Finance Group . However, most analysts said the slump did not signal the start of a bear market. Page 1.
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The Australian Securities and Investments Commission is facing criticism over its policing of Fincorp. A prospectus released by the property group in 2006 failed to disclose that former chief executive, Craig Stubbs, founded a financial planning firm which had been placed into administration immediately prior to his appointment. ASIC, which is believed to be investigating Fincorp in relation to a number of client disclosure issues, demanded changes to previous versions of the prospectus, but required no change to the complimentary depiction of Stubbs to potential investors. Page 1.
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A rebound in consumer spending has heightened the chances of an official interest rate rise ahead of a monthly Reserve Bank of Australia board meeting next week. The onset of cold weather, a strong employment market, and stable interest rates saw official retail figures record a 1.4 percent jump in the value of sales in June, compared with small falls in April and May. Some analysts said although international sharemarket declines will be considered by the central bank, retail data and last week's inflation numbers may be enough justification for the RBA to raise rates. Page 3.
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THE AUSTRALIAN (www.theaustralian.news.com.au)
News Corporation is expected to boost spending on the Wall Street Journal's staff, resources and website, after yesterday receiving approval to buy the publication's owner, Dow Jones , for US$5 billion (A$5.9 billion). News is estimated to have more than 70 percent of votes, but that could rise as more members of the majority-owning Bancroft family pledge their shares into the bid. The diversified media company offered US$67 per share for the target, a 67 percent premium on the share price before the bid was announced. Page 1.
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Australian Federal Police Commissioner, Mick Keelty, was forced to retract earlier claims made about the location of a mobile phone SIM card owned by former terrorist suspect, Mohamed Haneef. Prosecutors said the card was found in a burning Jeep that crashed into Glasgow Airport, but it was later found to have been at the home of Dr Haneef's second-cousin, Sabeel Ahmed, in the British city of Liverpool. Although "assistance to terrorists" charges have been dropped against Dr Haneef, the Federal Government has refused to reinstate his cancelled work visa. Page 1.
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Prime Minister, John Howard, yesterday defended the Federal Government's invitation for regional communities to seek Commonwealth financial assistance to take over state-funded public hospitals. Dismissing claims by the Australian Labor Party that the measure was a bid to court favour with voters in marginal Government-held seats, Howard said: "This is...in fact an exercise in maintaining a public service". The offer coincided with a Government plan to underwrite a community-based takeover of the Mersey Hospital in Devenport, Tasmania. Page 1.
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Amid concerns the primary school curriculum has become too cluttered with non-essential lessons in areas such as bike safety and animal-care, the Australian Primary Principals Association has released a draft of the new Primary School Charter. The association nominates English, mathematics, science, and history as the four core subjects, with art, sport, music, and languages having a supplementary role. Federal Education Minister Julie Bishop, welcomed the recommendations. Page 3.
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THE SYDNEY MORNING HERALD (www.smh.com.au)
World Bank president, Bob Zoellick, has urged Australia to ensure its immigration rules give South Pacific countries leave to send guest workers to Australia. Ahead of a meeting of the finance ministers of Asia-Pacific Economic Cooperation forum countries, Zoellick said labour mobility was "absolutely critical" to the South Pacific's economic development. Federal Opposition foreign affairs spokesman, Robert McClelland, welcomed Mr Zoellick's advice, saying it was "inequitable" that young European backpackers had more casual labour opportunities than South Pacific citizens. Page 1.
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The New South Wales executive of the Liberal Party remains divided over the endorsement of Michael Towke as its candidate for the federal seat of Cook. Although Towke is alleged to have paid for the party memberships of at least 13 people in a branch-stacking operation, the state Liberal executive is thought to be 10 to 9 in favour of endorsing his preselection. NSW Liberal president, Geoff Selig, said the matter could be taken to the federal executive to get Towke disendorsed should the state executive endorse him. Page 3.
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Hundreds of current and former Scouts yesterday attended a ceremony in Canberra hosted by Governor-General, Michael Jeffery, to commemorate the 100th anniversary of the worldwide youth movement. "We are commemorating 100 years of instilling in more than 200 million young people the essential skills for good living and personal development," said Major Jeffery, whose vice-regal role gives him the honour of being the nation's current Chief Scout. Page 3.
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Sydney residents planning to escape disruptions predicted for the period of the Asia-Pacific Economic Cooperation forum have been advised they may need to use the airport train service to ensure they catch their flight. Although airport terminals will operate as normal, delegates travelling by motorcade between central business district-based conference sites and the airport from September 2 to September 9 will inconvenience customary traffic flows. Some inner-city streets, railway stations and arterial roads will also be closed during the event. Page 5.
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THE AGE (www.theage.com.au)
Internationally-renowned architect, Zaha Hadid, has been chosen to design a new office and housing complex in Melbourne's Docklands precinct. If approved, the A$1.5 billion complex would consist of four buildings, including a 50 to 60-storey tower, and elaborate civic spaces with sophisticated water features. The Royal Australian Institute of Architects said Ms Hadid's involvement would help Docklands "rise above the developer schlock we now have". Page 1.
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Eighteen-year-old model and fashion designer, Jacqui Alexander, has been chosen as the new face of Melbourne Fashion Week, which starts on September 3. Fifteen-year-old model, Claire Quirk, was originally chosen for the role but was dropped because many considered her too young. The British fashion industry recently recommended banning models under 16 from London Fashion Week. Melbourne City councillor, Fiona Snedden, said Alexander would be "a great role model" for young Melburnian women because she was "so inspiring". Page 3.
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Treasurer, Peter Costello, has urged emerging Asian economies to focus on strengthening their financial markets to prevent domestic savings being placed in foreign economies such as Australia and the United States. Costello said such practices pushed up currency values and trade and current account deficits in targeted countries. He said it would be wiser if Asia utilised its own savings for domestic investment. He was speaking ahead of tomorrow's meeting of the 21 Asia-Pacific Economic Cooperation forum finance ministers in Queensland. Page 5.
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A Federal Government proposal aimed at strengthening police powers has come under scrutiny ahead of its Senate hearing next week. The changes would give police "sneak and peek" powers to secretly listen to conversations, intercept computer communication, and search homes and businesses without a search warrant. The Law Council of Australia said the changes would erode individual rights. The Australian Labor Party agreed, saying it would urge the Government to ensure the powers were used only in terrorism or major crime cases. Page 6. --
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