Aussie Dollar Hits 28 Year High Against Pound

The Australian dollar has reached a 28-year high against the British pound and is climbing further against the yen. The dollar touched 68.5 British pence overnight, its highest point since 1985.

The Aussie dollar is also fetching 97.7 Japanese yen, the highest level since mid-2008.

However, the Australian dollar is slipping against the greenback after the latest trade data showed China’s imports of iron ore fell by more than 15 per cent last month.

The latest figures out of the communist nation painted a mixed picture, China’s exports soared by more than 20 per cent in February, suggesting global demand is on the rise :: Read the full article »»»»

Australian Home Finance Growth Slows to a Snail-pace

Australia’s Reserve Bank – RBA – figures indicate that Australians are taking out home loans at the slowest annual pace ever recorded, suggesting that the property downturn may be far from over.

Figures from the RBA show total lending to the private sector grew 0.4 per cent in December, with the amount Australians borrowed rising by only 3.6 per cent in 2012. It’s not all doom – though mostly – the RBA data shows housing credit remains the most consistently robust category of borrowing, with a 4.5 per cent rise over the 12 months.

But, that annual housing credit growth rate is the slowest in RBA recorded history, admitedly the figures only go back to 1977.

Home lending growth of 0.3 per cent in December is also one of slowest monthly increases recorded :: Read the full article »»»»

Australian Mining Magnate Gina Rinehart Branches Out Into Oil and Gas

Our favourite Australian Billionairess, Gina Rinehart has invested more than $4 million in a Victorian-based gas exploration firm. Lakes Oil has announced a $4.25 million investment by a subsidiary of Mrs Rinehart’s Western Australian iron ore giant Hancock Prospecting.

The deal gives Hancock Prospecting’s subsidiary an 18.6 per cent interest in the Gippsland-based exploration company. As a part of the deal, Rinehart has insisted on the appointment of mining expert and climate change sceptic, Professor Ian Plimer, as a director of Lakes Oil.

The chairman of Lakes Oil, Rob Annells, says the appointment of Professor Plimer to the Board will strengthen the company’s position.

Mr Plimer currently serves on the boards of four listed resources companies and three unlisted companies, including the Hancock Prospecting group :: Read the full article »»»»

Business Outlook Upbeat Globally, Soft Locally

It’s that time of year, forecast! Leading economic forecasting agency – Deloitte Access Economics – points to global growth will start to improve this year, but a slight slowdown in Australia.

The Business Outlook report from Deloitte Access Economics predicts that the big mining construction projects – which have fuelled much of Australia’s recent growth – are “hurtling towards a peak”. Deloitte Access director, Chris Richardson, says the non-mining industries will need to step up.

“The risk is that Australia has a pothole, and that does mean that other sectors will have to take a load,” Mr Richardson told ABCs business reporter Rebecca Hyam.

Mr Richardson said an expected pick-up in home building and retail spending should help, but the strong Australian dollar means manufacturing and tourism are likely to remain flat :: Read the full article »»»»

Australian Retail Roundup: Wesfarmers vs Woolworths

The Australian retail landscape, according to Brandfarm, is made up of 2 heavy-weights: Wesfarmers/Coles with 900 stores and the giant Woolworths conglomeration.

While Woolworths may have 100 less grocery outlets, Brandfarm says that 12 cents in every dollar spent in Australia belongs to Woolworths, a staggering number!

Wesfarmers has been on a golden run of late, ramping up competition, rationalising stores and honing the way it does business.

And in the last quarter of 2012, the results for Coles/Wesfarmers are pretty spectacular.

Coles/Wesfarmers nudged ever-closer to it’s competition, locking in almost $AU10 Billion in sales for the last quarter of 2012. With the reporting period just posted – ending December 2012 – for sales, who did what :: Read the full article »»»»

Facebooks Downward Spiral

The social media behemoth that is Facebook, has reported a sharp drop in profits. The news has prompted a fresh, vigorous decline in the share price of the world’s biggest social network.

The company says the drop in profit is partly due to increased spending on research and development, the market it seems, isn’t buying the rhetoric.

Facebook made a profit nudging $60 million in the final three months of 2012, compared with nearly $300 million twelve months earlier.

The less than impressive results triggered a 5 per cent slide in Facebook shares on the New York Stock Exchange.