Tag Archives: Australia

Australian stocks will open higher as strong commodity prices benefit the miners | Instant News

    Jan 19 (Reuters) - Australian shares are likely to open
higher on Tuesday, helped by heavyweight miners benefiting from
stronger commodity prices and ahead of important domestic
production results and U.S. markets restarting after a holiday.
    The local share price index futures          rose 0.6%, a
27-point discount to the underlying S&P/ASX 200 index        
close. The benchmark fell 0.8% on Monday.
    New Zealand's benchmark S&P/NZX 50 index         was flat in
early trade.

 (Reporting by Soumyajit Saha in Bengaluru)


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The US asked Australia to overturn a proposed law to make Facebook, Google pay for news | Instant News

SYDNEY (Reuters) – The US government has asked Australia to overturn a proposed law that would make it the first country in the world to coerce Facebook Inc and Alphabet Inc. Google to pay for news that is sourced from local media.

In a submission calling for the government to “suspend” the plan, assistant US trade representatives Daniel Bahar and Karl Ehlers advised Australia to “learn more about the market and, where appropriate, develop a voluntary code”.

Under the law, which has broad political support and currently stands before a senate committee, Google and Facebook will be subject to mandatory price arbitration if a commercial agreement on payments to Australian media cannot be reached.

“The US government is concerned that attempts, through legislation, to regulate the competitive position of certain players … clearly detrimental to two US companies, could lead to dangerous results,” the document said, under the letterhead of the Executive Office of the President.

Such a move could also “raise concerns regarding Australia’s international trade obligations,” he said.

The Australian government announced the legislation last month after an investigation found the tech giant wields too much market power in the media industry, a situation it says poses a potential threat to a well-functioning democracy.

Asked for response to the US submission, Australian Treasurer Josh Frydenberg said in a statement that the government was “committed to proceeding with a mandatory code” that would address “the imbalance of bargaining power with digital platforms and media companies.”

The code follows an 18-month review by the Chair of the Australian Competition and Consumers Commission (ACCC) and “extensive consultations” covering the views of Google and Facebook, he added.

An ACCC investigation found that for every A $ 100 spent on online advertising, A $ 53 goes to Google, A $ 28 goes to Facebook and A $ 19 goes to other media companies.

Following intense but unsuccessful lobbying by the Australian governments of the two tech giants to overturn proposed laws, which they deem unfair, Google and Facebook suggested they may be forced to limit their offerings in the country.

($ 1 = 1.3014 Australian dollars)

Reporting by Paulina Duran in Sydney; Edited by Richard Pullin


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UPDATE 3-Australian Bingo Industry gets $ 1.8 billion buy offer, stocks soar | Instant News

* CPE Capital led consortium table A $ 3.50 / share offering

* Co says talks with the PE consortium are ongoing

* Stock hit highs since Feb 2020 (Update in last paragraph with CPE Capital declining to comment)

January 19 (Reuters) – Bingo Industries Australia said on Tuesday that it had received a cash purchase offer of A $ 2.29 billion ($ 1.8 billion) from a consortium led by private equity firm CPE Capital, delivering shares of a waste management company. to an 11-month high.

The offer comes at a time when the government is injecting stimulus into the recycling and construction sectors and encouraging infrastructure investment as the economy reopens from the lockdown imposed by the coronavirus.

Under the proposal, Bingo shareholders would earn A $ 3.50 per share, nearly a 28% premium for the last close of the shares, the company said in a statement.

A deal will hand over nearly A $ 460 million to Chief Executive Officer and major shareholder Daniel Tartak, whose parents started Bingo on the outskirts of Sydney in 2005 by acquiring a small skip bin company for less than A $ 1 million.

Bingo said the proposal includes an alternative structure that would give shareholders the option to receive a mix of unlisted cash and scripts at a lower upfront price than the cash offer.

“The proposal is being considered by Bingo’s independent board committee and discussions and due diligence with the consortium are under way,” the company said.

Bingo stock surged as much as 23.7% to A $ 3.39, the highest since February 20, 2020, but is still trading below its bid price.

“(The offer) is just one shot and an opportunity to engage with the family,” said Henry Jennings, senior analyst at the Marcustoday Financial Newsletter.

“The takeover has to be close to A $ 4 to get over the line.”

CPE Capital’s investment portfolio ranges from the food to the auto sector, and includes the Banksmeadow Recycling site, which was purchased from Bingo in 2019.

CPE Capital declined to comment.

$ 1 = 1.3017 Australian dollars Report by Sameer Manekar in Bengaluru, additional reporting by Byron Kaye in Sydney; Edited by Nick Zieminski and Stephen Coates


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Australia, New Zealand dollar supported by the risk-on atmosphere | Instant News

SYDNEY, 19 Jan (Reuters) – The Australian and New Zealand dollars strengthened on Tuesday, as investor sentiment turned positive amid renewed optimism that China will continue to support growth in the region.

The Aussie gained 0.3% against the greenback to $ 0.7705, below the $ 0.78 resistance level where it has been trading in the last three sessions.

The kiwi dollar was also higher at $ 0.7134, but remained below the $ 0.72 resistance level set on Friday.

Both the kiwi and the Aussie, liquid proxies for risk, have been tracking commodity prices, analysts said.

“Clearer signs that A $ is at its peak can be seen in the recent price action with copper and zinc under more pressure as well as the latter’s” good news “appears to be rewarding for now,” Westpac Banking Corp. analysts said.

Data on Monday showed China’s economy, the world’s second-largest, accelerated in the fourth quarter and was one of the few to grow during 2020.

The hope that US President-elect Joe Biden’s first 100 days will be focused on launching the coronavirus inoculation and providing economic stimulus could weaken the dollar in the coming days, they added.

Therefore, Australian and New Zealand Banking Group Analysts are looking for “signals to rebuild long positions” in New Zealand dollars.

Volume was thin with little news flow and as markets paused for the US holiday and ahead of President-elect Joe Biden’s inauguration on Thursday.

New Zealand government bonds fell slightly, sending yields about half a basis point higher across the curve.

The three-year bond is half a basis point lower at 99,815, while the 10-year bond yield is trading at 1.057%, after starting the week at 1.031%.

The three-year cash yield is pinned at 0.12%, near the Reserve Bank of Australia’s (RBA) target rate of 0.1%. (Reporting by Paulina Duran in Sydney; Editing by Jacqueline Wong)


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Australian stocks will open lower as a new COVID cluster emerges | Instant News

    Jan 18 (Reuters) - Australian shares are set to open
slightly lower on Monday, as the emergence of a new coronavirus
cluster in a Sydney suburb dents confidence, and ahead of a U.S.
market holiday and important domestic production results later
this week.
    The local share price index futures          fell 0.2%, a
90.4-point discount to the underlying S&P/ASX 200 index        
close. The benchmark closed flat on Friday.
    New Zealand's benchmark S&P/NZX 50 index         rose 0.4%
in early trade.

 (Reporting by Soumyajit Saha in Bengaluru; Editing by Peter


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