ABN Newswire

Australian Market Report of November 20: A Drop in Risk Appetite

newsroom@abnnewswire.net — Fri, 20 Nov 2009 13:00:08 GMT

US stocks fell for the second day after a downgrade of technology companies such as Intel. Energy and materials shares also showed losses as commodities prices tumbled.

On Friday the Australian market opened in a negative territory after a fall in Wall Street. Yesterday the local shares closed marginally higher supported by resources sector. The benchmark S&P/ASX200 index closed 10.2 points, or 0.22 per cent higher, at 4749.2 points, while the broader All Ordinaries index gained 8.2 points, or 0.17 per cent, to 4767.8 points.

The Australian dollar continued to sink this morning and opened below $US0.9200 as weaker commodities prices. US dollar's rebound also weighed on the risk sensitive Aussie dollar. At 7am AEDT, the dollar was trading at $US0.9189/90.

Key Economic Facts and Figures

Reserve Bank assistant governor Guy Debelle said overall margins on variable rate housing lending relative to bank funding costs have actually declined a little over the past two years. Banks have to pay more for money sourced from overseas and they are paying substantially more interest on Australian deposits.

The Organisation for Economic Cooperation and Development (OECD) said in its Economic Outlook that it expected Australia to experience a relatively more robust recovery, having been affected less by the global crisis than most other OECD countries. It is forecasting economic growth of 0.8 per cent in 2009, rising to 2.4 per cent in 2010. But the OECD also expects Australian unemployment to peak at 6.3 per cent in 2010.

M&A News

ANZ (ASX:ANZ) today said in a statement that it has agreed to sell its Custodian Services business in Australia and New Zealand to JP Morgan as the bank is refocusing its institutional business on core banking priorities in Australia, New Zealand and Asia. Sale completion is expected before December 31, subject to regulatory approvals, and will be followed by a progressive transfer of business and staff during 2010.

Amcor Ltd (ASX:AMC) noted an announcement lodged by subsidiary AMVIG Holdings Ltd (HKG:2300) with the Hong Kong Stock Exchange, advised that the proposed Brilliant Circle transaction will not be proceeding as proposed after the results of the extraordinary meeting held on November 19. Separately, Amcor yesterday said it will raise US$850 million by issuing fixed coupon notes to US private investors.

Medic Vision Ltd (ASX:MVH) has assessed two companies with which it had signed heads of agreements. The first was the purchase of 100 per cent of a digital marketing and communications company, cBox Pty Ltd, and the other was for the purchase of 51pc of a company that was synergistic with Medic Vision's Red Paragon subsidiary. The company decided not to proceed with the latter.

Important Corporate News

Sims Metal Management Ltd (ASX:SGM) is to raise A$400 million via a fully underwritten placement. The company will also provide an offer to eligible shareholders of up to A$15,000 of shares through a share purchase plan (SPP). The target amount to be raised under the SPP is A$75 million and it is not underwritten. The proceeds will be used to repay debt and fund working capital.

Woodside Petroleum (ASX:WPL) expects a cost increase of between A$672 million and A$1.1 billion at its Pluto liquefied natural gas project in Western Australia after a review of the cost and schedule. The cost of the project is likely to be 6 per cent to 10 per cent above its original July 2007 estimate of A$11.2 billion due to lower than budgeted productivity in both onshore and offshore construction.

UNFCCC To Meet World's Carbon Buyers And Sellers In China

newsroom@abnnewswire.net — Mon, 26 Oct 2009 17:02:23 GMT

Dr. Yvo de Boer, Executive Secretary of the UN agency in charge of the Kyoto Protocol, has just confirmed that a representative from their Accreditation and Project Assessment unit will be meeting with carbon buyers and sellers in China, in a last chance for the industry to meet before the Copenhagen climate negotiations determine a successor to the current treaty expiring in 2012. Ms. Maria Laura Vinuela will be joining them at the World Carbon Conference in Beijing together with China's NDRC Energy Research Institute, the European Commission, and likely representatives from the Indian negotiating team and the World Bank. Ms. Vinuela will be meeting with CEOs and Managing Directors from across the worldwide carbon finance industry to gain feedback on the project registration process and provide updates on the latest developments in the current carbon trading framework.

"Truly it is an honour that such high-level representatives from the public and private sectors are joining us for such a momentous event," says Rex Ian Sayson, creator of highly successful energy industry events and director at the Singapore-based AMG Center for Energy Sustainability and Economics, which is hosting the meeting. "This is the last chance for industry and government to come together before Copenhagen and solve the current challenges in carbon trading, and engage key markets in China, India, Japan, Europe and the United States."

Also joining the meeting are key industry players such as China carbon industry doyenne Victoria Wang, Garry Kolafa of the Kuwait Oil Company, Kisor Mukherjee and Gauri Bholay of Reliance Industries, Jeff Huang, Assistant Chairman of the Tianjin Climate Exchange, Kenneth Wong and Xenos Hung of CLP Holdings (Hong Kong's biggest power producer and one of the top investors into mainland China's power industry), Junji Hatano, Kyoko Tochikawa and Coty Tsui of Carbon Partners Asiatica, among an estimated over 100 attendees total.

Media giants Bloomberg, CNBC and Platts will also be sending representatives to the event, along with 16 media and association partners that have joined the event including the European Chamber of Commerce in China.

The World Carbon Conference is the only international carbon industry meeting in China before the Copenhagen negotiations, providing a venue for project developers, carbon funds, government agencies, project owners, technology providers, law firms, investors, carbon compliance buyers, carbon exchange operators, DOEs and other stakeholders in emissions reduction to work out current challenges and build relationships for future projects. The conference will cover projects and opportunities in China, India, Southeast Asia, the Middle East, and the rest of the world.

Paul Adams
TEL: +65 6844 2080
Email: padams@arcmediaglobal.com
Web: www.arcmediaglobal.com/carbon

Australian Market Report of July 3: Surprised by US Unemployment Data

newsroom@abnnewswire.net — Fri, 3 July 2009 13:00:18 GMT

Overnight Wall Street ended the trading session before Independence Day holiday in red, as the US Labor Department said non-farm payrolls slashed 467,000 jobs in June, a much greater decline than the 350,000 jobs economists had expected.

Yesterday the Australian market posted a marginal rise as investors were cautious ahead of US jobs data in June. The benchmark S&P/ASX200 index was 3.3 points, or 0.09 per cent higher, at 3877.3 points, while the broader All Ordinaries index gained 2.9 points, or 0.07 per cent, to 3875.2 points.

Key Economic Facts and Figures

Job losses in the construction sector soared to 48,000 nationally in May, a 57 per cent rise in six months, as the collapse in new building work takes its toll. Of the 26,600 jobs lost there since August, 18,115 have been in building and associated jobs, according to industry group the Urban Development Institute of Australia.

The Australian Bureau of Statistics data shows that Australia's trade balance has remained in deficit for the second straight month as the nation's exports continued to decline. The balance of goods and services was a deficit of A$556 million in May, seasonally adjusted, from a deficit of A$282 million in April. Economists expect the monthly deficits continue due stronger demand for imported goods as the local economy recovers toward the end of 2009.

M&A News

Sims Metal Management Limited (ASX:SGM), the world's largest listed metal and electronics recycling company, today announced the acquisition of the assets of the US-based Fairless Iron & Metal. The financial terms of the transaction were not disclosed, however, the purchase price consideration is not material to the company, Sims said in a statement.

It is reported that ANZ Banking Group (ASX:ANZ) and British bank Standard Chartered (LON:STAN) are set to divide up the Asian assets of embattled Royal Bank of Scotland. Standard was in pole position to acquire RBS units being sold in China, India and Malaysia, while ANZ was set to win control of assets in Hong Kong, Indonesia, Singapore, Taiwan and Vietnam.

BHP Billiton (ASX:BHP) has agreed to sell its Yabulu nickel refinery in Queensland to Australian mining magnate Clive Palmer for an undisclosed amount. BHP would write down the value of Yabulu assets by $US500 million and write off a further $US175 million in unrecoverable tax benefits. The sale is expected to be finalised by July 31.

Gunns Ltd (ASX:GNS) has acquired a 17.9 per cent stake in Forest Enterprises Australia Ltd (ASX:FEA) at 10 cents per share. Gunns said it would fund the acquisition of the shares via a placement of 5.7 million Gunns shares and a cash payment of A$1.58 million.

Santos (ASX:STO) said it had paid A$176 million for Hillgrove Resource's (ASX:HGO) 19.9 per cent stake in NSW-based CSG explorer Eastern Star Gas (ASX:ESG). It has also acquired Gastar Exploration's (TSE:YGA)( AMEX:GST) 35 per cent interest in various Gunnedah Basin CSG exploration permits and production areas operated by Eastern Star for A$300 million.

Important Corporate news

Rio Tinto (ASX:RIO) said its 21-for-40 renounceable rights issue received acceptances for 142 million shares, against the total offer of 150 million. Rio Tinto has requested a trading halt on its shares as it seeks subscribers for the remaining new shares in its Australian rights issue. The Australian leg of the issue raised A$4.02 billion.

Emergent Resources (ASX:EMG) said today it has entered into a commercial in-confidence non-binding memorandum of understanding (MOU) with the state-owned China Metallurgical Investment Co Ltd (CMIC) for the development of the company's Beyondie iron project in Western Australia's mid-west iron ore region.

Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net

GLOBAL GREEN TECH (HK) Gets Site Approval for Recycling Plant

newsroom@abnnewswire.net — Wed, 4 Jan 2006 11:11:34 GMT

The directors of Global Green Tech Group Limited (HKSE: 0274) refer to the announcement of the Company dated 5 August 2005 in relation to the new business line of recycling waste tyres and plastic products into usable oil, diesel, gasoline and natural gas that the Group intends to actively pursue.

The Company is pleased to announce that Hong Kong Science and Technology Parks Corporation has approved the Group's application for a site located at Yuen Long Industrial Estate to pursue its recycling business. As the entering into the recycling business is one of the Group's major movements in the coming years, it is expected that the Group will invest about HK$250 million to pursue the recycling business and the construction of the recycling plant will start in the first quarter in 2006.

Global Green Tech Group Limited
Lau Jin Wei, Jim