Anglo and Peabody ready to go to court over $5.8b coal deal
The $US3.78 billion ($5.87 billion) deal for Peabody to buy four Queensland coking coal mines was shaped as an important step in Anglo American's 'radical' strategy to fix its balance sheet and shrink its asset portfolio after BHP's failed takeover bid for it last year.
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West Australian
a day ago
- West Australian
Productivity roundtable: BHP boss Geraldine Slattery warns against raising taxes
The boss of Australia's richest mining business has spoken out against the Productivity Commission's plan to shake-up the company tax system. The Commission last week recommended slashing the tax rate for small and medium companies — with less than $1 billion revenue — to 20 per cent. The change would dramatically alter the existing regime under which big businesses pay 30 per cent tax and companies with turnover below $50m are levied 25 per cent. To cover the bill, the Commission called for a new 5 per cent cash flow levy that would apply to all firms. Economists hoped the system rejig would encourage investment without sucking cash out of the Budget. The Commission reckoned it would boost the economy by $15bn. Australian Council of Trade Unions boss Sally McManus went a step further just days later, proposing new taxes on iron ore and gas exports. But lobbyists swiftly hit back at the Commission's idea, with the Business Council of Australia declaring the move an 'experimental change'. BHP Australian boss Geraldine Slattery waded in on Tuesday with comments circulated to the Canberra press gallery. Ms Slattery said Australia needed to be a competitive place for global investment, and needed tax settings to match. 'Australia's corporate tax rate is already among the highest in the OECD, and combined with Australia's high energy costs and flat-lining labour productivity, increased taxes would put Australia at a clear disadvantage,' she said. 'Other countries are actively competing for capital by creating more attractive investment environments. 'Any move to raise taxes here would make it harder for Australia to compete and harder to sustain and grow the very industries and jobs that drive the most prosperity and productivity.' Revealing the plan last week, the Commission said it would 'move Australia from having one of the highest to one of the lowest statutory rates for small and medium-sized firms in the OECD'. 'Our proposed reforms will begin to shift the company tax system towards one that better supports investment and productivity growth,' deputy chair Alex Robson said. The proposed cash flow tax would allow big businesses like BHP to immediately deduct the full value of their investments rather than doing so across many years under the existing system.
Sydney Morning Herald
2 days ago
- Sydney Morning Herald
ASX closes flat as miners outshine banks; gold stocks rally
Welcome to your five-minute recap of the trading day. The numbers The Australian sharemarket has shrugged off signs of weakness in the world's biggest economy to close flat, as a rally in mining stocks helped offset declines in the major banks and energy companies. The S&P/ASX 200 closed 1.7 points higher on Monday, at 8663.70 points, reversing a fall in the index earlier in the day. Six of the market's 11 sectors fell, and the weakest sectors for the day were energy, financials and industrials. The flat performance followed a slump on Wall Street on Friday, as investors reacted to surprisingly weak figures on US jobs growth and the latest developments in US President Donald Trump's trade war. The Australian dollar was fetching US64.83¢ at 4.50pm AEST. The lifters Miners posted a strong session, buoyed by a higher iron ore price and strength in the gold price. Global mining giant BHP rose 0.9 per cent, Fortescue was up 1.5 per cent and Rio Tinto gained 0.4 per cent. Gold miners performed particularly well after a rise in the price of the precious metal. Evolution Mining jumped 2.6 per cent and Northern Star Resources surged 5.6 per cent. Shares in Endeavour – the company that runs Dan Murphy's and BWS – jumped 3 per cent after executive chairman Ari Mervis suddenly quit his role over 'disagreements with the board' as he edged closer to handing over the keys of the business to incoming chief executive Jayne Hrdlicka. Consumer staple stocks also had a solid day: supermarket giant Woolworths rose 1.3 per cent, and rival Coles lifted 1.7 per cent.
The Australian
3 days ago
- The Australian
ASX 200 live: Endeavour chair quits over 'disagreements'; BlueScope leads consortium's Whyalla play; Elanor bid
The Australian Business Network Welcome to the Trading Day blog for Monday, August 4. The ASX 200 index is down 0.1 per cent at 8650.30 points at 11.20am AEST, with bank and energy losses weighing. In the US, the S&P 500 index fell 1.6 per cent and the Dow Jones index fell 1.2 per cent. The technology-focused Nasdaq shed 2 per cent. Cryptocurrency giant bitcoin is around $US115,000. The Aussie dollar is trading around US64.73c. ASX valuations face profit season reckoning Trading Day Australia gets baseline 10 per cent US reciprocal tariff. ResMed beats earnings forecasts. Major companies brace as pandora's box on tax reform opens. Clock ticks for Star on $41m payout to HK partners, debt deal and costs after failed talks. Trading Day Rio declines on profit miss, copper price crash; BHP also drops. Flight Centre bets on loyalty, AI push for recovery. 'Few positives' in Beach Energy update. Analyst downgrades hit MinRes. Cettire shares slammed 23pc-plus.
