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Austal's $653m US naval win PDF Print E-mail

(March 19,2012)

Littoral Combat Ships the Gabrielle Giffords and Omaha would be the third and fourth vessels in a 10-ship block buy award made to Austal in December 2010, the Perth-based company said yesterday.

It said the 10-ship program was potentially worth more than $US3.5 billion.

Austal said its US subsidiary now held confirmed contracts for 14 US Navy ships while its Australian operation had a contract to build and support eight patrol boats for the Australian Customs and Border Protection Service. Austal chief executive Andrew Bellamy said the US Navy's exercise of contract options for the two LCS vessels was expected, but it was still pleasing to see the contracts executed in a period when the US government budget was under pressure.

He said US Secretary of the Navy Ray Mabus recently reaffirmed the navy's intention to acquire 55 LCS vessels, which offered positive signs for Austal's prospects of securing additional work past the existing 10-ship program.

US Navy work for Austal also includes contracts for nine Joint High Speed Vessels, two of which were confirmed last month.
(source:theaustralian)

 
Moody's downgrades no threat to funding access, says Macquarie Group PDF Print E-mail

(March 16,2012)

MACQUARIE Group remains confident its second credit rating downgrade within a week will not affect its access to international debt markets or the cost of wholesale funding requirements.

Moody's said yesterday that it would cut Macquarie Group's rating from A2 to A3 while Macquarie Bank's rating would be reduced from A1 to A2.

The changes to Macquarie Bank are more important for Macquarie because the banking entity sources 90 per cent of the group's funding.

The decision puts Moody's in line with Standard & Poor's and Fitch and is the result of a global review that began in November.

Fitch earlier this week downgraded its long-term rating on Macquarie Group by one notch from A to A- and its Australian subsidiary, Macquarie Bank, from A+ to A, after last month placing them on negative watch.

Macquarie Group deputy chief executive Greg Ward said the downgrade did not surprise the bank and would have little effect on its operations.

The global review came after Moody's changed its ratings methodologies.

"We have been expecting this for some time," Mr Ward said.

"It is a one-notch downgrade for Macquarie and puts Moody's alongside S&P and Fitch.

"I think the industry and the market have been expecting this and if you look at the trading of our bonds, there has been no change in pricing."

Macquarie's most recent debt deal, a $US700 million ($664m) issuance last month, has tightened from trading at 385 basis points over the Libor rate to 340 basis points, despite the two downgrades this week.

Moody's senior vice president Patrick Winsbury said the ratings downgrade was ordered after a global review of top-tier investment banks with major capital markets businesses.

"The ratings action reflects ongoing earnings challenges for Macquarie and the evolution of its business model against the backdrop of protracted weakness in financial markets," Mr Winsbury said.

Mr Ward said all major investment banks were facing a tough environment with the ongoing volatility in financial markets.

"The move by Moody's is reflective of what they are seeing in the overall industry," he said.

"As we said in February, volumes are down and markets have been quite tough for the past few years. It's reflective that this environment is tougher."

Macquarie shares closed 9c higher at $27.47, after initially dipping into negative territory on the ratings decision.
(source:theaustralian)

 
US stocks rise in early trading PDF Print E-mail

(March 15,2012)

US stocks are climbing in early Friday trading, helped by government data signalling only mild inflation.

The Dow Jones Industrial Average is up 28 points to 13,280. The broader Standard & Poor's 500 is up two points to 1,405. The Nasdaq composite index is up one point to 3,058.

Investors this week have been encouraged by signs that the US economy is healing, helped by encouraging reports about the unemployment rate and retail sales. The Greek debt crisis, while far from solved, has briefly faded from the headlines.

High petrol prices remain a concern. The Labor Department said they rose six per cent in February. But other price increases were mild, with food prices unchanged for the first time in 19 months.

Apple, which releases the iPad 3 Friday, fell one per cent.
(source:theaustralian)

 
Labor Caucus debates Rinehart trust war PDF Print E-mail

(March 14,2012)
THE Labor caucus has debated whether laws governing trusts are tough enough to stop them from being used for tax minimisation, as a high-profile case involving mining magnate Gina Rinehart continues before the courts.

Labor senator Doug Cameron quizzed Treasurer Wayne Swan on the issue at a caucus meeting in Canberra today.

The question comes as the three oldest children of Ms Rinehart continue NSW Supreme Court proceedings against her over a family trust.

Nationals Senator Barnaby Joyce and Liberal MP Alby Schultz both wrote letters to the children asking them not to pursue legal action.

Senator Cameron asked the treasurer whether laws governing trusts were tough enough to prevent tax minimisation and if Mr Swan felt the intervention by Senator Joyce and Mr Schultz was appropriate.

Mr Swan told caucus he had trouble seeing what legitimate interest Senator Joyce and Mr Schultz had in intervening in the matter.

But he said any examination of tax arrangements were a matter for the independent tax commissioner.

Meanwhile, Prime Minister Julia Gillard told the caucus that in the lead-up to the May budget the economy would be the critical issue.

She said some areas of the economy were struggling due to the high dollar but Australia was doing well compared with other parts of the world.

It was important for all MPs to talk about how the Government will help families in coming months through tax cuts and increased payments, she said.

She said the Opposition should not be allowed to get away with saying that it would set up a government department audit commission to find budget savings if it won government, describing it as a plan for "secret cuts".

Addressing defence issues, the Prime Minister said the shooting of Afghanistan civilians by a rogue US soldier was "distressing" and more effort would be needed to explain to the Australian community why the Afghanistan mission remained important.

Defence Minister Stephen Smith was applauded by caucus when he spoke about his handling of the recent reports into incidents at the Australian Defence Force Academy.

He said he made no apology for protecting the interests of the 18-year-old woman at the centre of one investigation, nor for his statement that it was inappropriate for defence officials to question the character of the woman given her difficult situation at the time.

The caucus was also told the House of Representatives and Senate's sitting times could be extended next week to deal with major legislation, including the mining profits tax bills.

Labor members elected Canberra MP Gai Brodtmann as the new caucus secretary, replacing Nick Champion who quit before backing Kevin Rudd for the leadership.
(source:theaustralian)

 
Lawyers sue law schools for false job hopes, law schools countersue PDF Print E-mail

(March 13,2012)
LAWYERS of the world look to America as to a beacon, a shining courtroom on a hill, populated with a citizenry well aware of their manifest destiny and willing to sue the pants off anyone who stands in their way. What France is to pastry chefs, so the United States has been to generations of litigators.

Yet this particular American dream may now be over. The legal industry has shrunk and thousands of young graduates who entered law school in the hope of a secure income are struggling to find work. Needless to say, some of them are taking legal action.
(source:theaustralian)

 


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