Financial Services Industry

Thorn Group (TGA)

22 May 2012 | Qaiser Malik

Thorn Group’s share price jumped more than 5 per cent after it announced a 26.4 per cent rise in net profit to $27.8 million for the year to March.

Not everyone gloomy about QBE

22 May 2012 | Sarah Thompson and Anthony Macdonald

QBE is hit by falling government bond yields as it recovers from last year’s natural disasters. Still, one research house upgraded the insurer ‘outperform’.

Video | Cornell: In the Banks

22 May 2012 |

Despite interim results from three of the big four banks out in the past fortnight, Europe’s volatility is dominating Australian banks’ concerns.

Force banks to mirror RBA rates: Howes

22 May 2012 |

Trade union boss Paul Howes believes financial institutions should be forced to mirror movements of official interest rates when setting their lending rates.

Thorn profit rises 26 pc but outlook cautious

22 May 2012 | Sue Mitchell

Retail and financial services company Thorn Group has delivered its sixth consecutive year of profit growth but has warned that the rate of earnings growth may slow in 2013 as subdued consumer spending and costs associated with new businesses take their toll.

Apps ‘more secure’ than mobile websites: NAB

22 May 2012 |

Smartphone and tablet apps are more secure than mobile websites if designed properly, a senior banking technology executive says.

Olympic recruitment games, ahead of London

22 May 2012 | Sally Rose

Only a handful of Olympians have the profile of Geoff Huegill, who recently joined Commonwealth Bank, but lesser known elite athletes can also make for attractive recruits.

Westpac says 1m customers access accounts via smartphone

22 May 2012 |

More than a million consumer and business customers are now using a smartphone regularly to access Westpac accounts, the bank says.

Pressure builds on corporate loan pricing

PRINT: Capital | 22 May 2012

Australian companies are sitting out of the debt markets for now but eventually they will have to refinance debt, and face banks nervous to protect net interest margins.

China gets direct line to buying US Treasuries

22 May 2012 |

China can now bypass Wall Street when buying US government debt and go straight to the US Treasury, in what is the Treasury’s first-ever direct relationship with a foreign government

Investors raise €60bn to buy European bank assets

PRINT: Capital | 22 May 2012

About €60 billion has been raised to buy so-called noncore loan assets currently held by European banks, according to the accounting firm PricewaterhouseCoopers.

US prosecutor says Gupta cheated as trial begins

22 May 2012 |

A former Goldman Sachs Group board member “threw away his duties” in divulging secrets about the investment bank to now-imprisoned hedge fund manager Raj Rajaratnam, a US prosecutor said.

BofA CEO ‘comfortable’ with bank’s investments

22 May 2012 |

Bank of America is “very comfortable” with the composition of its corporate investment portfolio, chief executive officer Brian Moynihan said at an investor conference on Monday.

Spain hires two firms to audit nation’s banks

22 May 2012 |

Spain says it has hired two consultancy firms to audit its banks and dispel deep doubts over their property assets, but it denies any need for a foreign bailout.

JPMorgan suspends $US15bn stock buyback

22 May 2012 |

Updated | JPMorgan Chase boss Jamie Dimon is suspending plans to buy back the embattled company’s own stock, but it will still pay a dividend despite its $US2 billion trading loss.

Barclays to sell entire stake in BlackRock

22 May 2012 |

Updated | Barclays plans to sell its $US6.1 billion stake in the investment management firm BlackRock, moving before a new banking regulation framework takes effect.

Marathon mystique

22 May 2012 |

PRINT: 22 May 2012 | PAGE 64 | Marathon mystique

Market analysts looking for tested indicators of the next market crash need look no further than Henderson Global Investors chief executive Andrew Formica’s global expansion plans.

London shops, offices shine

22 May 2012 | Simon Packard

PRINT: 22 May 2012 | PAGE 4 | London shops, offices shine

Land Securities Group, Britain’s largest real estate investment trust, said the value of its properties rose 4.5 per cent in the year through March on demand for shops and offices in central London.

Values fall for CMBS

22 May 2012 | Sarah Mulholland

PRINT: 22 May 2012 | PAGE 4 | Values fall for CMBS

Wall Street dealers are selling commercial-mortgage bonds with the widest spread this year as the European debt crisis and JPMorgan Chase’s trading loss rattle markets.

UK homes feel pinch

22 May 2012 |

PRINT: 22 May 2012 | PAGE 4 | UK homes feel pinch

Asking prices for United Kingdom homes were unchanged in May as the crisis in Europe and the end of a tax break for first-time buyers dampened demand, according to Rightmove.

Boom-era debt sparks sell-offs

22 May 2012 |

PRINT: 22 May 2012 | PAGE 4 | Boom-era debt sparks sell-offs

Germany’s multi-family housing market is set to have the most deals in five years as investors including private-equity firms are forced to sell almost 100,000 apartments to pay debt amassed in the past decade’s buy-out boom.

UK ‘will struggle’ to refinance loans

22 May 2012 | Simon Packard

PRINT: 22 May 2012 | PAGE 4 | UK ‘will struggle’ to refinance loans

UK commercial real estate investors may be unable to refinance up to £100 billion ($161 billion) of loans and the euro region’s debt crisis is making banks less willing to extend credit, a De Montfort University study reports.

Rebound a tribute to wishful thinking

22 May 2012 | Glenn Mumford

PRINT: 22 May 2012 | PAGE 5 | Bounce a tribute to wishful thinking

It’s always tempting to play for the bounce. So after three weeks of selling, investors again seem willing to buy risk.

Company briefs

22 May 2012 |

PRINT: 22 May 2012 | PAGE 3 | co briefs

Customer satisfaction with ANZ Banking Group has fallen after its decision to set interest rates independently of the Reserve Bank of Australia.

Rate cuts good but fewer risks better

22 May 2012 | George Liondis

PRINT: 22 May 2012 | PAGE 4 | Rate cuts good but fewer risks better

Interest rate cuts alone are unlikely to turn around a slump in demand for loans from corporate Australia, says the head of business banking at National Australia Bank.

Super funds facing another annual loss

22 May 2012 | Sally Patten

PRINT: 22 May 2012 | PAGE 4 | Super funds facing another annual loss

Superannuation funds are in danger of posting a third annual loss in six years as renewed fears that Greece may default on its debt obligations and be forced out of the single European currency take their toll on global equity markets.

Lloyd girds loins to face board of Perpetual

22 May 2012 | Sarah Thompson

PRINT: 22 May 2012 | PAGE 22 | Lloyd girds loins to face board of Perpetual

Perpetual’s poaching of well-regarded industry veteran Mark Smith from BT comes at an ideal time for the wealth management giant’s boss Geoff Lloyd.

Investors hit as Macquarie axes funds

22 May 2012 | John Kehoe

PRINT: 22 May 2012 | PAGE 4 | Investors hit as Macquarie axes funds

Macquarie Group is shutting down a range of retail managed funds, leaving some investors with no choice but to crystalise large financial losses.

Traders turn owls to keep a pip ahead

22 May 2012 | John Wasiliev

PRINT: 22 May 2012 | PAGE 5 | Traders turn owls to keep a pip ahead

Derivative traders are being turned into evening owls as foreign exchange activity attracts more attention since the $A’s plunge below parity to the American dollar.

CBA shrugs off funding worries

22 May 2012 | John Kehoe

PRINT: 22 May 2012 | PAGE 1 | CBA shrugs off funding worries

Commonwealth Bank of Australia group treasurer Lyn Cobley says European funding markets are open for high quality Australian banks, despite renewed concerns over Greece’s sovereign debt problems.

Facebook shares fall 11 per cent in early trading

22 May 2012 |

Facebook shares opened below their $US38 issue price on Monday as support from underwriters of the initial public offering dissipated after its Friday debut.

Cheques . . . going, going but not yet gone

22 May 2012 | Ruth Liew

PRINT: 22 May 2012 | PAGE 5 | Cheques . . . going, going but not yet gone

Thirty-nine-year-old Jeffrey Triganza carries his cheque book in his work bag every day and relies on cheques to make personal and business payments.

Q&A: Trust timing

22 May 2012 |

PRINT: 22 May 2012 | PAGE 1 | Q&A: Trust timing

We operate our business through a family trust. The profits are distributed each year to various family members. We sign off a resolution each year confirming the distributions. Normally our accountant organises this for us. Does it matter when we do this?

Nikkei ends up 0.3pc on G8 reassurances

21 May 2012 |

Japan's Nikkei average inched up on Monday, with short-covering prompting a recovery from the sharp losses of the previous session, and a call from world leaders for Greece to remain in the euro zone helping to soothe investors' jitters.

CFO | ‘Value at Risk’ has a place if you know its limits

21 May 2012 | Shaun Drummond

Value at risk models have a place, but there always needs to be a real world check on what is being fed into them, and they’re unlikely to tell you how big the big risks are going to be - which ultimately is what really matters.

Key Democrat criticises Obama’s ad

21 May 2012 |

Newark Mayor Cory Booker, a prominent Democrat enlisted as a surrogate for President Barack Obama’s campaign, criticised the president’s ad campaign that has attacked Mitt Romney’s work at the private equity firm, Bain Capital.

MF Global trustee wins collateral from JPMorgan

21 May 2012 |

The trustee overseeing the return of customer money after the collapse of MF Global has received more than $US168 million from JPMorgan Chase, the first bank payment since the commodities brokerage firm filed for bankruptcy in October.

CFTC said to open inquiry into JPMorgan loss

21 May 2012 |

A federal investigation into JPMorgan Chase’s multibillion-dollar trading loss has widened as regulators pursued a new line of inquiry.

FW Holst & Co may be good fit with Baillieu

21 May 2012 | Sarah Thompson

Stockbrokers are bracing for another round of consolidation should equity market conditions keep deteriorating and retail investors remain on the sidelines.

Commonwealth Bank (CBA)

21 May 2012 | Brendon Lau

Morgan Stanley has upped its price target on Commonwealth Bank of Australia to $51.10 from $47.40 a share as it believes the stock is more defensive than its rivals.

Tongue-lashing for Kev

21 May 2012 |

PRINT: 21 May 2012 | PAGE 52 | Tongue-lashing for Kev

ANZ Banking Group chief executive Mike Smith was his usual quotable self during an appearance on Friday at an Asia Business forum at Melbourne's Crown Palladium.

Latham lands a blow

21 May 2012 |

PRINT: 21 May 2012 | PAGE 52 | Latham lands a blow

The local edition of Spectator magazine, helmed by former Brendan Nelson staffer and Australian scribe Tom Switzer, set the bar high last month with Mark Latham’s epic spray at Switzer’s former place of work (and no we’re not talking about Parliament House).

Big accountants must return to roots

21 May 2012 | Vito Carrozzo

PRINT: 21 May 2012 | PAGE 51 | Big accountants must return to roots

As a recent KPMGer myself, I agree that the Centro-PwC class action epitomises the culture of fear and blame at big accounting firms expressed by leadership consultant and former KPMG auditor Mandy Holloway (“Blame game reflects firms’ flawed culture”, May 14).

Lower bids tipped for Lloyds’ loans

21 May 2012 | Gretchen Friemann

PRINT: 21 May 2012 | PAGE 1 | Lower bids tipped for Lloyds’ loans

Leading contenders for Lloyds’ $1.9 billion book of soured property loans are likely to submit lower bids in the second round as information gleaned from due diligence casts the assets in a less favourable light.

JPMorgan: sorry tale of egos and illness

21 May 2012 | Jessica Silver-Greenberg

PRINT: 21 May 2012 | PAGE 2 | JPMorgan: a sorry tale of egos and illness

Ever since JPMorgan Chase disclosed a multibillion-dollar trading loss this month, the central mystery has been how a bank known for its skill at risk management could err so badly.

Macquarie Pastoral posts surprise loss

21 May 2012 | Matthew Cranston

PRINT: 21 May 2012 | PAGE 1 | Macquarie Pastoral posts surprise loss

One of Australia’s biggest land and water holders, the Macquarie Pastoral Fund, has reported a surprise full year loss of $5.3 million.

Low rates lead to high risk

21 May 2012 | Ben Potter

PRINT: 21 May 2012 | PAGE 2 | Low rates lead to high risk

Potter | It’s a bit early for the lessons of the 2008 crisis to have been forgotten. But maybe the lessons of the 1990s tech boom have receded.

Aussie banks say they can ride it out

21 May 2012 | George Liondis

PRINT: 21 May 2012 | PAGE 4 | Aussie banks say ‘we’re all right mate’

Australia’s banks are at risk of being drawn into Europe’s debt crisis as a measure of their funding costs rises to its highest level this year. But they claim they are prepared for the worst in Europe.

CBA search for retail chief goes global

21 May 2012 | John Kehoe

PRINT: 21 May 2012 | PAGE 1 | CBA search for retail chief goes global

Commonwealth Bank of Australia has begun a global search for candidates to replace its outgoing retail bank head Ross McEwan.

CBA can count on a fierce battle

21 May 2012 | Sally Patten

PRINT: 21 May 2012 | PAGE 3 | CBA can count on a fierce battle

Patten | If the poaching wars between MLC and AMP are anything to go by, CBA and its subsidiary Count have quite a fight on their hands.

Genworth loss spurs rethink

21 May 2012 | Ruth Liew

PRINT: 21 May 2012 | PAGE 2 | Genworth loss spurs rethink

Genworth Financial is hoping to shrug off its $US21 million quarterly loss and explore new product options in the home loan refinancing sector.

Arter to head BlackRock’s restructured equities business

21 May 2012 | Leng Yeow

PRINT: 21 May 2012 | PAGE 2 | Bloodied BlackRock plans restructure

Updated | Global funds manager BlackRock has unveiled a major restructure of its Australian equities business and appointed Justin Arter as its new chief executive.

GraysOnline calls in UBS for review

21 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 21 May 2012 | PAGE 18 | GraysOnline calls in UBS for review

Online auction house and retailer GraysOnline is considering a partnership with a traditional retailer, including the possible sale of an equity stake, as part of a strategic review aimed at making the most of its online capabilities.

UK ‘may never recover’ from euro crash

21 May 2012 | Rowena Mason

PRINT: 21 May 2012 | PAGE 14 | UK ‘may never recover’

Britain’s economy may suffer “permanent” damage and “never quite get back up” if the euro collapses in a chaotic way, according to the government’s chief economic forecaster.

Victoria won’t rule out merger of accident insurers

21 May 2012 | Mathew Dunckley

PRINT: 21 May 2012 | PAGE 4 | Victoria won’t rule out merger of accident insurers

A merger of Victoria’s compulsory accident insurers could result from a review of the schemes due for completion later this year.

Austerity – what a laugh!

21 May 2012 | Robert Guy

PRINT: 21 May 2012 | PAGE 1 | Austerity – what a laugh!

Guy | The irony would not have been lost on Angela Merkel as she listened to advice from some of the world’s most enthusiastic money printers.

Mining lifts JR, brand switch coming

21 May 2012 | Agnes King

PRINT: 14 May 2012 | PAGE 1 | Mining lifts JR, rebrand coming

Brisbane mid-market accountancy firm Johnston Rorke is forecasting revenue of $24 million, up 10 per cent, and later this year will change its name to Pitcher Partners.

Accounting briefs

21 May 2012 |

PRINT: 21 May 2012 | PAGE 1 | Briefs

Queensland’s anti-discrimination commission has ordered mid-market accounting firm BDO and its former tax partner Tracey Murray into mediation to settle their differences over her termination last year.

Former BDO partners pursued for bad debts

21 May 2012 | Agnes King

PRINT: 21 May 2012 | PAGE 1 | Former BDO partners pursued for bad debts

More bad debts have surfaced in the ongoing BDO saga, and a professional indemnity insurance funder is coming after partners.

China sets time for transfer of auditing skills

21 May 2012 | Agnes King

PRINT: 21 May 2012 | PAGE 1 | China sets time for transfer of auditing skills

Foreign audit firms in China will have to appoint a Chinese national as lead partner under sweeping reforms of the country’s accounting profession.

A Rowe boat

19 May 2012 |

PRINT: 19 May 2012 | PAGE 56 | A Rowe boat

With financial markets mired in uncertainty, it is not surprising that demand for ultra-luxury yachts is not what it used to be.

No problem here

19 May 2012 |

PRINT: 19 May 2012 | PAGE 56 | No problem here

Michael Chaney was seemingly speaking with his Woodside hat on rather than National Australia Bank one when he came out backing fellow chairman Jac Nasser of BHP Billiton this week.

Put your planner in the spotlight

19 May 2012 | Ruth Liew

PRINT: 19 May 2012 | PAGE 3 | Put your planner in the spotlight

Choose wisely and a financial planner can help you grow your assets, and reforms in the offing should minimise ‘bad eggs’.

NAB offer hits the right note

19 May 2012 | John Wasiliev

PRINT: 19 May 2012 | PAGE 3 | NAB offer hits the right note

Income investments paying interest returns that rise and fall with the money market are in the news constantly, with companies and big banks offering them on a regular basis.

Aim high if you’re on a low income

19 May 2012 | John Wasiliev

PRINT: 19 May 2012 | PAGE 1 | Aim high if you’re low

Readers ask about the government’s low-income super contribution and its super co-contribution plan, as well as after-tax contributions for those over 65.

Waiting for the other shoe to drop

19 May 2012 | Anna Bernasek

PRINT: 19 May 2012 | PAGE 3 | Morgan, waiting for the other shoe to drop

Bernasek | Judging by the reaction to JPMorgan Chase’s $2 billion trading loss you’d think America’s leading bank had just gone bust.

Indian stock exchange wants in

19 May 2012 | Joanna Heath

PRINT: 19 May 2012 | PAGE 1 | Indian stock exchange wants in

India’s largest stock exchange – the National Stock Exchange of India – has approached local brokers to test the appetite for establishing an alternative exchange in Australia, hot on the heels of Chi-X.

MFG return is on track

19 May 2012 | John Kehoe

PRINT: 19 May 2012 | PAGE 2 | MFG return is on track

The corporate regulator has defended the liquidator of MF Global, rejecting claims from clients that Deloitte is unfairly delaying the return of more than $300 million.

HSU affair hits industry super funds

19 May 2012 | Sally Patten

PRINT: 19 May 2012 | PAGE 2 | HSU affair hits industry super funds

Industry superannuation funds fear the crisis that has swamped the Health Services Union is damaging their reputation and spurring critics of the sector to renew calls for governance reform.

Things could get rough for Dimon

19 May 2012 | Andrew White

PRINT: 19 May 2012 | PAGE 2 | Things could get

It is likely that the top brass at JPMorgan knew about the trades that created the $US2 billion loss.

No way but out of the euro, Smith warns

19 May 2012 | George Liondis

PRINT: 19 May 2012 | PAGE 1 | No way but out, Smith warns

Australia and New Zealand Banking Group chief Mike Smith has warned that a break up of the Euro zone appears inevitable as the region's deepening debt crisis threatens to engulf world markets.

Bank’s boss won’t back off

19 May 2012 | Andrew Cornell

PRINT: 19 May 2012 | PAGE 1 | Bank’s boss won’t back off

In the immediate shadow of the JPMorgan revelation, a focus on prudential scrutiny makes even more sense.

Can Europe hold?

19 May 2012 | Emma-Kate Symons

PRINT: 19 May 2012 | PAGE 1 | Can europe hold?

Will a Greek departure from the euro zone lead to a collapse in the currency and cause untold damage? The opinion is divided but everyone agrees the result will be painful and expensive.

Nikkei falls 3pc as investors cut exposure

18 May 2012 |

Japan's Nikkei average shed 3 per cent on Friday to log a seventh straight week of losses, its longest such run since the third quarter of 2001, as investors cut exposure to risky assets on concerns over slowing growth and a deepening euro zone crisis.

Water everywhere but not a drop before time

PRINT: Capital | 18 May 2012

Fifteen senior deal makers gathered in Sydney to initial the final documents on a $2.3 billion deal to privatise the city’s desalination plant. They took care not to be seen – for good reason.

ASX slumps 2.7pc on Europe fears

18 May 2012 |

Updated | Australian shares tumbled 2.7 per cent on Friday on growing concerns about the global economic outlook, fanned by an escalating banking crisis in Spain, political turmoil in Greece and sluggish US data.

US Senate wants Morgan chief to explain $2bn loss

18 May 2012 | Dominic Rushe

PRINT: 18 May 2012 | PAGE 1 | US Senate wants Morgan boss to explain $2bn loss

The US Senate banking committee plans to call JP Morgan boss Jamie Dimon to Washington to explain how the bank lost $US2bn in poorly supervised trading.

Obama, Hollande to press euro crisis remedies

18 May 2012 |

US President Barack Obama will seek to cement a bond with France's new leader before heading to Camp David for a G8 summit where he is set to press Europe to do more to fix the region's deepening economic crisis.

Jump on the Asian wagon

18 May 2012 | Duncan Hughes

PRINT: 19 May 2012 | PAGE 1 | Jump on the Asian wagon

Australia has a unique opportunity to share in unprecedented Asian growth over coming decades, ANZ chief executive Mike Smith says.

Oxfam chief says ANCC delay sensible

18 May 2012 | Sally Rose

Giving the new charity regulator a chance to shape the finer details the financial reporting and governance changes it will be responsible for implementing is a sensible move, says Oxfam Australia executive director Andrew Hewett.

CFO | Charities win more time

18 May 2012 | Sally Rose

PRINT: 18 May 2012 | PAGE 1 |

The charity sector has one a 12 month reprieve on the introduction of new reporting and governance standards to be introduced under new regulator the ANCC. It leaves a window of opportunity to make the new rules less onerous.

Nikkei drops sharply, weighed down by troubled Spanish banks

18 May 2012 |

Japan's Nikkei share average dropped sharply on Friday morning with securities hammered by fears of contagion from Spain's ailing bank system and a strong yen pushed down exporters.

Commonwealth Bank of Australia (CBA)

18 May 2012 | Bianca Hartge-Hazelman

Deutsche Bank and Morningstar have retained positive recommendations on Commonwealth Bank following its third-quarter result.

South Africa ‘confident’ of solution to Iran oil ban

18 May 2012 |

South Africa, which receives a quarter of its crude from Iran, is holding almost daily discussions with the US, EU Union and Iran about reducing its purchases.

Northern Rock rescue may cost taxpayer £2bn

18 May 2012 |

Rescuing Northern Rock could cost British taxpayers £2 billion, but it should be seen as the cost of securing financial stability, according to the National Audit Office.

Gold rallies from rout on technicals

18 May 2012 |

Spot gold rallied more than 2pc on Thursday for its largest one-day gain since January, as technical buy signals and a decline in regional US factory activity more than offset deepening despair over the euro zone.

Moody’s downgrades 16 Spanish banks

18 May 2012 |

Moody’s Investors Service has downgraded the long-term debt ratings for 16 Spanish banks, in part because of constraints on the government’s ability to provide them with support.

Spain denies run on deposits at Bankia

18 May 2012 |

The Spanish government has denied a newspaper report that customers had withdrawn more than €1 billion from the partly nationalised lender Bankia over the past week

Fitch says top global banks need $US566bn

18 May 2012 |

The world’s top 29 banks may need a total of $US566 billion to meet tougher capital rules, cutting returns by a fifth and forcing them to curb investor payouts, Fitch Ratings said.

China not the only game in town: banker

18 May 2012 | Greg Earl

PRINT: 18 May 2012 | PAGE 2 | China not the only game: banker

Australian companies are diversifying their connections across emerging world markets to provide some buffer from any slowdown in China, a leading banker says.

Reviews can hit too close to home

18 May 2012 | Tony Boyd

PRINT: 18 May 2012 | PAGE 4 | Reviews can hit too close to home

When a chief executive utters the words “strategic review”, as Mike Wilkins at Insurance Australia Group did yesterday, you know a board of directors is no longer willing to live with a mess created by past managers.

How Australia can profit from the Asian century

18 May 2012 | Mike Smith

PRINT: 18 May 2012 | PAGE 2 | How Australia can profit from the Asian century

The national discussion needs to focus more on opportunities in the region rather than the risks.

Notebook: dancing with derivatives

18 May 2012 | Maureen Dowd, New York Times

PRINT: 18 May 2012 | PAGE 50 | NOTEBOOKDancing with derivatives

Jamie Dimon calls it “a doozy”. And it was. A $US2 billion credit derivatives trading bungle by JPMorgan that could mushroom to a $US4 billion loss.

It’s a small world . . .

18 May 2012 |

PRINT: 18 May 2012 | PAGE 48 | It’s a small world . . .

ANZ chief Mike Smith has recently made a few strident comments about JPMorgan Chase, and his company secretary is the brother of JPMorgan’s Australian boss.

Cromwell rebels against tax

18 May 2012 | Matthew Cranston

PRINT: 18 May 2012 | PAGE 1 | Rebellion

Cromwell Property Group chief executive Paul Weightman has urged the property industry to reject a surprise federal government tax hit on foreign real estate investors or risk lower property values.

Macquarie in $4bn gas deal

18 May 2012 | Stefan Nicola, Brett Foley

PRINT: 18 May 2012 | PAGE 24 | Macquarie in $4bn gas deal

A group led by Macquarie Group has agreed to pay €3.2 billion ($4.1 billion) to EON for a network of natural gas pipelines in Germany.

Company briefs

18 May 2012 |

PRINT: 18 May 2012 | PAGE 4 | briefs

Australian Infrastructure Fund is selling its 50 per cent stake in the Port of Portland to Palisade Ports for $66.5 million.

Europe reaps a bitter harvest

18 May 2012 | The Australian Financial Review

PRINT: 18 May 2012 | PAGE 1 | Europe reaps a

Editorial | European policymakers have no one but themselves to blame for their economic and financial predicament. It is the direct result of the political compromises put in place to secure monetary union.

Safety first after one crack too many

18 May 2012 | Andrew Cornell

PRINT: 17 May 2012 | PAGE 22 | It’s safety first after one crack too many

Cornell | The humiliating trading debacle at JPMorgan Chase has winded those who have been arguing regulators should back off.

US firm has $50m to buy MF Global debt

18 May 2012 | John Kehoe

PRINT: 18 May 2012 | PAGE 21 | US firm has $50m to buy MF Global debt

A US distressed debt investment company plans to apply today to buy up to $50 million of debts owed to clients of collapsed broker MF Global Australia.

Heritage in $125m retail bond offer

18 May 2012 | Jonathan Shapiro

PRINT: 18 May 2012 | PAGE 20 | Heritage in $125m retail bond offer

Queensland-based regional lender Heritage Bank has launched a $125 million offering of listed bonds in a rare issue of senior-ranking corporate debt to retail investors.

Pacific Equity takes its time over Link deal

18 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 18 May 2012 | PAGE 18 | Pacific Equity takes its time over Link deal

Pacific Equity Partners is taking its time with Link Market Services, the $1.5 billion share registry business earmarked for sale.

QBE may look at IAG’s business if price is right

18 May 2012 | Sarah Thompson and Anthony Macdonald

PRINT: 18 May 2012 | PAGE 18 | QBE may look at IAG’s UK business if price is right

QBE Insurance Group is one of Australia’s hungriest acquirers, so expect it to be on Insurance Australia Group’s hit-list as it tries to offload its battling United Kingdom business.

Asia prepares to ride out Greek storm

18 May 2012 | Keiko Ujikane

PRINT: 18 May 2012 | PAGE 2 | Asia prepares to ride out Greek storm

Japan’s economy expanded faster than estimated in the first quarter, boosted by reconstruction spending which is poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand.

JPMorgan losses mounting fast

18 May 2012 | Nelson Schwartz

PRINT: 18 May 2012 | PAGE 2 | Bank’s losses mounting fast

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $US2 billion estimate by at least $US1 billion, according to people with knowledge of the losses.

Key firms to get closer supervision

18 May 2012 | Carla Main

PRINT: 18 May 2012 | PAGE 2 | Key firms to get closer supervision

US financial regulators are looking at specific non-bank financial companies to possibly designate them as systemically important and subject to more rigorous supervision, said Michael Gibson, director of the Division of Banking Supervision and Regulation at the Federal Reserve Board.

Euros flight from Greece speeds up

18 May 2012 | Liz Alderman

PRINT: 18 May 2012 | PAGE 2 | Euros flee Greece at rapid rate

As Greek political leaders assembled a caretaker government to usher in new elections next month, bankers across Athens were monitoring a worrying development: the continued flight of billions of euros from the country amid renewed concern over Greece’s fate within the euro currency union.

Profit up 3pc but CBA braces for Greece backlash

18 May 2012 | George Liondis

PRINT: 18 May 2012 | PAGE 1 | Greek turmoil to drive up funding costs, says CBA chief

Commonwealth Bank of Australia has revealed it was forced to make contingency plans in case of Greece’s exit from the euro as the debt-rattled country’s political crisis sends shockwaves through world markets.

Nikkei ends up 0.9pc as investors hunt bargains

17 May 2012 |

The Nikkei share average rose 0.9 percent on Thursday as upbeat Japanese economic growth data trumped worry about Europe and investors shopped for bargains after Wednesday's market tumble left the benchmark down 14 percent this quarter.

QBE queried on O’Halloran shares

17 May 2012 | Ruth Liew

PRINT: 18 May 2012 | PAGE 21 | QBE queried on O’Halloran shares

The Australian Securities Exchange has asked QBE to explain its tardiness in lodging a notice flagging the increase in QBE chief executive Frank O’Halloran’s shares – an incident the company blamed on an “administrative error”.

Signature Capital Investments (SGI)

17 May 2012 | Jane Searle

PRINT: 18 May 2012 | PAGE 27 |

Hedge fund Signature Capital Investments is trading at a sharp discount of more than 24 per cent to its net assets as investors shun complex investments amid equity market volatility.

Mirabela will need to show improvement

17 May 2012 | Sarah Thompson and Anthony Macdonald

Mirabela Nickel’s $120 million equity raising may have shored up its short-term funding issues, but investors still want to see operating improvement.

HSBC cuts costs by target $US2bn

17 May 2012 |

HSBC CEO Stuart Gulliver said in a strategy update on Thursday that Europe's biggest bank is still on track to meet his return on equity (RoE) target of above 12 per cent.

JPMorgan disaster puts focus on fat tail risk

PRINT: Capital | 10 May 2012

Jamie Dimon’s failed quest for the perfect hedge against tail-risk led him to abandon all the traits that investor Warren Buffet admired in him.

JPMorgan hit with shareholders' lawsuit

PRINT: Capital | 17 May 2012

US fund manager Saratoga Capital Management has filed a class-action lawsuit against JPMorgan Chase after the nation's largest bank lost more than $US2 billion in derivatives trading.

IAG hits snooze on UK alarm

17 May 2012 | MICHAEL SMITH

Insurance Australia Group (IAG) chief Mike Wilkins must have woken up one morning this week and realised there is no hope for a short-term turnaround in the UK economy.

Australians least likely to spend on R&D

17 May 2012 | Sally Rose

Worldwide CFOs don’t have an especially optimistic economic outlook, things are particularly tough in the retail and manufacturing sectors, and utility and logistics costs are expected to rise.

Copper rises after four-day slide

17 May 2012 |

London copper edged higher for the first time in five sessions on Thursday with a firmer euro aiding its bounce from four-month lows in the previous session amid a deepening debt crisis in Europe.

Leighton reviewing disclosure methods

17 May 2012 |

Leighton Holdings has appointed an external consultant to review its disclosure procedures after breaching laws and being fined $300,000 earlier this year.

IAG’s UK business under review

17 May 2012 | Ruth Liew

PRINT: 18 May 2012 | PAGE 2 | IAG to review unprofitable UK unit

Updated | IAG is to put its loss-making UK business under review for potential sale after considering options including improving the existing business and focusing more on motor insurance.

Greece fears hit funding costs: CBA

17 May 2012 | George Liondis

PRINT: 18 May 2012 | PAGE 1 | Greece fears hit funding costs: CBA

Commonwealth Bank of Australia has revealed it was forced to make contingency plans in case of Greece’s exit from the euro as the debt-raddled country’s political crisis sends shockwaves around world.

Credit Suisse’s Sim departs as global head of M&A

PRINT: Capital | 17 May 2012

The global head of mergers and acquisitions at Credit Suisse, Boon Sim, is leaving to take a senior position at Temasek, Singapore’s sovereign wealth fund.

High-frequency trades distort rankings

PRINT: Capital | 18 May 2012

JPMorgan, Bank of America Merrill Lynch and Goldman Sachs in Australia argue the broker league tables don’t reflect their ability to get a deal away – due to the prevalence of high-frequency trading.

JPMorgan ‘whale’ trader seen leaving: report

17 May 2012 |

Updated | Bruno Iksil, the JPMorgan trader known as the “whale” believed involved in the $US2 billion trading loss, is no longer trading and is expected to go by year’s end.

Macquarie-led group to buy Open Grid Europe

17 May 2012 |

E.ON, Germany’s largest utility, said it has sold its Open Grid Europe gas distribution network to a consortium led by Macquarie for $4.1 billion, raising cash to pay down debt and fund expansion.

FBI confirms preliminary probe into JPMorgan

17 May 2012 |

FBI Director Robert Mueller on Wednesday confirmed that the agency has opened a “preliminary investigation” into JPMorgan Chase & Co, the nation’s largest bank.

ECB cuts Greek bank funding

17 May 2012 | Ben Woodhead

Updated | The European Central Bank has stopped providing liquidity to some Greek banks as they have not been successfully recapitalised, euro zone central bank sources have said.

Regulator defends higher fees

17 May 2012 | George Liondis

PRINT: 17 May 2012 | PAGE 3 | Regulator defends higher fees

The corporate regulator has defended plans to charge stockbrokers tens of millions of dollars in additional fees to pay for the supervision of the market.

JPMorgan case opens old wounds

17 May 2012 | Justin O’Brien

PRINT: 17 May 2012 | PAGE 2 | JPMorgan case opens old wounds

The travails facing JPMorgan have proved an exceptionally useful pulpit to promote Elliot Spitzer’s blend of moral outrage, personal interest and structural reform.

Dimon in the rough

17 May 2012 |

PRINT: 17 May 2012 | PAGE 64 | Dimon in the rough

Crony capitalism in America is not a patch on the nonpareil art form practised in, say, the former Soviet Republics.

Suncorp gift gives back

17 May 2012 | Terry Ingram

PRINT: 17 May 2012 | PAGE 1 | Suncorp gift gives back

The 2006 takeover of AAMI looks set to give Suncorp Insurance a useful tax deduction six years on.

Property briefs

17 May 2012 |

PRINT: 17 May 2012 | PAGE 3 |

The Glad Group, one of Australia’s leading providers of property services, yesterday opened its $7 million Australian headquarters, and national operations centre, in Rockdale in Sydney’s south.

Banks fund offshore investors

17 May 2012 | Matthew Cranston

PRINT: 17 May 2012 | PAGE 3 | Banks fight to fund investors

Australia’s big four banks have increased their exposure to commercial property by $3.8 billion in the last six months as they fight to fund major offshore investors who are increasingly dominating the real estate market.

More Count advisers join us, says BT Financial

17 May 2012 | Sally Patten

PRINT: 17 May 2012 | PAGE 3 | More Count advisers join us, says BT Financial

BT Financial Group, the wealth arm of Westpac Banking Corp, says it has poached a further four financial advisory groups from Count Financial, taking the total to nine since the independent advice group was acquired by Commonwealth Bank of Australia early this year.

Commonwealth looking slimmer at the margins

17 May 2012 | George Liondis

PRINT: 16 May 2012 | PAGE 3 | Commonwealth slimming at the margins

Commonwealth Bank of Australia is set to be the next major lender to be hit with the high cost of deposits, as analysts warn of falling profit margins.

Volatility frustrates the funds

17 May 2012 | Ruth Liew

PRINT: 17 May 2012 | PAGE 3 | Volatility frustrates the funds

Long-only Australian equity fund managers failed to beat the index’s returns last month as global uncertainty pummelled investment performance.

Inquiry report damning on $176m Trio theft

17 May 2012 | Duncan Hughes

PRINT: 17 May 2012 | PAGE 3 | Inquiry report damning on $176m Trio theft

A federal parliamentary inquiry into the theft of about $176 million from fund manager Trio Capital has uncovered a litany of failed regulation, weak governance, inadequate policing and misleading advice.

Company briefs

17 May 2012 |

PRINT: 17 May 2012 | PAGE 28 |

Grocery wholesaler Metcash is entering into joint ventures with independent retailers to protect and expand the market share of hardware chain Mitre 10.

JPMorgan’s $2bn loss extraordinary: ANZ chief

17 May 2012 | John Kehoe

PRINT: 17 May 2012 | PAGE 3 | JPMorgan’s $2bn loss extraordinary, says ANZ chief

ANZ Banking Group chief executive Mike Smith has labelled JPMorgan’s $US2 billion trading loss as “extraordinary”.

China still buys US Treasuries

17 May 2012 | Daniel Kruger

PRINT: 17 May 2012 | PAGE 2 | China buys Treasuries

China remained the largest foreign US creditor and added to its holdings in March as the Treasury 10-year note yield reached the highest level since October.

FBI investigates blunder

17 May 2012 |

PRINT: 17 May 2012 | PAGE 20 | FBI investigates blunder

The Federal Bureau of Investigation is examining potential wrongdoing surrounding JPMorgan Chase‘s $US2 billion trading loss.

US regulators should act on banks

17 May 2012 | Ben Potter

PRINT: 17 May 2012 | PAGE 2 | Regulators can’t risk inaction on banks

Potter | Regulators should use the powers they’ve been given by Congress to do what Congress lacks the courage to do.

Mining leads wages higher by 0.9 pc

17 May 2012 | Michael Heath

PRINT: 17 May 2012 | PAGE 4 | Mining leads wages higher in quarter

Wages grew at a faster pace than economists estimated in the first quarter, led by miners’ pay as the resources boom continued.

Risk and return are not always as clear-cut as they appear

17 May 2012 | Gayle Bryant

PRINT: 17 May 2012 | PAGE 4 | Risk and return are not always as clear-cut as they appear

Know your investment – fixed interest products can vary in their level of safety.

Creating a portfolio that’s built to last

17 May 2012 | Sally Patten

PRINT: 17 May 2012 | PAGE 3 | Creating a portfolio that’s built to last

While uncertainty remains, it’s important to protect your investments. This means also considering interest-rate risks.

With an eye on the downside

17 May 2012 | Jeremy Chunn

PRINT: 17 May 2012 | PAGE 2 | Fireproof portfolio a mirage

Let there be no confusion: it is impossible to construct a portfolio of shares which is impervious to loss. “All equities are risky”.

Shockproofing your portfolio

17 May 2012 | Stephen Calder

PRINT: 17 May 2012 | PAGE 2 | Investors seek shelter from global fallout

In an increasingly volatile world investors are becoming more aware of the need to review their portfolios and adjust them to changing conditions both here in Australia and in the wider world.

Hollande sympathetic to Greeks, but Merkel firm

17 May 2012 | Mark Deen

PRINT: 17 May 2012 | PAGE 1 | Hollande sympathetic, but Merkel firm

Problems in Greece have overshadowed the first meeting between German Chancellor Angela Merkel and French President Francois Hollande.

Nikkei ends down 1.1pc on China data

16 May 2012 | Reuters

The Nikkei share average slid 1 per cent on Wednesday, as data showing flat bank lending in China chilled already tepid sentiment for risk assets although the benchmark managed to end a whisker above a key support level.

Djerriwarrah Investments (DJW)

16 May 2012 |

PRINT: 16 May 2012 | PAGE 37 |

Listed investment company Djerriwarrah Investments is trading at one of the steepest premiums to net assets of its peers in April - of 13 per cent against a sector average of 1.33 per cent - with its mandate to focus on yield attractive to investors amid a backdrop of equity market uncertainty.