ANZ Banking Group (ASX:ANZ) has agreed to buy some of Royal Bank of Scotland's (LON:RBS) Asian businesses for about $US550 million, funded by the proceeds of recent institutional placement and share purchase plan. ANZ said it expected to complete the takeovers progressively from late 2009, depending on gaining regulatory approval in each market. ANZ will buy the retail, wealth management and commercial businesses in Taiwan Singapore, Indonesia and Hong Kong, as well as RBS's institutional banking businesses in Taiwan, the Philippines and Vietnam.
Sydney, Aug 4, 2009 AEST (ABN Newswire) - Wall Street closed at a nine-month high overnight boosted by earnings reports and encouraging economic data in US manufacturing activity and new car sales. Energy and materials companies also broadly lifted the market.
The Australian share market yesterday extended its gains led by banks. At the close, the S&P/ASX 200 was 19.4 points higher, or by 0.5 per cent, at 4263.4, while the broader All Ordinaries rose 21 points, or 0.5 per cent, to 4270.5 points. Today local news may be dominated by the Reserve Bank of Australia's interest rate decision.
Key Economic Facts and Figures
The ANZ survey showed that job ads fell in newspapers and on the internet fell 1.7 per cent in July, a decline for 15th consecutive month, as employers continued to shun hiring staff. The result followed a 6.7 per cent decline in June. Job advertisements have dropped by 52 percent compared to the same time last year. ANZ Bank said job advertising was showing tentative signs of stabilization, implying that business was no longer pruning hiring intentions at the same pace.
The Commonwealth Bank and the Australian Chamber of Commerce and Industry will release their business expectations survey covering the June quarter. The Australian Bureau of Statistics releases retail trade data for June and the June quarter, and the house price index data for the June quarter.
The Reserve Bank of Australia is to announce its August interest rates.
M&A News
ANZ Banking Group (ASX:ANZ) has agreed to buy some of Royal Bank of Scotland's (LON:RBS) Asian businesses for about $US550 million, funded by the proceeds of recent institutional placement and share purchase plan. ANZ said it expected to complete the takeovers progressively from late 2009, depending on gaining regulatory approval in each market. ANZ will buy the retail, wealth management and commercial businesses in Taiwan Singapore, Indonesia and Hong Kong, as well as RBS's institutional banking businesses in Taiwan, the Philippines and Vietnam.
Important Corporate News
IT services provider ASG Group (ASX:ASZ) posted a record full year net profit of A$11.3 million for the year ended 30 June 2009, a 24.8% increase on the previous year. ASG Managing Director Geoff Lewis said the result had surpassed all previous financial records, reflecting a strong performance across each of the company's regions. The company also forecasts further growth in their revenue and earnings in FY10.
Education service provider Navitas Ltd. (ASX:NVT) said net profit for the year to June 30 rose 31.4% to A$49.2 million from A$37.4 million the previous year. Navitas believes its investments in the 2009 financial year and record student numbers will deliver continued double-digit growth in revenue and earnings per share in the 2010 financial year.
The Commonwealth Bank of Australia (ASX:CBA) has called in receivers to try to recover nearly A$100 million in debt from financier City Pacific (ASX:CIY). Receiver PPB said the loss of the role as responsible entity of the City Pacific First Mortgage Fund, which occurred as a result of the Federal Court's determination on Monday, July 20, has had a significant impact on City Pacific's ability to service its debt and remain viable.
Bendigo & Adelaide Bank (ASX:BEN) has downgraded its full-year earnings guidance by as much as 16 per cent after taking provisions for its Great Southern portfolio and the deteriorating commercial property market. The bank said it now expected cash earnings per share of 63 cents for the year, down from previous guidance of 70 cents to 75 cents a share.
Shares in Ten Network Holdings Ltd (ASX:TEN) have been placed in a trading halt pending completion of a bookbuild for a proposed underwritten placement.
Contact
Michelle Liang
Asia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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