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’G’day, Gillard — not
London’s miners were in a fug on the FTSE 100 on Thursday:
And it’s because Australia’s proposed mining super-tax — unlike the prime minister who launched it — appears to be sticking round.
Kevin Rudd resigned on Thursday — but his successor,
Political risk, Aussie rules
Those are the London shares of Rio Tinto, BHP Billiton and Xstrata.
They all shot up despite a negative FTSE 100 at about 1300 UK BST on Wednesday — probably as this flash broke via Reuters:
RTRS-AUSTRALIA PM FACES LEADERSHIP VOTE ON THURSDAY MORNING – SKY TV
The link being:
Renminbi reverberations
No doubt about the winner on the London stock market from China’s decision to let the renminbi to appreciate ever so modestly – miners, miners, miners and for good measure miners.
At pixel time the FTSE 100 leaderboard was dominated by resources stocks:
Snap news
Breaking pre-market news on Monday,
- BP says disagrees strongly with Anadarko allegations – statement.
- Rio Tinto and BHP Billiton reach agreement to amend royalties and state agreements – statement.
Snap news
Breaking pre-market news on Wednesday,
- J Sainsbury total sales up 7.6 per cent in Q1 — statement.
- Rio Tinto still reviewing Australia projects in light of super-tax — statement.
- Royal Bank of Scotland agrees sale of RBS Pakistan — statement.
Super-confusion on Australia’s mining super-tax
A possibly tiresome — but still important — update on the Australian government’s much-villified plan to impose a 40 per cent “resources super-profits tax” on mining companies:
Confusion reigns on Friday.
The not so horrid Henry Tax
Mining stocks led Wednesday’s dead cat bounce in London:
And one reason was a report that claimed the Rudd government in Australia was set to perform something of a u-turn on its proposed mining supertax.
Miners spend big Down Under, but where’s the outrage?
Amid all the mining industry outrage Down Under about Canberra’s plan to slap a 40 per cent “super profits tax” on resources companies, one is almost tempted to side with the Australian Treasurer, Wayne Swan.
Oh no, now it’s mining tax contagion…
The list of dead and dying deals and loudly protesting companies in Australia’s resources sector is beginning to look very long, as FT Alphaville noted last week.
The companies, both foreign and domestic,
Australia’s super-controversial mining super-tax
The Australian government has not given up insisting that pigs fly that a planned 40 per cent tax on “super” profits generated by all resources operating on its soil is a Really Great Thing.
Even senior bureaucrats are now weighing in,
Forget banking. In Australia, it’s the miners who make the dosh.
Back in April, the FT reported that the City of London had been hit by a ‘brain drain’ to Australia, as British financial services professionals fled in droves for better weather and ‘comparatively more career opportunities in Sydney and Melbourne’.
The horrid Henry Tax
Messy, complicated, confusing and ultimately damaging for investment in mining down under.
That’s reaction in the City of London to the Australian government’s plan for a 40 per cent tax on profits generated by resource companies (the so-called Henry Tax),
Chinese bribery: wake up and smell the moisturiser
Corrupt business practices in China have ensnared many a foreign firm: most famously and recently, Rio Tinto; but also IBM, Hitachi and NCR. And now — the Avon ladies?
As Reuters reports (link ours):
Is Henry Kissinger helping Rio Tinto in China?
Yes, you’ve read that right — Henry Kissinger.
Rio Tinto has had rather a bad patch in Beijing, especially since four Rio executives were recently jailed for bribery, but it’s a surprise to see the controversial former US Secretary of State named in connection with company.
The Rio Tinto case: judgement day [updated]
Food for thought for foreign investors in China on Thursday — sentences have been issued in the Rio Tinto case, including Chinese-Australian executive Stern Hu.
Breaking news via Reuters:
RTRS-CHINA COURT SENTENCES RIO TINTO EXEC STERN HU TO 7 YRS FOR BRIBERY,
Chinese justice and the Rio Tinto four
It’s the case all foreign investors into China should be watching: Rio Tinto v China.
After nine months of very little news but much sabre rattling, the pace has stepped up noticeably. As Bloomberg reported on Monday:
Snap news
Breaking pre-market news on Thursday,
- BT says expects to deliver adjusted EBITDA of around £5.7bn for the full year – statement, pension statement.
- Rio Tinto announces underlying earnings of $6.3 billion – statement.
Snap news
Breaking pre-market news on Tuesday,
- BP’s Q4 replacement cost profit rises 33 per cent to $3.4bn, versus an expected $4.6bn – statement.
- Nomura returns to profit in third quarter – statement.
What does the Aussie mining tax really mean?
Mining stocks were among the biggest fallers in Thursday’s sell-off. One of the factors driving the sector lower was news of a new mining tax being proposed by Australian Treasury Secretary, Ken Henry.
Resource nationalism down under
The mining sector took another leg down on Thursday afternoon in London:
Now what could have caused that? Surely not Obama’s Glass Stegall II proposal.
Nope. Instead, traders are pinning on it on a story published by the Sydney Morning Herald on Thursday:
China, iron ore and Frank Timis (updated)
You can’t keep a good man down.
On Wednesday, the irrepressible Frank, ‘I do a lot of good work for charidee’, Timis was back with another deal — this time for his iron ore play African Minerals.
A state-owned Chinese industrial conglomerate,
Rio’s Cloud Peak in $459m IPO
Rio Tinto’s Cloud Peak Energy coal unit raised $459m in an IPO at $15 a share, below its forecast range, reports Bloomberg. Cloud Peak, the third-largest US coal producer, had sought $16 to $18 a share,
Snap news
Breaking pre-market news on Thursday,
- Xstrata says it has no intention of making an offer for Anglo American – statement.
- Anheuser-Busch InBev agrees to sell central European operations to CVC for $2.2bn – statement.
Snap news
Breaking pre-market news on Wednesday,
- Punch Taverns writes pub values down by £663m — statement.
- Earthport says no talks with potential bidders are taking place and it is no longer in an offer period — statement.
Snap news
Breaking pre-market news on Tuesday,
- Rio Tinto sells Alcan Composites to Schweiter Technologies for $349m – statement.
- Ofcom says ITV network licence is no longer sustainable by 2012 – statement.
Rio case raises fears of crackdown
The arrest last month of four Shanghai-based Rio Tinto executives has raised fears of an unprecedented crackdown by Beijing on foreign companies. China-based foreign executives told the FT that while the Rio case may be unique,
Snap news
Breaking pre-market news on Tuesday,
- Rio Tinto receives $2bn binding offer for majority of Alcan Packaging businesses — statement.
- Corporate: British Land, Pendragon, Readymix, VP, Luminar, Schindler,
Amcor to finalise A$2.4bn deal
Amcor is poised to cement its position as one of the world’s largest packaging businesses as its finalises details of the A$2.4bn ($2bn) purchase of Alcan packaging assets from Rio Tinto, the Anglo-Australian minder.
Rio to spin off US coal mines
Rio Tinto plans to spin off some of its most valuable coal mines in the US, via an IPO that could exceed $1bn in value. The Anglo-Australian miner hopes by year-end to have completed an IPO of most of Rio Tinto Energy America,
Rio arrests: China’s perverse ‘PR’ campaign
So now it’s official. China has formally arrested four Rio Tinto employees, including Rio’s chief iron-ore negotiator, Australian citizen Stern Hu and three Chinese employees, on charges of obtaining trade secrets and commercial bribery,