Banks, miners hit as shares drop 1.9pc

Banks, miners hit as shares drop 1.9pc

Updated | The local sharemarket has sunk to its lowest level this year, falling 1.9 per cent on Friday morning, with the major banks and miners sustaining heavy losses. US and European stocks fell sharply again overnight, as rising Spanish borrowing costs increased investor anxiety over that country’s banks and another round of weak data undermined hopes for a US economic recovery.

ResourcesDaily

Gillard contrasts Ichthys success with euro crisis

Gillard contrasts Ichthys success with euro crisis

Prime Minister Julia Gillard has used the official ground-breaking ceremony at Inpex’s $US34 billion Ichthys LNG project in Darwin to reiterate the boost resources are giving to the Australian economy.

Ashby accused of Slipper ambush

Ashby accused of Slipper ambush

James Ashby has been accused of ambushing parliamentary speaker Peter Slipper in a “character assassination” attempt. The parties were in the Federal Court in Sydney on Friday morning.

Union show of defiance targets BHP

Coalminers are preparing to declare a mass, seven-day strike across BHP Billiton’s Queensland coalmines from next week in a show of defiance against the company’s call to reduce the power of unions.

Technology

Facebook IPO prices at $US38 a share

Naysayers have failed to dampen enthusiasm for Facebook’s hotly-anticipated initial public offering, with the social network pricing its stock at the high end of a recently increased value range.

Technology

Hewlett-Packard to axe up to 30,000 jobs: reports

Hewlett-Packard to axe up to 30,000 jobs: reports

Technology giant Hewlett-Packard set to cut a wide swathe through its workforce, laying off as many as 30,000 employees as part of a radical restructuring plans, according to a report.

Barnett’s lauds ‘historic’ WA future fund

WA Premier Colin Barnett has labelled the state’s new $1 billion future fund “historic” and says it is the first time a state budget has looked to secure benefits for the next generation and beyond.

Indonesian abattoir now meets standards: Elders

Rural services company Elders said an abattoir it used in Indonesia would now comply with animal welfare standards even though it was identified by a departmental report as having breached the rules.

Capital

Traffic forecaster in a dark tunnel

Exclusive | Traffic forecaster Aecom is being sued by the receivers of RiverCity Motorway for making overly optimistic traffic forecasts in a landmark damages claim worth up to $2 billion.

Economists prop up Gillard’s higher debt ceiling

Economists prop up Gillard’s higher debt ceiling

Economists have defended the government’s decision to lift the debt ceiling by $50 billion, saying a financial buffer is important to preserve the status of Australia’s bond market as a safe haven during tough times.

Fitch says top global banks need $US566bn

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.

AFR iPad app to launch next week

AFR iPad app to launch next week

Fairfax Media will launch the Australian Financial Review iPad app next week at no extra charge for existing five- and six-day AFR and afr.com subscribers.

Has Labor lost Gen Y?

Has Labor lost Gen Y?

Bejamin Law says Labor’s poor media performance and conservatism have alienated younger voters, but there’s still time for the disaffected to make a difference.

Chanticleer

Nice job, there’s more to do

Chanticleer

David Thodey only has 38 “likes” on a Facebook public figure page dedicated to the Telstra chief executive.

Street Talk

Synergy key for IAG buyer

Synergy key for IAG buyer

Given Insurance Australia Group’s troubled history in the UK, a sale of its Equity Insurance Group business makes sense.

Video | Friday Market Minutes

RBS Morgans’ Roger Leaning says in two to three years people will kick themselves for not buying more shares now.  More AFR TV

Markets Summary

Change % Chg
S&P/ASX 200 4074.9 - 82.5 - 1.98%
Dow Jones 12442.49 - 156.06 - 1.24%
FTSE 100 5338.38 - 66.87 - 1.24%
SPI 200 JUN2 4076.000 - 84.000 - 2.00%
AUD/USD 0.9844 - 0.0042 - 0.42%

Markets Data »

Price % Chg
EVN EVOLUTION $ 1.500 + 10.70%
SLR SILVERLAKE $ 2.450 + 8.41%
MML MEDUSA $ 5.290 + 6.65%
NCM NEWCREST $ 25.370 + 5.23%
SBM ST.BARBARA $ 1.960 + 5.09%

Markets Data »

Price % Chg
OST ONESTEEL $ 0.965 - 8.10%
LNC LINC ENRGY $ 0.700 - 7.89%
AGO ATLAS IRON $ 2.100 - 7.89%
BTU BATHURST $ 0.480 - 7.69%
NWH NRWHOLDLTD $ 3.185 - 7.68%

Markets Data »

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National

Barnett’s lauds ‘historic’ WA future fund

WA Premier Colin Barnett has labelled the state’s new $1 billion future fund “historic” and says it is the first time a state budget has looked to secure benefits for the next generation and beyond.

Then again, prepare for rebound

Major global banks are advising clients to prepare for a stockmarket rally and a resurgence of the euro if Greece is forced out of the monetary union, betting that world authorities will flood the international system with liquidity.

SMEs want payroll reform

SMEs want payroll reform

The West Australian government has given small businesses a one-off break from payroll tax next year, but many business owners and industry groups would rather see a long-term cut to the 5.5 per cent tax rate.

World

Then again, prepare for rebound

Major global banks are advising clients to prepare for a stockmarket rally and a resurgence of the euro if Greece is forced out of the monetary union, betting that world authorities will flood the international system with liquidity.

Gap beats Wall Street's profit estimates

Gap beats Wall Street's profit estimates

Gap Inc raised its profit forecast, prompted by first-quarter earnings that topped Wall Street and by rising sales.

Let Greece exit and save Spain

Let Greece exit and save Spain

Everyone knows Greece is leaving the euro, the real challenge is preventing the fall-out extending to Spain.

Business

Financial services

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.

Desert prince may win Virgin

Desert prince may win Virgin

John Borghetti’s redesign of Virgin is aimed at confirming our feisty second carrier as a realisable opportunity to international airlines.

Markets

Letting go of the euro might be better for everyone

Letting go of the euro might be better for everyone

Two decades ago, when Europe’s leaders worked out the details of their grand vision for a single currency, most economists figured out that the euro would be fatally flawed.

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Personal finance

Fired, paid out, reinvented, rehired

Fired, paid out, reinvented, rehired

Burgess | Rehiring public servants can be a good way of retaining skills and managing peaks and troughs, but it can also be a gravy train.

Opinion

Notebook: dancing 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.

Lifestyle

London Olympics special | Fashion

London Olympics special | Fashion

The secret to looking like one of the cool crowd is to be edgy and irreverent.

London Olympics special | Day trip

London Olympics special | Day trip

The royal city of Bath has always been a fashionable place to take the waters.

London Olympics special | Food

London Olympics special | Food

The city’s restaurants have reinvented their menus – from regional specialities to classics with twist.

London Olympics special | To the richest, the spoils

London Olympics special | To the richest, the spoils

The greater spending power of some nations could upset Australia’s medal hopes.

Latest TV

Video | Friday Market Minutes

RBS Morgans’ Roger Leaning says in two to three years people will kick themselves for not buying more shares now.  More AFR TV

Video | JPMorgan’s hedging debacle

Capital editor James Eyers and reporter Jonathan Shapiro discuss what’s next for JPMorgan following its $2 billion trading loss.  More AFR TV