Australian dollar hits new 23-year high

The Australian dollar has priced in interest rate adjustments in Australia and the US. Analysts expect the RBA to raise rates, and the US Federal Reserve to cut them. Gaming company TAB will lose profit from the equine flu outbreak. ANZ could raise capital in Asia for its Asian expansion. Macquarie Bank is making a bid for a US energy player. The backlash from Merrill Lynch’s poor performance may cost CEO Stanley O’Neal his job. And Richard Branson wants to open a Virgin fitness chain in Australia.

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Australian dollar hits new 23-year high
The Australian dollar is at a 23-year high. It opened just below US92 cents today. Analysts expect the Aus-US interest rate differential to widen in the next few weeks.

Horse flu bites into Aussie TAB earnings
Tabcorp (ASX:TAH) has suffered from the horse flu scare earlier in the year. Chief executive Elmer Funke Kupper says the incident will knock AU$30 million off Tabcorp’s pre-tax profits.

ANZ flags Asia listing for equity
ANZ’s (ASX:ANZ) intended Asia expansion requires capital. But so far Australian investors have shown resistance to the plan. ANZ is now considering listing on Hong Kong or Singapore share markets.

Macquarie to buy US energy giant
Macquarie Bank (ASX:MBL) wants to buy US energy company Puget (NYSE:PSD). It’s leading a consortium of interested companies. The group’s offer values Puget at US$7.4 billion.

Merrill CEO to take fall, with $173m parachute
Merrill Lynch (NYSE:MER) boss Stanley O’Neal could soon be dismissed. Under O’Neal’s leadership the company went long in subprime assets that lost significant value. But, if dropped, O’Neal would still be entitled to US$30 million in retirement benefits.

Branson flexes fitness muscle
Richard Branson is planning to open a chain of Australian gyms. They’ll go by the brand “Virgin Active”. Australia’s fitness industry has doubled in the last five years.

All the best,

Al Robinson

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