Business confidence jumps again, Shares flat: Economy Roundup

Businesses are now the most confident they have been in years as they take advantage of a sustained economic recovery, the latest results of the NAB business survey and economic outlook for February reveals.

The survey shows confidence rose by four points to 19, returning to levels seen in 2002, with NAB pointing out that the index has now been in double digit territory for the past six months.

The survey also reveals conditions rose by five points to eight, reflecting higher levels of profitability, also up five points, and that activity in the recreation, personal services and retailing industries has improved.

But there was also some bad news, with the survey showing that business capital expenditure only gained slightly during February, while the difficulty in finding finance index gained three points to seven.

“The February Survey results suggest that growth momentum in early 2010 is still substantial, albeit somewhat below the very strong demand conditions of late 2009,” chief economist Alan Oster said in the survey’s accompanying report.

“Early 2010 appeared slower in January, but the latest survey indicates at least a partial bounce back in both confidence and conditions. It is possible that, just as the extent of the slowing in January may have been unexpected, so the uptick in February took many businesses by surprise, with some de-stocking in the face of stronger trading conditions and a slight fall in the employment index.”

“Nevertheless, trading, profitability and employment are all firmly in positive territory, with employment and profitability being above long-term average levels.”

Meanwhile, property development group Lend Lease has announced former Leighton Holdings executive Scott Charlton as its director of operations.

Charlton, who will begin in his role immediately, will be responsible for managing the company’s key corporate functions, including corporate affairs, and communications technology.

“We are delighted to have secured someone of Scott’s calibre to join our senior management team,” McCann said in a statement to the ASX.

“Scott’s background and in-depth knowledge of the infrastructure market will be a great asset as we continue to focus on our longer term growth strategy.”

Shares flat after weak Wall Street lead

The Australian sharemarket has opened flat today due to a weak lead from Wall Street and commodities markets.

The benchmark S&P/ASX200 index was up three points or 0.07% to 4811.3 at 11.50 AEST, while the Australian dollar also increased lost some ground to US90c.

ANZ shares lost 0.5% to $23.69, while Commonwealth Bank shares also lost 0.3% to $54.65. Westpac gained 0.1% to $26.87 as NAB rose 1.2% to $26.65.

Centrebet International, which recently said it will allow betting on the S&P/ASX200 index, has said it is “facilitating discussions” with companies which have expressed interest in a takeover.

“Given the nature of the proposals and that further proposals may well be received, it is not considered appropriate or in the best interests of Centrebet and its shareholders to provide any further details concerning the proposals received at this stage,” the company told the ASX.

“In considering any proposal, the Centrebet Board will be seeking to maximise shareholder value and will have regard to the strong growth potential of the business, courtesy of the company’s current strategy and the positive industry landscape in Australia in particular.”

As reported in The Australian, the country’s largest cotton farm, Cubbie Station, may be acquired by the Federal Government if administrators cannot successfully find a buyer.

It is understood McGrathNicol is current negotiating with the Government as one option to purchase the farm if all other opportunities fail. Others included in negotiations are understood to be Eastern Australia Agriculture, and Cubbie Station’s existing directors.

Woodside workers claim asbestos exposure

Workers at the Pluto liquefied natural gas project in Western Australia have been exposed to high levels of asbestos, the Manufacturing Workers Union has said.

Secretary Steve McCartney has said independent tests have showed eight workers have been exposed to high levels of asbestos – a development he says is unacceptable.

“It’s outrageous that in the year 2010, Australian workers continue to have their life expectancy put at risk due to dangerous levels of asbestos,” he told AAP. “This fabrication work should be carried out in Australia where our stringent policies would ensure that workers are not put at risk.”

“The exportation of this work puts short-term profits ahead of the long-term health and safety of Australians… It’s a disgrace that Woodside do not have checks and balances in place for imported Third World products.”

The union has also said it has written to Woodside Petroleum asking for details on the procedures which will be put in place to prevent any further exposure.

Macquarie Capital has said it has appointed Nomura’s Gaurav Gupta as head of India for Macquarie Capital Advisers.

“We have built a strong platform in India and Gaurav’s relationships and strong origination capabilities across sectors will help us to maintain this momentum and grow our business in India further,” deputy head of Asia, Kalpana Desai said in a statement.

Overseas, the US markets were held up by technology stocks following a relatively weak day. The Dow Jones Industrial Average dropped 13 points or 0.13% to 10,552.52.