Sundance Resources in trading halt following African plane crash, Shares rise: Economy Roundup

Iron ore miner Sundance Resources has requested a trading halt on the ASX following the disappearance of several executives, including billionaire Ken Talbot.

Chairman Geoff Wedlock, managing director and chief executive Don Lewis, secretary John Carr-Gregg along with John Jones and Craig Oliver are feared dead in a plane crash. The company has requested shares be halted.

IG Markets institutional dealer Chris Weston told AAP the company would face a significant sell-down in shares as a result of the incident.

“Ken Talbot obviously comes with a wealth of experience and he is helping with the business decisions, and the chairman is there as well,” Weston said.

“If you see sudden departures where they haven’t had an implementation plan to put someone else in place, that can cause insecurities on the stock.”

The search for the missing men continues.

Meanwhile, Harmer’s Workplace Lawyers has confirmed the employee involved in the Mark McInnes scandal is indeed Kristy Fraser-Kirk.

“To date, the firm has not revealed her identity so as to try and protect her privacy. However, another party thought it in their interest to leak Ms Fraser-Kirk’s name to the media. Yesterday’s media revelation means that withholding her identity is no longer possible.”

Harmer’s said in a statement it wants the media to refrain from pursuing Fraser-Kirk, who has had to leave her home as a result of being targeted by the media.

Meanwhile, global investors have celebrated after the People’s Bank of China released a statement hinting at the fact it could let the country’s currency appreciate through more flexibility.

“It’s a relief rally in the sense that this could ease trade tensions into the Group of 20 meeting,” said Sean Callow, Westpac senior currency strategist at Westpac told Reuters.

“Perhaps the excitement has been overdone as this is just a small step on a very long march,” he added. “But you have to assume the yuan will rise this week given all the political angst. They need to turn up at the G20 with something real.”

Local shares open slightly higher

The Australian sharemarket opened slightly higher this morning, partly due to the evidence of currency flexibility in China, along with news that Telstra and the Government have finally brokered a structural separation deal.

The benchmark S&P/ASX200 index was up 38 points or 0.84% to 4590.3 at 12.15 AEST, while the Australian dollar continued its climb to US88c.

ANZ shares have gained 1.3% to $23.43, while Commonwealth Bank shares have grown 0.6% to $52.90. NAB shares rose 0.3% to $25.19 as Westpac gained 0.4% to $23.65.

Meanwhile, Liberal MP Wilson Tuckey has said the disappearance of several Sundance executives is tied to the Government’s proposed super profits tax. He claims they were searching for iron ore in Africa due to the upcoming tax.

“Not in anyway trying to infer that there was any fault of the government or anyone else – where were they?” “They were in Africa. And why where they there? They were looking for iron ore – already.”

“We have a tragic example of where the mining industry is now focusing its attention. We have a stark and tragic example, apparently, telling us what’s going on.”

CSR is continuing to hold discussions with the Chinese Bright Food Group regarding the sale of its sugar business, but it says no deal has been finalised.

“CSR confirms that, in line with its previous advice to the market, CSR continues to engage in discussions with Bright Food, however no final offer has been received or terms agreed,” the company said in a statement.

The statement was made in response to speculation that $1.6 billion had been offered for the business, and a deal could be finalised.

Also in China, Fortescue Metals Group has entered into an agreement with Chinese engineering group Gezhouba Group Company in order to increase the capacity of its Chichester Hub iron ore operations to 95 million tonnes per year.

“Planning for the next expansion phase up to 95 mtpa is also advanced and the involvement of CGGC will bring benefits in areas such as procurement, engineering and overall project management oversight,” Fortescue said in a statement.

AMP receives New Zealand clearance to buy AXA

In New Zealand, AMP has received clearance from the New Zealand competition watchdog to purchase AXA Asia Pacific Holdings.

The New Zealand Commerce Commission granted clearance for AMP to buy the business, with chair Mark Berry saying watchdog was satisfied the del would not have any effect of substantially lessening competition.

“A merger between AMP and AXA APH’s Australian and New Zealand businesses would create a fifth pillar in the critically important financial services sector, creating a stronger wealth manager to better serve the Australian and New Zealand communities,” AMP said.

In London, finance minister George Osborne said the biggest threat to the British economy is the huge budget deficit, with an emergency budget this week set to steer the country towards a surplus.

“You can see in Greece an example of a country that didn’t face up to its problems, and that is the fate that I want to avoid,” Osborne told the BBC “I’m absolutely clear, I don’t want the question even asked, ‘Can Britain pay its way in the world?’ I’m going to prove on Tuesday that we can.”