Perpetual chief David Deverall steps down, Shares slide: Economy roundup

David Deverall has stepped down as managing director of Perpetual, saying the decision to resign has been a difficult one.

He will remain with the company until a new chief executive is found or until 31 March, 2011 if a suitable candidate is not found.

“The board understands David’s decision and has accepted his resignation with regret and wishes him well,” Perpetual chairman Bob Savage said in a statement to the Australian Securities Exchange.

“We thank David for his contribution over the last seven years. Perpetual’s standing in the financial services market remains strong.”

Deverall said this has been a “personal” decision.

“I now believe it is time for a change.”

Savage also reaffirmed Perpetual’s guidance, with the company expected to provide an underlying profit after tax of between $65-75 million for the year ending 30 June.

Meanwhile, Prime Minister Kevin Rudd has urged mining companies to enter negotiations with the Government regarding the super profits tax if they haven’t yet done so.

“A lot of the negotiations have been very, very good,” Rudd told reporters in Canberra today. “I would just encourage those who have not fully engaged yet, to do so.”

While Rudd said a “sensible and balanced outcome” would not please the mining industry, “that does not preclude us from engaging with those companies that wish to be substantively engaged in negotiations”.

It has been reported the Government is consider abandoning a rebate for exploration, along with a 40% upfront capital allowance for losses.

“Questions of detail and implementation, transition and even generous transition … is what we are negotiating with the companies, and we will continue to do so,” Rudd also said.

QRC says mining tax will cut $25 billion in spending

But the mining industry continues to attack the Government over the proposed tax, with the Queensland Resources Council saying a survey reveals the state could lose $25 billion in expenditure if it goes ahead.

The QRC states the survey reveals 46% of respondents feel they will have to scale back operations to remain viable, while 16% of respondents are considering shutdowns.

“The adverse consequences for the Queensland economy are immense, and the bad news does not stop there,” QRC chief executive Michael Roche said in a statement.

“The super tax in its current form is going to rob Queensland and Queenslanders of what should have been an unprecedented period of resource industry growth and opportunity.”

The Australian share market has opened lower today due to weak leads on Wall Street, where investors were disappointed with new housing figures.

The benchmark S&P/ASX200 index was down 49 points or 1.08% to 4509.2 at 12.20 AEST, while the Australian dollar has continued its fall to US87c.

Commonwealth Bank shares have dropped 2.3% to $51.33, while NAB shares have lost 1.6% to $24.68. ANZ fell 1.6% to $22.86 as AMP also declined 1.4% to $5.46.

Oil and gas manufacturer Woodside Petroleum has said that industrial action at the Pluto LNG project could raise construction costs, and contribute to some delays. It will also make an application to Fair Work Australia to stop the strike.

“Continued industrial action would delay mechanical construction activities and consequently impact the project schedule and cost,” Woodside said in a statement to the Australian Securities Exchange.

The strike began in late April. However, the company says the Pluto project remains on track with market guidance.

Suncorp-Metway is looking to double new life insurance business over the next three years, according to Suncorp Life chief executive Geoff Summerhayes.

In a speech, Summerhayes said the company’s “strategy is clear…We are on track and have made excellent progress.”

Overseas, Germany, France and Britain have announced new plans for a bank levy to recoup the costs of the financial crisis, ahead of the G20 summit this week.

In a joint statement, the three nations said they are “committed to the full implementation of the ambitious G20 financial sector reform agenda”. However, economists point out the timing of the deal suggests the three countries are pessimistic of a global deal.

Obama disappointed with economy

US president Barack Obama has said he is disappointed with the pace of economic recovery in America, saying he expected the country to be further along than where it is now.

“Over half a million private sector jobs have been created since the beginning of the year,” Obama told reporters after a Cabinet meeting in the White House. “But we also know that it is not moving as fast as we want.”

Obama said he is concerned about the budget deficit and growing debt, and urged leaders at the G20 summit in Canada to address the need of further economic stimulus.

“We discussed the need for progress to continue to move forward on an agenda of targeted measures that can help small businesses invest, that can make sure that unemployed workers are getting hired, that continue to add to the momentum of job growth and economic growth,” he said.

On Wall Street, stocks have continued to fall due to disappointing housing data. The Dow Jones Industrial Average fell 148.96 points or 1.43% to 10.293.45.