Local shares fall 1.5% after negative US lead: Midday roundup

The Australian share market fell 1.5% this morning.after a negative night on Wall Street investors became more nervous about the ongoing debt crisis in Europe and about confidence in the ability of leaders to avoid a financial catastrophe.

The benchmark S&P/ASX200 index was down 1.4% or 56.9 points to 3982.9 at 12.00 AEST while the Australian dollar fell to $US97c.

AMP shares fell 1.04% to $3.79, Commonwealth Bank shares fell by 1.47% to $44.83, Westpac shares fell 0.82% to $20.48 and NAB lost 2.4% to $22.40.

Job vacancies fall 1.3% since May

The number of job vacancies in August was 166,300, down 1.3% since May.

According to the Australian Bureau of Statistics the number of job vacancies in the private sector was 166,400 in August 2011, a decrease of 1.3% from May 2011.

The number of job vacancies in the public sector was 17,400 in August 2011, a decrease of 1.5% from May 2011, the ABS said.

ACCC clear Qantas joint venture

The Australian Competition and Consumer cleared a joint venture between Qantas and America Airlines, allowing the pair to co-ordinate operations between Australia, New Zealand and the United States.

“The ACCC does not consider that the JBA will have any anti-competitive effects as Qantas and American Airlines do not currently provide any overlapping direct services on the trans-Pacific routes,” the competition regulator said.

“This JBA is likely to result in new and improved products and services which will benefit passengers, including improved schedules and connectivity.”

The approval from the competition regulator follows the thumbs-up for an alliance between Virgin Australia and Delta Airlines on trans-Pacific routes.

Government rejects claims Henry Review gathering dust

The Government has slammed claims that the Henry Tax Review is gathering dust two years after it was completed.

The comments by Opposition foreign affairs spokesperson Julia Bishop were rejected by finance minister Penny Wong this morning, who told Sky News “that’s a little harsh”.

“The Henry tax review has informed a lot of thinking about the way forward for the next 20 years,” Wong says.

Trade minister Craig Emerson told ABC Radio that “I don’t think we need lectures from the Coalition on tax reforms … thirty-odd recommendations were accepted”.

St George cuts fixed loan rates

St George and Credit Union Australia have announced changes to fixed-rate mortgages.

St George has announced its three-year fixed rate loans will drop by 15 basis points to 6.39% while its two-year fixed rate loan will drop by five basis points to 6.39%.

Chief executive Rob Chapman said it was the fifth cut since the middle of the year, according to Reuters.

CUA also announced its three year fixed rate loan would drop to 6.34%.