Swan downgrades new jobs target, Greece rejects EU takeover plan: Midday Roundup

Federal Treasurer Wayne Swan says the Government no longer expects 500,000 new jobs to be created over the next couple of years.

Swan told ABC Radio this morning that although the outlook for jobs in Australia was stronger than just about any other developed economy, it will not reach the Government’s target.

“Certainly we will do less than that,” he said, adding that last November’s mid-year budget review acknowledged as much.

Swan also played down the prospect of a financial transactions tax, as flagged in France at the weekend.

He added that although he was delighted that Australian banks were profitable and well capitalised, they need to be competitive and deliver a good deal to their customers.

Greece rejects Germany’s EU takeover plans

Greece has rejected a push by Germany for the European Union to take over Greece’s finance.

“Whoever hands people a dilemma between financial aid and national dignity is ignoring basic historical teaching,” finance minister Evangelos Venizelos said.

The statement follows comments by the German Economy Minister Philipp Roesler that Greece needed more leadership and monitoring to ensure it complied with strict austerity measures.

“If the Greeks fail to do this themselves, the leadership and monitoring must come in a stronger way from outside, for example via the EU.”

Athens needs to reimburse €14.5 billion worth of bonds in two months.

Transurban chief Chris Lynch steps down

Toll road company Transurban is set for another chief executive, after Chris Lynch announced his resignation this morning, effective July 1.

Transurban chairman Lindsay Maxstead says the company has a “well-informed, well-researched view of the external market against which any internal candidates will be tested.”
Its shares were down 1% at 11.40 AEST at $5.51.

Shares open flat after Greece rejects EU deal

The Australian sharemarket has opened flat this morning after similar leads from overseas markets, after Greece rejected a bailout plan from Germany designed for the European Union to take control over the country’s finances.

The Australian sharemarket fell 0.3% or 13 points to 4275.4 at 12.00 AEST, while the Australian dollar remained flat at $US1.06c.

AMP shares lost 1.84% to $4.27, while Commonwealth Bank shares rose 0.1% to $51.21. Westpac shares lost 0.47% to $21.19 as NAB lost 0.71% to $23.91.

In the United States, last week the Dow Jones Industrial Average fell 74 points or 0.6% to 12,660.5.

Woolworths appoints new directors

Woolworths has appointed three new directors, it has announced, with Christine Cross, David Mackay and Michael Ullmer joining the company.

Cross was formerly an executive of British firm Tesco, while Mackay joins after retiring as chief executive of the Kellogg Company.

Ullmer comes after retiring as deputy group chief executive at NAB.