THE NEWS WRAP: Accept the oligopoly economy, says Andrew Robb

Shadow finance minister Andrew Robb has urged Australians to accept an ‘oligopoly economy’, saying it is important for companies in key industries to expand to create critical mass – as long as that power isn’t used in an anti-competitive manner.

“We are an oligopoly community. We shouldn’t fight it. We should make the most of it. It does provide us with the critical mass and the size and innovation and for that ability to compete with overseas countries,” Robb said.

“But governments of the day need to make sure that oligopoly power is not abused. So competition policy needs to be continually reviewed to ensure we are getting the best of both worlds.”

Nine planning $3 billion float

Nine Entertainment is gearing up for an IPO later this year, according to reports, with the media giant appointing UBS, Macquarie and Morgan Stanley to oversee the float.

Any listing will be used to reduce the debt burden incurred by the company while purchasing the Nine Network affiliates in Adelaide and Perth from Bruce Gordon’s WIN Television.

A float could potentially also be an opportunity for US hedge funds Apollo Global Management and Oaktree Capital Management, which currently own 95.5% of the network, to sell off some of their stake in the broadcaster.

JPMorgan hit with bribery investigation

US investment bank JPMorgan Chase & Co is being investigated by the US Securities and Exchanges Commission (SEC) for allegedly hiring the children of senior Chinese officials in order to win lucrative contracts.

According to reports, the investment bank is being accused of hiring Tang Xiaoning, the son of a former banking regulator, and Zhang Xixi, the daughter of a former senior railway official, before securing major deals from Chinese companies.

“[We have received] a request from the SEC Division of Enforcement seeking information and documents relating to, among other matters, the firm’s employment of certain former employees in Hong Kong and its business relationships with certain clients,” the bank said in a filing.

Overnight

The Dow Jones Industrial Average is down to 15081.5. The Aussie dollar is up to US91.92 cents.