THE NEWS WRAP: Business lobby groups come out swinging against carbon tax

Business lobby groups have come out swinging against the carbon tax, despite its passage through Parliament’s lower house yesterday.

The Australian Chamber of Commerce and Industry said that its analysis shows that trade-exposed SMEs will have their profits cut by 10 to 20% due to carbon pricing.

Peter Anderson, chief of the ACCI, said: “It will use every forum available in the community to explain why Australia is making a significant mistake in moving ahead of our competing nations by introducing an economy-wide carbon tax, which will cost jobs and essentially do nothing to improve the global environment.”

However, more than 300 businesses, including General Electric and wind energy firm Pacific Hydro, have signed an open letter supporting the tax.

News Corp rejects board overhaul

News Corporation has hit back at moves to remove most of its board, including CEO Rupert Murdoch, calling the proposals “misguided”.

Several shareholder groups, as well as advisory firm Institutional Shareholder Services, have called for a boardroom overhaul in the wake of the phone hacking scandal in the UK.

However, News Corp has rebuffed the move, saying in a statement: “ISS’s disproportionate focus on the News of the World matter is misguided.

Our litigation exposure to the News of the World matter could affect News Corporation’s results of operations and financial condition, and we are taking this matter very seriously.”

iPhone4S sellers dodge jail term

Two men who sold a mislaid iPhone4S prototype have avoided being sent to jail, with a judge sentencing the duo to a year’s probation instead.

Brian John Hogan and Sage Robert Wallower were fined $250, but allowed to keep the $4,750 they made by selling the phone to technology website Gizmodo.

Overnight

The Dow Jones industrial average was up 102.55 points, or 0.90%, to 11,518.85. The Australian dollar climbed to 102 US cents.