THE NEWS WRAP: CBA will think twice about lifting mortgage rates higher than the RBA

Ralph Norris, chief executive of the Commonwealth Bank of Australia, has admitted that he will think twice about lifting mortgage rates higher than the Reserve Bank’s official rate in the future.

According to the Australian Financial Review, Norris, who has unveiled record first half profits, said that the CBA’s controversial rate rise in November had an “impact” on customers and that he would be “very reluctant” to make a further rate move beyond that of the RBA’s in the future.

ATO signal end of private equity battle

The Australian Tax Office’s battle with overseas investors could be nearing an end. The ATO has shifted position by saying that it does not want to unduly tax foreign venture capitalists that invest in Australian companies, as long as they are taxed elsewhere.

The dispute arose from Myer’s float in 2009, with the ATO seeking to stop any of the $1.4 billion raised leaving the country. 

Nokia chief admits company’s on a “burning bridge”

The new head of Nokia, which was previously the global leader in mobile devices, has admitted that the company is on a “burning platform” due to the emergence of innovative competitors.

In a memo to staff, Stephen Elop admitted, “The first iPhone shipped in 2007, and we still don’t have a product that is close to their experience.”

Overnight

The Dow Jones industrial slipped 10.22 points to 12,222.93 and the Australian dollar dipped slightly to 101.12 US cents.