French finance minister tipped to be new IMF boss, Glencore debut underwhelms: Midday Roundup

The resignation of IMF managing director Dominique Strauss-Kahn has ignited questions about whether his successor will be a European, with expectations developing nations will battle the French for the top job at the global lender.

Dominique Strauss-Kahn, who resigned this week from the IMF after being accused in the United States of sexual assault, was last night granted bail, subject to electronic monitoring. He is expected to plead not guilty.

French Finance Minister Christine Lagarde is named as favourite for the role, with US Treasury Secretary Timothy Geithner calling for an open process that leads to a prompt succession.

Sources have told Reuters the US, which is the biggest contributor to the IMF, is believed to favour a European for the position.

Glencore debut underwhelms

The world’s largest commodities trader Glencore has ended its first day of trade pretty much where it started, after delivering London’s biggest ever initial public offering.

Sources have told Reuters that by the time order books closed a day earlier than originally planned on Tuesday this morning, it had attracted ordered of more than $US40 billion.

“The share price range was too high, full stop, as far as we were concerned,” one UK equities manager told the news wire.

“Put another way, had this been a 500 million-pound company, it would have had no chance of achieving the rating it is floating on.”

Macquarie eyes Fairfax radio assets

Macquarie Radio has said it would like to examine the assets of Fairfax Media’s radio division before it puts in a bid.

Macquarie, which already owns 2GB and 2CH in Sydney would add 3AW, 4BC and 6PR to its portfolio if a deal goes ahead.

“Upon receiving those details, MRN will determine whether it will submit an expression of interest in purchasing some or all of the assets,” Macquarie Radio said in a statement.

Fairfax purchased the stations for nearly $500 million back in 2007 from the Macquarie Media Group.

Shares flat despite Wall Street leads

The Australian sharemarket has opened flat this morning following a solid night on Wall Street, during which investors were given a boost of optimism due to the highly successful float of social network LinkedIn.

The benchmark S&P/ASX200 index was down 22 points or 0.47% to 4733.9 at 12.00 AEST, while the Australian dollar was higher at $US1.06.

ANZ lost 0.91% to $22.77 as Commonwealth Bank shares fell 0.42% to $52.16. Westpac lost 0.74% to $22.73 as NAB lost 0.36% to $27.30.

In America, the Dow Jones Industrial Average rose 45 points or 0.22% to 12,605.32.

ANZ signs new China deal

ANZ has reportedly signed a deal with the Export-Import Bank of China in order to increase its presence in the area.

China Eximbank is government-owned and is designed to provide finance to Chinese exporters. AAP reports that ANZ will provide Eximbank with finance and offshore bonds.

“We have a very good relationship with CDB. They are the biggest financier of Chinese business internationally,” chief executive Mike Smith said.

“What the agreement we have with them… is that we will take the flow through or indeed participate in their deals, or they may introduce deals to us that they can’t do but we can.”

“So it’s hopefully a win/win situation and so far it has worked out pretty well and there has been quite a bit of business referral both from them and to them.”