Myer sales down 1.53% in September quarter, G20 summit looks for ways to boost growth: Economy Roundup

Department store giant Myer has released sales figures for the October quarter, with sales down 1.53% to $706 million.

The company said that in the three months to 30 October, sales had dropped on a like-for-like basis by 1.74%, and sales were down by 1.31%, excluding the refurbishment of the Melbourne store.

The company said furniture, women’s accessories, menswear and youth apparel had all sold well, while the entertainment category was delivered a hit due to price deflation – an issue noted by other retail veterans including Gerry Harvey and Terry Smart.

However, chief executive Bernie Brookes said he is confident that profit will grow by 5-10% during 2011 so long as trading conditions do not deteriorate further.

“Myer delivered a credible sales result in the first quarter of FY11, notwithstanding that the consumer remained cautious in the face of growing concern around interest rates and uncertain economic conditions,” Brookes said.

“In an increasingly competitive environment, Myer maintained a competitive position while price deflation occurred across most categories.”

World leaders attending the G20 summit in South Korea have once again discussed plans to give the world’s economy a boost, sparked by fears Ireland will have troubles repaying its debts.

While US president Barack Obama has said world leaders will find a way to boost growth, it has been reported various leaders have been bickering over the wording of a final statement.

“The persistence of these imbalances is a problem in the long term and these things have to be addressed,” Canadian Prime Minister Stephen Harper told reporters. “Will they be addressed at this conference? I’m not so sure, but I think we’re getting a more frank discussion on some of these matters, that they do have to be resolved.”

Analysts have pointed out the summit is a good opportunity for leaders to include India and China, but those nations have indicated negotiations are still a problem.

“The real issue is, given that it is a problem, how do we coordinate policy? I don’t think you should be too demanding … because such policy coordination has never been attempted before,” India’s chief G20 negotiator, Montek Singh Ahluwalia, told Reuters.

Also at the summit, prime minister Julia Gillard has signed a nuclear deal with Russian president Dmitry Medvedev, saying the agreement will help serve Russia’s energy needs.

Shares flat after Wall Street decline

The Australian sharemarket has opened flat today following a weak lead from Wall Street, where stocks have fallen due to a poor performance in the tech sector.

The benchmark S&P/ASX200 index was down 0.3 points or 0.01% to 4728.3 at 12.10 AEST, while the Australian dollar slipped below parity to $US99c.

AMP shares gained 1.3% to $5.31, while Commonwealth Bank shares gained 0.3% to $48.78. Westpac rose 0.8% to $22.10 as NAB lost 3.1% to $26.46.

Goodman Fielder and Cargill Australia have scrapped their deal over the Goodman edible fats and oils business after the Australian Competition and Consumer Commission failed to give approval.

“The ACCC investigation found that the proposed acquisition of the Goodman Fielder assets by Cargill would lead to a significant concentration of refining assets in Australia and remove one of only a small number of competing refiners that offer a wide range of fats and oils products,” chairman Graeme Samuel said in a statement.

“The ACCC also concluded that any potential competitors face significant difficulties in viably obtaining certain inputs necessary to supply a number of edible fats and oils products, limiting their ability to provide an effective competitive constraint post-acquisition.”

Publishing group PMP has said it expects double-digit earnings growth during 2010-11 due to new contracts.

The company said EBIT will fall between $31-33 million for the 12 months to 30 June 2011, while chairman Graham Reaney said earnings guidance would depend on how economic conditions play out.

“The second half result is well supported by a number of new contracts and we would expect a considerable uplift from last years $22.1 million result,” he said in a statement.

“Thus, for the full year, we are looking for double digit growth in EBIT before significant items.”

CBA misquoted on rates, Norris claims

Commonwealth Bank chief executive Ralph Norris has claimed he was misquoted regarding comments on interest rate increases.

Norris refers to articles printed by News Limited, which he says printed a story in which he indicated there would be “a few” more interest rate increase. However, Norris says this was a misquote.

“The statement, ‘But in defence of the bank’s Melbourne Cup Day rise, Sir Ralph Norris said it was better to see ‘a few’ foreclosures than have an economy hamstrung by a low-profit banking system’ is completely untrue,” the bank said.

On Wall Street, stocks fell due to a poor performance in the tech sector overnight. The Dow Jones Industrial Average fell 73.94 points or 0.65% to 11,283.10.