Carbon price to begin from July 2012: Midday roundup

Prime Minister Julia Gillard said a temporary carbon price will apply from 1 July 2012 before a full emissions trading scheme can be introduced three to five years later.

In an announcement this morning she said while the new price has not been set yet “we can’t afford not to move to a clean energy future”.

The fixed price will be introduced and applied for between three to five years, when a cap-and-trade system will be introduced.

The proposal will be released for community consultation and has the support of Greens climate committee members.

“The committee will continue to discuss other important elements of the proposal including the starting level of the fixed price, any phasing in of sectors of the economy and assistance for both households and industry,” Gillard said.

Business investment rises 1.3% in December quarter

Business expenditure grew by a seasonally adjusted 1.3% during the December quarter according to latest figures form the Australian Bureau of Statistics.

The estimate for buildings and structures fell by a seasonally adjusted 2.8% while the estimate for equipment, plant and machinery rose by 6.1%

Fairfax profit up 16%

Media giant Fairfax announced a 16% increase in net profit after tax to $165.4 million in line with forecasts, with revenue gaining 3% to $1.3 billion.

The company said its position was “strong”, but said declines in consumer demand had become more evident during the final six weeks of the year.

It confirmed that it will promote digital operations head Jack Matthews to the position of chief executive of metropolitan media to oversee print and digital versions of The Age and the Sydney Morning Herald.

“If there is any signal that Fairfax is serious about its future and understands where it is going this appointment underlines that,” chief executive Greg Hywood said.

Shares lower on mid-east unrest

The Australian share market opened lower this morning after continued unrest in the Middle East shook global trade.

The benchmark S&P/ASX200 index was down 21 points or 0.45% to 4823.9 at 12.15 AEST and the Australian dollar remained at parity.

ANZ shares lost 0.17% to $24.17, Commonwealth Bank shares dipped 0.32% to $53.02, Westpac lost 0.32% to $23.58 and NAB fell 0.43% to $25.71.

Origin profit falls 14%, downgrades guidance

Origin Energy reported a 14% drop in underlying profit to $304 million for the half ending 31 December.

The company said it recorded a loss of $136 million with underlying EBITDA gaining 16% to $818 million. It expects full year underlying profit growth between 10-15% compared to the previous estimate of 15%.

“Origin has been through a period of substantial capital investment, expanding our oil and gas production and power generation capacity and it is pleasing to see this reflected in a strong increase in underlying EBITDA and cashflow,” chairman Kevin McCann said.

Wall Street stocks fall after Libya unrest

Stocks in the United States continued to fall due to political unrest in the Middle East, with violence in Libya sending oil prices over $US100 a barrel.

Tech stocks also fell, with analysts pointing to an inevitable market correction.

The Securities and Exchange Commission has begun an investigation into secondary trading markets according to the Wall Street Journal – the markets are used to trade privately owned stocks for companies including Facebook and Twitter.

The Dow Jones industrial average fell 107.01 points or 0.88%, to 12,105.78.