Building approvals fall in April: Midday Roundup

Total dwelling approvals fell by 1.3% last month, despite an 8.6% increase in March, according to the latest figures from the ABS.

In the private sector, housing approvals fell by 3.3% in April following a 1% decrease, while “other dwellings” approved rose by 6.5% – this comes after a 24.7% increase in March.

The seasonally adjusted estimate for the value of total building approvals fell by 18.8% in April, after a 20.9% increase in March.

Trade deficit increases in March

The current account deficit rose by a seasonally adjusted 29% to $10.4 billion in the March quarter, according to the latest figures from the Australian Bureau of Statistics.

The ABS said the surplus on the balance of goods and services fell by 52% to $3 billion, while the primary income deficit fell by 7% to $13.2 billion.

The figures come after a Reuters poll of analysts predicted a deficit of $10 billion, with net exports to steal 1.15 percentage points from growth in the March quarter.

Westpac to launch Beijing branch

Westpac plans to open a branch in Beijing, after the company has received regulatory approval for the venture.

According to AAP, Westpac will open on June 29 and will be the bank’s second location in the country, as it operates a branch in Shanghai.

Shares flat on lack of overseas lead

The Australian sharemarket has opened flat overnight, with public holidays in both the United States and Britain shutting down markets.

The benchmark S&P/ASX200 index was up 40 points or 0.87% to 4708 at 12.00 AEST, while the Australian dollar was down to $US1.06c.

AMP shares gained 1.16% to $5.22, while Commonwealth Bank rose 0.99% to $50.80. NAB rose 1.6% to $26.59 as Westpac gained 1.1% to $22.11.

Lagarde pledges to reform IMF

French finance minister Christine Lagarde has promised to continue reforming the International Monetary Fund if she is elected as its leader, making the remarks in a speech in Brazil.

But according to Reuters, the Brazilian finance minister Guido Mantega has said the country has not yet decided whether to support Lagarde or Mexican central bank head Agustin Carstens.

“If I was elected, I’d make sure that the diversity of members is represented at all levels,” Lagarde told reporters, adding that the IMF “must continue the reform process it began under Dominique Strauss-Kahn, the former IMF chief.”

Japanese manufacturing increases

Japanese manufacturing activity expanded for the first time in three months as companies recover from the March earthquake and tsunami disasters.

According to the Markit-JMMA Japan Manufacturing Purchasing Managers Index rose to a seasonally adjusted 51.3 points from 45.7 in April – that was the lowest point since April 2009.

“PMI survey data pointed to a welcome rebound in Japanese manufacturing activity in May, as a sharp easing in supply chain pressures enabled firms to restart production lines following the disruption caused by March’s earthquake and tsunami,” Markit economist Alex Hamilton said in a statement.

Conroy to work with ACCC on NBN

Communications minister Stephen Conroy will work with the Australian Competition and Consumer Commission regarding negotiations between the Government and Telstra regarding the NBN, according to the Australian Financial Review.

The report claims the ACCC will receive new instructions on how to rule whether Telstra’s structural separation gives rival companies access to its copper network.