Unemployment stays at 4.9%, employment numbers up but miss expectations: Midday Roundup

Unemployment remained steady at 4.9% in May, according to Australian Bureau of Statistics figures, with the number of people employed increasing by 7,800.

While the 4.9% figure was not a surprise, economists had expected around 25,000 new jobs to be created. The previous month, 22,100 jobs were lost.

Part-time employment increased by 29,800 to 3,413,500. However, this was offset with a decrease in full-time employment, which was 22,000 people to 8,027,100.

The participation rate remained at 65.6%, unchanged from April.

ACCC approves Qantas, American Airlines venture

Qantas has received interim authorisation from the ACCC for their proposed trans-Pacific joint venture with American Airlines today.

Under the proposed venture, the airlines will coordinate services between Australia and the US, and New Zealand and the US. This also includes services that support the trans-Pacific routes.

The interim authorisation allows both airlines to coordinate sales and marketing campaigns in Australia and the US.

“The granting of interim authorisation in no way binds the ACCC in its consideration of the substantive application for authorisation,” the competition watchdog said in a statement.

The ACCC is seeking submissions from interested parties on Qantas and American airlines’ application and expects to receive a full draft decision in August or September.

Shares flat on weak Wall Street leads

The Australian sharemarket has opened flat this morning following weak leads from Wall Street overnight, where investors are worried over pessimistic economic data.

The benchmark S&P/ASX200 index was up five points or 0.12% to 4542.1 at 12.00 AEST, while the Australian dollar remained flat at $US1.06c.

AMP shares fell 0.82% to $4.86, as Commonwealth Bank shares gained 0.1% to $49.37. ANZ shares rose 0.7% to $21.49 as Westpac fell 0.41% to $31.44.

In the United States, the Dow Jones Industrial Average fell 21.87 points or 0.18% to 12,048.94.

AACo eyes profit hit after export ban

Shares in Australian Agricultural Company have slipped after announcing an earnings downgrade following the Government’s decision to ban live animal exports to Indonesia.

AACo said it expects EBITDA for the 2011 financial year to be in the range of $50-60 million, whereas previously it expected earnings of between $60-65 million.

“Indonesia has been a destination market for AAco cattle, however AAco will not resume sales to Indonesian importers until a full cycle of humane, proper and correct processing can be demonstrated and secured by the importer,” AACo said in a statement.

“Appropriate reductions can then be made to the previously forecast cattle purchases that would no longer be required,” the company said.

ANZ to replace RSA tokens

ANZ has said it will replace 50,000 tokens manufactured by security firm RSA and used by staff after RSA suffered a security breach back in March.

“ANZ has decided to re-issue new RSA tokens to all customers and staff currently using the technology,” ANZ has told ZDNet.com.au.

“While there is no direct threat to ANZ customers, we believe this is the best course of action given recent advice from RSA,” the company said.

RSA caused a stir in the IT industry when it revealed its networks could have been compromised. Several large banks, multinational corporations and government departments all use RSA tokens.

OPEC fails to reach oil agreement

OPEC negotiations have failed with no agreement made to raise oil output, members have said following heated meetings.

“We were unable to reach an agreement – this is one of the worst meetings we have ever had,” oil minister for Saudi Arabia Ali al-Naimi told Reuters.

“It is absolutely amazing,” said former OPEC president Alirio Parra said. “This is not market leadership.”

Analysts have commented the disagreement was rooted in political disagreements, rather than fights over the need for more oil.