Building approvals plummet 14% in September: Midday Roundup

Building approvals have plummeted 14% in September, according to the latest figures from the Australian Bureau of Statistics, crushing any expectations economists and analysts had of a rise.

According to the figures, approvals fell by 13.6% to 11,889, following an 11.4% rise in August.

The move comes just one day after the RBA cut the official interest rate by 25 basis points to 4.5%, with property experts hoping the cut will give the industry a boost.

Economists had expected only a 5% decline.

Westpac profit hits record $6.3 billion

Westpac has announced a record profit of $6.3 billion, joining NAB and Commonwealth Bank in achieving record results for the year.

In a statement, chief executive Gaily Kelly said the bank’s changes are delivering results.

“Deeper customer relationships, measured by customers with four or more products, are a real strength at a time of more subdued economic growth,” she said in the statement.

“We are also growing overall customer numbers in each of our major brands.”

Net profit rose to $6.9 billion for the year to September 30, up from $6.3 billion. The bank’s net interest margin was at 2.22%, with its tier 1 capital ratio rising 59 basis points to 9.7%.

Shares fall after US stocks drop 2.5%

The Australian sharemarket has fallen 2% this morning after US stocks fell, with investors growing increasingly pessimistic about the European sovereign debt crisis, especially in Greece.

The benchmark S&P/ASX200 index was down 81 points or 1.9% to 4151.5 at 12.00 AEST, while the Australian dollar fell to $US1.03c, following yesterday’s decision to cut rates by the RBA.

AMP shares fell 2.39% to $4.08, while Commonwealth Bank shares lost 2.28% to $47.59. Westpac lost 4.15% to $21.03 as ANZ lost 3.09% to $20.70.

In the United States, the Dow Jones Industrial Average fell 2.5% or 297 points to 11,658.

Optus chief criticises Telstra split

Optus chief executive Paul O’Sullivan has told the Australian Financial Review that the Australian Competition and Consumer Commission needs to increase its regulation surrounding Telstra’s structural separation.

The publication reports O’Sullivan says the split is “fatally flawed” and says a bigger split is needed.

“I think the (almost unanimous Telstra shareholder vote earlier this month) gives everyone a chance to move on and to get things happening, so we see that as a positive,” he said.

“But now, the even more important piece has to happen, and that is getting the structural separation right.”