Kmart hit by online security breach; ANZ chief executive Mike Smith resigns: Midday Roundup

Kmart has been hit by a security breach of the retailer’s online operations, which has seen customer data such as names, emails, phone numbers and addresses potentially compromised.

Customers were notified about the “external privacy breach” by email yesterday, according to Fairfax, but assured no credit card data was stolen.

The company has since released a statement confirming all affected customers had been contacted directly and indicated the breach only affected a section of Kmart Australia customers who shop online.

Kmart said it is investigating the breach and has also contacted the Australian Federal Police and the Office of the Australian Information Commissioner.

The breach follows a similar data breach for US Kmart last year where customer card details were stolen.

ANZ chief executive Mike Smith resigns

The chief executive of ANZ Mike Smith will step down at end of the year, with chief financial officer Shayne Elliot set to take his place.

The bank’s board unveiled the plans in an announcement to shareholders earlier this morning.

Smith, who has been in the role for eight years, will continue to serve as a non-executive advisor to the bank’s board.

He said in a statement it was the right time for Elliot to take over the reins.

“Our succession process saw a smooth transition to our new chairman last year and now is the appropriate time for me to step down,” Smith said.

ANZ chairman David Gonski said in the statement Smith had steered the bank through the global financial crisis.

“Despite those headwinds and a volatile environment for banks around the world, his leadership has seen ANZ continue to grow market share in Australia and establish a strong, growing New Zealand business under one brand,” Gonski said.

Shares rally

Local shares were showing signs of recovery this morning on the back of large losses sustained earlier the week.

But Michael McCarthy, chief market strategist at CMC Markets, said questions remain about how long the newfound optimism would last.

“European and US markets took their cues overnight from Asia Pacific trading, largely echoing the 2% gains seen across the region yesterday,” he said.

“Improving sentiment saw industrial commodities bounce, and a further 14% rally in Glencore shares means they are close to flat for the week.

“Questions around whether the buying represents end-of-quarter window dressing or new optimism will likely be swept aside today by the release of crucial data in China.

“The quarter ending yesterday saw many share markets record falls of around 8-10%, in many cases for the second quarter in a row.

“The last minute rallies improved the numbers, but investors remain divided on whether the current weakness is a correction or an unfolding crisis.”

 The S&P/ASX200 benchmark was up 1.3%, rising 64.7 points to 5086.3 points at 12.21pm AEST. On Wednesday, the Dow Jones closed up 1.47%, rising 235.57 points to 16284.7 points.