PRESS DIGEST-Australian Business News - Oct 23

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

Ten Network (TEN.AX) executive chairman Nick Falloon says the advertising market appears to have turned. The remark comes following the release of the media broadcaster's fiscal 2009 results, which show increased demand for television advertising since last month. Demand is expected to continue into next year, and Ten's new top rating programs include MasterChef and Talkin' 'Bout Your Generation. Macquarie Research Equities analyst Alex Pollak says that Ten's capital-city television advertising market share was up 1 percent. Page 43.

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Mining giant BHP Billiton's (BHP.AX) (BLT.L) chairman, Don Argus, has scrutinised the Federal Government's Carbon Pollution Reduction Scheme (CPRS). Mr Argus told the Melbourne Mining Club that the corporate bond market should be expanded, and the Government's workplace relations changes would have a negative effect. BHP has deferred commentary about CPRS to the Minerals Council of Australia. Mr Argus, formerly the National Australia Bank chief executive, will step down from his role in 2010. Page 43.

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A high-definition (HD) digital video recorder and 36 new television (TV) channels will be launched next month - four months ahead of schedule - forcing Austar United Communications AUN.AX to downgrade its earnings forecast. The subscription TV provider's chief executive, John Porter, says that moving to HD earlier will cost a 'couple of million in gross margin and a couple of million in marketing and launch costs,' which will affect earnings. The launch was moved forward due to the 'noise around Freeview.' Page 43.

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Packaging company Amcor (AMC.AX) is preparing for another year of earnings unpredictability and the rising value of the Australian dollar could cancel out profits from its recent acquisition of Alcan Packaging. Amcor paid A$2.4 billion for Alcan's flexible, tobacco and pharmaceutical packaging assets. Analysts believe the currency's rise may reduce Amcor's reported profits by A$40 million this year. Macquarie Equities says that Amcor's dividend may dwindle by A4c to A13c per share. Page 44.

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THE AUSTRALIAN (www.theaustralian.news.com.au)

The Queensland Government says that two participating companies will be enough to guarantee the construction of a 'missing' railway link to central Queensland's coalfields. Three coal ports currently service the Bowen Basin behind Rockhampton and Mackay, but the lines that run to Abbot Point and Dalrymple Bay are not interconnected. Queensland Premier Anna Bligh called the project the 'Suez Canal' of central Queensland's coal sector, because it would 'revolutionalise' coal transport in the Sunshine State. Page 19.

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Melbourne-based resources company Newcrest Mining (NCM.AX) has reported a 5 percent fall in first-quarter gold production during the last three months. The move comes following lower grade ore at Indonesia's Gosowong, and commissioning problems at Papua New Guinea's Hidden Valley. Royal Bank of Scotland analyst Warren Edney says that production was lower for the quarter, but the company's steady output guidance was significant. There has been faster-than-expected commissioning of the Gosowong expansion in Indonesia. Page 20.

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Anglo-Swiss exploration company Xstrata (XTA.L) has bolstered its proposed construction of a new harbour between Queensland's Gladstone and Rockhampton. According to documents submitted to the Federal Environment Department, the project is still in progress and the location has been changed from Port Alma to Balaclava Island. A spokesman from Xstrata says the company has applied for 'significant project' status from the Queensland Government. The port is expected to commence operation in 2014. Page 20.

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Adelaide-based oil and gas producer Santos says it will meet production guidance this year, despite a 5 percent jump in third-quarter production to 13.9 million oil barrels, during the three months to 30 September. In 2008, Santos sold a 40 percent stake in its Queensland-based coal-seam gas business to Malaysia's Petroliam Nasional. Santos owns an interest in Exxon Mobil's Papua New Guinea-based gas project, and has a liquefied natural gas venture with GDF Suez. The company produces fuel with Conoco Phillips in Darwin. Page 20.

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THE SYDNEY MORNING HERALD (www.smh.com.au)

Lawyers for administrator Ferrier Hodgson have obtained approval to receive funding from litigation founder IMF Australia to conduct a series of examinations of former ABC learning directors, their auditors, its banking syndicate and external consultants. The failed child care provider collapsed last November with debts of A$1 billion. IMF wants to recoup around A$500 million from major creditor the Commonwealth Bank of Australia after it 'jumped the queue,' by becoming a secured creditor, only months before the collapse of ABC. Page 1.

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Law firms Slater & Gordon and Maurice Blackburn have filed suits in the Federal Court on behalf of shareholders against Centro Properties Group (CNP.AX) and now a new suit against PricewaterhouseCoopers is being considered. A statement of claim by the Australian Securities and Investment Commission alleges that directors had signed off on debts of A$2.6 billion, while audited accounts released on 10 days later on the 18 of September showed that Centro now had a debt of A$1.1 billion. Page 1.

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Outgoing chairman Trevor Rowe could not contain his excitement after a shareholder vote passed the resolution to change the name of engineering and property services company United Group Limited to UGL. Mr Rowe believes the move will give the company a unique brand much like GE, BHP and ASX and will allow it to stand alone against other companies that use United in their name. The name change did very little for the company's shareprice, falling A19 cents to close at A$14.04. Page 2.

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Today the Australian and New Zealand Banking Group (ANZ.AX) will unveil its new logo at a cost of A$15 million. Research was conducted in seven countries and 1550 people were surveyed in order to come up with a logo that will counter the view that the bank is impersonal and out of touch with its clientele. It will take ANZ around 18 months to implement the change and it will now use the strapline: 'We live in your world.' The latest move began in 2007 when the bank began to turn ANZ into a 'super regional bank.' Page 3.

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THE AGE (www.theage.com.au)

Grain exporter the Australian Wheat Board AWB.AX reportedly paid US$225 million in falsely declared inland transport fees to the Iraqi Grains Board, despite the rejection of wheat shipments at Iraq's Um Qasr port. According to AWB documents tendered in the Victorian Supreme Court, amounts that AWB paid to Iraq were outlined in a schedule prepared by a senior AWB executive during 2002. The Australian Securities and Investments Commission told Justice Ross Robson that the fees breached United Nations Sanctions. Page 3.

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The Gorgon 'juggernaut' has granted Hyundai Heavy Industries, and GE Oil and Gas, US$2.46 billion (A$2.66 billion) of work on its liquefied natural gas project in West Australia. GE will supply technology to liquefy gas and seize carbon emissions under the Barrow Island site, while Hyundai will build 48 modules to be used in a processing facility at a cost of US$2.06 billion. The two companies managed to outbid Daewoo Shipbuilding & Marine Engineering, and others. About A$9.5 billion of contracts have been awarded. Page 3.

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The Australian Competition and Consumer Commission (ACCC) is preparing to include more carriers in its global air freight legal action. The ACCC has already sued Cathay Pacific, Singapore Airlines and Emirates. Price-fixing cases involving the three carriers, and Garuda Indonesia, could run simultaneously with the cartel. ACCC barrister Cameron Moore told Sydney's Federal Court that Cathay's decision to defend against the claims raises questions about whether it admits to some aspects of the claims. Page 3.

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The international Financial Action Taskforce has drafted standards to combat money laundering, and the financial backing of terrorism. Most countries have promised to reach targets, some of which urge regulators to contemplate risks associated with new technology, and for banks to identify clients with respect to standardised due diligence processes. However, Deakin University's Louis De Koker says the legislation is not tailored for developing countries, where the needy may be unable to provide identification. Page 6

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