Rio Tinto Limited(RIO):
A Dutch government-funded NGO accused Rio Tinto and its Canadian subsidiary of dodging $US700m of taxes in Canada and Mongolia and promised two further reports to come on Rio’s giant Oyu Tolgoi copper and gold mine in the central Asian nation. The overnight publication of the first report, which Rio says is flawed and contains false allegations, comes after Rio moved this month to open a dedicated office in the Mongolian capital of Ulaanbaatar (where its Toronto-listed subsidiary Turquoise Hill has previously been the more public face) and opened talks with the Mongolian government about reducing funding costs on the $US11 billion Oyu Tolgoi copper and gold mine and accelerate the timing of a local power station. “Mining giant Rio Tinto, and its Canadian subsidiary Turquoise Hill Resources, avoided nearly $US470 million in Canadian taxes by using mailbox companies in two tax havens, Luxembourg and the Netherlands,” the Netherlands-based Centre for Research on Multinational Corporations, also known as SOMO, said overnight. On top of this, “an abusive investment agreement covering the Oyu Tolgoi copper and gold mine has resulted in a $230 million tax revenue loss for Mongolia.” The report concedes the arrangements were approved by both the Canadian and Mongolian governments.
Telstra Corporation Ltd (TLS):
Telstra will look at relocating its IT business support services from India to Indonesia as it seeks to build momentum in its joint venture business there, a move that could create as many as 1000 new jobs in the Southeast Asian nation. Telstra chief Andy Penn said today in Jakarta he had signed a memorandum of understanding with Indonesian partner Telkom to look at “insourcing” an Indonesian global delivery centre serving business customers across the Asia Pacific. The centre will manage the overflow demand from Telstra business customers across Asia and Australia seeking IT support. Mr. Penn said Telstra’s joint venture with Indonesia’s Telkom, Telkomtelstra, already provided project management and device accreditation services to Telstra customers in Australia. The move would allow Telstra to retain intellectual property in a region where business is growing and demand for services has increased. But the decision raises questions over why Telstra would not bring those IT jobs back to Australia at a time when debate rages over how best to create new jobs in that sector at home. Telstra is under pressure to deliver more value to shareholders after slashing its total dividend for 2017/2018 from 31 cents to 22c.
Fairfax Media Limited (FXJ):
Fairfax Media is relocating its Sydney headquarters to a new home in the CBD in 2019 as search giant Google takes over its remaining harbourside space. Google has been subletting the second floor of Fairfax’s five-floor Darling Road office in Pyrmont since 2013, a physical sign of the massive shift in wealth from publishers to tech giants. The online behemoth has progressively taken more floor space from Fairfax since the initial move as the publisher of The Sydney Morning Herald and The Australian Financial Review downsizes and reduces headcount. The move comes after Fairfax signed an advertising sales deal with Google that will have the search firm sell the publisher’s digital ads. The outsourcing arrangement includes a partnership in technology and product development. In a statement sent to The Australian, a Fairfax Media spokesman said: “We’re excited to start the search for a new Sydney headquarters for Fairfax Media. After a decade in our current Pyrmont offices, moving to new fit-for-purpose workspace in or around the CBD from late 2019 will be welcomed by staff and reflect our modern media business.”
Godfreys Group Ltd (GFY):
Vacuum cleaner retailer Godfreys has delivered a soft trading update, warning investors that sales over the Christmas period were weaker than expected, ahead of the release of financial results later this month. The company (GFY) now expects to report a net loss after tax of around $59 million, after a non-cash impairment of goodwill and intangibles expected to be $75m before tax. “The reduction in franchise conversions and softer underlying trading performance will necessitate further impairment of goodwill and intangibles,” the company said in a statement to the ASX. At 12.30am (AEDT) shares in Godfreys were down 5.5 cents, or 14.3 per cent, at 33 cents, their lowest value since the company listed on the ASX in December 2014. Godfreys cited its slow conversion of company stores to franchises back in December, when the retailer cut its earnings forecast in the lead up to the Christmas period. It said at the time that it expected an improvement in sales over the holidays. But like-for-like sales for the half ending December 29 were 6.2 per cent lower compared to the previous corresponding period. Unaudited underlying EBITDA was $3.6m for the half, sharply down from $6.3m in the same period last year.
Woolworths Group Ltd (WOW):
Woolworths has set the scene for what it hopes will be a continuation of its sales recovery, unveiling the latest revamp of its supermarkets format with an expansion of fresh, convenience and pick-up offerings at its Marrickville Metro store providing a blueprint for a national rollout. Under recently installed -supermarkets boss Claire Peters the $61 billion retail giant is reclaiming floor space from the back of house to make room for expanded meat, seafood, cake and bakery offerings, and placing refrigerated pick-up cabinets and new “scratch meal” ingredients kits at the front of the store in a bid to lure and retain customers. At the official opening of the Marrickville store yesterday morning, Ms Peters showcased a whole yellowfin tuna out front of the expanded seafood section that is carved fresh for customers on the weekend. There were live lettuce displays in the fresh fruit and vegetable section as well as a glass-encased flat bread oven and new made-to-order cake offerings in a custom-designed bakery section that is claimed to be the biggest in the nation. Ms Peters said the redesign aimed to capture a bigger share of fresh food and convenience sales for time-poor customers as well as improving engagement with the local community through charity and local produce sourcing. Woolworths last year regained sales growth leadership over Coles after years of losing market share to its smaller rival and to aggressive German discounter Aldi.
(Source: AIMS)
A Dutch government-funded NGO accused Rio Tinto and its Canadian subsidiary of dodging $US700m of taxes in Canada and Mongolia and promised two further reports to come on Rio’s giant Oyu Tolgoi copper and gold mine in the central Asian nation. The overnight publication of the first report, which Rio says is flawed and contains false allegations, comes after Rio moved this month to open a dedicated office in the Mongolian capital of Ulaanbaatar (where its Toronto-listed subsidiary Turquoise Hill has previously been the more public face) and opened talks with the Mongolian government about reducing funding costs on the $US11 billion Oyu Tolgoi copper and gold mine and accelerate the timing of a local power station. “Mining giant Rio Tinto, and its Canadian subsidiary Turquoise Hill Resources, avoided nearly $US470 million in Canadian taxes by using mailbox companies in two tax havens, Luxembourg and the Netherlands,” the Netherlands-based Centre for Research on Multinational Corporations, also known as SOMO, said overnight. On top of this, “an abusive investment agreement covering the Oyu Tolgoi copper and gold mine has resulted in a $230 million tax revenue loss for Mongolia.” The report concedes the arrangements were approved by both the Canadian and Mongolian governments.
Telstra Corporation Ltd (TLS):
Telstra will look at relocating its IT business support services from India to Indonesia as it seeks to build momentum in its joint venture business there, a move that could create as many as 1000 new jobs in the Southeast Asian nation. Telstra chief Andy Penn said today in Jakarta he had signed a memorandum of understanding with Indonesian partner Telkom to look at “insourcing” an Indonesian global delivery centre serving business customers across the Asia Pacific. The centre will manage the overflow demand from Telstra business customers across Asia and Australia seeking IT support. Mr. Penn said Telstra’s joint venture with Indonesia’s Telkom, Telkomtelstra, already provided project management and device accreditation services to Telstra customers in Australia. The move would allow Telstra to retain intellectual property in a region where business is growing and demand for services has increased. But the decision raises questions over why Telstra would not bring those IT jobs back to Australia at a time when debate rages over how best to create new jobs in that sector at home. Telstra is under pressure to deliver more value to shareholders after slashing its total dividend for 2017/2018 from 31 cents to 22c.
Fairfax Media Limited (FXJ):
Fairfax Media is relocating its Sydney headquarters to a new home in the CBD in 2019 as search giant Google takes over its remaining harbourside space. Google has been subletting the second floor of Fairfax’s five-floor Darling Road office in Pyrmont since 2013, a physical sign of the massive shift in wealth from publishers to tech giants. The online behemoth has progressively taken more floor space from Fairfax since the initial move as the publisher of The Sydney Morning Herald and The Australian Financial Review downsizes and reduces headcount. The move comes after Fairfax signed an advertising sales deal with Google that will have the search firm sell the publisher’s digital ads. The outsourcing arrangement includes a partnership in technology and product development. In a statement sent to The Australian, a Fairfax Media spokesman said: “We’re excited to start the search for a new Sydney headquarters for Fairfax Media. After a decade in our current Pyrmont offices, moving to new fit-for-purpose workspace in or around the CBD from late 2019 will be welcomed by staff and reflect our modern media business.”
Godfreys Group Ltd (GFY):
Vacuum cleaner retailer Godfreys has delivered a soft trading update, warning investors that sales over the Christmas period were weaker than expected, ahead of the release of financial results later this month. The company (GFY) now expects to report a net loss after tax of around $59 million, after a non-cash impairment of goodwill and intangibles expected to be $75m before tax. “The reduction in franchise conversions and softer underlying trading performance will necessitate further impairment of goodwill and intangibles,” the company said in a statement to the ASX. At 12.30am (AEDT) shares in Godfreys were down 5.5 cents, or 14.3 per cent, at 33 cents, their lowest value since the company listed on the ASX in December 2014. Godfreys cited its slow conversion of company stores to franchises back in December, when the retailer cut its earnings forecast in the lead up to the Christmas period. It said at the time that it expected an improvement in sales over the holidays. But like-for-like sales for the half ending December 29 were 6.2 per cent lower compared to the previous corresponding period. Unaudited underlying EBITDA was $3.6m for the half, sharply down from $6.3m in the same period last year.
Woolworths Group Ltd (WOW):
Woolworths has set the scene for what it hopes will be a continuation of its sales recovery, unveiling the latest revamp of its supermarkets format with an expansion of fresh, convenience and pick-up offerings at its Marrickville Metro store providing a blueprint for a national rollout. Under recently installed -supermarkets boss Claire Peters the $61 billion retail giant is reclaiming floor space from the back of house to make room for expanded meat, seafood, cake and bakery offerings, and placing refrigerated pick-up cabinets and new “scratch meal” ingredients kits at the front of the store in a bid to lure and retain customers. At the official opening of the Marrickville store yesterday morning, Ms Peters showcased a whole yellowfin tuna out front of the expanded seafood section that is carved fresh for customers on the weekend. There were live lettuce displays in the fresh fruit and vegetable section as well as a glass-encased flat bread oven and new made-to-order cake offerings in a custom-designed bakery section that is claimed to be the biggest in the nation. Ms Peters said the redesign aimed to capture a bigger share of fresh food and convenience sales for time-poor customers as well as improving engagement with the local community through charity and local produce sourcing. Woolworths last year regained sales growth leadership over Coles after years of losing market share to its smaller rival and to aggressive German discounter Aldi.
(Source: AIMS)
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