Here are the stories from the S&P/ASX 200 (INDEXASX: XJO)(ASX: XJO) and Australian finance circles on Tuesday. Rask Media has your financial news headlines sorted.
First, here are the data points:
Australian Dollar ($A) (AUDUSD): 71.4 US cents
Dow Jones (DJI): down 0.35%
Oil (WTI): $US71.72 per barrel
Gold: $US1,230 per ounce
Finance News Today
In economic news, the Reserve Bank of Australia (RBA) board minutes for October are due out later today. So too are lending finance numbers.
Across the pond and the US budget deficit has reached $779 billion — the highest level since 2012. In 2017 alone, the deficit grew 17% (!), thanks in part to US President Donald Trump’s decision to lower taxes.
Closer to home and making Aussie sharemarket news is a decision by National Australia Bank Ltd (ASX: NAB) to incur more costs associated with the banking Royal Commission.
According to an ASX filing, NAB will incur an additional $314 million of after-tax costs for remediation (aka client payouts). The remediation will see NAB’s second half profit fall by $261 million, the bank said.
“Where we have let customers down we are determined to put things right,” NAB CEO Andrew Thorburn said. “We have made good progress in resolving a number of issues that impacted our customers and we want to compensate them as quickly as possible.”
Software company WiseTech Global Ltd (ASX: WTC) announced it will acquire DataFreight in the UK for $3.6 million upfront and earn-outs of $1.4 million.
“With DataFreight, we will continue to expand our lead in cross-border capability geographically, further strengthening our local market capacity to move swiftly ahead of UK and EU regulatory evolution,” WiseTech CEO Richard White said.
In another twist in the PropertyLink Group (ASX: PLG) merger argy-bargy with Centuria and ESR, ESR has revised its offer to acquire all shares in Propertylink for $1.20 per security in cash. Propertylink’s directors intend to unanimously recommend the offer.
“The revised Proposal has the potential to provide Propertylink securityholders with the opportunity to receive cash for their securities at a substantial premium to Propertylink’s trading price prior to the receipt of the Proposal,” Propertylink Chairman Peter Lancken said.
Finally, Rio Tinto Limited (ASX: RIO) announced its third quarter production results.
“We have delivered consistent operational performance in the third quarter, highlighted by strong production from the Group’s copper assets,” Rio Tinto CEO J-S Jacques said.
Rio Tinto, one of the world’s largest mining companies, reported a 4% increase in Pilbara iron ore production for the first nine months of the financial year. Mined Copper jumped 38% compared to last year, due in part to increased production from Rio Tinto’s Kennecott project.
Slow News Day? Here’s A Great Story…
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