THE NEWS WRAP: Rio Tinto dumps CEO amid $US14 billion of writedowns

Mining giant Rio Tinto has named Sam Walsh as its new chief executive following the shock resignation of former CEO Tom Albanese, after $US14 billion of writedowns at the company.

 

The writedowns include a charge of $US11 billion for aluminium assets in Australia and the Pacific, along with a $US3 billion charge against its recently acquired coal assets in Mozambique.

 

Dreamliner nightmare deepens

 

The crisis surrounding Boeing’s 787 Dreamliners is deepening, with aviation regulators around the world joining the US in grounding the troubled planes.

 

The crisis for Boeing came after the emergency landing of an All Nippon plane in Japan on Wednesday following smoke from a malfunctioning battery.

 

In Australia, the Civil Aviation Safety Authority (CASA) says the US Federal Aviation Authority has kept it informed of developments, however as the 787 is yet to be used commercially in Australia, it has no formal stance on the issue.

 

Costello to recommend Queensland privatise its electricity assets

 

The Costello Commission of Audit is set to recommend the Queensland government privatise its electricity assets.

 

The privatisation is one of 52 recommendations set to be made by the commission, headed by former treasurer Peter Costello, with their report set to be handed to Premier Campbell Newman next month

 

The proposed privatisation mirrors reforms made by the Kennett government in Victoria during the 1990s and if implemented is estimated to cut $10 billion off the state’s $82 billion debt.

 

Overnight

 

The S&P500 was 0.71% lower at 1483.13. The Aussie dollar is up to US105.5 cents.

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