National Australia Bank is in the news for the wrong reasons today, with the bank saying it was investigating yet another computer glitch.
NAB said this morning some of its customers’ account balances might not be up-to-date.
It promised to update people as soon as possible.
The bank has also been linked to expansion in the UK, with expectations the taxpayer-backed Lloyds will be ordered to sell hundreds of branches. NAB already owns Clydesdale Bank and Yorkshire Bank in the UK.
Also in company news, mobile phone retailer Allphones has reportedly dumped its chief executive, after being ordered last year to pay $3 million in damages to franchisees.
According to The Australian newspaper, the Allphones board yesterday voted to terminate Matthew Donnellan’s contract, and managing director Shaun Colligan has told franchisees that it will keep them up to speed on a new appointment.
The Federal Court last year found Allphones had engaged in unconscionable conduct since 2004, with the company accused of bullying and deceitful behaviour as it sought to expand nationwide.
In economy news, China’s gross domestic growth for the first quarter came in at 9.7%, from 9.8% the previous quarter, but higher than expectations.
Economists had expected GDP growth of 9.5% for the first quarter, Reuters reports.
In worrying news for consumers, consumers prices rose to a 32-month high of 5.4% in March, versus 4.9% the previous month. The inflation figure is also higher than economists’ expectations of 5.2%.
Behind the figures was an 11.7% jump in food prices.
Also making the news is the price of gold, which reached $US1,479.01 an ounce on the weakened US dollar and concerns over inflation.
Spot silver followed gold to record highs, reaching $US42.41 an ounce. Silver has also sliced the spread between it and gold, on expectations of increased demand as the global economy improves.
The Australian dollar traded higher this morning, reaching $US1.0544 before the release of the China data. On the weekend it reached a high of $US1.0584.
At 12.15 AEDT, it was flat at $US1.0535.
The local sharemarket was slightly lower at midday, but looks set to end the market weaker. Woolworths, Rio Tinto and BHP were all lower.
The S&P/ASX 200 was down 0.14% to 4877.4, while the broader All Ordinaries index lost 0.17% to 4963.7.
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