The US is on alert after official reporting that a “credible but unconfirmed” security threat had been received, just before the 10-year anniversary of the September 11 attacks on the city.
Meanwhile, President Barack Obama has called on his Republican rivals to cooperate on his larger-than-expected $SU447 billion US job plan, released this morning.
The plan, called the American Jobs Act, includes a tax break for companies who hire new workers, and a halving of payroll taxes. There is also $US50 billion earmarked for investment in highways, railroads and airport modernisation.
“The people of this country work hard to meet their responsibilities, the question tonight is whether we’ll meet ours,” Obama said.
“The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy.”
“It will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and hire, there will be customers for their products and services. You should pass this jobs plan right away.”
Obama’s plans follow comments by Federal Reserve chief Ben Bernanke that the central bank had a “range of tools that could be used to provide additional monetary stimulus.”
The Federal Reserve is ready to take new action to speed up the economy, Fed chief Ben Bernanke says, but he’s warned that government budget-cutting could hold back growth.
Shares higher after Obama reveals jobs plan
The job plan prompted a jump in the local sharemarket.
The benchmark S&P/ASX200 index was up 31 points or 0.76% to 4219.9 at 12.00 AEST, while the Australian dollar, fell to $US1.05c.
AMP shares rose 1.2% to $4.20, while Commonwealth Bank shares rose 0.93% to $47.66. NAB lifted 0.86% to $23.40, while Westpac rose 1% to $20.29.
In the United States, the Dow Jones Industrial Average fell 119 points or 1.04% to 11,295.81.
ACCC to appeal Metcash ruling
The Australian Competition and Consumer Commission will appeal a Federal Court decision that would allow Metcash to buy Franklins in a $215 million deal.
Chairman Rod Sims said in a statement that it would be appealing the decision based on two different reasons.
“First, because of the adverse effect of the proposed acquisition on independent supermarket retailers, consumers and competition in the NSW and ACT grocery sector,” he said.
“Second, the ACCC is appealing because, if left unchallenged, the court’s interpretation of some fundamental principles of merger analysis could have serious implications for the ACCC’s ability to block anti-competitive mergers and so protect consumers in the future.”
Sims said if the transaction occurs, Metcash would be able to increase prices for independent supermarkets.
“We remain concerned that the proposed acquisition would remove any future ability for those independent retailers to choose from whom they get their grocery supplies.”
Myer shifts board appointments
Department store giant Myer has announced a reshuffle of its board after executive general manager of merchandise Penny Winn announced her resignation.
Group general manager of fashion and accessories Judy Coomber will oversee the company’s cosmetics, quality assurance, control and concessions businesses.
Group general manager of men’s, home and entertainment Adam Stapleton will now be in charge of merchandise planning, domestic supply chain and business support sectors.
“The changes announced today will add value and focus to each area as we adapt to customer needs and manage future challenges,” chief executive Bernie Brookes says. “I have great confidence in the considerable talent and experience of the management team.”
Japan economy shrinks for third straight quarter
Also in international news, Japan’s gross domestic product figures have come in worse than expected for the June quarter, with analyst pointing to the earthquake and tsunami in March, choppy international markets and the rising yen hurting exporters,
GDP shrunk by an annualised 2.1%, the Cabinet Office said, the third consecutive decline.
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