In today’s talking points: BHP boss talks innovation, entrepreneurism, and China’s astounding Belt and Road ambition at Melbourne Mining Club luncheon; Inquiry to be launched into Australia’s banks and financial system; Chinese pull takeover offer and AWE dives; Sydney – the heart of Australia’s economy
BHP boss talks innovation, entrepreneurism, and China’s astounding Belt and Road ambition at Melbourne Mining Club luncheon
BHP’s chief executive officer, Andrew Mackenzie, has urged governments to resist the desire for ultimate power over companies and individuals, in order to work collectively, freely, innovatively, and respectfully for the sake of shared progress. “The security and prosperity of economies, communities and countries demands that East and West work together,” said Mackenzie, in a speech to the Melbourne Mining Club to mark the organization’s 100th luncheon. He also warned the West against getting caught worrying that too few have benefited from globalisation, lest the East seize the opportunity to power ahead alone. He also expressed his view that there will be much benefit for those nations who choose to openly collaboration with China’s Belt and Road initiative over the coming years.
Read more at: Sydney Morning Herald
Inquiry to be launched into Australia’s banks and financial system
Prime Minister Malcolm Turnbull announced the public inquiry last week, having resisted this for almost two years. However, facing the threat of losing a parliamentary vote next week on the issue and the four biggest lenders relenting to the lobbying campaigns, Mr Turnbull gave in. This inquiry will in affect, determine facts and make policy recommendations to the government about conduct, regulations and identifying any issues from previous scandals recently. The hope of this inquiry is that it will re-build confidence in the financial services system of Australia.
Read more at: Financial Times
Chinese pull takeover offer and AWE dives
The Chinese Energy Reserve and Chemical Group (CERCG) have withdrawn their takeover offer to AWE of $430 million at a buy share price of 71 cents a share (a premium on its 54 cents trading price at the time). Due to the non-binding proposal, the Chinese state-owned company was able to pull out of the deal causing AWE shares in oil and gas to dive 16 per cent. This isn’t the first time this has occurred, in fact 12 months ago this occurred with Lone Star Japan Acquisitions’ offer to AWE. AWE’s share price made a slight recovery by end of day, up 11 per cent to 62 cents.
Read more at: Sydney Morning Herald
Sydney – the heart of Australia’s economy
Sydney accounts for 41.2 per cent of Australia’s economic growth, according to new figures released today by SGS Economics ad Planning (SGS). In fact, Sydney and Melbourne combined make up in excess of two thirds of Australia’s 2016-17 economic growth. The cause for the two cities’ concentration of capital are their “knowledge-intensive” and “globally competitive” industries, coupled with their heightened access to highly skilled labour. In Sydney, financial services accounts for 15 per cent of its industry, closely followed by professional services at 10 per cent, construction at 6 per cent and manufacturing at 5 per cent.
Read more at: SGS Economics and Planning