World hunkers down for fight against virus

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Original article by David Rogers
The Australian – Page: 29 : 6-Mar-20

Investors have responded positively to the announcement of economic stimulus measures in Australia and the US in response to the coronavirus. Wall Street and sharemarkets across the Asia-Pacific region rallied on 5 March, while the yield on 10-year Australian government bonds rose six basis points to 0.78 per cent. Meanwhile, financial markets expect further official interest rate cuts in both Australia and the US in coming months.

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STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, SHANGHAI COMPOSITE INDEX, NIKKEI 225 INDEX, HANG SENG INDEX, KOSPI INDEX, TAIEX INDEX

Guardian hypocrisy over AAP shutdown

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Original article by Lilly Vitorovich, David Swan
The Australian – Page: 3 : 6-Mar-20

Australian Associated Press chairman Campbell Reid has accused UK-based media company The Guardian of hypocrisy. A report in ‘The Guardian’ claimed that AAP is being closed down to harm small media organisations, but Reid notes that The Guardian had slashed its annual payment to the newswire company. Meanwhile, Australian Competition & Consumer Commission chairman Rod Sims says it is examining the impact that AAP’s closure will have on the Australian media landscape; Sims has described AAP’s closure as a "very sad development".

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AUSTRALIAN ASSOCIATED PRESS PTY LTD, THE GUARDIAN AND MANCHESTER EVENING NEWS, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION

Chinese back Rio ore mine in Africa

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Original article by Nick Evans
The Australian – Page: 24 : 6-Mar-20

Media reports have suggested that China’s State-owned Assets Supervision & Administration Commission will approve an investment in the Simandou iron ore deposit in Guinea. SASAC oversees investments made by Chinese government-owned enterprises such as Chinalco, which is one of Rio Tinto’s partners in the deposit. The massive cost of developing the Simandou deposit – which has been estimated at around $US20bn ($30.2bn) – has contributed to the project being stalled for more than two decades.

CORPORATES
RIO TINTO LIMITED – ASX RIO, CHINA. STATE-OWNED ASSETS SUPERVISION AND ADMINISTRATION COMMISSION, ALUMINIUM CORPORATION OF CHINA LIMITED

More capital raisings on the cards: Goldman

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Original article by Melissa Yeo
The Australian – Page: 27 : 6-Mar-20

Matthew Ross of Goldman Sachs says the coronavirus outbreak is likely to prompt more listed companies to undertake capital raisings in coming months, particularly ones that are close to breaching their debt covenants. Ross notes that the supply chains of many companies will be impacted by the virus, given the high level of dependence on imports from China, especially in the consumer goods sector.

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GOLDMAN SACHS AUSTRALIA PTY LTD

Forrest in $68m renewables play takeover

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Original article by Nick Evans
The Australian – Page: 20 : 5-Mar-20

Squadron Energy, the private company of mining magnate Andrew Forrest, has made a takeover bid for Windlab, a listed wind farm developer and operator. Squadron has teamed up with Federation Asset Management to offer $1 per share for Windlab, valuing the bid at $68.2m. Windlab shares rallied on 4 March, closing at $0.965; investors had paid $2 per share in its 2017 IPO. Squadron is expected to have a 75 per cent stake in Windlab if the deal proceeds.

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WINDLAB LIMITED – ASX WND, SQUADRON ENERGY PTY LTD, FEDERATION ASSET MANAGEMENT PTY LTD

LNG riding out virus but risks remain

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 21 : 5-Mar-20

Data from EnergyEdge shows that the Queensland Curtis LNG project’s shipments have fallen by six per cent so far in 2020, while Australia Pacific LNG’s export volumes are down two per cent. EnergyEdge says this is partly due to the Queensland government’s restrictions on port access by Chinese bulk carriers. EnergyEdge expects the Santos-backed Gladstone LNG venture to record an 18 per cent increase in shipments for the March quarter. GLNG does not have any customers in China, although coronavirus-hit South Korea accounts for 47 per cent of its shipments.

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ENERGYEDGE, QUEENSLAND CURTIS LNG PTY LTD, AUSTRALIA PACIFIC LNG LIMITED, GLADSTONE LNG PTY LTD, SANTOS LIMITED – ASX STO, ROYAL DUTCH SHELL PLC, ORIGIN ENERGY LIMITED – ASX ORG

Billions in stimulus to stop slump

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Original article by Phillip Coorey, John Kehoe
The Australian Financial Review – Page: 1 & 6 : 5-Mar-20

Finance Minister Mathias Cormann has warned that the coronavirus will have a "material impact" on Australia’s economic growth in the first half of 2020. Amid growing concern that the nation could go into recession for the first time since 1990-91, the federal government is set to announce a stimulus package that will hit the Budget bottom line. The package will focus on jobs, small business cash flow and capital investment; it is expected to include a business investment allowance that was to have been announced in the May Budget. The stimulus package is likely to result in a deficit for 2019-20.

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AUSTRALIA. DEPT OF FINANCE

Unions urge paid leave for quarantined staff

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 9 : 5-Mar-20

The federal government has advised workers who have recently been overseas to undertake self-quarantine for 14 days. Victorian Trades Hall secretary Luke Hilakari contends that workers should not be penalised if they are ordered to stay at home and do not have the option of telecommuting. He says they should receive full pay and not be required to use their annual or personal leave. ACTU secretary Sally McManus has urged the federal government to provide financial support to casual workers and contractors who are not entitled to paid leave.

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VICTORIAN TRADES HALL COUNCIL, ACTU

Fool’s gold: $2bn hedge hole

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Original article by Nick Evans
The Australian – Page: 17 & 20 : 5-Mar-20

The gold price is currently trading at around $2,450 an ounce in Australian dollar terms. However, the nation’s leading gold producers have locked in forward sales of more than three million ounces at prices well below this level. Newcrest Mining stands to incur the biggest loss from gold hedging, having locked in sales of more than 658,000 ounces from the Telfer mine at just $1,875 an ounce over the next three years.

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NEWCREST MINING LIMITED – ASX NCM

Iron ore mining giants in virus vigil over fly-in, fly-out workforce

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Original article by Brad Thompson
The Australian Financial Review – Page: 22 : 5-Mar-20

Fortescue Metals Group has asked all employees who have travelled overseas to remain at home for 14 days before returning to work. One employee was quarantined at the Christmas Creek iron ore mine after reporting flu-like symptoms following a trip to Bali, and Fortescue has confirmed that they have tested negative for the virus. BHP and Rio Tinto are also actively taking measures to protect their workforces from the coronavirus at their iron ore mines.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, BHP GROUP LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO