Woolworths to sell $900 million of property, Job ads up again: Economy Roundup

Supermarket giant Woolworths will sell $900 million worth of retail sites from its portfolio, the company announced this morning.

In a statement the group said it would sell 30 neighbourhood and sub-regional shopping centres and lease back the sites over a longer period of time. Some locations include Ashgrove Marketplace in Queensland, Carnes Hill Marketplace in New South Wales and Pakington Strand in Geelong, Victoria.

“We are continually reviewing opportunities for the disposal of property assets and amid improving market conditions in the retail sector, we now see an opportunity to place a portfolio of quality completed retail sites for tender, on the basis of sale and long-term leaseback transaction,” director of property Ralph Kemmler said in a statement.

“However, there is no urgency to dispose of the portfolio and we will happily continue to hold the properties on balance sheet should market conditions dictate this course of action.”

The number of advertisements printed both online and in newspapers has risen for a fourth consecutive month with yearly growth at 36%, the latest ANZ Job Advertisements Series has revealed.

The series reveals ads in both newspapers and online jumped by 2.6% in August to a seasonally adjusted average of 176,239. Internet ads grew 1.4%, with an annual rise of 37.8% – the fastest pace since November 2007. However, newspaper ads grew by 1.5%, with a yearly pace of just 11.8%.

ANZ chief economist Warren Hogan said in a statement businesses are still confident about hiring prospects despite global economic uncertainty.

“We expect these positive employment intentions will translate into solid employment growth of an average of at least 25,000 persons per month in the short term,” Hogan Said, although noting some disparities will emerge between states.

The result follows the release of the Advantage Job Index which revealed internet job ads grew by 2.8% in August, led by a surge in mining and legal work.

Meanwhile, the TD-Melbourne Institute inflation gauge rose by 0.2% in August, resulting in its tenth consecutive rise.

“In the 12 months to August, the inflation gauge rose by 3.0%, resting on the upper bound of the RBA’s 2-3% inflation target band,” TD Securities said in a statement.

The main contributors to the private gauge were alcohol and tobacco, fruit and vegetable and furniture and furnishings prices. The three month pace of inflation fell to 0.61% from 0.89%, the slowest pace since December 2009.

“The detail of the inflation gauge showed a slight broadening of price pressures compared to last month, but at a still historically very subdued level,” Westpac senior economist Anthony Thompson said in a statement.

Shares rise after US jobs data release

The Australian sharemarket has opened higher this morning, following a positive result on Wall Street late last week due to better than expected jobs figures and speculation of a new stimulus package from the White House.

The benchmark S&P/ASX200 index was up 15 points or 0.33% to 4556.3 at 12.15 AEST, while the Australian dollar was also up to US91c.

ANZ shares were up 1.1% to $23.54, while Commonwealth Bank shares also rose 0.6% to $51.86. NAB gained 0.1% to $24.12 as Westpac rose 0.8% to $22.69.

Macquarie Group has said it expects a 25% decline in first-half profit for the 2011 financial year due to continued volatile economic conditions.

In a statement to the Australian Securities Exchange, the company said profit is affected by weakness in most markets. However, full year profit to 31 March could be in line with previous results given activity returns to “more normal levels during the second half of the financial year”.

Meanwhile, a new survey reveals chief investment officers are optimistic about investment over the next 12 months. The Financial Services Council chief investment officer index recorded 11 points for the September quarter, based on an index ranging from minus 100 to 100.

“While they expressed some confidence about the Australian economy, they are concerned about the risks presented by debt and deleveraging in Europe and the US,” chief executive John Brogden said in a statement.

“Overall, CIOs describe the investment environment as complex and fragile.”

Aevum urges shareholder rejection of Stockland deal

Aevum has once again said shareholders should reject a takeover deal from Stockland, calling it in adequate and unsolicited.

“Aevum is one of the largest pure retirement companies listed on the ASX (Australian Securities Exchange) and it has a strong independent future,” Aevum chairman Graham Lenzer said.

“Stockland’s offer fails to reflect the underlying value of the business or the strategic benefits that Aevum could deliver to Stockland.”

“We continue to believe it is in the best interests of Aevum shareholders to reject Stockland’s offer and therefore encourage shareholders to take no action,” Lenzer said.

Jetset has requested a trading halt prior to a shareholder vote on the proposed merger with Stella Travel Services.

“JET would like the trading halt to last until the results of the general meeting are announced to the market by JET following conclusion of the meeting and, in any event, not beyond the time prescribed in the ASX market rules,” Jetset said in a statement.

The deal was granted ACCC approval last week.