IMF replacement talk “premature”, Shares continue recent slide: Midday Roundup

The most likely candidate for head of the International Monetary Fund has said it is still too early to discuss whether she will take the job.

French finance minister Christine Lagarde has also said any selection process needs to be transparent, following calls from some groups that the organisation is too closed off.

It also comes after Mexico has put forward its own candidate for leadership, despite many believing Lagarde remains the most likely candidate.

“What an interesting question but clearly premature. It is for others to decide, my dear,” she told CNBC in response to questions about the job.

“Open, transparent and merit-based: that’s the language you find in the Pittsburgh communique and in pretty much all the G20 communiques and literature about the IMF, and France very much sticks to that.”

Lend Lease sells King of Prussia mall

Property giant Lend Lease has said it will sell its 50% stake in the King of Prussia mall to Morgan Stanley Prime Property Fund for $US545 million.

In a statement, the company said the new deal will value the mall at $US1.25 billion and give the company a profit of $US100 million.

“Having regard to current exchange rates, the $US proceeds will principally be used to repay the Group’s GBP denominated debt and to fund its investment pipeline in the US.”

“The price achieved for the sale of the King of Prussia shopping mall is an excellent result for the Group,” chief executive Steve McCann said in a statement.

Wesfarmers downgrades production

Wesfarmers has downgraded production at the Curragh metallurgical coal mine to between 5.1-5.4 million tonnes.

The previous guidance had set production at between 5.8-6.2 million tonnes, but it now says that groundwater flows and rain has stifled production.

“We are continuing to dewater the affected areas and now expect operations to return to full production from July 2011,” managing director of Wesfarmers resources division Stewart Butel told Business Spectator.

Sharemarket falls after negative Wall Street lead

The Australian sharemarket has fallen this morning after a shocking lead on Wall Street due to negative performances in the equities and manufacturing sectors.

The benchmark S&P/ASX200 index was down 21 points or 0.46% to 4621.8 at 12.00 AEST, while the Australian dollar was down to $US1.05.

AMP shares were down 0.58% to $5.14, while Commonwealth Bank shares fell 1.11% to $50.85. Westpac dropped over 1% to $21.84 as ANZ lost 0.23% to $21.97.

On Wall Street, the Dow Jones Industrial Average dropped 130 points or 1.05% to 12,381.26.

Telcos warn of Telstra bias

Optus and Macquarie Telecom have warned the Australian Competition and Consumer Commission is focusing on the National Broadband Network rather than on the current fixed-line market dominated by Telstra.

According to the Australian Financial Review, the telcos have said the ACCC is also favouring the company.

Optus general manager of regulatory affairs, Andrew Sheridan said some recent decisions had not “been in the best interests of consumers and competition.”

“The ACCC seems to be looking into this future where there is a level playing and taking decisions as it is in that world, whereas that world doesn’t actually exist and is 10 years away, if we get to that reality, which is dependent of the NBN.”

Budget talks scheduled in United States

Budget talks are set to resume in the United States where pressure is mounting over the Government’s ability to pay down debt and a swelling deficit.

Republican Eric Cantor, who will take a place in the discussions, has said president Barack Obama will need to finalise the deal.

“Ultimately decisions are going to be made between the Speaker, the President and those in the Senate,” he told Reuters. “We are engaging in these discussions right now in the Biden commission to really understand where both sides are.”

Republicans have said they will refuse to raise the $US14.3 trillion debt ceiling until spending cuts are announced.