Government to unveil tax breaks for businesses partnering with universities; Dick Smith shares fall after cut to profit guidance: Midday Roundup

The federal government is expected to unveil tax breaks for businesses that collaborate with universities in order to commercialise research as part of its innovation package, which is due before Christmas.

At the announcement of Australia’s new chief scientist, innovation and science minister Christopher Pyne said the commercialisation of government-funded research was essential to Australia’s future, according to Fairfax.

“We want science and business to be very much focused together in this country to create jobs, to create growth and to make breakthroughs that assist in the human development,” Pyne said.

“The innovation and science agenda will cover the entire sector from taxation, from short-term measures to medium to long-term measures.”

Dick Smith shares fall after cut to profit guidance

Electronics retailer Dick Smith has suffered a blow on the share market this morning, with its shares falling about 30% on the back of weaker first quarter sales and a fall in its full-year profit guidance.

In a statement ahead of the company’s annual general meeting today, Dick Smith managing director and chief executive Nick Abboud told shareholders while sales growth had improved by 6.9%, there had also been adverse impacts on the company’s gross margins this month.

“Given the October performance and expectation of challenging and variable conditions, we are cautious about the outlook for the all-important Christmas trading period,” he said.

Dick Smith said it expects its full year net profit to be $5 -8 million below its full year profit guidance, which it had previously indicated a range of $45-48 million.

Shares down on open

Aussie shares have fallen this morning after a poor showing from Wall Street.

Ric Spooner, chief market analyst for CMC Markets, said today will be another nervous session for stock market investors.

“Yesterday’s mood of caution is likely to continue as potential buyers wait on statements by the US Fed and Bank of Japan,” Spooner said.

“Overnight news of softer than expected GDP growth in the UK feeds into a narrative of moderate world growth. Despite a steady spot iron ore price yesterday, investor confidence in the mining and energy sectors is likely to be capped by recent price weakness for both iron ore and oil.”

The S&P/ASX 200 benchmark was down 17.5 points, falling 0.33% to 5328.7 points at 11:26am AEST. On Tuesday, the Dow Jones closed 41.62 points lower, down 0.24% to 17,581.43 points.