THE NEWS WRAP: ANZ admits customer exodus after dropping its mortgage exit fees

Julia Gillard has used her speech to the joint session of the congress to urge the US to not feel threatened by the rise of China as a major economic power.

Gillard, who became only the fourth Australian Prime Minister to address congress, said: “There is no reason for Chinese prosperity to detract from prosperity in Australia, the United States or anywhere in the world.” Gillard pointed to the opportunities Australian businesses have by working with China.

Companies call for carbon tax delay

Twenty of Australia’s largest carbon emitters have called on the Government to delay the introduction of the carbon tax and increase the amount of compensation to businesses.

A body representing the companies said that the move from a fixed carbon price to a market based scheme within three to five years failed to provide necessary “institutional certainty.” 

ANZ admits customer losses

ANZ has admitted that many of its customers have switched to other banks after it dropped its mortgage exit fees.

In an indicator of greater movement in banking ahead of Federal Government reforms of the industry, ANZ told Treasury officials that it had lost a significant number of customers since it ditched its mortgage exit fees. Currently, ANZ and NAB are the only two major banks to end the fees. 

Overnight

The Dow Jones industrial average rose by 11.16 points to 12,225.54. The Australian dollar was up to 101.08 US cents.