THE NEWS WRAP: Reinsurers could pull out of Oz due to recent natural disasters

Tony Abbott has vowed to scrap the proposed carbon tax should the Coalition take power at the next election. Business lobby groups have urged the Government and Opposition to come to a consensus to end uncertainty on the issue. 

The pledge came as the cost to business was estimated by the Australian Financial Review to be $5 billion a year, should the tax be set at $15 per tonne of carbon emission.

Reinsurers ‘could pull out’ of Australia

Some of the world’s largest reinsurers could pull out of Australia and New Zealand due to the spate of natural disasters in the countries, a top insurance executive has warned.

QBE Insurance chief executive Frank O’Halloran said that premiums are likely to rise as the result of recent floods and earthquakes, with some reinsurers quitting the region entirely.

Twitter and Zynga eyed by JP Morgan

Twitter and Zynga, seen as two of world’s most sought-after online properties, have been targeted by a fund set up by Wall Street bank JP Morgan.

It’s been reported that JPO Morgan is seeking to buy a minority stake in Twitter that would value the micro blogging site at $US4 billion. Meanwhile, Zynga, which is behind the popular Farmville game, has been valued at $US10 billion.

Overnight

Australian share trading ground to a halt yesterday due to a technical glitch on the ASX. Meanwhile, in the US, the Dow Jones industrial average gained 73.22 points, or 0.60 per cent, to 12,203.67. The Australian dollar held steady at 101.71 US cents.