Oil prices jump after Libya airstrikes: Midday Roundup

Oil prices have jumped more than $US2 this morning to more than $US103 a barrel after a coalition of western nations continued air strikes in Libya.

Brent crude rose to $US116, while US crude rose $US2.12 to $US103.19 overnight.

The airstrikes are the largest military intervention in the Middle East since the Iraq invasion of 2003. Libyan leader Muammar Gadaffi has said he will continue his campaign to crush the rebel resistance.
Continued unrest in Syria and Yemen has also put pressure on oil prices.

It is understood the air strikes have hurt Gaddafi’s ability to detect incoming aircraft. Gaddafi himself condemned the attacks, calling them a “bombardment of civilians”.

Brett Clegg appointed as Financial Review chief executive

There are further moves in Australia’s media sector, with long-time Fairfax Media Ltd journalist Brett Clegg set to the return to the Australian Financial Review.

Clegg, who defected to News Ltd last year and had served just weeks in the role of deputy CEO of The Australian, will replace Michael Gill as Financial Review Group CEO, while AFR editor Glenn Burge is moving to a new – as yet unnamed – role within Fairfax.

The media group’s shares were underperforming in a weak market at midday, which was weighed down by geopolitical tensions.

Swan denies reports of ASX merger rejection

Federal Treasurer Wayne Swan has denied reports he is preparing to reject the merger between the Australian and Singapore securities exchanges.

“They are entirely speculation,” he told ABC Radio this morning, following reports published suggesting he would reject the merger.

“I have no idea where those reports have come from,” he said. “I will take my decision of the evidence before me, based not only the recommendation Foreign Investment Review Board but a thorough consideration of all the issues in good time.”

A source had told the Sydney Morning Herald over the weekend the Federal Government and Foreign Investment Review Board are unlikely to support deal.

The ASX has defended itself, saying it had already made a number of changes to address some concerns.

NAB business executive general manager announced

NAB has announced the appointment of Daryl Johnson as its executive general manager for nabbusiness, responsible for the SME market.

Johnson previously served as ANZ managing director of business banking, before joining NAB as general manager of corporate in 2009.

“I am delighted to announce Daryl’s appointment to this important role,” said Joseph Healy, group executive of NAB business banking.

“Daryl is a highly experienced banker, with a deep knowledge and understanding of all aspects of business and corporate banking.”

Australian shares flat despite Wall Street gains

The Australian market was weaker at midday, despite a solid performance from Wall Street on Friday, as geopolitical turmoil weighed on local sentiment. Oil soared overnight, but the market was let down by the banks and heavyweight miners.

Local bourse operator ASX underperformed after reports its takeover offer from Singapore exchange wouldn’t get Australian clearance.

The benchmark S&P/ASX200 index was down seven points or 0.17% to 4618.8 at 12.20 AEST, while the Australian dollar continued its rise, nearing parity at US99c.

Uranium prices to continue rise

Paladin Energy chief executive John Borshoff has told ABC’s Inside Business that uranium prices will continue to rise due to supply shortages, but also said demand will still be strong from other developed nations.

There have been some concerns nuclear-powered nations will abandon plans for further nuclear plants after the disaster in Japan.

“I think that the position of all sensible people is that the industry will learn and it will become even safer, and if you think Japan is going to give up its nuclear generating, well, I don’t know what’s going to replace that,” Borshoff said.

“I believe the uranium prices will increase over the next three months; the shortages that are there cannot be discounted,” he also said.