Retail sales up but building approvals crash: Midday Roundup

Retail sales grew by a higher than expected 0.5% in February, seasonally adjusted, according to the latest results from the Australian Bureau of Statistics.

The figures show turnover rose to $20.53 billion during the month.

The strongest increase were found in food retailing, up 0.6%, department stores, up 0.2% and other retailing, up 0.1%. Cafes, household goods and clothing and accessories all fell by 0.5%, 0.3% and 0.1% respectively.

Building approvals fall 7.4%

Official figures show building approvals dropped by a seasonally adjusted 7.4% during February, despite hopes for an increase.

The result comes after the number of approvals dropped by 11.6% in January.

The estimate for private sector housing approvals rose 0.2%, following four consecutive declines, while the estimate for “other” dwellings plummeted by 20%.

Dollar reaches record high overnight

The Australian dollar is continuing its stellar run, reaching another record post-float high of 103.37 US cents overnight.

As of 12.05pm AEST the dollar was trading at 103.46.

The record follows a well-received employment report in the US, with the continuing strength in the local currency viewed as a strengthening in risk-appetite among investors.

AAPT chief attacks NBN laws

AAPT chief executive Paul Broad has told The Australian that new amendments for the National Broadband Network legislation are anti-competitive.
“My concern about today’s debate on infrastructure is that we’ve spent a lot of time in the last few weeks building up legislation to prevent competition,” he said.

Broad added the cherry-picking provisions would “re-establish monopolies”.

Toll Holdings speaks out on succession

Toll Holdings managing director Paul Little has been requested to stay at the company since announcing his intention to resign but says the next candidate must be chosen correctly.

“I think shareholders expect to get, and should get, the best person for the job,” Little told Business Spectator.

“I think for me to still have some influence, albeit by way of a NED (non-executive director) influence into the company is a positive thing.”

Stocks flatten out despite positive Wall Street leads

The Australian sharemarket has had a good start to the day, after rising more than 1% yesterday, with offshore markets giving it solid leads.

The market was absorbing mixed economic data, with retail sales for February better than expected, but official figures showing a decline in building approvals last month and RP Data reporting another flat month in capital-city house prices.

Blue-chip stocks BHP Billiton, Telstra and News Corp were stronger, while the major banks and retail giants Woolworths and Wesfarmers were in the red.

At 12.05 AEDT, the S&P/ASX 200 had edged up 0.06% to 4825, while the All Ordinaries index had edged up 0.09% to 4917.2.

On Wall Street, stocks rose on the anticipation of solid payroll data to be released on Friday. The Dow Jones Industrial Average gained 71.6 points or 0.58% to 12,350.61.

IMF cuts Japan, US forecasts

The International Monetary Fund has cut its forecasts for Japanese GDP growth in 2011, due to the damage caused by the devastating earthquake and tsunami earlier this month.

Japanese GDP growth is now set to be just 1.4%, down from the previous figure of 1.6%. The United States’ growth expectations have also been cut, falling from 3% to 2.8%.