Gillard concedes softness in economy, Winkelvoss twins drop Facebook lawsuit: Midday roundup

Prime Minister Julia Gillard has told Business Spectator she is optimistic about the prospects for the Australian economy, but understands there is short-term softness coming from a hangover of the GFC and natural disasters.

“I certainly do understand that there are industries doing it tough and there are parts of the country doing it tough and the challenge is that our economy is in this major period of transition with the resources boom, with the shift we’re seeing from west to east in global economic weight and of course the transition to a low carbon economy,” Gillard said.

She also defended the Fair Work system and said the Government had not forgotten middle Australia.

Crown rules out immediate acquisition plans

James Packer-backed casino company Crown Ltd has rejected the idea it might increase its holding in either Tabcorp Holding or its recently spunoff casino business, Echo Entertainment.

Crown holds just under 5% in both companies.

Packer, one of Australia’s richest men, also made the headlines this morning by telling The Australian Financial Review that the Prime Minister is troubled by perceptions she is anti-business.

The media and gaming giant recently lured former ALP powerbroker to Crown as its head of government relations.

Julia Gillard promised independent MP Andrew Wilkie she would tackle problem gambling during negotiations to form a minority government.

Winkelvoss twins drop Facebook lawsuit

After years of lawsuits, Cameron and Tyler Winkelvoss, the twin brothers who claim they had the original idea for social networking giant Facebook before it was allegedly stolen by Mark Zuckerberg, have dropped all litigation against the company.

While the original claim against Facebook ended in a settlement in 2008, the pair later said their compensation claim was based on a valuation that should have been higher.

In a filing with the Federal Court in San Francisco, the pair said that after “careful consideration” they would not pursue the case in the Supreme Court.

The filing is a drastic step back from the twins’ position merely weeks ago when they said they would pursue Facebook to the highest court in the country.

In a statement provided to the Wall Street Journal, Facebook said “We’ve considered this case closed for a long time, and we’re pleased to see the other party now agrees.”

Shares flat after weak US lead

The Australian sharemarket opened flat this morning after a weak lead from the United States where Federal Reserve chairman Ben Bernanke made slightly pessimistic comments about the state of economic recovery in America.

The benchmark S&P/ASX200 index was down 24 points or 0.54% to 4508.3 at 12.15 AEST, while the Australian dollar opened lower at $US1.05c.

ANZ shares fell 1.43% to $21.41, while Commonwealth Bank shares fell 0.45% to $50.38. NAB shares lost 0.49% to $24.56 as Westpac dropped fell 1.07% to $21.29.

In the United States, the Dow Jones Industrial Average fell 80 points or 0.7% to 12,109.67.