Car sales lift, shares move higher: Midday Roundup

New motor vehicle sales lifted 3.3% in August, meeting expectations, with 87,935 sold as sales increase in most states and territories.

The sales were boosted by a 10.8% increase in sport utility vehicle sales.

The result was in line with expectations, and takes the annual increase to 4.4%.

Passenger vehicle sales were up 1.2%, while other cars edged up 0.8%, the Australian Bureau of Statistics says.

“Tasmania recorded the largest percentage increase of 7.6%, followed by New South Wales (4.1%) and Victoria (3.5%). Over the same period the Australian Capital Territory recorded the largest percentage decrease of 4.1%,” it said.

Bank of Melbourne Twitter account hacked: Report

It’s been reported that Bank of Melbourne’s Twitter account has been hacked, Technology Spectator reports.

After followers of its page were sent messages yesterday telling them to click on a link, the Westpac-owned business tweeted “ATTN: Unauthorised DMs sent bw 4-5pm today, do not click link. No customer/personal data compromised. Apologies for the inconvenience.”

It added that it takes security seriously.

Shares open higher on US lead

The Australian sharemarket has opened higher this morning after a positive session on Wall Street, where investors are growing more optimistic about the sovereign debt situation in Europe.

The benchmark S&P/ASX200 index was up 63 points or 1.59% to 4069.5 at 12.00 AEST, while the Australian dollar has fallen to $US1.02c.

AMP shares rose 2.6% to $3.95, while Commonwealth Bank shares rose 1.95% to $44.86. Westpac shares rose 2.22% to $19.34, as ANZ rose 1.47% to $19.30.

In the United States, the Dow Jones Industrial Average rose 140 points or 1.27% to 11,246.

Conroy adamant media inquiry to remain apolitical

Communications Minister Stephen Conroy has said keeping politicians out of the inquiry into the media sector will ensure its independence.

“Politicians shouldn’t be looking into the media,” Conroy told Sky News, also rejecting calls to focus on just one organisation, News Limited. “To focus on one organisation was not the way a government should conduct itself.”

“It’s not billions of dollars, it’s not millions of dollars, but we’ll ensure that it’s adequately resourced,” he told the Nine Network.

Moody’s downgrades French banks

Ratings agency Moody’s has downgraded French banks, warning of the heightened risk of a debt crisis that could envelope neighbouring countries.

The agency cut the rating for Credit Agricole from Aa1 to Aa2, and for Societe Generale from Aa2 to Aa3.

Credit Agricole’s new ratings “are more consistent with the bank’s sizeable exposures to the Greek economy,” Moody’s said in a statement.

IMF can afford to wait on rates: IMF

The International Monetary Fund has said the Reserve Bank of Australia can wait to move on interest rates although inflation is growing higher.

“In economies where the central bank’s credibility is strong, as reflected in well-anchored inflation expectations, and where there is substantial economic slack, monetary policy can remain accommodative even if headline inflation is higher due to food price shocks,” it said in a statement.

The Reserve Bank is tipped to wait on interest rates until at least later this year, while many economists are now predicting a rate cut.