Building approvals rose in November: Midday Roundup

The number of building approvals granted rose during November, according to the latest figures from the Australian Bureau of Statistics.

The figures show on a seasonally adjusted basis, the number of dwelling units approved rose by 8.4%, with the number of private sector homes approved rising 4.8%.

However, on a yearly basis, approvals have fallen – down in total by 18.9%. Private sector houses are down 9.6%, while other private sector dwellings are down 27.8%.

The value of residential building fell 2.7% in November, with the value of non-residential building falling 2.5%.

Shares open higher after European crisis talks

The Australian sharemarket has opened slightly higher this morning after a weak lead from the United States and renewed calls from Germany and France to push forward talks on the European debt crisis.

The benchmark S&P/ASX200 index was up 33 points or 0.8% to 4138.7 at 12.00 AEST, while the Australian dollar also lifted to $US1.02c.

AMP shares rose 0.95% to $4.19, while Commonwealth Bank shares rose 0.67% to $49.73. NAB shares rose 1.33% to $23.68 as ANZ rose 1.17% to $20.78.

In the United States, the Dow Jones Industrial Average rose 32 points or 0.3% to 12,392.7.

Unions speak out against bank job cuts

The Finance Sector Union has said it would be unacceptable for major banks to cut staff while at the same time increasing profits.

“In our experience whenever they mention the word costs all they do is focus on the staff costs,” FSU national secretary Leon Carter told AAP.

“There is an added urgency this year because unfortunately, despite the capacity to do so, none of them have come out and said ‘we won’t be sacking Australians in 2012’.”

The union has requested the Government to step in if staff numbers drop.

IAG says Christmas Day storm to cost $200 million

Insurance Australia Group has tipped the damage bill from the Melbourne Christmas Day storm will reach $200 million.

The insurer has told the market it has received 24,000 claims following the hailstorm.

The net claim cost of between $180 and $200 million takes the company’s overall claim costs from natural perils in the first half to between $400 and $420 million, well above last year’s figures.

Alcoa posts fourth-quarter loss on write-off, weak market conditions

Meanwhile, aluminium giant Alcoa has posted a fourth-quarter loss, hurt by a $US185 million in one-off charges and weak market conditions.

The company posted a $US191 million net loss, versus net income of $US258 million one year ago.

Revenue was down 7% to $6 billion.