The total value of owner occupied housing commitments, excluding alterations and additions, fell by a seasonally adjusted 4.7% to $15.5 billion during December, according to the latest figures from the Australian Bureau of Statistics.
The value of total personal finance commitments rose by 0.2% to $7 billion, with revolving credit commitments rising 2.2% and fixed lending commitments dropping 2.1%.
The total value of commercial finance commitments remained flat, with revolving credit commitments up 3.8%, and fixed lending commitments falling 1.3%. The total value of lease finance commitments rose by a seasonally adjusted 8.7% to $409 million.
BlueScope Steel has recorded a net loss for the first half of the 2010 financial year, but the company also said it expects to post a small profit in its full-year results due to an increase in demand.
The company posted a net loss of $28 million for the six months to December 31, after posting a $407 million profit during the previous corresponding period. Revenue dropped 33% to $4.10 billion.
“After a tough period across all our businesses, we are pleased to report a more positive trend in demand and pricing and expect a profit in the second half,” BlueScope managing director and chief executive Paul O’Malley said in a statement.
“Non-residential construction sales remain soft. Domestic pricing, while constrained by the strong Australian dollar, improved into the September quarter, reflecting the lagged flow-through of regional spot prices in the first few months of the financial year.”
Bendigo and Adelaide Bank has posted a 24.4% increase in first half cash profit, and said it expects to deliver similarly strong results for the second half of the 2010 financial year.
Cash earnings increased to $139.7 million, with the bank’s shares increasing by 5.05% to $10.40.
“Bendigo and Adelaide Bank remains cautiously optimistic about future financial performance,” the bank said in a statement to the ASX.
“While it expects to deliver strong financial results in the coming reporting period – supported mainly by a stable net interest margin and sound credit conditions – asset growth will continue to be dictated by broader economic conditions.”
Shares fall after declines in commodity markets
The Australian sharemarket has opened slightly lower today after commodity markets declined due to the news China would take active steps to ensure its economy would not grow too quickly.
The benchmark S&P/ASX200 index was down 0.6 points or 0.02% to 4561.4 at 12.00 AEST, while the Australian dollar also fell to US88c.
ANZ grew by 0.6% to $20.72, while Commonwealth Bank shares fell by 0.9% to $51.85. Westpac rose 1.3% to $23.51, as NAB lifted 0.6% to $24.55.
West Australian Newspapers Holdings has recorded a 15% decline in first half net profit to $49.5 million for the six months ending December 31, down from $58.5 million in the previous corresponding half.
“The profit, although down 15% on the corresponding period last year, reflects a significant improvement in the underlying financial performance of the business, based on recent quarterly results,” WAN said in a statement.
“We have seen improving positive trends in both revenue and profitability throughout the half, with some weeks in November and December outperforming the corresponding weeks last year,” chief executive Chris Wharton said.
Hospital operator Healthscope has recorded a 17% lift in first half profit to $45.1 million, driven by what it said is growth boosted by demand and investments.
“Our underlying business performed strongly during the half, with revenue and market share growth across all divisions, reflecting both increased demand and the benefits of our investment in expanding our hospitals and the provision of new services,” chief executive Bruce Dixon said.
“The hospital business benefitted from the completion of the Campbelltown and Norwest expansion projects, which have delivered additional capacity and achieved occupancy in excess of our initial expectations.”
IMF calls for higher inflation target
Overseas, the International Monetary Fund has said countries should increase inflation targets to 4%, up from 2%, in order for monetary policies to be more effective in the future.
Currently the Reserve Bank of Australia has set its target for inflation at between 2-3%.
The “Rethinking Macroeconomic Policy” report states the 2% target is insufficient. Lead author Olivier Blanchard, also the IMF research director, stated a higher target should be adopted.
“Higher average inflation, and thus higher nominal interest rates to start with, would have made it possible to cut interest rates more, thereby probably reducing the drop in output and the deterioration of fiscal positions.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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