The Australian share market has fallen by more than 1% this morning, as investors reel from yesterday’s announcement of the carbon tax and learn of the impact it will have on various sectors of the economy.
The benchmark S&P/ASX200 index was down 59 points or 1.27% to 4595.6 at 12.00 AEST, while the Australian dollar also fell to $US1.07c.
Some of the biggest falls were in mining and manufacturing stocks, with BlueScope shares falling 5.19% to $1.28.
AMP shares have dropped 2.21% to $4.86, while ANZ shares have fallen 1.23% to $21.63. Westpac shares have lost 1.8% to $21.84 as NAB fell 1.25% to $24.80.
Airline giant Qantas, which had already announced that the carbon tax would impact pricing for customers, has said this morning that the impact of the tax is likely to be between $110-115 million for the 2012-13 financial year.
“In the context of the significant challenges facing the global aviation industry, the Qantas Group will be unable to absorb the additional costs associated with the carbon price and there will be a full pass-through to customers,” it said.
The average price increase for the domestic flight sector will be approximately $3.50 in the 2013 financial year.
“Fare increases will vary depending on sector length and will be communicated transparently to consumers,” it warned.
Home loan commitments rose by a seasonally adjusted 4.4% in May to 49,437, according to the latest figures from the Australian Bureau of Statistics.
The data shows that home loans for owner-occupiers rose by 2.2% to $14.2 billion, with the value of loans for investment homes rising 4.4% to $6.3 billion.
Commitments to purchase new homes rose by 4.6%, with commitments for established homes rising 4.1%. Loans for constructing new homes rose by 6.2%.
Bega Cheese is preparing to raise $36 million in an IPO that will value the company at $254 million, according to a report in the Australian Financial Review.
The company expects to sell a 15% stake with shares at $2, with institutional investors reported to take $10 million worth of shares, with retail investors making up the rest of the buyers.
The listing is expected to take place next month.
Former Google chief executive and current chairman Eric Schmidt will testify before a September hearing for the Senate Judiciary Committee Antitrust Subcommittee, legislators have announced.
According to Reuters, subcommittee chairman Herb Kohl has said “this will allow us to have a truly informational and thorough public hearing”.
The hearing will examine competition in the search market, of which Google controls about 70%. The company is already under investigation by the Federal Trade Commission over competition issues, with some websites accusing it of emphasising its own services over others in search rankings.
“I look forward to discussing a number of important issues relating to Google and Internet search competition,” Senator Mike Lee said in a statement.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
