The Australian dollar has fallen below parity with the US dollar in the first time since early October, as shares continue to fall over volatility in Europe.
The fall comes as European and US equities markets have continued to fall, as borrowing costs for both Italy and Greece continue to rise.
However, some investors have become more confident after the new Italian Prime Minister, Mario Monti, won a confidence vote in Parliament.
At 12.00 AEST, the Australian dollar was trading at $US0.99c.
The sharemarket has also taken a beating, falling after weak leads in the United States as investors remain nervous over Europe’s future. The benchmark S&P/ASX200 index was down 67 points or 1.6% to 4190.3 at 12.00 AEST.
AMP shares lost 1.39% to $4.27, while Commonwealth Bank shares fell 1.11% to $48.07. Westpac lost 1.87% to $20.46, as NAB lost 2.01% to $23.85.
Telco giant Telstra has said it may reach an agreement with regulators over the National Broadband Network by the end of the year.
Chief financial officer John Stanhope said this morning during a briefing that it believes the negotiations with the Australian Competition and Consumer Commission are the last step it must face before completing the entire deal.
“We still believe that a final decision by the ACCC is achievable before the year end,” he said.
The deal will see Telstra hand over a significant portion of its infrastructure to the NBN, while the company itself will be split into two networks.
Meanwhile, the company also reaffirmed its guidance for the 2011-12 financial year, with low single digit growth for EBITDA, also maintaining guidance for a 28 cents per share dividend for the full year.
Chief executive David Thodey said the company had been recording strong growth in the mobile space.
“Importantly, we are adding those new customers profitably and without sacrificing average revenues per customer.”
Outdoor clothing and equipment retailer Kathmandu has recorded a boost in first quarter sales, up by 16%, it announced this morning.
The New Zealand company announced sales grew to $42.7 million in the quarter to November 13, compared with the previous corresponding period, while same stores sales grew by 7.6% during the quarter.
“Sales momentum has been steady and we have maintained gross margins,” chief executive Peter Halkett said in a statement, also announcing this result was “in line with our expectations”.
British entrepreneur and billionaire Richard Branson has snapped up the Northern Rock bank as part of his Virgin Money group.
The bank, which was nationalised in 2008 during the financial crisis, was sold for $1.2 billion.
“The Government is selling Northern Rock to Virgin Money. It represents a significant step in returning public sector stakes in banks to the private sector,” British treasury said in a statement.
“The sale is in the best interests of the taxpayer, secures the long-term future of the company and will increase competition in the banking sector.”
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
