Fortescue Metals Group (AU's third-largest iron ore miner) sacks 1000 employees and contractors in Pilbara expansion delay to save $1.6 billion after snap meeting in Perth Sunday, shelving 40 percent of new production planned to start June 2013. Cites short term loss of confidence in China, a need to be flexible and adaptable, and iron ore price fall. Iron ore price has fallen 33% since start of July to lowest level since November 2009. Rio Tinto and BHP Billiton are going ahead with current expansions, reluctant to approve new developments. [CR: Is this a trend, or a self-fulfilling prophesy of market hesitation?]
Germany's Bauer Publishing Group to purchase Nine Entertainment's ACP Magazines (Women's Weekly, Women's Day, Ticketek, 50% share of NineMSN, east coast radio stations) for $500 million. ACP contributed $100 million of Nine's $360 million in 2011-12 earnings (EBITDA), forecast to fall to $80 million in 2012-13. Bauer founded in 1875, based in Hamburg, owns 400 magazines, over 100 websites, around 50 radio and TV programs across 15 countries, run by 35-year old billionaire 5th generation heiress Yvonne Bauer. ACP CEO and director not expected to lose their jobs. Sale expected to make Nine more attractive to sale. [CR: Is rationalisation and centralisation of industry an inevitable trend only held in check by innovation? If there was no innovation and new industry, would we eventually end up with one or two entities loosely held in check by regulation?]
Qantas and Jetstar July decreased revenue seat factor compared to 2011: Qantas domestic passengers down 2.6%, revenue seat factor down 4.3%. Jetstar domestic passengers up 1.6%, revenue seat factor down 2.1%. Qantas increased seats by 5.8%. Quantas and Virgin July 2011 numbers higher due to Tiger Airways grounding on safety concerns. Singapore-based Jetsar Asia increased passengers 21.2% without increase in seats. Qantas shares down 2.6%. Qantas and Jetstar have 65% of Australian market share. [CR: Last year was an anomaly, airlines are pouring on capacity, and they get penalized for a decrease compared to last year and show a decrease in revenue per seat? Question for you if you are a frequent flyer who owns Qantas stocks: Will the continued discount war offset your drop in stock value?]
Financial sector job loss statistics since the GFC: UNI Finance Global report. At least 300,369 banking and insurance jobs slashed worldwide since 2007. 4,054 Australian finance sector positions made redundant or sent offshore in 2012. Westpac 1133 jobs, ANZ 1095 jobs, NAB 1046 jobs (but created 608 new positions). Bank of America in the US cut 30,000 jobs in 2011 and 2012. [CR: You can probably ignore this for what it is worth. These are sensationalist statistics. The Westpac number represents only 3% of their workforce, the Bank of America is 10% and reflective of the poor conditions in the US.]
Draft proposal to have Europe's listed companies to reserve 40% non-executive board seats for women or face fines under European Commission proposal. In January, only 13.7% of board positions were held by women. [CR: Women are more educated and score higher on most competency tests. Australia's ASX 200 boards have 8.4 percent female board directors. If the only way to address the inequality is through legislation, then so be it.]
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