Jobs news analysis pushes dollar up, Nexus Energy goes into administration

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Aussie dollar up following jobs news analysis and NZ rate rise... world markets react to unrest in Iraq... Nexus goes into administration... and former banker says the RBA have pushed rates too low...

Aussie dollar up
The Australian dollar ended higher on Thursday following encouraging employment figures, together with the rate rise in New Zealand which pushed the dollar to a two-month high. There was a drop following the Australia Bureau of Statistics job totals which showed a 5,000 drop in the workforce, but a closer look showed better full-time employment and the currency recovered. Read the full story.
 
Nexus in administration
Nexus Energy has gone into administration after shareholders dismissed a bid of 2c per share from Seven Group. The board had hoped that shareholders would accept the deal but 57 per cent voted against. Nexus subsidiaries are not part of the administration and it’s hoped that they will continue operations and that the parent company’s key projects will also secure funding. Seven Group is hoping to acquire Nexus assets from administrators in the near future. Read the full story.
 
Oil prices up
The unrest in Iraq has pushed oil prices up by around 1 per cent in trading on Thursday. In recent years, Iraq’s oil output has increased by more than 20% and OPEC countries would be hard pressed to increase their supplies if Iraq was restricted. Share markets slipped with the escalating violence along with the World Bank’s downgrade of global growth. Read the full story.
 
Accountant seeks to stall IRD
New Zealand’s Inland Revenue will have to wait a while to reclaim the $367 million of tax awarded to them in a summary judgment against John George Russell this week. The 79-year old accountant has filed for a judicial review after the IRD refused to accept his offer to pay back $1000 for the rest of this life. It follows a court of appeal ruling that he has been involved in a ‘blatant tax avoidance scheme’. The High Court action launched by Mr Russell will, he hope, delay proceedings including a bankruptcy order, however there is doubt that his review will be successful. Read the full story.
 
Former RBA board member says rates went too low
Former Reserve Bank of Australia board member Warwick McKibbin says the bank was wrong to push rates low in a currency battle with the US and Europe. Mr McKibbin said Australia should not have rates similar to those of countries that had seen financial meltdowns and that the bank’s actions have allowed the housing and stock markets to have unsustainable booms. He added that Australia needed ‘structural change’. Read the full story.

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