Insights

The corporate watchdog has abandoned an international investigation into Jack Flader, the mastermind of Australia's biggest superannuation fraud.

Japanese-owned dairy, beer and wine group Kirin has thrust itself into an increasingly furious and costly three-way takeover battle for Warrnambool Cheese & Butter as it seeks to use a blocking stake to protect the viability of its cheese brands Coon and Cracker Barrel.

The Australian banks are at the top of their game. In the opinion of some that makes them a sell, but betting against them has been a loser's strategy and the 11 per cent higher $6.5-billion September year profit that ANZ chief executive Mike Smith handed down on Tuesday suggests that state of affairs will continue. Theories that the banks will be short-sold by hedge funds as proxies for an Australian housing market crash or an economic slowdown have been around for years, but powerful franchises, world-leading profitability and a combined 25 per cent weight in the Australian sharemarket make them dangerous ground for shorting, which involves an up-front commitment to sell shares backed by a plan to acquire the shares that will be delivered later, at a lower price. In this market, every sector except the telcos is shorted more aggressively than the banks.

ANZ Bank chief executive Mike Smith has signalled the bank will not retreat from its aggressive push into Asia, saying this remains a critical part of the plan to lift shareholder returns.

A photograph used with Tuesday's story in BusinessDay about Treasury Wine Estates inadvertently showed a barrel from winemaker Pizzini Wines. Pizzini is owned by the Pizzini family, and has no relation to the subject matter of the article. The Herald apologises for the error.

Communication Minister Malcolm Turnbull remains sceptical of broadband connection figures released by NBN Co, saying the annual report does not provide a "meaningful indicator of progress".

Festive bookies betting in bloom

The government has accelerated its inquiry into the car manufacturing industry in a last-ditch bid to convince Holden to stay.

Saputo chief executive Lino Saputo has said the Canadian dairy company would have no business without paying farmers a competitive price for milk. He will address Warrnambool Cheese & Butter suppliers' concerns at a series of meetings this week.

Reserve Bank governor Glenn Stevens says the value of the Australian dollar remains high, and it lacks the support of economic fundamentals at the present level of above US95¢.

The thirst of Japanese companies for Australian food and beverage businesses appears to be unquenchable, with Japan's Kirin taking a 9.9 per cent stake in the much sought after Warrnambool Cheese and Butter Factory.

More than 3000 jobs will be created as part of the Melbourne Airport expansion, the federal government and the airport say. The new domestic airport terminal will be capable of handling up to 10 million passengers a year. The international terminal is also being upgraded. Melbourne Airport chief executive Chris Woodruff, pictured, says the airport plans $1 billion in projects over the next two years.

BP's profit slid 34 per cent to $US3.5 billion ($3.67 billion) in the third quarter as the British energy giant's output fell 2.3 per cent and it was also hit by lower refining margins. It said that charges incurred by the group as a result of the Gulf of Mexico oil spill disaster in 2010 currently stood at $US42.5 billion.

NIB's executives have defended the insurer's plans to cash in on medical tourism, which they said would help boost earnings as profit growth in the established domestic market slowed.

Qantas is said to be on the cusp of pouring tens of millions of dollars into Jetstar Japan as it seeks to secure its position in the domestic Japanese market against other newcomers.

UGL intends to play a leading role in any efforts to make the engineering services sector more efficient, as it continues to cut costs and borrowings amid soft trading conditions.