Briefs
Deficit trims
Australia's trade deficit narrowed in December, official figures show. The balance on goods and services was a deficit of $427 million in December, seasonally adjusted, compared with an upwardly revised deficit of $2.788 billion in November, the Bureau of Statistics said. During the month, exports rose 3 per cent, while imports fell 6 per cent.
AUTO INDUSTRY
Car sales rise
New vehicle sales made a strong start to the year, despite a sharp drop in purchases by state and federal governments. Sales of new vehicles were up 11.3 per cent last month compared with the same time last year, figures released by the Federal Chamber of Automotive Industries show.
FROZEN FOOD
Sara Lee sale
Frozen foods supplier McCain Foods has acquired Kitchens of Sara Lee Australia from Hillshire Brands for $82 million. The acquisition includes a factory at Lisarow in NSW and licence rights to the Sara Lee brand.
SEARCH ENGINE
Baidu soars
Baidu, which operates China's most popular search engine, says its quarterly profit rose 36 per cent to 2.8 billion yuan ($431 million) as an economic rebound helped boost advertising spending. For the full year, profit rose 57.5 per cent to 10.5 billion yuan.
IRON ORE
Atlas increase
Atlas Iron says estimates for its Pilbara iron ore reserves have increased 21 per cent to almost 500 million tonnes over the past seven months. It comes a fortnight after Atlas indicated it could beat its full year sales guidance after shipping more lower-grade iron ore than expected in the December quarter.
SERVICES
Slide continues
Australia's services sector contracted for the 12th consecutive month in January, amid slowing activity in the mining sector and soft retail sales. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index rose 2.1 points to 45.3 in January. A reading of below 50 indicates a contraction in the sector.
INDONESIA
Solid growth
The Indonesian economy grew 6.23 per cent last year, supported by strong private consumption and investment. The Central Statistics Agency said in the three months to the end of December growth came in at 6.11 per cent year on year.
Frequently Asked Questions about this Article…
Australia's trade deficit narrowed to a seasonally adjusted $427 million in December, down from an upwardly revised $2.788 billion deficit in November. The Bureau of Statistics reported exports rose 3% while imports fell 6% during the month, which drove the improvement.
New vehicle sales were up 11.3% in the month compared with the same time last year, according to the Federal Chamber of Automotive Industries. For everyday investors, stronger car sales can signal healthier consumer demand in retail and related sectors, even though government purchases fell sharply.
McCain Foods acquired Kitchens of Sara Lee Australia from Hillshire Brands for $82 million. The deal includes a factory at Lisarow in New South Wales and licence rights to the Sara Lee brand, expanding McCain's presence in the Australian frozen foods market.
Baidu reported quarterly profit rose 36% to 2.8 billion yuan (about $431 million), and full-year profit increased 57.5% to 10.5 billion yuan. The company said an economic rebound helped boost advertising spending, supporting the profit gains.
Atlas Iron said its Pilbara iron ore reserve estimates have increased 21% to almost 500 million tonnes over the past seven months. The announcement followed an indication the company could beat its full-year sales guidance after shipping more lower‑grade iron ore than expected in the December quarter.
Australia's services sector was still contracting in January, marking the 12th consecutive month of contraction. The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index rose 2.1 points to 45.3 in January; any reading below 50 indicates contraction, with slowing mining activity and soft retail sales cited as headwinds.
Indonesia's economy grew 6.23% over the year, with growth of 6.11% year-on-year in the three months to the end of December. The Central Statistics Agency said the expansion was supported by strong private consumption and investment.
The December combination of exports rising 3% and imports falling 6% narrowed Australia's trade deficit, a sign of an improving external balance for that month. For everyday investors, such trade movements can be a useful indicator of demand for domestic goods and services and may be relevant when assessing companies exposed to export markets or import competition.
Call 1300 880 160
Start a chat
Schedule a call
