London pre-open: Rio squealing over Aussie tax proposal

11th Jul 2011 07:40

London is set to start the week lower, with Australian miners likely to be on the back foot after the Australian government's carbon tax proposal.The Aussie government has decided to implement a tax of A$23 a tonne on the 500 heaviest emitters as of 1 July 2012, as part of a scheme to cut 159m tonnes of carbon pollution from the atmosphere by 2010.That brought a prompt and predictable response from mining giant Rio Tinto, which toed the sector's party line on how the plan would hinder investment and jobs growth in the nation's mining industry.Power generator International Power was more phlegmatic in its response. "Based on a preliminary assessment, this regulatory intervention by the Australian government is likely to result in a shorter asset life for brown coal-fired generation," International Power said. Brown coal-fired generation in Australia represents some 5% of International Power's global (net) generating portfolio. The group said that the legislation is not expected to be material in the context of the group as a whole.Hong Kong infrastructure group Cheung Kong has made a non-binding indicative proposal to bid for UK water and waste management group Northumbrian Water, offering 465p cash per share plus the right to retain the recently declared net final dividend of 9.57p.Permanent placings are driving growth at international recruitment firm Michael Page though the temps market is also on the up, meaning second quarter gross profit was ahead of management expectations. Gross profit in the second quarter was up 32.4%, or 29.6% in constant currency terms, to £147.8m from £111.7m in the second quarter of last year.