Finance news you need to know today

NEARLY 2000 Homebase staff in the UK could be axed after the DIY chain’s Australian owner, Wesfarmers, launched a review of the business.

AUSTRALIAN shares look set to open sharply lower after key markets around the globe tumble, with the worst falls on Wall Street. At 0700 AEDT on Tuesday, the share price futures index was down 88 points, or 1.48 per cent, at 5,873.

Meanwhile, the Australian dollar is slowly continuing to decline against its US counterpart. The Aussie was trading at 79.00 US cents at 0700 AEDT on Tuesday, compared to 79.37 US cents on Monday.

WORLD FINANCE UPDATE:

NEW YORK — US stocks’ losses have accelerated in afternoon trading, pushing the S&P 500 down more than 5 per cent from its January 26 record high and the Dow below 25,000 for the first time since January 4.

LONDON — More than GBP27 billion ($A53 billion) has been lost off the value of London’s blue-chip stocks as fears over interest rate hikes ripped through global markets.

LONDON — Banks in Britain and the US have banned the use of credit cards to buy bitcoin and other “cryptocurrencies”, fearing a plunge in their value will leave customers unable to repay their debts.

LONDON — Nearly 2000 Homebase staff in the UK could be axed after the DIY chain’s Australian owner, Wesfarmers, launched a review of the business that may see up to 40 stores shut.

SAN JOSE, CALIFORNIA — Broadcom has boosted its bid for Qualcomm to more than $US121 billion ($A169 billion) in cash and stock in what would be the largest tech deal in history.

WASHINGTON — Jerome Powell has been sworn in as the 16th chairman of the Federal Reserve in a brief ceremony in the Fed’s boardroom.

MONDAY HIGHLIGHTS:

WESFARMERS — Bunnings’ expansion across the UK is in doubt after parent company Wesfarmers was forced into $1.3 billion in first-half writedowns, due mostly to the poor performance of its British hardware venture.

MARKETS OUTLOOK — Around $30 billion has been wiped from the value of Australian shares and Asian markets are tumbling on Monday following a sell-off on Wall Street on Friday but market analysts have dismissed fears that the bull run in global equities is at an end.

WESTPAC — Westpac has recorded another $8.628 billion of mortgages switching from interest-only to principal and interest in the first quarter.

RATES PREVIEW — Persistently weak inflation will ensure that the Reserve Bank of Australia keeps its official interest unchanged when the bank board holds its first interest rates meeting of 2018 on Tuesday, economists expect.

HOUSING PRICES — Housing prices remain largely flat around the nation’s capital cities as the auction market starts to gather pace, albeit with less vigour than it showed a year ago.

ARGO — Argo has lifted first-half profit on the back of improved dividends from its investments in BHP Billiton and Rio Tinto.

FAIRFAX NZ — Fairfax Media and its proposed New Zealand merger partners are seeking leave to appeal a New Zealand High Court decision blocking a merger between its local asset, Stuff Limited, and rival NZME Limited.

AWE — Takeover target AWE Ltd has decided that an offer from Japanese firm Mitsui & Co is the best option among three suitors vying for control of the company.

DOWNER — Downer EDI has flagged a goodwill impairment charge of $77 million on its mining operations after failing to renew two material contracts and delays in securing alternative business.

JOBS ANZ — The ANZ’s survey shows that the number of jobs advertised in Australia jumped 6.2 per cent in January, more than reversing the December’s 2.7 per cent fall.

SERVICES AI — Activity in the Australian services sector has had a solid start in 2018, expanding in January for an 11th straight month — the longest run since March 2008.