Finance news you need to know today

RETAIL Food Group shares have plunged amid reports it has left Gloria Jean’s, Brumby’s and Donut King franchisees struggling.

Gloria Jean’s inside Boronia Mall.

THE Australian share market looks set to open markedly higher after expectations that the US tax reform bill will be passed this week boosted Wall Street equities. At 0700 AEDT on Tuesday, the share price futures index was up 28 points, or 0.46 per cent, at 6,069.

Meanwhile, the Australian dollar has crept higher against the US dollar which has weakened, with the US dollar index 0.3 per cent lower overnight. The local currency was trading at 76.67 US cents at 0700 AEDT on Tuesday, from 76.61 on Monday.

WORLD FINANCE UPDATE:

BRUSSELS — The European Commission has launched an investigation into tax benefits granted by the Netherlands to furniture giant Ikea.

REYKJAVIK — Half of Icelandair’s flights have been cancelled leaving thousands of travellers stranded after members of the Icelandic Aircraft Mechanics Association called a strike over pay.

TOKYO — Toyota plans to offer more than 10 purely electric vehicle models in its line-up by the early 2020s, marking the Japanese automaker’s commitment to that growing technology sector.

WASHINGTON — President Donald Trump will declare that China and Russia are competitors seeking to challenge US power and erode its security and prosperity, in a national security strategy he will lay out in a speech on Monday.

MONDAY HIGHLIGHTS:

ANZ — ANZ has confirmed it will plough the proceeds from its stake in Shanghai Rural Commercial Bank into a $1.5 billion share buyback.

ACONEX — US technology giant Oracle is buying ASX-listed construction software provider Aconex in an all-cash $1.6 billion deal as it expands further into the cloud computing market.

RETAIL FOOD GROUP — Retail Food Group shares have plunged to a five-year low amid ongoing media reports its business model has left Gloria Jean’s, Brumby’s and Donut King franchisees struggling.

DOWNER ADANI — India’s Adani group has cancelled all contracts awarded to a major contractor for its controversial Carmichael coal mine after deciding to develop the project on its own.

ACCC NBN — The consumer watchdog wants to hear the views of stakeholders as part of its inquiry into national broadband network wholesale service standards to help it decide whether regulation is needed for the sector.

KOGAN — Shares in online retailer Kogan.com have jumped following news it will soon sell pet insurance as it continually expands its business.

HOUSING PRICES — The number of homes taken to auction across the combined capital cities has fallen over the past week, along with housing prices.

BHP GIPPSLAND — BHP Billiton and Esso Australia Resources will separately market their share of gas produced under their Gippsland Basin joint venture for the first time in almost five decades, following an agreement with the consumer watchdog.

RIO TINTO — Rio Tinto will increase the number of unmanned autonomous haul trucks it uses in the Pilbara by more than 50 per cent as part of a $5 billion productivity drive.

CIMIC — CIMIC’s CPB Contractors company has been awarded a $1.1 billion design and construct contract by the Victorian government which is expected to generate about $312 million in revenue.