Finance news you need to know today

MOTORISTS could end up paying more for fuel if BP’s proposed $1.8 billion takeover of Woolworths petrol stations goes ahead.

THE Australian market looks set to follow the negative lead of international markets and open sharply lower as growing tension between the US and North Korea send investors away from equities and toward safer havens. At 0700 AEST on Friday, the share price futures index was down 68 points, or 1.19 per cent, at 5,631.

Meanwhile, the Australian dollar is down against all the major currencies including an easing greenback. The local currency was trading at 78.76 US cents at 0700 AEST on Friday, from 78.80 on Thursday.

WORLD FINANCE UPDATE:

WASHINGTON, DC — The US federal budget deficit fell sharply in July from a year earlier, largely because of a quirk in the calendar.

WASHINGTON, DC — China says it’s “displeased” after a US Navy destroyer carried out a “freedom of navigation operation” through the disputed South China Sea.

AMSTERDAM — Dutch police arrested two suspects on Thursday as part of an investigation into the illegal use of a potentially harmful insecticide in the poultry industry, the Dutch prosecution service said.

NEW YORK — Facebook is launching a new section dedicated to live and recorded video.

THURSDAY HIGHLIGHTS:

AGL ENERGY — Energy prices are likely to remain high until there is more investment in power production, and that requires certainty from government energy policy, says industry heavyweight AGL Energy. The company has also announced it is considering expanding overseas.

AMP — AMP’s first-half profit has dropped 15 per cent to $445 million but the financial services giant’s underlying performance has improved with earnings growth in its banking and investment divisions.

VIRGIN — Virgin Australia says its core domestic business is on the mend despite weaker demand leading to an underlying annual loss of $3.7 million.

WOOLWORTHS — Motorists could end up paying more for fuel if BP’s proposed $1.8 billion takeover of Woolworths petrol stations goes ahead, the competition watchdog warns.

NICK SCALI — Furniture retailer Nick Scali’s full-year profit has soared to a record $37.2 million but investors have punished the company after it failed to give guidance for the year ahead, saying a looming housing slowdown made predictions too hard.

ORORA — Packaging business Orora has lifted its full-year profit by 1.5 per cent to $171.1 million, driven by strength from the company’s core businesses. But the company says it faces a power bill blowout of up to $8 million at its NSW recycled paper mill once a current electricity contract expires and it feels the brunt of a recent surge in energy costs.

ARISTOCRAT — Aristocrat Leisure shares have jumped around five per cent in opening trade, after the gaming machine maker and provider said it is buying Israel-based social gaming company Plarium Global for $500 million.

ORIGIN — Origin Energy has flagged a second-half $1.2 billion hit to its full-year results, largely relating to an impairment in its Australia Pacific LNG interest.