Finance news you need to know today

TELSTRA shares have plunged to a five-year low after the telco cut future dividends to build up a war chest to protect its massive market.

THE Australian market looks set to open sharply lower after Wall Street’s indexes slumped with the Dow down more than one per cent and the Nasdaq dropping close to two per cent. At 0700 AEST on Friday, the share price futures index was down 51 points, or 0.89 per cent, at 5,695.

Meanwhile, the Australian dollar has also fallen back sharply against its US counterpart, as well as the yen. The local currency was trading at 78.85 US cents at 0700 AEST on Friday, from 79.47 on Thursday.

WORLD FINANCE UPDATE:

LONDON — Britain says it’s “confident” talks with the European Union would move towards discussing their future relationship by October, in contrast to warnings from the top EU negotiator that the target is receding.

BEIJING — A fire has broken out at state oil major PetroChina’s plant in northeastern China, one of the country’s largest refineries, state media report.

HELSINKI — HMD Global, the Finnish start-up looking to reinvigorate the Nokia phone brand, has unveiled the Nokia 8, hoping to cash in on rising consumer demand for high-quality audio and video features.

THURSDAY HIGHLIGHTS:

TELSTRA — Telstra shares have plunged to a five-year low after the telco giant cut future dividends in a move to build up a war chest to protect its massive market amid growing competition.

FOXTEL — Foxtel and Fox Sports are to be merged into a single company that could be listed on the share market, owners News Corp and Telstra have announced.

WESFARMERS — Supermarket giant Coles has suffered its first earnings drop in nine years as it lags rival Woolworths but parent company Wesfarmers has lifted profits thanks to strong growth in its Bunnings hardware chain.

WHITEHAVEN — Whitehaven Coal has delivered a sharply higher full-year profit as well as its first dividend in more than four years on the back of growing production and a surge in coal prices.

WHITEHAVEN ENERGY — One of Australia’s largest coal producers has ruled out selling into the domestic market in the foreseeable future, blaming uncertainty arising from the nation’s the lack of a comprehensive energy policy.

LABOUR FORCE — Another rise in employment in July shows the jobs market is gaining momentum, economists say.

TREASURY WINE — Wine merchant Treasury Wine Estates says the market in China is growing so strongly that it is finding it hard to keep up with demand.

TREASURY PENFOLDS — Wine lovers know all about Penfolds luxury red wines, but the whites? Not so much.

BLACKMORES — Blackmores is promoting from within to replace Australia Post-bound Christine Holgate, making Richard Henfrey its new chief executive.

QBE — Insurance giant QBE’s half year profit rose 30 per cent to $US345 million ($A435 million) after a strong performance in Australia, New Zealand and the US helped offset a claims blowout in its emerging markets business.

TATTS — Lotteries and wagering giant Tatts Group says a $50 million jackpot has it off to a strong start in the new financial year, after a six per cent fall in profit for the year just ended.

MIRVAC — Property developer Mirvac Group expects its earnings growth to continue despite serious concerns about housing affordability in parts of the country.

COCHLEAR — Cochlear shares have soared after the hearing implant maker lifted its final dividend and forecast bigger profits in the year ahead.

EVOLUTION — Evolution Mining has swung to a full-year profit of $217.6 million from a $24 million loss a year ago, as the Ernest Henry mine acquisition helps lift gold production.

ASX — Share market operator ASX has achieved a two per cent increase in annual profit to $434 million after global uncertainty helped drive cash and derivatives trading.