Finance news you need to know today

DONALD Trump’s proposed tariffs on steel and aluminium imports are a “black day” for the world and could hurt the Australian economy, BHP says.

Iron ore being trucked out of the open cut mine at Mount Newman in Western Australia. Picture: AFP/BHP Billiton

AUSTRALIAN stocks are expected to have a flat open amid optimism about easing tensions between North and South Korea and as President Donald Trump faces pressure not to impose heavy tariffs on US metals imports. At 0700 AEDT on Wednesday, the Australian share price futures index was up five points, or 0.08 per cent, at 5,959.

Meanwhile, the Australian dollar moved above 78 US cents for the first time in a week, helped by the improving market optimism. At 0700 AEDT on Wednesday, the local currency was worth 78.19 US cents, up from 77.74 US cents on Tuesday.

WORLD FINANCE UPDATE:

WASHINGTON — Republican lawmakers have stepped up calls for President Donald Trump to pull back from proposed tariffs on steel and aluminium imports as key trading partner Mexico rejected a bid by Washington to drive a wedge between it and Canada in talks to renegotiate the North American Free Trade Agreement.

SEOUL — North Korea is willing to hold talks with the United States on denuclearisation and will suspend nuclear tests while those talks are under way, according to officials in Seoul.

OSLO — Norway’s $US1-trillion sovereign wealth fund, the world’s largest, has earned less money because of divestments it has made over the past twelve years due to ethical and environmental considerations, it says.

ATHENS — All Greek train routes have been suspended for the day as railway workers stage a 24-hour strike to protest the privatisation of the rolling stock maintenance company and a lack of staff.

TUESDAY HIGHLIGHTS:

RATES — The Reserve Bank of Australia may not begin lifting interest rates until 2019 after reinforcing its expectations for only gradual improvement in wages growth and inflation over the year ahead.

BHP TARIFFS — US President Donald Trump’s proposed tariffs on steel and aluminium imports are a “black day” for the world and could hurt the Australian economy, BHP Billiton chief executive Andrew Mackenzie says.

RETAIL TRADE — Retail spending has had a quiet start to the year, struggling to make any significant gains, and economists don’t believe it will change any time soon.

BOPS — Australia’s current account deficit has widened because of increased imports and flat exports, which is likely to have weighed on December quarter economic growth.

FOXTEL — Foxtel and Fox Sports will merge into a single company by the end of June, with current Foxtel chief executive Patrick Delaney at its head.

MICHAEL HILL — Jewellery chain Michael Hill International will close 80 per cent of its struggling Emma & Roe stores at the cost of up to $7.9 million, with just six outlets surviving the cull.

ACCC NBN — The consumer watchdog has approved Telstra’s proposed NBN migration plan to enable fibre to the curb (FTTC) technology for the national broadband network.

MURRAY GOULBURN — Canadian dairy giant Saputo has proposed to sell Victoria’s Koroit dairy processing plant in order to get the competition watchdog’s approval for its takeover of Murray Goulburn.

FAIRFAX NZ — Fairfax Media and NZME will have to renegotiate the terms of any merger if they win their appeal against the New Zealand’s High Court’s decision to block their attempt to combine.

VOCUS — Vocus Group has announced yet another change to its leadership team, with Vaughan Bowen leaving the struggling telco after only five months as chairman.