ASX 200 declines; Super Retail chair, CEO sued; Fortescue dives; Rex update awaited; BHP, Lundin to buy Filo; Ramsay shops at Woolworths for CEO

Super Retail ex-exec alleges bullying, harassment. Fortescue crashes after mystery stake sale. BHP, Lundin bid $C4.1bn for Filo Corp. Ramsay taps Woolworths Supermarkets boss as next CEO. Credit Corp's top gainer. Rex halts 737 bookings amid financial woes.

Spotlight on Credit Corp earnings, updates from Fortescue and Rex Airlines. Picture: Gaye Gerard

Welcome to the Trading Day blog for Tuesday, July 30. The ASX 200 index trimmed early losses, closing down 0.5 per cent to 7953.20 points with miners the top losers.

US stocks ended mixed ahead of a big week, which includes the US Federal Reserve's interest rates meeting and results from Apple, Amazon, Meta and Microsoft.

The Aussie dollar was trading around US65.60c at 5.20pm AEST ahead of Wednesday's crucial quarterly inflation update.

Updates

5:17 pm July 30, 2024

ASX 200 ends down 0.5pc before key events

David Rogers

Australia's share market mostly recovers from a sharp intraday fall to be moderately lower at the close on Tuesday before a string of major events in coming days.

The ASX 200 closed down 0.5 per cent at 7953.2 after an early dip to 7894.3.

The materials sector fell sharply on weaker iron ore prices and an investor selldown on Fortescue. But the financials and consumer discretionary sectors turned up with CBA hitting another record high and Credit Corp soaring after its report.

Fortescue dived 10.2 per cent on a suspected selldown by Capital Group.

BHP fell 1.3 per cent as iron ore futures fell 3.2 per cent to a six-month low of $US98.40. Pilbara Minerals dived 4.5 per cent. IGO lost 4.8 per cent after reporting.

But Credit Corp soared 14 per cent as its results weren't as bad as expected.

CBA jumped 0.8 per cent to a record high of $135.95. ANZ fell 1 per cent as Morgan Stanley downgraded.

ReMed rose 3.1 per cent, Qantas gained 1.6 per cent and IDP Education soared 3.5 per cent. Microsoft reports early Wednesday Australian time and attention turns to Aussie CPI and retail sales data, as well as China PMI data and the BoJ meeting.

The FOMC decision comes early Thursday along with results from Meta.

US ISM data come overnight on Thursday and the BoE meets.

Friday brings results from Amazon and Apple and US non-farm payrolls data.

4:11 pm July 30, 2024

Ampol refuellers call off Sydney Airport strike

Robyn Ironside

A threatened strike by Ampol refuellers at Sydney Airport on Wednesday has been called off, averting any disruption to flights from Australia's biggest gateway.

The refuellers had planned three two-hour stoppages throughout the day as they fought for a bigger pay rise and better job security.

The Transport Workers Union said last minute crisis talks had led to a better offer from Ampol, with a further meeting planned for Friday. In the interests of negotiation and the hope of a positive outcome, the strikes had been shelved.

TWU New South Wales and Queensland state secretary Richard Olsen said industrial action was always a last resort, and with movement from the company on the workers' demands, any flight disruption had been averted.

"This is a step in the right direction but we will remain vigilant to ensure Ampol upholds their commitments," Mr Olsen said.

3:16 pm July 30, 2024

Super Retail responds to court filing

Eli Greenblat

Super Retail Group has confirmed it was notified of a statement of claim in relation to workplace matters filed by its former chief legal officer Rebecca Farrell in the Federal Court.

"The statement of claim is consistent with the allegations previously announced, save that the allegations have only been made by one employee and not two as previously expected," Super Retail said in a statement.

"The group does not accept the claims that are set out in the statement of claim. As previously announced, Super Retail Group will defend these court proceedings in relation to these matters.

"As these matters are now the subject of litigation, the group does not intend to make any further comment at this time. Super Retail Group will continue to update the market on this matter as appropriate."

Lawyers for Ms Farrell and other former employees of Super Retail have made a string of allegations against the retailer claiming bullying, harassment and that the chief executive Anthony Heraghty had been involved in a secret sexual relationship with the head of HR Jane Kelly. Ms Kelly no longer works for the retailer.

2:34 pm July 30, 2024

Rex halts 737 bookings, accounts suspended

Robyn Ironside

Rex has suspended bookings on its 737 services, with flights beyond Tuesday coming up as unavailable on the embattled carrier’s website.

As a trading halt continues ahead of an announcement on the airline’s future, Rex’s management appears to have already determined the 737 operations will not go on.

A Rex employee speaking on the condition of anonymity confirmed online bookings of 737 services had ceased.

In a further example of Rex’s dire financial situation, the worker said crew members had been refused entry to a company-designated hotel at Brisbane Airport due to unpaid bills. "The hotel manager informed them that Rex’s accounts had been suspended due to unpaid bills," said the employee.

1:51 pm July 30, 2024 Highlight

Former exec sues Super Retail chair, CEO

Eli Greenblat

The former chief legal officer of Super Retail Group, Rebecca Farrell, has filed proceedings in the Federal Court against the retailer, its chief executive and chairman to enforce a settlement agreement relating to her dismissal.

She is claiming being bullied, harassed, victimised and ultimately sacked as she raised “serious corporate governance breaches”.

A statement from workplace law firm Harmers, which is representing a number of former executives at Super Retail Group, said Ms Farrell would also pursue claims around a conflict of interest by CEO Anthony Heraghty, of failing to disclose a secret relationship he was having with then head of HR, Jane Kelly.

Super Retail Group CEO Anthony Heraghty has also been named in the court proceedings.

The court claims will also include Super Retail breached the Corporations Act, including whistleblower provisions, breached Super Retail’s own whistleblower policy and breached Super Retail’s contractual obligation to provide a safe workplace.

Super Retail chairman Sally Pitkin has also been named in the looming court case before the Federal Court.

In April, Super Retail Group revealed it was the subject of a string of allegations by senior staff around workplace misconduct and claims of a secret affair between the CEO and then head of HR.

1:42 pm July 30, 2024

Canva doubles down on AI ambitions

Jared Lynch

Australian tech darling Canva has doubled down on its artificial intelligence design prowess, taking over Leonardo. AI ahead of a potential public listing and as Microsoft nips at its heels with its own visual communications app.

Sydney-based Leonardo had been touted as the next Canva, amassing 19 million users since its founding two years ago. But rather than become rivals, the two have joined forces as a threat looms from Microsoft.

Microsoft launched its own AI-powered designer app, which is available across Microsoft 365, iOS and android devices, promising convenience for its 340 million-plus enterprise users.

1:09 pm July 30, 2024

'Dishonest' accountant avoids jail with early guilty plea

Valerina Changarathil

A Melbourna accountant will cough up more than $20,000 in fines for acting dishonestly, but an early guilty plea has helped him avoid 18 months in jail.

Stephen Robert Allen, the sole director of KHN Holdings, trading as Alkemade & Associates, has been sentenced to serve a community correction order of 70 hours over 12 months and fined $20,000 for making false statements to induce others, by the Melbourne County Court on Monday. He was also convicted and fined $2,500 for making a statement knowing it to be false.

An ASIC investigation found Mr Allen falsified the signatures of registered company auditors on over 80 documents relating to audits of the financial accounts of 12 separate clients between 2015 and 2020. On February 10, 2021, he also falsified a document by purporting to be a registered company auditor and lodged that document to obtain consent from ASIC to resign as auditor of one of those audit clients.

"Mr Allen acted dishonestly and failed to comply with the Code of Ethics for Professional Accountants, which establishes the key principles of integrity, professional competence, behaviour and due care," ASIC deputy chair Sarah Court said. The matter was prosecuted by the Commonwealth Director of Public Prosecutions after ASIC's investigation and referral.

12:44 pm July 30, 2024

Rental reform won't 'spook' investors: CoreLogic

Valerina Changarathil

Dynamics in the rental market are still overwhelmingly driven by broader economic and demographic factors of supply and demand, rather than tweaks to tenancy laws, property analytics group CoreLogic says.

CoreLogic's report on whether tenancy reform can 'spook' investors follows the recent NSW government ban on ‘no grounds’ evictions for renters. The supply of rental property is largely influenced by access to finance and capital growth return, says Eliza Owen, Australian research head at CoreLogic and author of the report.

"One fear associated with tipping the balance more in favour of tenants is that landlords could exit the market, and new investors may be dissuaded from purchasing property, thus reducing rental supply and pushing up rents," the report states. But analysis of the impact of similar reforms in SA (July last year) and WA show investor activity has been rising.

In ACT, where reforms where a ban on no-grounds evictions was introduced in April 2023, investment activity has dwindled, but also due to the state's weak capital gains and possible oversupply.

"Prices in the rental market will continue to be dominated by demand factors such as population growth, household size and income, while the supply of investment property will be largely influenced by market conditions, such as capital growth prospects, availability of credit and interest rates."

12:23 pm July 30, 2024

Great Artesian Basin legal case withdrawn

Charlie Peel

The legal showdown between farmers and the Albanese government over future carbon capture and storage projects in the Great Artesian Basin is over after AgForce’s Federal Court case was withdrawn.

Scheduled for a two-day hearing starting Thursday, the case was the agricultural lobby group’s bid for a judicial review to force the government to consider future carbon storage projects affecting underground water under federal environmental protection legislation.

AgForce had sought a judicial review of a decision by the environment department in February 2022, under the Morrison government, not to assess miner Glencore’s plans to capture carbon dioxide emissions from the Millmerran coal fired power plant, west of Toowoomba, and store it in the basin, under the Environment Protection and Biodiversity Conservation Act.

Up until last week, the Queensland-based advocacy body had vowed to press ahead with the legal action, despite the Queensland government in May rejecting Glencore’s proposal and legislating a ban on similar projects within the underground water resource. AgForce had feared the state ban could be lifted at the whim of future governments and should be considered under the federal legislation.

But in a surprise twist, the case was dismissed on Monday after AgForce accepted the main reason it had gone to court – to prevent the Glencore project going ahead – had already been resolved.

12:06 pm July 30, 2024

Strong debut for Bhagwan Marine

Cameron England

Bhagwan Marine shares are tracking gains above its IPO price of 63c following its noon debut on the local sharemarket, as investors buy into its promise of a better than expected net profit later this month.

At 12.05pm AEST, shares in Bhagwan Marine (BWN) are up 3c at 66c, after hitting an intraday high of 68c so far.

The offshore marine operator’s executive director – finance Andrew Wackett said on Tuesday that the Western Australian company would beat its prospectus profit forecast, delivering $39.5m-$40.5m for the past financial year, up 2-4 per cent on what its prospectus had forecast.

Bhagwan raised $80m at 63c per share, with the money to be used to pay down $44.5m in bank loans and $24.6m in shareholder loans, as well as to strengthen the company’s balance sheet to pursue growth opportunities. Bhagwan, founded by the Kannikoski family in Geraldton, WA, in 2000, runs a fleet of 96 vessels, making it one of the largest offshore operators in Australia.