News Wrap

IN TODAY’S News Wrap: Forrest continues attack on Gillard over tax deal, unions launch anti-Rio medal campaign, Banks wipe millions off Rio earnings forecasts.
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Staff Reporter

Forrest attacks Gillard over tax deal

The Australian Financial Review today reported that Andrew Forrest has ramped up his attack on the Gillard government, revealing that she had her own deal with the major miners under way before the June 2010 leadership spill.

His allegations followed Gillard’s comments on claims of a deal struck between Mr Forrest and Kevin Rudd on the resource super profits tax were “rehashed” and “old nonsense”

The article reported Forrest as saying the prime minister already had a “deal in principle” before the spill.

Unions launch anti-Rio campaign over medals

The AFR also reported that mining unions have launched a campaign against Rio Tinto supplying the metal for medals to be presented at the London Olympics in June.

According to the report, human rights and environmental groups have included Rio in a parallel campaign at the Olympics, “Greenwash Gold 2012”.

Rio chief executive Tom Albanese has defended the ethical standards of the company.

Banks wipe millions off Rio earnings

Investment banks have wiped up to $A866 million off their full-year earnings forecasts for Rio Tinto after lower-than-expected iron ore and copper production for the March quarter, according to The Australian

The report said JPMorgan analyst Mark Busuttil wiped 6% off his profit forecasts for Rio.

The bank's full-year earnings forecast dropped from $US14.62 billion to $13.72 billion and its Rio target price fell $A3 to $94, which was still well above yesterday's closing share price of $66.50, up $1.80.

Meanwhile, Citi left Rio’s full-year underlying profit after-tax estimate of $US14.9 billion unchanged.

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