Our market is having a shocker — down 109 — after Wall Street fell 200 points overnight. We have the World Bank to thank. This compares to the 89 point fall predicted by the SFE Futures this morning.

Dow closed down 300Updated World Bank GDP Growth Projections. The World Bank now expects global economic growth to decline by 2.9% in 2009, down on the forecast decline of 1.7% the bank issued in March. The World Bank also warned of a flight of capital from developing nations, which would swell the ranks of the poor and the unemployed. Looking further ahead, the bank is still predicting a recovery of sorts in 2010, with global growth in that year now expected to be +2.0% (down on the March projection of +2.3%).

Quiet day on the news front.

  • The AFR says the Goodman Group (GMG) is looking to refinance $1.5bn of debt maturing from May 2010 to May 2012 and that they may have a $1bn issue in July.
  • Alliance Resources (AGS) has provided a Heads of Agreement update.
  • Aquila Resources (AQA) has signed a cooperation deal with Fortescue Metals to looks at the joint development of port facilities at Anketell Point.
  • Chinalco has told China Business News that it is NOT in takeover talks with Fortescue Metals (FMG) after missing out on Rio Tinto. FMG is looking to get a deal done with China to fund expansion plans and has had talks in the past with China Investment Corp.
  • Gindalbie Metals (GBG) has received final approval from the Chinese government for additional investment by joint partner Ansteel. After the placement, Ansteel will hold a 36% stake in GBG.
  • GrainCorp (GNC) has retained its forecast for FY09 profit of $37m-$42m.

In other news…

  • National Australia Bank (NAB) has received from focus from broker this morning after announcing the acquisition of Aviva’s Australian wealth management division yesterday. JP Morgan ups target price to 2394c from 1760c (Neutral), RBS Equities says Sell and GSJB Were rates NAB as a Hold.
  • Citi upped BHP Billiton (BHP) to Buy from Hold and its target price to 3940c from 3600c. Short term risks remain but says BHP has a superior growth profile to Rio Tinto and believes major merger and acquisitions activity is “unlikely, but certainly possible”.
  • Ten Network announces its 3Q result tomorrow and UBS Warburg expects an 18% fall in TV revenue to $180m. Credit Suisse expects a 37% fall in EBITDA to $24m.
  • Five days to do your tax loss selling or make that contribution to your super fund before the financial year end.

The Dow Futures suggest an 11 point rise on Wall Street tonight.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

For a free 21 day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) please START A FREE TRIAL — you will receive two daily emails about the stockmarket, our MORNING EMAIL with all the stuff you need to know ahead of the trading day ahead and a DAILY EMAIL with all the midday events, news, comments and Ideas from Marcus and his Team.

You will also be given a password to the MARCUS TODAY website including access to all the emails as well as Educational, Entertaining and Researched Articles from Marcus and his Team and an archive where you can catch up on a whole week or month in just a few minutes. Or Browse at length. We are sure you will enjoy and profit from what we offer.

Peter Fray

Help us keep up the fight

Get Crikey for just $1 a week and support our journalists’ important work of uncovering the hypocrisies that infest our corridors of power.

If you haven’t joined us yet, subscribe today and get your first 12 weeks for $12.

Cancel anytime.

Peter Fray
Editor-in-chief of Crikey