The market is up 38. The SFE Futures were up 34 this morning.
The Dow Jones closed up 109 overnight and was up 137 at best. Greece’s government received a vote of confidence despite protestors surrounding the parliament. The parliament now needs to vote on new austerity measures in order to receive their next bailout installment. Existing US home sales fell 3.8% in May to the lowest level this year. The oil price was up 14c to $93.40 and the gold price was up $4.40 to $1546.40. The Aussie dollar was up 10c to 105.94c.
In the news today…
- Qantas (QAN) have placed themselves in a trading halt pending a material announcement about the financial outlook. The assumption is that it is a profit warning. Virgin Blue (VBA) down 3.6% on the news. Under the cover of an ash cloud now is as good a time as ever to lower earnings guidance. QAN last traded at 182.5c.
- Foster’s Group (FGL) is up 1.4% and has hit a 52-week high after rejecting SABMiller’s bid yesterday. SABMiller has responded saying by saying they “will continue to seek engagement with the board of Foster’s to put an agreed proposal to Foster’s shareholders.”
- CSL Ltd (CSL) says the U.S. FDA has issued CSL Biotherapies with a warning letter in response to an inspection which found that their manufacture process of an influenza vaccine was not up to standard. CSL said that some corrective steps had already been taken, but “…we are taking the warning letter very seriously”. CSL down 20c to 3206c.
- MAp Group (MAP) has received an offer from the Ontario Teachers’ Pension Plan Board (OAPP) to take over their stake in Sydney Airport in exchange for its stake in Brussels and Copenhagen Airports. MAP up 3.4%.
- As it moves to focus on residential, retail and retirement living, Stockland (SGP) will acquire two residential projects in Western Australia and a shopping centre in Victoria while selling its 50% holding in Perth’s BankWest Tower. SGP down 1c at 349c.
- Rio Tinto (RIO) said it will spend around $502m raising its stake in Ivanhoe Mines to 46.5% from 42%, as part of plans to develop the massive Mongolian Oyu Tolgoi copper-gold project. Ivanhoe Mines owns 62% of the Australian-listed Ivanhoe Australia (IVA). RIO up 128c to 7990c, IVA down 0.7%.
- Transfield Services (TSI) has signed a NZ$202m telecom contract In New Zealand. TSI unchanged at 85c.
- After the RBA released the minutes of its June board meeting yesterday brokers have pushed back expectations on the timing of the next RBA rate hike.
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