The market is down 89. The SFE Futures were up 8 this morning.

The Dow Jones closed down 2 overnight. Dow down 50 at worst and up 99 at best. The S&P 500 closed up 0.50% but ended the week down 2.83% and is now down 3% in 2011. The Dow was up as much as 99 points early on hopes that the European Union will meet a December 19 deadline to arrange a package to fight the debt crisis. Over the weekend Fitch cut France’s rating outlook to negative and put six countries on review for a downgrade saying Europe’ had failed to find a “comprehensive solution” to the debt crisis. They also downgraded six major global banks. Moody’s downgraded Belgium’s credit rating. IMF Chief Lagarde likened the current situation to the Great Depression in 1930. Metals were mostly up on the LME, the oil price fell 34c to $93.53 and Gold put on $20.70 to $1597.90. The Aussie dollar increased to 99.90c from 99.21c.

Main points:

  • On Friday JB Hi-Fi (JBH) announced a profit warning and fell 15%, today it’s another retailer, Billabong International (BBG). Down over 30% this morning.  They now expect 1st H EBITDA to come in between $70-$75m, compared to $94.6m last year. They are now conducting a strategic capital structure but say raising equity is not their preferred option. They say “after Europe Australia is the most challenging market”. It puts a hazard warning over all sector forecasts.
  • Analysts were not impressed with Bendigo and Adelaide Bank’s (BEN) announcement on Friday that they were acquiring the Bank of Cyprus Australia for $130m. Five brokers either downgraded the stock or its target price, and none of them had a positive recommendation on it. BEN down 5% to 857c.
  • Woolworths (WOW) has acquired 31 hotels and a liquor store in NSW. WOW down 12c to 2614c.
  • Aston Resources (AZT) said their Maules Creek coal venture has signed an agreement with the Australian unit of Japan’s Idemitsu Kosan for the construction of a shared rail spur. AZT down 2% to 962c.
  • Woodside Petroleum (WPL) will apply to delay by more than 6 months a decision on their LNG project in Browse Basin. WPL down 2.6% to 3046c.
  • According to the AFR, Coca-Cola Amatil (CCL) CEO Terry Davis is looking to get back into the salty snacks market. CCL down 14c to 1188c.
  • The fight between Qantas Airways (QAN) and the union representing 1600 engineers is finally over. QAN said they had agreed to a 3% annual increase in engineers’ salaries for three years. QAN down 2% to 148.5c.
  • Orica (ORI) has been warned by NSW Premier Barry O’Farrell that they will lose their licence if they fail to comply with environmental laws after its third corrosive acid leak at since August. ORI down 2% to 2464c

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