Australian Markets

Markets reaction to announcement from Futuris Corporation was sharp and devastating after it announced that its full year profit would be lower by nearly 20 percent. It also flagged it's non-performing and non-core assets on sale. The scrip remained battered throughout the day to close down at 36.5 cents or 27 percent at 97 cents which was lowest since August 2005. The shares have fallen nearly 55 percent this year.

Australia's biggest electricity producer gained considerably at the Sydney stock exchange after it announced its refinancing achievements. Babcock and Brown today announced that it has managed to refinance it’s a$ 2.7 billion debt which led to increased investor confidence which made the share prices advance 16 percent or 12 cents to 85 cents. It has been its highest gain since June 12.

Businesses are looking bleak. Small and medium enterprises are the worst hit with the ongoing credit crisis around the world. According to the industry survey rising fuel prices, drop in consumer spending, rising inflation and the on-going world wide credit crisis has market a dent in sale and profits figures of the company.

AWB posted strong half- yearly results yesterday. It remains solid for two years despite facing consecutive drought years. The net profit after tax for the half year was $48.7 million which showed 96 percent increase from the corresponding year. EBITDA for past six months was up 53 percent to $110.7 million. The bottom line had provision of $26.4 million as a probable liability that may arise due to litigation by Standard Chartered Bank to AWB (USA). Standard Chartered has a long due dispute with AWB (USA) over a commercial promissory note. AWB kept its interim dividend of four cents.

As the Westpac's deal foresees counter bid from other banks, trading of bank stocks have plummeted over the last week. The Big Four banks have rallied and the five biggest players have touched their record high. The Westpac deal with St. George has renewed interest in bank stocks which are usually taken as safe haven. According to portfolio manager, Matthew Kidman from Wilson Asset Management, "For 10 years everyone has said that banks are a safe haven -- and they're definitely not that because they're highly geared and we've seen the share prices get thumped."

BHP shares have hit record high at all the major stock exchanges including ASX and NY Stock exchange. BHP Billiton witnessed a jump of nearly 4 percent after rumours hit the market about undisclosed Chinese interests to hold stakes in the company. The intraday trading of shares witnessed a surge of $50 today amidst strong speculations. BHP Billiton shares opened 4 percent higher at $49.95 before reclining back $1.56 or 3.25 percent at $49.54 by 10 am.

National Bank of Australia is planning to offer a counter bids on St. George. The Chief Executive of NAB commented that his bank is looking at options to run numbers on St George bank takeover. "We look at all opportunities and in due course we will look at this transaction, but just now we're literally on the sidelines watching with interest what is happening," said Mr. Stewart at the National Press Club lunch in Canberra.

The global media conglomerate reported a healthy third quarter profits. Most of the profits have been attributed to the growth in advertising revenue at Fox News and Fox Channel that pertain to its broadcasting and newspaper assets.

Nippon Steel from Japan have agreed to a 65% rise in the price the company will pay for iron ore in term contracts which begin effective on April 1: Which will be great for Rio Tinto and BHP. A price rise of 50% or more has been widely expected after record highs in 2007 and continuously strong Chinese demand. Traditionally, all steel mills accept whatever price is first settled by any steel mill and one of the three top miners, Brazil's Vale or Rio Tinto and BHP Billiton.

Macquarie Bank CEO Alan Moss will leave the Bank in May after 15 years in the top executive position. Mr Moss turns 60 this year. It is likely that Alan Moss could receive between $36 million to $38 million this year before retiring. He is also a significant individual shareholder in Macquarie with a stake worth $25 million at today's prices. Mr Moss will be replaced by the head of Macquarie's investment banking division, Nicholas Moore, whose salary and bonuses came in just below that of his soon-to-be predecessor, at $32.89 million.