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International Markets – Morning Summary
Indices Current +/- % Previous WkClose MthClose
Dow Jones 10467.16 -30.72 -0.2926 10497.88 10424.62 9774.02
NASDAQ 2251.69 -12.87 -0.5683 2264.56 2269.47 2109.24
S & P 500 1101.53 -4.6 -0.4159 1106.13 1102.66 1030.71
FTSE 100 5313.95 -5.73 -0.1077 5319.68 5312.62 4916.87
Nikkei 225 9696.02 -57.25 -0.587 9753.27 9430.96 9382.64
Shanghai Composite 2648.116 14.453 0.5488 2633.663 2572.028 2398.37
US Bond (10 Yr) 2.9927 0.0005 0.0167 2.9922 2.9995 2.9327
US Bond (30 Yr) 4.085 0.015 0.3686 4.07 4.018 3.889
COMEX Gold - Aug 10 1168.4 8 0.6894 1160.4 1187.8 1245.9
COMEX Silver - Sep 10 17.617 0.176 1.0091 17.441 18.101 18.708
COMEX Copper - Sep 10 329 4.45 1.3711 324.55 318.5 295.05
NYMEX WTI - Sep 10 78.36 1.37 1.7795 76.99 78.98 75.63
$A/$US 0.9005 0.007 0.789 0.8935 0.8956 0.8407
STG/$A 1.7336 -0.0126 -0.7187 1.7461 1.7223 1.778
Euro/$US 1.3075 0.0078 0.6002 1.2997 1.2914 1.2235
Euro/$A 1.4521 -0.0025 -0.1719 1.4546 1.4419 1.4555
Dividends Today
ExDivDate Security DivAmnt Bid Ask Last Frk(%) Exch PayDate BooksClose Description
30-Jul-10 AAI 2.9143 1275 1384 1275 0 ASX 25-Aug-10 6-Aug-10 Alcoa Inc.
30-Jul-10 CEY 4 610 602 602 40 ASX 8-Oct-10 6-Aug-10 Centennial Coal
Dividends Tomorrow
No Dividends Tomorrow
US Markets
US stocks fell on Thursday as weaker-than-expected quarterly revenues and forecasts from Kellogg and Colgate-Palmolive weighed, pulling down other consumer-staples companies including Kraft Foods and Procter & Gamble. The Dow Jones Industrial Average declined 30.72 points (0.29%) to 10,467.16. The measure was weighed down by its consumer-staples components, with Kraft Foods slipping 61 cents (2.1%) to
$29.11, and Procter & Gamble declining $1.03 (1.6%) to $61.67. The declines followed disappointing earnings reports from other consumer-staples companies including Kellogg and Colgate-Palmolive, which are not Dow components.
Kellogg slid $3.54 (6.9%) to $47.98, after the cereal maker's second-quarter profit fell 15% on weakness in cereal sales in the US and UK and impacts from a recent recall. Sales fell short of analysts' expectations and the company cut its estimate for 2010 per-share growth. Colgate-Palmolive fell $5.74 (6.8%) to $78.12. The consumer-products company's second-quarter earnings rose 7.3% on improving sales and volume, but its sales missed analysts' expectations and the company warned that the currency devaluation in Venezuela will hurt 2010 earnings more than previously thought.
Merck was the Dow's best performer, up 32 cents (0.9%) to $35.06, and Chevron climbed 46 cents (0.6%) to $76.02, as investors traded optimistically ahead of the companies' quarterly earnings reports due on Friday morning. The Nasdaq Composite dropped 12.87 (0.57%) to 2,251.69. The Standard & Poor's 500 index lost 4.60 (0.42%) to 1,101.53. The declines followed fluctuations in and out of the red throughout Thursday's session as investors
continued to struggle with the mixed messages delivered between corporate earnings and economic data.
Among Thursday's economic reports, the number of US workers filing new claims for unemployment benefits fell slightly last week, but that followed a big rise the previous period, signalling littleimprovement in the job market. Meanwhile, manufacturing activity in the Federal Reserve Bank of Kansas City's district rebounded moderately in July, but hiring expectations continued to weaken.
US Economic Calendar
· Jul-30 - GDP-Adv. (For: Q2, F/Cast: 2.5%, Prior: 2.7%)
· Jul-30 - Chain Deflator-Adv. (For: Q2, F/Cast: 1.1%, Prior: 1.1%)
· Jul-30 - Employment Cost Index (For: Q2, F/Cast: 0.5%, Prior: 0.6%)
· Jul-30 - Chicago PMI (For: Jul, F/Cast: 56.3, Prior: 59.1)
· Jul-30 - U Michigan Sentiment - Final (For: Jul, F/Cast: 67.5, Prior: 66.5)
International Markets
European shares ended lower on Thursday, as negative sentiment on Wall Street spilled across the Atlantic, leading traders to worry about economic growth and shrug off mostly positive earnings reports. The Stoxx Europe 600 index fell 0.4% to 256.26, reversing earlier gains. The index had earlier hit an intraday high of 259.57. Germany's DAX index fell 0.7% to 6,134.70, led lower by shares of Deutsche Lufthansa, which dropped 4.5%. The airline reported a first-half net loss of EUR104m, as a pilots' strike and the airspace lockdown after the volcano eruption in Iceland took their toll.
Shares of industrial conglomerate Siemens AG fell 3.2%, even as it reported strong profit growth and a surge in orders. Merck KGaA shares climbed 4.4% after the German pharmaceutical and chemical firm announced a better-than-forecast 69% rise in second-quarter net profit and also lifted its outlook. Volkswagen shares rose 2.6%. The car giant said its first-half profit surged on strong demand for its models, cost cutting and favourable exchange-rate moves.
In France, the CAC-40 index fell 0.5% to 3,651.91. Shares of France Telecom shot up 5.5%. The firm's first-half net income climbed to EUR3.7bn from
EUR2.6bn. Also in the sector, Telefonica shares gained 3.2% after the Spanish telecom firm reported that its second-quarter net income rose 16% to EUR2.12bn. The UK FTSE 100 index edged down 0.1% to 5,313.95.
Anglo-Swedish drug maker AstraZeneca jumped 2.7% after its second-quarter net income rose 23% to $2.1bn. It lifted its fiscal-year earnings per share target and said that a Food & Drug Advisory panel has recommended US approval of its Brilinta drug for acute coronary syndromes. in the energy sector, Royal Dutch Shell said its second-quarter net profit rose 15% to $4.39bn as revenue jumped 42% to $90.57bn. Shares ended down 0.2%. On the FTSE 100, Rio Tinto declined 32.50 pence (0.96%) to 3,415.00 pence and BHP Billiton slid 14.00 pence (0.7%) to 1,999.25 pence.
Commodities
Copper rallied to fresh 12-week highs on the London Metal Exchange, with demand boosted by firmer equities, a stronger euro and a general rebound in market confidence. Gold futures bounced from near three-month lows, but only slightly as investors continued to lighten their holdings of the metal, which has been losing its appeal as a refuge amid calming markets. Crude-oil and natural-gas jumped on a weaker US dollar and a general optimism about the outlook for commodities that held even as stocks turned lower.
Australian Stock Prices Overnight
In London, Rio Tinto rose 27.5 pence to £34.15, A$0.48 higher in Australian currency terms. BHP-Billiton rose 7.75 pence to £19.99, A$0.13 higher in Australian currency terms. Henderson Group Plc rose 1.3 pence to £1.32, A$0.02 higher in Australian currency terms.
Australian Company Updates
29-Jul-10 06:18 Aristocrat Leisure (ALL) - Provides Update on Damages in US Convertible Bond Litigation
Aristocrat advised that the United States District Court (Southern District New York) has issued a decision concerning the calculation of damages to be awarded to the Bondholders. The company has previously made a provision of US$240M, in respect of Bondholders' damages, which included interest calculated to 30 April 2010 (Damages Amount). In the Damages Decision, the Court accepted certain of the company's arguments and ruled that the Damages Amount should be reduced by approximately US$18M.
29-Jul-10 06:16 Aditya Birla Minerals (ABY) - Responds to Press Article
ABY is aware of a recent press article in respect of proceedings commenced by the Department of Environment and Resources Management in the Magistrates Court of QLD. The article referred to 19 charges against the subsidiary Birla Mt Gordon alleging breaches of environmental protection orders relating to the Mt Gordon operations. The proceedings are being mentioned in the Magistrates Court on 10 August and the company continues to consult with the DERM in an effort to resolve the matter.
29-Jul-10 05:12 Oil Search (OSH) - Provides Jebel Al Milh-1 Drilling Report
As at 06:00 Yemen time (-7 hrs AEST) on 28 July, the Jebel Al Milh-1 well was at a depth of 3,677m and was pulling out of hole. This is in preparation for running logs in the 121/4" hole section, in line with the pre-drill plan, after having touched basement. Hydrocarbon shows have continued to be observed while drilling through to the current depth. Progress for the week was 317m.
29-Jul-10 02:03 Kingsgate Consolidated (KCN) - Announces 41% Increase in Mineral Resources and Ore Reserves at Chatree
Kingsgate reported that it has substantially increased its interim Mineral Resources and Ore Reserve estimates for 2010 at the Chatree Gold Mine in
central Thailand. Interim Ore Reserves have increased by 41% to 1.9Moz of gold in 61.7Mt of ore @ 1.0g/t Au as at 30 June 2010. Contained within the Ore Reserve estimate is 19Moz of silver @ 9.4g/t Ag.
29-Jul-10 11:19 ConnectEast (CEU) - Reports Negative Cash Flow of $10.24M for the 30 June 2010 Quarter
Operating cash flow for the period was $12.60M. Investing cash flow was $(12.38M). Financing cash flow was $(10.45M). Cash in hand at the end of the
quarter was $170.22M. 29-Jul-10 11:18 Leighton Holdings (LEI) - Secures $100M Five Year Contract with Ergon Energy Thiess Services, has been selected by Ergon Energy to provide network construction and maintenance services to its growing central and northern regions, under a five-year agreement valued at up to $100M. This contract win extends the long-standing relationship between Ergon Energy and Thiess Services, and enables Thiess to expand its presence in regional Qld and extend its current service offering.
29-Jul-10 11:17 Austar (AUN) - Reports NPAT Down 41.7% to $20.69M for the Half Year to 30 June 2010.
Revenues from ordinary activities were $351.86M, up 6.3% from the same period last year. Revenue increased by $20.97M. Basic and Diluted EPS was $0.016 compared to $0.028 last year. Net operating cash flow was $83.41M compared to $81.40M last year. No dividend was declared. Television subscribers increased in the current period by 5,501 from 741,647 as at 31 December 2009.
29-Jul-10 11:15 St Barbara (SBM) - Provides Forward Guidance for FY2011 to FY2013
SGM's strategic target is an annual production rate of 500,000oz of gold per annum from three operations by calendar year 2014. Based on current assets, total gold production for FY11 is estimated at 265,000-295,000oz Au, and 305,000-350,000oz and 240,000-270,000oz for FY12 and FY13, respectively. Capital expenditure costs (excluding King of the Hills) are estimated to be $65M- $75M for FY11 and $42M-$50M and $23M-$30M for FY12 and FY13, respectively
29-Jul-10 11:14 SAI Global (SAI) - To Hold a 1 for 7.2 Non-Renounceable Entitlement Offer at $3.60 to Raise $80M
SAI announced an accelerated non-renounceable pro-rata entitlement offer of new FPO shares, on the basis of one new share for every 7.2 shares held at the record date of 27 July, at an issue price of $3.60 per new share to raise approximately $80M before costs. It is anticipated that the entitlement offer, together with the institutional placement conducted on 22-23 July will form part of the consideration for the purchase of Integrity Interactive. The closing date of the offer is 13 August.
29-Jul-10 11:13 Charter Hall Office (CQO) - Announces Unit Consolidation
Units on issue will be consolidated on a 1 for 10 basis, effective 1 September 2010. The consolidation will result in a reduction in the number of units on issue from approximately 4.93BN to approximately 493M, subject to adjustments for fractional entitlements. The consolidation will not affect a unitholder's percentage holding or the aggregate value of the unit holding on the date of consolidation, apart from the rounding of fractional entitlements.
29-Jul-10 11:12 Centro Retail Trust (CER) - Provides Financing and Restructure Update
The Centro Group has secured a one-year extension to 31 December 2011 for $2.3BN of debt within Super LLC. The extension includes Super LLC's $1.7BN unsecured term loan, $500M of which relates to CER's ownership interest, and $580M of outstanding debt, $195.1M of which relates to CER. There is no change to credit margins as a result of the extension. No decisions have been made in relation to its restructure and agreement on a definitive approach would likely take some time.
29-Jul-10 11:10 Centro Properties Group (CNP) - Provides Financing and Restructure Update
The group has completed financing arrangements for approximately $2.7BN of the $3.2BN of debt within Super LLC, which was due to expire on or before 31 December 2010. The financing arrangements include an extension of approximately $2.3BN and a refinancing of over $0.4BN. A number of options to
address the remaining balance of approximately $440M are being considered. The group has also commenced discussions with its lenders on potential restructuring options under consideration.
29-Jul-10 11:09 Centro Properties Group (CNP) - Responds to ASX Price Query
The company is not aware of any information which, if known, could be an explanation for the recent trading in its securities. As noted in its 27 April 2010
response, the group does expect that it will record material abnormal or extraordinary items for the financial year ended 30 June 2010. Those items are
expected to include asset revaluations, including any adjustments to the carrying value of intangible assets, foreign exchange and derivative mark-to-market items.
29-Jul-10 11:07 Nufarm (NUF) - Confirms AH Marks Regulatory Outcome
The US and Canadian competition authorities have released statements confirming a final agreement with the company on measures taken to ensure
appropriate levels of competition following Nufarm's acquisition of AH Marks Holdings. These measures involved the sale and/or transfer of some product registrations and regulatory task force seats by Nufarm to other companies and the restructuring of some supply agreements. The agreements do not have a material impact.
29-Jul-10 11:06 TOWER Australia (TAL) - Announces Inforce Premium Exceeds $1BN for the Quarter Ended 30 June 2010
The group's inforce premium exceeded the $1BN mark for the first time during the June 2010 quarter. This reflected continued, solid individual inforce premium growth and the full inclusion of premium relating to the AustralianSuper new benefit design from the end of May 2010. New business growth of 207% in Group Risk over the quarter mainly reflected the inclusion of the new income protection benefits to 700,000 AustralianSuper members increasing premiums by $80M per annum.
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