The market is up 28. The SFE Futures were up 26 this morning.
Dow Jones up 96 — up 157 at best. The S&P 500 has had its 4th rise on the trot. The Dow is now up 6.66% since the 4th June. Wall St up on hopes for a Quantitative Easing announcement at the conclusion of the FOMC meeting tonight. The market also anticipating the statement at the conclusion of the G20 meeting which the UK press says will include a statement that the EFSF and ESM will use 600bn euro to support bond markets despite a German statement otherwise. US bond yields were all higher. Italian and Spanish 10 year bond yields were down to 5.89% and 7.042%. Base Metals were mostly up on the LME with Nickel up 2.65% and Copper up 1.35%. Gold down $8.10 to $1618.90. Oil was up 83c to $84.10. ADRs were up with BHP up 1.61% and RIO up 2.54%. The A$ is at 101.90c.
Main points
- Potential positives — In the next 48 hours we are likely to see: FOMC Statement — may include some stimulus; G20 Statement — UK press says they will make 600bn available to support bond markets; The formation of a Greek government; An audit of Spanish banks which may conclude they don’t need 100bn in bailout funds.
- Consolidated Media Holdings (CMJ) has received a $1.97bn conditional and non binding proposal from News Ltd (NWS) to takeover the company at $3.50 per share. This is a 13.6% premium to the pre-bid price. News Corp will end up with 50% of Foxtel – Telstra owns the other 50%. CMJ is up 10.39% to 340c.
- News Ltd (NWS) is expected to follow Fairfax Media by announcing job cuts as they restructure their business from print and digital operations. NWS is up 0.5% to 2014c.
- Fairfax Media (FXJ) — Treasurer Wayne Swan has attacked Gina Rinehart in her attempt to increase her stake in the company and win several board seats without signing up to the Charter of Editorial Independence. FXJ is up 1.68% to 60.5c.
- APN News and Media (APN) — The press speculates that APN may be close to making an acquisition in the digital media space within the next fortnight. APN is up 1.42% to 71.5c.
- Echo Entertainment (EGP) — A fight for control is underway as Genting is rumoured to have secured a 9.7% stake in EGP just behind James Packer’s 10%. The price continued to reflect the possibility of a bid. EGP is up 1.41% to 431c.
- Energy Resources of Australia (ERA) has forecast a 1st H loss of between $50m-$60m and confirmed production guidance of 3200-3700 of uranium for the year. ERA is up 6.64% to 136.5c.
- Lynas Corp (LYC) a parliamentary committee in Malaysia has put its support behind LYC’s plant. LYC is up 2.46% to 104c.
- National Australia Bank (NAB.AU) says house prices are expected to steady as demand picks up. NAB is up 1.87% to 2338c.
- The WBC-Melb Institute Leading Index estimates the pace of economic activity 3-9 months ahead is +0.2 in April down from 2.2.
- Australian Dwelling Commencements fell 12.6% in the March Q to 30,623 units. In the year to March 2012 Total Dwelling Commencements dropped 24.5%.
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