The market is down 62. The SFE Futures were down 40 this morning.

The Dow Jones closed down 62 on Friday and was down 152 at worst. Nonfarm payrolls growth came in well below expectations with job growth of +18,000 against the +80,000 forecast. Unemployment rose from 9.1% to 9.2%. China’s CPI number didn’t help either — it rose 6.4% in June (Est +6.2% versus 5.5% in May), the highest level since June 2008 with PPI up 7.1%. The IMF released €3.2bn to Greece. The oil price fell $2.47 to $96.20, while the gold price was up $11 to $1541.60.

In the news today…

  • The Carbon Tax taking most of the airwaves this morning. Ultimately it has been well anticipated with the steel companies for instance jumping @10% last week on the leak that they would receive a $300m compensation package protecting their earnings from impact until 2016. Some profit warnings this morning (Qantas, Brickworks, Adelaide Brighton) to account for the impact although many companies cannot quantify it.
  • Rio Tinto (RIO) says the carbon tax will hinder investment and jobs growth without reducing global carbon emissions. RIO’s MD for Australia said it was unfair on Australian exporters — “We are deeply concerned the proposed carbon tax fails to shield Australia’s export sector and leaves it at a disadvantage to international competitors”. RIO down 116c to 8319c.
  • In response to the carbon tax, Qantas Airways (QAN) said “There will be some effect on passengers through higher domestic fares,” saying it will add $100-155m to costs in 2012 and add about $3.50 to a domestic airfare through fuel excise hikes.  QAN down 1.8%.
  • BlueScope Steel (BSL) has described the carbon tax as a “pragmatic solution to a complex problem,” but its shares are down 4.6% today.
  • AWC Ltd (AWC) said they cannot accurately determine the financial and operational impact of the carbon tax until the see the full detail. AWC down 3.2%.
  • Adelaide Brighton (ABC) estimates the impact of the carbon tax on Profit after Tax in the first full 12 months of the scheme to be circa $5m before mitigation. ABC unchanged at 296c.
  • Brickworks (BKW) says the carbon tax will hit housing affordability by increasing building prices and will cut the EBIT by $12.8m, or $9m after tax. BKW down 1.3%.
  • Bannerman Resources (BMN) has received a $383m (or 61.2c a share takeover offer) from Chinese company Sichuan Hanlong Group. BMN owns two development projects in Namibia and has recently said it owns one of the world’s largest undeveloped uranium projects. BMN up 24.7% to 47.5c.
  • Wesfarmers (WES) said they have agreed to a 10% reduction in third quarter metallurgical coal contract prices from its Curragh mine in Queensland. WES down 55c to 3143c.
  • Bendigo & Adelaide Bank (BEN) down 1.4% – says they will offer $1bn in R-MBS’s in its first offering this year.
  • Beach Energy (BPT) is in a trading halt ahead of announcing its Shale gas flow results. BPT unchanged at 94c.
  • Bega Cheese will sell a 15% stake in the company, with shares priced at $2 each as part of its $254m IPO. Bega is expected to list on the ASX in coming weeks.

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