Egypt's President Mubarak resigned on Friday, handing power to the army, with the news sending US stocks higher, but oil prices and the US dollar lower.
The Australian Dollar fell below parity for the first time since the start of month following comments from RBA Governor Glenn Stevens who suggested interest rates may remain stationary for most of the year.
U.S. stocks climbed Friday, concluding a second-straight week of gains at fresh 21/2 year closing highs after Egyptian President Hosni Mubarak stepped down.
Australian national carrier Qantas Airways Ltd (ASX: QAN) says it would increase domestic, regional and Tasman air fares by up to 5 per cent as the second part of its response to high oil and jet fuel prices.
Damaged infrastructure in Brisbane should have federal government support to help Queensland’s struggling property industry.
![]()
Australia's jobs boom continued in January, but the floods in Queensland make it hard to work out the real strength of employment in the month.After December surprised with just 2,300 jobs created, but a fall to 5% for the unemployment rate, there were some analysts who saw another weak month, and others looking for an extra 15,000 to 20,000 jobs.Because of the floods it seems we got all three from the Australian Bureau of Statistics report and a bit more.The unemployment rate remained steady on 5%, the number of people employed rose 24,000, but 32,000 were part time, so there was a fall of 8,000 people in full time work, the number of people unemployed rose by 8,900 to 606,500, the number of hours worked fell 0.8% and the participation rate rose to a new all time high of 65.9 %(up 0.1%).Something for everyone it seems, but the ABS added a bit cautionary note to the release."Due to flooding in Queensland, operational difficulties were experienced in conducting the Labour Force Survey in January 2011. There was a larger than usual number of households in the Queensland sample which could not be interviewed."While the disruption to survey operations will have slightly reduced the quality of some Queensland estimates, the impact on the estimates is not statistically significant for most series. Due to the sample loss noted above, there will be increased volatility in the Queensland estimates, particularly in the original and seasonally adjusted estimates."Given increased volatility, the ABS continues to encourage users to focus on trend estimates in monitoring the underlying level of series."And, what did the trend show?Employment increased by 21,600 to 11,442,800Unemployment fell 5,000 to 610,300Unemployment rate was steady at 5.1%Participation rate at 66.0%, up from 65.9%
![]()
Telstra, Australia's largest Telco, has reported a 36% fall in first-half profit, maintained its high 14c a share and done a deal to get the NBN underway and the cash rolling in from Canberra.The downturn in earnings was steeper than expected (by around $200 million), but the combination of the dividend comment and the NBN deal saw the shares rise 3c in early trading to $2.91.They however eased in late trading to close down one cent at $2.88.Investors had expected a profit fall, the company has been warning of it since the 2010 profit announcement and then the AGM.Telstra has explained that it has been investing heavily in revamping itself and its processes to improve efficiency (especially in dealing with customers) and winning back lost market share as more and more fixed lines are abandoned by customers.Telstra said yesterday that it posted a profit of $1.21 billion in the six months to December 31, compared with $1.89 billion a year earlier.Telstra has been overhauling its operations in a bid to increase profit margins, cut costs and diversify away from the declining market for fixed phone lines.And there were plenty of signs that it remains a work in progress, but with some gains.The higher costs and lower margins have come from the price cuts and boost to
The forecast for Adelaide's industrial market is positive but cautious with smaller assets located in prime locations expected to show the strongest performance in the short term according to the latest CBRE Industrial MarketView report.
Melbourne architectural firm, Denton Corker Marshall, has bagged the global design prize under the Tall Buildings category at the 2011 MIPIM Architectural Review Future Projects Awards for its complex in Dubai.
![]()
By Chris ShawSpecialist leasing and lending services company FlexiGroup ((FXL)) delivered a better than expected interim profit yesterday, the $25 million result being an improvement of 31% on the previous corresponding period and coming in 8% above the forecast of UBS.Result highlights, according to UBS, were strong settlement and cash flow growth, something the broker suggests shows new funding and product initiatives are delivering and that conditions in the core leasing business have stabilised.The Certegy business was the star performer in the view of Macquarie, delivering 23% volume growth in the period and doubling its profit contribution. The business is now the largest in the FlexiGroup stable in terms of value of assets and offers further growth via the Lay-by market in the broker's view.Also delivering growth were the Vendor Finance operations, Macquarie noting volumes here increased to $26 million from $3 million previously thanks to some large new contracts. Flexirent is also recovering, the receivables book growing by 1% in the period on volume growth of 9%. Macquarie sees this as a sign the company is through the low volume period stemming from the Global Financial Crisis.Along with the interim result, FlexiGroup management lifted full year earnings guidance by 9% to a profit of $48-$52 million. Market forecasts have been increased to reflect the new guidance, UBS lifting its net profit numbers by 10% this year and by 9% in FY12.Macquarie has similarly lifted its numbers by 8%-10%, its new net profit estimate for FY11 standing at the top end of management's guidance range. In earnings per share terms Macquarie is now forecasting 19.1c this year and 20.3c in FY12, while UBS is at 18c and 20c respectively with its forecasts.The increases in earnings estimates mean increases in price targets, Macquarie lifting its target to $2.23 from $1.87 and UBS to $2.40 from $1.75. Both UBS and Macquarie are positive on FlexiGroup, rating the stock as Buy and Outperform respectively. The two brokers offer the only coverage of FlexiGroup in the FNArena database.For UBS, FlexiGroup deserves a Buy rating as the combination of pro-active management, new growth initiatives and a competitive advantage through diversifying its operations makes the company a key pick in the smaller financials space.There is scope for further diversification through acquisitions, as Macquarie points out FlexiGroup's underlying balance sheet is conservatively geared at around 7% and strong cash flows are being generated.Based on its revised forecasts, Macquarie estimates FlexiGroup is trading on an earnings multiple of 9.7 times this year and 9.0 times in FY12, which it sees as a 20-30% discount to the Small Industrials index. Such a discount is excessive in the broker's view given FlexiGroup's earnings growth this year, making the stock attractively priced at current levels.Shares in FlexiGroup today are stronger (in a weaker market) and as at 12.50pm the stock was up 5.5c or 3% at $1.90. This compares to a trading range over the past year of $1.11 to $1.96 and implies upside of around 21% to the consensus price target according to the FNArena database. FN Arena is building the future of financial news reporting at www.fnarena.com . Our daily news reports can be trialed at no cost and with no obligations. Simply sign up and get a feel for what we are trying to achieve.Subscribers and trialists should read our terms and conditions, available on the website.All material published by FN Arena is the copyright of the publisher, unless otherwise stated. Reproduction in whole or in part is not permitted without written permission of the publisher.
The Australian sharemarket is falling for the first time in nine sessions with the All Ordinaries index (XAO) off by 0.3 pct or 15.5 pts to 4986.2.
Residential land spanning close to 50 hectares is now up for sale amounting to more than $30 million.
Qantas Airways warned that the looming pilots strike could significantly hamper its operations and result to flight delays or even cancellations in the event that threats of walk-out push through.
Reserve Bank of Australia (RBA) governor Glenn Stevens believes that the current cash rates were at their appropriate levels and they only appear tight because most Australians have become wiser in handling their cash flow.
![]()
By Chris ShawTrading in the silver market in 2010 was volatile, with prices struggling to break US$19.00 per ounce for much of the year but racing higher in the final months to push above US$30.00 per ounce on the back of strong investment demand. The actions of investors are continuing to drive the price trajectory of silver according to Barclays Capital, but the group notes when this interest wanes trading in the metal will again be driven by industrial demand.This is important, as on the view of Barclays the current risks presented by silver's fundamentals are likely to outweigh the potential upside drivers. While fabrication demand is likely to increase, Barclays expects the market will continue to remain in surplus as mine supply should also grow.On its numbers, Barclays estimates a surplus for silver in 2011 of 2,804 tonnes, up from its forecast surplus for 2010 of about 2,500 tonnes. Credit Suisse is less bearish, expecting silver to be in a slight deficit this year and through 2014.One part of the silver market that could deliver long-term growth in demand is from an increase in the uptake of solar energy, as Barclays points out silver is used in crystalline silicon photovoltaic (PV) cells, which require highly conductive material on their surface.A cheaper alternative to PV cells are thin-film cells, which are not made of wafers and contain little if any silver. Thin-film cells are also less efficient, delivering 8-12% efficiency against 14-20% for silicon cells.While thin-film cells are gaining some traction in the market, Barclays notes PV cells still represent about 90% of all solar cells produced. If it is assumed around 0.1 grams of silver are used for each watt generated and each panel has the capacity to generate 200 watts, this suggests an average solar panel could contain as much as 20 grams of silver.Barclays estimates this equates to more than 800 tonnes of silver being employed in cells in 2009, which translates to about 8% of silver industrial demand and 4% of global silver supply. On the group's numbers this had the capacity to double in 2010, while Barclays estimates silver usage in solar panels could hit 2,000 tonnes by 2012. This would equate to about 7% of global silver output.At present solar power contributes only around 1% of global electricity generation, this a reflection of relatively high costs. This leads Barclays to suggest that, short-term at least, solar panels are unlikely to drive the demand story for silver.Longer-term the view is more positive, as Barclays suggests the pledges of both China and India to increase solar capacity to 30GW and 20GW respectively by 2020 implies the solar industry could generate some industrial support for silver prices as investment demand takes more of a back seat.In terms of price forecasts for silver, Barclays expects prices will average US$29.10 per ounce in 2011, which would be up from an average of closer to US$20 per ounce in 2010. Citi is a little less bullish in forecasting an average price this year of US$24.90 per ounce, easing to US$23.03 per ounce in 2012 and US$20.53 per ounce in 2013.Macquarie is not far off the Citi forecasts with its estimates of average annual prices for silver this year of US$26.50 per ounce, US$22.50 per ounce in 2012 and US$19.90 per ounce in 2013, while Credit Suisse has forecasts of US$22.00 per ounce, US$21.00 per ounce and US$21.00 per ounce respectively for 2011-2013.FN Arena is building the future of financial news reporting at www.fnarena.com . Our daily news reports can be trialed at no cost and with no obligations. Simply sign up and get a feel for what we are trying to achieve.Subscribers and trialists should read our terms and conditions, available on the website.All material published by FN Arena is the copyright of the publisher, unless otherwise stated. Reproduction in whole or in part is not permitted without written permission of the publisher.
The AUD is trading lower this morning,weighed down by better than expected US employment data overnight.
The Australian Dollar opens weaker against the greenback this morning at 1.0035.
U.S. stocks erased most of their early losses Thursday amid reports that Egyptian President Hosni Mubarak will soon resign.
US wholesale inventories rose by a higher-than-expected 1pct in December to $430.5 billion - its highest level in almost two years.
![]()
By Greg PeelThe Dow closed down 10 points or 01% while the S&P added less than 0.1% to 1321 and the Nasdaq was steady.Wall Street posted its most significant fall for a while last night on the open as the situation in Egypt boiled over once more. But while the 83 point early drop in the Dow suggested the winning streak on the Street might be well and truly broken this time, such a move a year or two ago would have brought reports of “Wall Street little changed”. And once again the weakness was brief as the US shrugged off problems in the rest of the world and returned to looking inward.The end result was a slight positive for the S&P 500 while the crisis centre du jour hung in the balance waiting to hear wether President Mubarak would this time actually depart. As we speak he remains resolute with some sort of announcement pending.But just as Egypt was erupting once more, the ghosts of 2010 came back to haunt bond markets as Portuguese debt suddenly took a turn for the worse and traded at historically high yields. Traders were stuck for a specific explanation but were reminded that Europe's debt problems are very much still with us.The end result of both ex-US developments was a 0.8% bounce in the US dollar index to 78.23. Yet Wall Street otherwise appeared to stay quite calm, and movements in other markets were equally timid.Gold had barely moved on the close at US$1361.40/oz after initially dipping on the dollar's jump. Base metals were similarly little changed with copper stronger but still sitting just under 10,000/t. Oil rose US2c to US$86.73/bbl. The Aussie slipped 0.7 of a cent to US$1.0044.Were it not for another profit warning from Dow component Cisco, which saw the stock down 14% in the session to almost match the unprecedented 16% drop marked in November on an earlier profit warning, Wall Street would have posted yet another modest but healthy gain. Perhaps the most telling figure was the VIX volatility index. Egypt is in turmoil, Portugal is back to haunt us, yet the VIX ticked up only very slightly and still reads 16.No one on Wall Street seems to care anymore what happens elsewhere. America is strong again, apparently, and that's all that matters.Earlier the Bank of England decided to leave its cash rate at the longstanding 0.5% level despite many in the market assuming maybe a hike was due. Commentators suggest it was a close run thing nevertheless, with policy-makers tossing up between strict austerity measures on the one hand and rising inflation on the other. The lack of change helped the US dollar surge ahead.The SPI Overnight was down 12 points or 0.2%.The highlight today of the local result season will be Newcrest ((NCM)) and RBA governor Glenn Stevens is also due to make a regular testimony to parliament. China is also due to release its monthly round of economic data today, although economic calendar collators are not 100% sure. Beijing is not one for sticking religiously to schedules.Your editor Rudi Filapek-Vandyck will feature on BoardRoomRadio's Friday Afternoon Round Table later today (3pm live).[Note: All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts in the Cockpit and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.]FN Arena is building the future of financial news reporting at www.fnarena.com . Our daily news reports can be trialed at no cost and with no obligations. Simply sign up and get a feel for what we are trying to achieve.Subscribers and trialists should read our terms and conditions, available on the website.All material published by FN Arena is the copyright of the publisher, unless otherwise stated. Reproduction in whole or in part is not permitted without written permission of the publisher.
Small businesses struggling to recover from recent declines in the economy may need to re-examine the training of their sales force, said Shape Your Business mentor Mike Reddy.
United Kingdom high-end engineering consultancy Frazer-Nash will open its first overseas office in Adelaide, South Australia, to take advantage of commercial opportunities in the defence industry.
Global mining giant Rio Tinto Ltd has decided to extend its $3.9 billion takeover bid for Africa-focused collier Riversdale Mining Ltd following the latest move by the target’s shareholder of upping its stake on the coal miner.
Office rental rates in Australia are expected to rise as the market finally shakes off the effects of the Global Financial Crisis.
Shareholders who stuck with OZ Minerals through the dark days of 2008-09, or who bought the shares in 2009 amid considerable scepticism about whether it would survive, will get a nice fat payoff after the boom 2010 financial year result.A huge profit, higher dividend, capital return, consolidation of shares to boost the share price and a buyback.All up more than $900 million in dividends, the capital return and share buyback will have been delivered to shareholders by mid-year.There's the $123 million already paid in the interim dividend and the $223 million to be paid in the final in the next month.The capital return will absorb nearly $390 million and the consolidation will be done in the ratio of ten for one (which should boost the share price considerably.After that is completed the company will run a $200 million share buyback.With the
The latest State of the Land Report released by the Urban Development Institute of Australia highlights the undersupply of housing right across the national housing market that is affecting housing affordability.
Australia continues to be one of the world’s fastest growing markets for Fairtrade Certified products with sales tripling in just 12 months to over $120 million in 2010, Fairtrade Australia & New Zealand (Fairtrade ANZ) announced today.
Leighton Holdings Ltd (ASX:LEI) says its Thiess Services will benefit from a major five year Telstra contract awarded to Silcar, a joint venture company between Thiess Services and Siemens Ltd.
Average salaries of health and safety professionals increase 9.6 per cent, more than double the CPI, according to a recently released survey.
One of the most well known real estate agencies in the market, Ray White is selling their franchise for the Gold Coast market of Broadbeach after it was placed in receivership in 2010.
