BUSINESS

Domestic consumer confidence data for February came in at 1.9% yesterday which was a major improvement on the January figure (negative 5.7%) however, the Aussie retreated marginally during the Asian trading session touching US101.30 cents.

By Greg PeelThe Dow closed up 6 points while the S&P fell 0.3% to 1320 and the Nasdaq lost 0.3%.Wall Street had marked seven straight days of consistent gains and a 5% rise in 2011 in the broad market S&P 500 with little volatility, so it surprised no one last night that some profit-taking emerged. The market was higher mid-morning but thereafter tipped into the red. The large-cap Dow managed to nip back into the black only on the death.A notable counterpoint to the rise in stocks has been the fall in bond prices, which has seen the benchmark ten-year yield run from just over 2.5% in November to over 3.7% this week. But yields, too, were in for a correction, and foreign central banks and sovereign funds lent a hand.Continuing with the pattern of late last year, demand for Treasury bonds at the short end and the very long end has waned. But the ten-years have been consistently sought after as a parking station for foreign reserves over this period, and last night was no different. Tuesday's three-year note auction was a fizzer but last night's ten-year auction met with strong demand, forcing the yield down seven basis points to 3.67%. Foreign governments bought a record 71%, well above the running average of 44%.The ten-year yield had already tipped over mid-morning in line with stocks, suggesting a correcting flow-back of money from stocks to bonds. The auction result only served to spike up bond prices. The recent run-up in Treasury yields is all about the recovering US economy, suggested Ben Bernanke to the House Budget Committee last night, and nothing to do with local inflation fears. Bernanke maintained his view that unemployment, although showing some signs of improvement, will remain stronger for longer. He dismissed any notion of inflation being reflected in bond yields and reiterated that US inflation will remain very low for some time. He did, however, confirm that the Fed would abandon QE measures and raise rates as soon as inflation looked like taking off.So deflationary forces in the US are keeping a lid on inflation and as such the Treasury can print as much money as it likes. Never mind that this policy is causing inflation problems around the rest of the globe. It's not the Fed's problem. However, aside from kick-starting the US economic recovery there is little doubt QE2 has another intended purpose. If Chinese authorities won't bow to entreaties to revalue their currency voluntarily, then American authorities can smoke them out. Two recent Chinese rate rises are testament to China's inherited inflation problems.The other news on the Street last night was that (shock, horror) that bastion of American capitalist supremacy – the New York Stock Exchange – is in merger talks with Deutsche Bourse with intentions of forming the world's largest exchange company. Oh the irony. Old soldiers will be turning in their graves. But if the merger is successful, the ASX ((ASX)) will have a stronger case to argue in its attempts to merge with the SGX.[Just as an aside, I was told last week by a more than reliable source that the market monitoring responsibilities taken by ASIC from the ASX rely on “prehistoric” systems and modernisation moves are glacial. SGX systems, on the other hand, are state of the art.]Bernanke's down-play of US inflation was enough to send the US dollar index lower last night by nearly 0.5% to 77.61. But increasingly the relationship between commodities and commodity currencies and the reserve currency is becoming fractured.The Aussie has fallen a third of a cent since this time yesterday to US$1.0114, albeit the Battler seems currently stuck in a US$1.01-02 range. The limited bounce in Westpac's consumer confidence survey for February released yesterday, after the flood affected January survey had shown a big drop, likely added to weakness.Gold stood still last night at US$1364.10/oz despite the greenback's fall and over in London all eyes were on Chinese metal buyers returning from their week-long break. Normally they'd be buyers, but one look at copper over US$10,000/t and they stayed out. Copper thus fell 1% to just under the 10k mark and other metals fell in sympathy. Oil also fell, by US23c to US$86.71/bbl.The SPI Overnight fell 5 points.It will be an interesting next 24 hours. In Australia today the result season highlights include Rio Tinto ((RIO)) and Telstra ((TLS)) while the local unemployment data will be released. China will (in theory) release its January trade balance today, albeit the move on rates has already been made.Tonight the Bank of England will hold a monetary policy meeting. It was only a few months ago that traders were convinced the BoE would also be announcing another round of QE, but in the interim Britain's economic data have been no less than astounding. So tonight there is a strong expectation the BoE will finally lift its cash rate above the longstanding 0.5% level.My esteemed editor will be appearing on the Lunch Money program on Sky Business today at midday. [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.

As Queensland copes with the impacts of the 2010-2011 wet season, research undertaken by the Australian Institute of Marine Science shows the frequency of extreme rainfall events has increased since the late 19th century.

By Chris ShawHuman resources and employment services group Talent2 International ((TWO)) reported an interim profit of $3.4 million, a result that was 85% higher than for the previous corresponding period.Stockbroker Moelis suggests Talent2 was a beneficiary of sustained improvement in employment activity across the Asia Pacific region, this trend having been in place since late in 2009. The interim result showed revenue growth of 36% and EBITDA (earnings before interest, tax, depreciation and amortisation) growth of 61%.Talent2 has two main divisions – Recruitment and Managed Services, and both performed well during the period. Recruitment, which accounts for 41% of group revenues, delivered a 58% increase in EBITDA, while Managed Services, which generates the balance of group revenues, recorded a 61% increase in EBITDA.RBS Australia was particularly positive on the performance of the Managed Services division, suggesting it shows a recovery in earnings for that part of the business is now underway. The division also offers good potential for further growth in the broker's view, as there is more upside from client wins via RPO outsourcing operations and via the expansion of existing mandates.As well, RBS Australia points out a reconfiguring of the Payroll business towards small and medium-sized businesses has improved demand for the service, while also generating some scale benefits from an increase in payslips.Talent2 is on a solid footing to finance further growth, Goldman Sachs noting post the December half the group had a strong balance sheet with net debt of $8.5 million and free cash flow of $5.6 million. The latter was an increase of 86%, reflecting good working capital control and the strong earnings growth achieved in the period.International markets are one likely source of further earnings growth in the view of Goldman Sachs, reflected in the fact these operations generated a 61% increase in revenues to $28 million in the December half. The international businesses now account for 19% of Talent2's total revenues.On the back of Talent2's interim, RBS Australia has lifted its earnings per share (EPS) forecasts by 2-6% through FY13, meaning its estimates now stand at 10.6c this year, 14.3c in FY12 and 16.8c in FY13. RBS Australia is the only broker in the FNArena database to cover Talent2.Moelis has made no changes to its estimates, which stand at 10.4c, 13.2c and 15.2c respectively, while Goldman Sachs is forecasting EPS outcomes of 10.2c, 14c and 16.9c for FY11-FY13.Based on its forecasts, Goldman Sachs estimates Talent2 is trading on an earnings multiple of 15.7 times this year and 11.4 times in FY12. The broker sees this as attractive given the earnings growth outlook and to reflect this it has upgraded to a Buy rating, from Hold previously.RBS Australia has also upgraded to a Buy ratingfrom Hold previously, again on valuation grounds. RBS's numbers suggest a FY12 earnings multiple of 11.2 times, which would be in line with the Small Industrials average according to the broker. This implies the stock is relatively cheap given a historical multiple premium of around 25%. Post Talent2's interim, Moelis makes no change to its Buy rating, the broker setting its price target at $2.00. This is broadly in line with the targets of RBS Australia and Goldman Sachs, which stand at $1.95 (up from $1.53) and $2.05 respectively. Shares in Talent2 today are higher and as at 12.35pm the stock was up 5.5c or 3.4% at $1.655. This compares to a trading range over the past year of $1.25 to $1.75 and implies upside of around 20% relative to the average price target for the stock among the three brokers.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.

Tough market conditions and expensive price tag discouraged Japanese beverage firm Asahi Breweries from further participating in the $11 billion demerger plan of Foster’s beer division that carries the VB, Carlton, Draught and Cascade brands.

Hearing implant maker Cochlear may have beaten analyst forecasts with a 16% rise in first-half net profit on an 8% rise in sales, but it couldn't win over a suddenly sceptical market yesterday.The shares jumped by more than 1.4%, or $1.10, to $78.60, before losing the lot in the trading from around 11 am to close down $1.32, or 1.7%, at $76.18.The market ignored the better result, positive outlook and an 11% rise in interim dividend to $1.05 a share from 95c in the first half of last financial year.The rise in sales and profits came mostly from higher sales of its new Nucleus 5 device.Cochlear said net profit rose to $87.2 million in the six months to December 31, from $75.25 million a year earlier.The result beat analyst expectations for earnings of $83.6 million, according to the average of three forecasts. But other analysts reckoned the result fell short of their guesses.Stripping out

Giant supermarket operator Woolworths confirmed reports that recruitment firm Ergon Zehnder is on the lookout for new executives that would fill up vacancies in the retail group.

Moccona is giving romantics a little help this Valentine's Day with the launch of the free ‘Go Somewhere Special' application, for iPhone users who are heading out on a date on February 14th.The iPhone application encourages people to embrace more romance and add an element of mystery when inviting their partner or a special someone on a date this Valentine's Day. Through the use of augmented reality technology, the app will guide the chosen recipient to the date location with a trail ...

Leighton Properties and Grosvenor Australia have commenced construction of the landmark 25,660sqm Eclipse Tower at 60 Station Street, Parramatta after securing tenancy pre-commitments of approximately 70 per cent from two major corporations.

Sara Lee yesterday (8 February) posted a slump in underlying quarterly profits as rising commodity costs hit earnings.The US food group, which plans to split in two next year, booked net income from continuing operations of US$107m for its fiscal second quarter, which ended on 1 January. In the previous year's second quarter, the figure stood at $298m.On a reported basis, Sara Lee's net income was $882m, up from $376m a year ago. However, this year's figure included a gain on the sale o...

The Commonwealth Bank Group (ASX: CBA) says it expects to open its first County Bank at Jiyuan in China’s Henan province later this month.

Global miner Rio Tinto (ASX: RIO) has approved a US$933 million investment to extend the life of the Marandoo iron ore mine by 16 years to 2030.

Shoppers are more likely to hit the stores in February, according to the latest Westpac-Melbourne Institute consumer confidence survey released on Wednesday.

The consumer sector led U.S. stocks higher Tuesday after McDonald's posted strong January sales, putting the Dow Jones Industrial Average on track for its seventh straight gain.

The People´s Bank of China has lifted interest rates for the second time in just over a month. The 1-year deposit rate will be lifted 25 basis points to 3.00pct while the 1-year lending rate is up 25bps to 6.06pct.

The Australian Dollar was choppy last night following the decision by the People's Bank of China(PboC) to raise benchmark lending rates by 0.25% to6.06%, the second rate hike in six weeks.

The Aussie traded a familiar recent band during local trade on Tuesday between 1.0115, where the currency is finding some support, and a high around 1.0135. Despite a lack of direction, the Aussie has been buoyed recently on the back of firmer commodity markets and improving economic data coming out of the United States.

By Greg PeelThe Dow gained 71 points or 0.6% while the S&P added 0.4% to 1324 and the Nasdaq rose 0.5%.The People's Bank of China yesterday announced another rate increase, following on from the Christmas Day hike. The PBoC lifted its one year lending rate to 6.06% from 5.81% and this time simultaneously lifted its deposit rate to 3.00% from 2.75%. Inflation is clearly in Beijing's sights. China's latest round of inflation data is due out at the end of this week.Had this hike occurred in 2010, Wall Street would have taken a dive. Last year was a year of panic not just every time a small European nation blew itself up, but every time Beijing threatened, in nervous traders' eyes, to kill the golden goose with monetary tightening. But a new, warm breeze has swept through Wall Street in 2011. Economic data are solid (except for jobs), corporate earnings are healthy, and money grows on trees. QE2 trees.So it was that the reaction to Beijing's move was a small dip at the open that lasted about five minutes. Then it was onward ever upward once more, with Mickey D's leading the charge.Mickey D's (McDonalds, stock code MCD) announced better than expected global like-for-like sales in January and helped send Wall Street to its seventh straight gain. Sales improved everywhere across the planet, including in China, and in Chubby Land Downunder, except for one region – the US. But that's okay. China's been exporting its cheap crap to the US for a decade so now it's “right back at ya”. With a dollar kept in check by the Fed, US exports are finding keen demand.But can the US have too much of a good thing? Mitchell Johnson spent the whole Ashes series warning us that it's best to know when you've had enough. Now that easy monetary policy seems to have served its purpose, and the US economy looks strong, questions are being raised as to whether America should just keep on chugging on those QE2 beers.There was dissent in the ranks of the Fed back in 2010 when QE2 was being considered, but by the time it was implemented the world was already talking about a probable QE3. Last night Richmond Fed president Jeffrey Lacker piped up and suggested that while QE2 should not be halted suddenly, the size and pace of the program should be reconsidered in light of the current situation. It's unlikely Uncle Ben will do any more than listen politely however, given that in his recent “meet the press” he dismissed the notion that QE2 had anything to do with current global inflation. Egyptians may disagree, along with the PBoC.Last night the Fed was in buying US$2.19bn of thirty-year bonds, although most of its purchases are concentrated in the two-ten maturity range. But Fed or no Fed, 2011 has seen a pricking of the supposed US bond bubble as investors have shifted money back into risk assets. And so it was that last night's Treasury auction of US$32bn of three-year notes received a lacklustre response. Foreign central banks bought only 28% compared to the running average of 35%, and the benchmark ten-year yield rose another eight basis points to 3.72%. The Treasury will auction US$24bn of ten-years tonight.A Chinese rate hike by default implies a lower US dollar given the renminbi is pegged in a range and not at a price. But the euro also took a hit last night on a weak German industrial production number for January, but that was put down to the heavy snow. The Aussie also took a hit on the rate hike given Australia's greater sensitivity to the Chinese economy, but as the US dollar index dipped to 77.95, the Aussie ultimately held its ground at US$1.0148.Gold, on the other hand, jumped again on the weaker greenback and on the inflation scare implied by Beijing's policy move. Gold was up US$14.20 to US$1364.00/oz, and silver retook the US$30/oz mark. Oil similarly rose US33c to US$87.80/bbl.Like Wall Street, the LME initially got a scare from the Chinese rate hike but then swiftly recovered, with most metals closing slightly higher on the session. Copper remains above US$10,000/t.The SPI Overnight rose 14 points or 0.3%.With QE2 now causing debate at the Fed, one is reminded that a significant contribution to the GFC came from then Fed chairman Alan Greenspan's policy of dropping the funds rate to 1% in 2004 in the wake of the tech wreck and 9/11. Critics suggest the rate was dropped too low and for too long, and since 2009 now Fed chairman Ben Bernanke has been pushing the “exceptionally low rates for an extend period” mantra of which QE2 is the primary element. Another bubble on the horizon? One presumes that as long as the US unemployment rate remains elevated then QE2 is here to stay. The rest of the world's food and oil inflation woes are not America's concern.Today locally the interim results season steps up a gear with the highlight being Commonwealth Bank ((CBA)). Westpac economists will also inform us just how consumer confidence fared during the January floods. [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.

By Chris ShawMining, rail and engineering products group Bradken ((BKN)) yesterday reported a below expectations interim profit result of $38.2 million, the number falling about 14% short of the estimate of RBS Australia.According to RBS much of the shortfall can be attributed to increased operating expenditure, while higher than expected interest costs also played a part. Both the Mining Products and Americast operations performed solidly in the period, while a significant positive in the result was the maintenance of full year earnings guidance.Credit Suisse suggests the fact full year guidance has been maintained is indicative of an improvement in underlying business conditions. Supporting this argument, in the broker's view, is the potential for margins to increase in the second half of FY11, as well as the likelihood all divisions of the business, apart from rail, record double-digit revenue growth in the second half.Post the result forecasts across the market have come down, Credit Suisse cutting its earnings estimates by about 3% on average through FY13, while RBS Australia has lowered its estimates by 6-8% across the same period.Deutsche Bank has been more aggressive in cutting its net profit numbers by 16% in FY11 and by 18% in FY12, though the magnitude of the changes reflects the fact the broker was above guidance with its previous estimates. In earnings per share (EPS) terms Deutsche Bank is now forecasting 60c in FY11 and 61c in FY12, which compares to Macquarie at 64.3c and 66.3c respectively and UBS at 68c and 75c. Consensus EPS forecasts according to the FNArena database stand at 61.6c this year and 68c next year.According to UBS, Bradken faces two major headwinds to earnings that are offsetting current strong demand for mining products and consumables out of North America. One is the level of import price competition in the rail division, the second being the upcoming termination of the ESCO licence. The latter will impact on group sales and earnings, but there is some uncertainty in the market at present as to the potential magnitude of this impact.This uncertainty, plus limited earnings growth expectations for FY12, sees Deutsche Bank retain a Hold rating on Bradken. On the broker's numbers the stock is trading on a FY12 earnings multiple of 14.5 times, which simply implies limited value given the growth outlook in its view.Credit Suisse agrees, as despite lifting its price target to $9.90 from $9.35 post the result the broker has downgraded to a Neutral rating. UBS also rates Bradken as Neutral, taking the view the current earnings uncertainty is likely to be enough to limit share price outperformance.But three brokers – RBS Australia, Macquarie and BA Merrill Lynch - continue to rate Bradken as a Buy. For BA-ML there is still value in the stock as its numbers suggest a normalised earnings multiple in FY12 of 12.7 times. BA-ML suggests this makes the stock cheap given the multiple is below the ex-resources average of closer to 15 times.The attraction for Macquarie is Bradken is well managed and has strong market share in its core products. This is a positive given a number of products service the current mining boom and so are experiencing strong demand. This exposure to high growth markets such as the mining sector also underpins RBS Australia's Buy rating, while the broker is also positive on the group's offshore growth strategy over the medium-term.The FNArena database shows a wide range of price targets for Bradken, likely reflecting the current earnings uncertainty surrounding the stock. The consensus price target stands at $9.27, with a range from $8.50 for Deutsche Bank to $9.90 for Credit Suisse.Shares in Bradken today are weaker and as at 1.35pm the stock was down 22c at $8.60. This compares to a range over the past year of $6.18 to $9.60 and implies upside of around 6.6% to the consensus price target in 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.

By Greg PeelThe Baltic Dry Index is an index of freight rates charged by the owners of the massive bulk carriers which traverse the world's oceans with “dry” cargoes such as coal, iron ore and wheat. The ships include the Panamax, which carries coal from eastern Australia and the larger Capesize, which carries iron ore from Western Australia and Brazil.By end-2010 there were 1813 Panamaxes in operation with a net capacity of around 136mt and 1172 Capesizes with a net capacity of around 211mt.As one might appreciate, ship builders don't just knock up a Capesize in a day or two. The lag in orders for new ships placed by owners and their ultimate delivery means that ship owners need to look into the future to assess the global demand for bulk minerals and grains and subsequent need for transport before they rush into ordering. Similar decisions need to be made as to whether now is a good time to scrap older vessels ready to be replaced by new ones. It is a competitive market which at any time can see an undersupply of vessels when demand is strong and an oversupply when demand is weak. As one might appreciate, the past few years of boom, bust and boom again in commodity demand will have had ship owners and builders pulling their hair out. Freight charges are not fixed – they are fluid and operate much like any spot price market operates. The risk is that weak demand sees freight rates fall below ship operating cost on the one side, or that strong demand pushes freight rates to uneconomical levels for commodity buyers on the other.But what the ship owners' dilemma does mean is that the index of freight rates has in past years become a rather reliable lead indicator of commodities prices. Prices rise only after demand rises, and traders of bulk goods need to book in their ships early to secure transport on orders. This means that typically freight rates rise first as the orders flow in, and then commodity prices begin to rise in recognition of increased demand.Prior to last year, the BDI was running ahead of iron ore and coal contract prices which only step-jumped once a year, so it has proven quite a handy lead indicator of mineral price movements with a long lead time. More recently bulk material contract pricing has moved to quarterly contracts and spot deliveries have increased significantly.The following graph compares commodity prices, in the form of the CRB commodity price index, with the BDI. As one can note from 2006 to 2009, the BDI lead the CRB quite reliably. The relationship is close but not quite as close for the Dow Jones Industrial Average, used here as the proxy for share price movements. But the 30-stock Dow is simply not a good proxy for commodity-based share price movements. The S&P 500 would have been more relevant. And even more so the ASX 200.But while the BDI's lead indicator role works well to end-2009 as the graph shows, it completely breaks down in 2010. This is a disappointment for traders and analysts who have come to rely on the predictive value of the BDI. What's gone wrong?Well for starters, the aforementioned shift in coal and iron ore pricing to at least quarterly contracts, with many more deliveries being made at spot, will have dampened the BDI's predictive power. However, the real reason is that one must look at both sides of the equation – the demand for commodities on one side and the supply of ships on the the other. In short, ship building has run amok, and given construction lag times we can look right back to the 2008 commodity boom as the genesis.The above-mentioned “head count” of Panamaxes and Capesizes represent a twelve month increase of 12% for Panamaxes and 17% for Capesizes. Nor are these vessels generic in capacity, such that not only are there more ships on the water the capacity of the bigger ships has been rising. Thus the increased ship numbers actually translate to only an 11% capacity increase for Panamaxes but a 22% increase for Capesizes, according to data prepared by Barclays Capital.While a number of ships do get scrapped each year, as one can imagine they aren't scrapped five minutes after they're delivered. So an increased ocean fleet will remain an increased ocean fleet for some time.As the above graph shows, the CRB index spent 2009-10 returning to levels of the 2008 boom but while the BDI might have picked the turn, it fizzled and waned for the rest of the year. Once upon a time that suggested commodity prices might also be about to turn but the same trend has continued into 2011. Commodity prices keep rising and freight rates keep plunging.There have been other extenuating circumstances. Late last year South Africa suffered a significant coal supply delay due to a derailment, and then was hit by floods. A tropical storm then hit Western Australian and curbed iron ore exports, before the big one came along in Queensland this year and temporarily shut-down 70% of the state's coal mines. Obviously these events disrupted bulk mineral trade, and hence idle ships led to lower freight rates.Barclays therefore sees some room for the BDI to bounce a bit, but the reality is the current oversupply of ships means the bounce will only be mild even if the CRB rises ever upward. To put things into perspective, nineteen new Capesizes hit the water in the second half of 2010 compared to twelve in the same period in 2009 and six in 2008. And the story gets worse for ship owners.Brazil's world-leading iron ore producer Vale has designed and ordered a new ship – the Chinamax. This 400,000dwt leviathan will transport iron ore to China and blow the paltry Capesizes and Panamax runabouts out of the water. It will be like Lasers taking on Wild Oats XI. And there won't be just one. The first Chinamax is due in mid-2011 but by end-2013, thirty are planned to hit the water.It must be a ship owner's nightmare. But for stock market traders, investors and analysts, it likely means the BDI lead indicator is dead forever. Now we'll just have to figure it out for ourselves. See also "Bleak Prospects For Global Shipping", published on 23rd December, 2010.Technical limitationsIf you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.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.

Suncorp Group Ltd (ASX: SUN) has set up mobile claims and assessment offices in Cardwell and Tully to assist cyclone-affected customers.

Abu Dhabi-based Etihad Airways rebuffed claims by Australia’s national carrier Qantas Airways that foreign airlines are deliberately flooding the market with extra capacity, leading to floundering revenues for most of the airline firms.

A flat property market amid a healing economy, gradually improving consumer confidence and a likely construction boom in the aftermath of the recent natural disasters in Queensland and other parts of Australia are all likely to contribute towards a year of extremes within in the Australian economy, including a period of higher inflation during the second half of 2011, according to national accounting firm Chan & Naylor.

In a shock move, underperforming rail and ports operator Asciano Ltd has replaced its CEO, Mark Rowsthorn with the appointment of the former global head of freight giant, DHL Express, John Mullen.Mr Mullen succeeds Mark Rowsthorn, according to statement.There was no real explanation to the market from either the company or Mr Rowsthorn.Asciano shares rose 4.5c to $1.695, the highest they have been since mid-October.It has to be pointed out that in a statement last Wednesday, February 1, Rowsthorn was extensively quoted as CEO, and five days later he's gone with thanks.So now the two driving forces behind the takeover of Patricks in 2006 by Toll Holdings, and then the controversial splitting of that company in 2007

Dwelling approvals in the country rose by 8.7 percent in December after dropping by 3.9 percent during the previous month.

National Australia Bank Ltd (ASX:NAB) has beat market expectations to reveal an 18 per cent lift in first-quarter cash profit thanks to lower provisions for bad debts and increased banking revenue.

Australia's largest investment bank Macquarie Group Ltd (ASX:MQG) said market conditions continued to recover from the worst downturn in its trading history, but warned second-half profit could fall by 5 per cent from the year before.

Australian telco giant Telstra (ASX:TLS) says mobile services should be largely restored by tomorrow after significant progress in restoring thousands of services disrupted and damaged by Cyclone Yasi in Far North Queensland.

The number of mortgages in January was 40 percent lower that the average monthly figures recorded last year making it the lowest recorded so far since the Mortgage Index started in 2004.