Wall Street plunged sharply overnight on fresh worries over the US economy. The Obama administration warned that General Motors and Chrysler could face bankruptcy. In addition to the woes in auto makers, Treasury Secretary Timothy Geithner said over the weekend that some banks will need further aid from the government.
Yesterday the Australian share fell on the weaker outlook in Europe and US markets. The S&P/ASX200 index ended the day down 1.8%, or 67.9 points, at 3604.4, while the broader All Ordinaries index lost 1.7%, or 61.4 points, at 3554.2.
Key Economic Facts and Figures
Australian Treasurer Wayne Swan said the Reserve Bank of Australia still has room to cut rates further if needed and Australia's monetary policy transmission mechanisms continue to be far more effective than almost any other developed country. Financial markets are expecting the central bank to make a modest interest rate cut of 25 basis points in RBA's next meeting on April 7.
The RBA also releases financial aggregates data for February.
M&A News
OZ Minerals (ASX:OZL) is expected to unveil a revised structure in the deal with China Minmetals as early as today. The new proposal may exclude the Prominent Hill mine based on national security concerns. The market anticipated that Minmetals was offering a low price as OZ's most valuable asset would not be put in Minmetals' shopping cart.
Tolhurst (ASX:TNL) shareholders have agreed to a merger of the struggling stockbroker with Patersons Securities. Patersons re-opened for business yesterday after its merger with the Tolhurst stockbroking operation.
Important Corporate News
The national secretary of the Finance Sector Union, Leon Carter, warned that on a conservative analysis, the jobs of up to 3000 processing and other back-office roles in Westpac (ASX:WBC) and St George were at risk after the merger of the two banks in December.
Macquarie Group (ASX:MQG) has announced changes to its remuneration scheme that reduces high-level employees' cash compensation. Macquarie will replace the reduction in cash compensation with shares. The changes affect 300 of the bank's senior employees including the executive directors and chief executive Nicholas Moore.
Agricultural chemical maker Nufarm Ltd (ASX:NUF) has reported a net profit rise of 84 per cent in the first half ended January 31, and says demand in the second half will be strong. Nufarm said first half net profit before significant items was A$65.129 million, up from A$35.364 million in the prior corresponding period.
Optus' parent company Singapore Telecommunications Ltd (ASX:SGT) has entered into an agreement with banks for credit facilities of $S1.08 billion to refinance existing facilities and for general working capital purposes.
Contact
Michelle LiangAsia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
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