Australasian Investment Review (AIR) is a free daily news service with a weekly online magazine covering global financial markets with a focus on Australia, New Zealand and Asia.
Qantas is battening down the hatches and preparing for the worst as profits and travel slump because of the international credit crunch and slowdown.
Brisbane-based laboratory services and cleaning products company, Campbell Brothers made the upgraded guidance in October for a profit rise of around 75% for the six months to September 30.
The market is up 159 ahead of the futures which predicted a 132 point rise in the market this morning thanks to a solid night on Wall Street. Resources leading the way – up 9.0% with BHP up 11.4% and RIO up 7.5%. Energy stocks soaring on the 9% higher oil price – Woodside up 13%. Financials up 4.6%.
Major stimulatory packages were outlined on both sides of the Atlantic overnight.
According to the economics teams at three leading investment banks, the Australian economy is slumping right now and will continue to worsen well into 2009 at a rate lower than the forecasts from Treasury and The Reserve Bank.
Suncorp-Metway were sold off yesterday after it raised its full-year bank profit forecast as business levels slump, costs are cut and loan growth slows.
It will be at least another week before the fate of Babcock and Brown, the faltering investment bank based in Sydney, is sorted out: we hope.
Financial markets have rebounded strongly after the American government revealed its biggest bank bailout yet with a $AS500 billion plan to rescue troubled Citigroup.
Disappointing start to the week – our market is down 30 despite getting off to a good start. Poor response to Wall Street's late 500-point-rally. Resources outperforming, BHP and RIO only up 1.4% and 0.5% after being up 3% early. Gold stocks are the best performers after the gold price jumped 5.8%. Newcrest and Lihir up 10.9% and 14.4%. Banks and financials dragging the market on concerns over Babcock & Brown potentially going under.
A very big bear market bounce, relief rally, or 'just get us out of here': whatever the reason, Friday's late rise on Wall Street, it will be known as the 'Geithner bounce' in future years.
