The market is down 17. Resources up 0.8%. Financials down 0.8%. SFE Futures up 54.

Dow up 166. Up all session and finished near its highs. The big drivers were a drop in the oil price and inflation numbers in line with expectations. Strong resources and financials. CPI (inflation numbers) in line with expectations – but inflation concerns remain. Officials from the G8 Meeting underlined the threat of high oil and food prices and global inflation on world growth, eclipsing the credit crisis but did not state their support for the US$ as some expected (A$ up). Lehmans up 14% – to release results tonight. Goldmans and Morgan Stanley post earnings this week. Yahoo! fell after concluding talks with Microsoft for good. May Housing starts fell to 980,000 – domestic real-estate market remains the greatest threat to growth. Banks repossessed twice as many homes in May and foreclosure filings rose 48% from a year ago.

  • Both BHP and RIO up in ADR form on Friday, 3.86% and 3.96% respectively. BHP up 67c to 4371c. RIO up 138c to 135.98c.
  • Metals mixed on Friday – Copper 1.8%, Zinc up 1.6% and Nickel down 2.1%. Aluminium down 0.2%. Zinifex down 18c to 871c.
  • Oil price down $2.07 or 1.5% to $134.84 – According to the Middle East Economic Survey, Saudi Arabia is considering increasing its oil production to 10 million barrels a day from 9.45 million. Woodside down 232c to 6068c.
  • Gold up $1.10 to $873.10. Newcrest down 100c to 2577c.
  • US Bonds down with the 10 year yield up to 4.25%.

A lot of weekend press focused on Babcock & Brown who have issued a market update today saying they will be selling Wind assets, finding independent chairmen for the satellites, focusing on core activities and reviewing listed funds. The stock is down 60% in two months.

Otherwise pretty quiet:

  • RIO have published a presentation today by Tom Albanese – Generally positive on commodities and their Alcan acquisition.
  • Macquarie Capital (MCQ) up 51% or 108c to 318c on a recommended bid from Macquarie Group plus other investors to take it private. Cash offer of 340c with a scrip alternative. 62% premium to last price. The decision is interesting as Babcock & Brown struggles amidst talk that they too might privatize.
  • Anzon Australia (AZA) up 11% or 15c to 145.5c after a cash offer from Roc Oil post its acquisition of Anzon Energy in the UK which left it with 52% of AZA. They are offering 0.792 of its own shares plus 5c.They say the bid is worth 165c. Nexus Energy bid 175c for AZA but pulled out last month after disappointing drilling results.
  • Centro (CNP) quiet on whether businessman Julius Colman has been making offers for CNP’s services business. CNP down 0.5c to 28.5c.
  • Sunland Group (SDG) launched the opening of its $220m Nur residential tower in Dubai – achieved 74% sales success in the first week. SDG up 3c to 232c.
  • PaperlinX (PPX) – Maryvale mill back in operation. PPX up 2c to 216c.
  • Sonic Health Care (SHL) will acquire Germany’s GLP Medical Group. SHL up 2c to 1442c.
  • Straits Resources (SRL) sell Varomet Metal trading block to Ambrian Capital. SRL up 21c to 786c.

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