The market is unchanged at midday. The SFE futures suggested an 8 point fall in the market this morning. Quiet morning on the back of the US and UK markets being close overnight. Financials down 0.3% again after the removal of the shorting ban yesterday. Major banks dragging the index down about 10 points on their own — CBA down 1.6%. Resources up 0.3% — BHP up 0.2%. RIO down 0.1%.

US Equities and Treasuries Markets Closed For The Memorial Day Public Holiday. UK markets closed for the Spring Bank Holiday.

CSL LOSES TALECRIS — yesterday the US Federal Trade Commission decided to legally challenge the US$3.1bn acquisition of plasma medicine producer Talecris Biotherapeutics by CSL. Talecris is the third largest producer of plasma medicines in the world. CSL is number 2 and Baxter number one. Post the acquisition CSL would have had sales of $3.8bn versus Baxter with $5bn. CSL announced the acquisition last August and raised $1.75bn in October to fund the purchase and are sitting on $1.8bn of cash waiting for US regulatory approval that now looks like it won’t come. Brokers generally keeping BUYS with price targets between 3640c and 4300c. CSL down 1.15% to 3000c.

  • Rio Tinto (RIO) Iron Ore Chief Executive Sam Walsh said RIO is canvassing views of shareholders before any possible revision to its US$19.5bn alliance with Chinalco.
  • Perpetual (PPT) notes in a letter to shareholders that it expects earnings to fall by around 50% this year with NPAT between $60-70m, down from the $133.5m a year ago due to the decline in global equity markets. PPT up 2.5% to 3074c.
  • Suncorp-Metway (SUN) down 2.6% to 591c saying it has received about 4500 claims from the QLD/NSW floods but that it expects reinsurance cover to cap its claims costs at $10m.
  • PanAust (PNA) in a trading halt pending an accelerated nonrenounceable 2-for-9 entitlement offer and announces a cornerstone investor will take a 19.9% stake in the miner. 100m shares will also be placed to institutional shareholders.
  • Bendigo & Adelaide Bank (BEN) down 2% to 620c saying they have no direct exposure to Great Southern (GTP) but lent money to 8,200 customers who invested in GTP’s managed investment schemes – notes the loans are full recourse and that the average loan was $75,000.

Other…

  • Adelaide Brighton (ABC) had it price target upped to 245c from 230c by Credit Suisse after it announced at its AGM that that forecast FY earnings of $105-$115m, close to CS’s forecast for $107m.
  • Allco Finance Group will almost certainly be in liquidation by tonight.
  • The Bank of Japan has upped its view on the economy for the first time in nearly three years.

The Dow Futures suggest a 8 point fall on Wall Street tonight.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

For a free 21 day obligation free trial of the MARCUS TODAY newsletter (and no we won’t ask for a credit card number) please START A FREE TRIAL — you will receive two daily emails about the stockmarket, our MORNING EMAIL with all the stuff you need to know ahead of the trading day ahead and a DAILY EMAIL with all the midday events, news, comments and Ideas from Marcus and his Team.

You will also be given a password to the MARCUS TODAY website including access to all the emails as well as Educational, Entertaining and Researched Articles from Marcus and his Team and an archive where you can catch up on a whole week or month in just a few minutes. Or Browse at length. We are sure you will enjoy and profit from what we offer.