The market is up 14. SFE Futures were up 16 this morning.

Dow Jones was up 79. The Dow was up 137 at best as it posted gains for its fifth consecutive day on better than expected economic data out of Germany but then lost ground towards the end of the session on “fiscal cliff” comments from Democratic Senator Reid. The US trade deficit widened from US$40.28 billion to US$42.24 billion in October, the result beat the forecast of -US$42.6 billion. Exports were down 3.6% and imports down 2.1%. Senator Harry Reid has said that it will be hard to reach a “fiscal cliff” deal before Christmas: “Let’s be honest, we’re broke and until we hear something from Republicans, there’s nothing to draft, it’s going to be extremely difficult to get it done before Christmas.” European markets hit 18 month highs on the back of better than expected local economic sentiment numbers. Eurozone bond yields down. The spot iron ore price hit a five month high. Best sectors — technology, financials, health care. Worst sector — utilities, consumer discretionary.

  • Westpac / Melbourne Institute Index of Consumer Sentiment for December fell 4.1 points to 100.0 points. Consumers remain downbeat heading into Christmas, despite the RBA’s rate cut.
  • GWA Group Limited (GWA) — Will sack 230 employees to save $4 million as part of a strategic repositioning of the business. As part of the review Dux Hot Water will be combined with the GWA Bathrooms & Kitchens’ business, while Gliderol Garage Doors will be combined with the Gainsborough business. GWA is up 7.78% to 194c.
  • Webjet (WEB) — has announced the acquisition of the Zuji travel website in Australia, Hong Kong and Singapore for $25 million. The purchase will increase the company’s presence in Asia and expand their marketing footprint in the growth markets of Asia. Webjet will fund the purchase through a $25 million capital raising, issuing 6.9 million new shares at 360c per share and a $5 million SPP. WEB is in a trading halt at 384c. For an 11% increase in the number of shares they get 25% more EBITDA … eps accretive.
  • BHP Billiton (BHP) — has sold their stakes in two Browse gas project joint ventures for $1.56 billion. The sale of their 8.33% interest in the East Browse JV and 20% interest in the West Browse JV was because the project interests were a non-strategic asset for the company. The sale remains subject to regulatory approval. BHP is up 1.04% to 3578c.
  • Decmil Group (DCG) — has been awarded a $30 million contract to construct facilities for Rio Tinto’s operations in the Pilbara. The contract covers a range of major infrastructure works and includes the construction of a heavy vehicle workshop and associated facilities, a first aid building, a security gatehouse, a communications hut and a radio base station facility. DCG is down 0.21% to 236c.
  • QBE Insurance Group (QBE) — Has priced a US$500 million tranche of subordinated convertible debt securities at 3.25% over Libor. They will mature in December 2039. The securities will help increase the company’s liquidity position after they took a hit from superstorm Sandy. QBE is up 0.86% to 1060c.

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