Sydney, Aug 1, 2007 (ABN Newswire) - The share market plunged today falling over 3 per cent. Fresh worries about the U.S. subprime mortgage market dented sentiment, while Macquarie sent investors packing after warning of heavy losses in two of its investment funds. Also affecting investor confidence today were the retail sales figures rising faster than expected in June fuelling speculation the Reserve may act to lift interest rates as early as next week.

The ASX 200 Index closed down 203 points at 5941, and on the futures market the SPI 200 dived 196 points.

Turning to company news now, updating our story on News Corp this morning, the Dow Jones board have officially recommended the sale of the publisher to News Corp. The Wall Street Journal and other Dow Jones assets add to Murdoch's media empire including Fox Television and MySpace amongst others. The controlling Family of Dow Jones initially rejected the $5 billion offer over fears News Corp would tarnish the Wall Street Journal's image BUT in the end the $60 per share offer proved too attractive for family members to resist. Dow Jones shareholders will now be given the opportunity to vote on the deal which most analysts say will only end up being a formality. Shares in News Corp closed steady at $26.49

The full report is available at the following video and audio links.

Video Link

http://abnnewswire.net/lnk/5F070P44


Audio Link

http://abnnewswire.net/lnk/8PE6680X

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