Sydney, Sept 9, 2008 (ABN Newswire) - Yesterday Australian shares soared the most in almost half a year after the US Government's bailout of mortgage giants to calm investor worries about global market turbulence.

The benchmark S&P/ASX 200 index ended the day up 190.4 points or 3.9% at 5067.5 points, with banks leading the gains. The gain marked the biggest one-day jump since March 25.

Despite share market gains, analysts said the bailout does not mark a turnaround in US real estate-relate problems at the heart of the weakness in global banking.

Light sweet crude for October delivery rose eleven cents to settle at $US106.34 a barrel on the New York Mercantile Exchange.

Today the Australian dollar has opened down 1.4 US cent to its lowest level in a year, as the US government's bailout of the country's two largest mortgage providers bolstered confidence in financial market and the American currency. At 7am AEST, the dollar was trading at $US0.8162/68, down from yesterday's close of 0.8302/05.

Key Economic Facts and Figures

The latest Sensis Consumer Report, released on Tuesday, shows further evidence of plummeting consumer confidence comes with a record number of people are worried about their financial prospects for the year ahead. Consumer confidence fell three percentage points to 32 per cent in three months to September - about half the rate recorded in November last year and a record low for the report. Four in 10 Australians believe the economy will be worse off in 12 months time, while only two in 10 believe it will be better.

Reserve Bank Governor Glenn Stevens told the House of Representatives economics committee in Melbourne yesterday that successfully bringing rates down depended on keeping wages in check. Unemployment will rise above 5 per cent over the next 18 months as the economy slows, but the Reserve Bank is confident Chinese demand for Australian minerals will prevent the nation from falling into recession.

The total number of job advertisements fell 4.9% in August from July to an average 249,114 a week, on top of a 0.3% drop in July. Ads also declined 0.3% over August last year, according to the survey from Australia and New Zealand Banking Corp. The survey showed the number of job advertisements in major metropolitan newspapers fell 4.0% in August to 15,105 per week, leaving them 25.8% lower on August last year.

M&A News

Cooper Energy (ASX:COE) has launched a $104 million takeover bid for Incremental Petroleum (ASX:IPM) in a bid to create a mid-tier oil and gas producer. Cooper Energy is offering a choice of 3.1 shares of its own shares for each Incremental share, or 50 cents cash and 1.9 Cooper Energy shares, valuing Incremental at about $104 million.

US gas operator ConocoPhillips (NYSE:COP) will pay up to $A9.6 billion for a 50 per cent share of Origin Energy's (ASX:ORG) Queensland coal seam gas to LNG project. ConocoPhillips agreed to buy half of Origin's CSG assets with an up-front A$6billion payment.

It is rumoured that Leighton Properties is negotiating to take a stake in the A$1.3 billion Capital Square project being undertaken by Saville Australia and Babcock & Brown (ASX:BNB). The project was revised this year and its newly revised plans include two commercial towers and a luxury apartment tower on the former Emu Brewery site.

Important Corporate News

Chrysalis Resources Ltd (ASX:CYS) appointed Grant Kidner director with effect from August 31, 2008. He has 25 experience in the finance and accounting industry and was company secretary. He holds 250,000 shares and indirectly holds 210,000 shares. Michael Fry resigned as director after 14 months in the company. He holds 250,000 shares.

Brambles (ASX:BIL) says its performance in the first two months of its new financial year has been in line with guidance. At its annual results announcement on August 20, Brambles said it was well positioned to deliver further growth in revenue and profit in 2008/09. It also said it was well positioned to achieve its medium to long term objective to achieve sustainable sales revenue growth of 10 per cent on a compound basis.