US stocks finished mixed on Friday, as investors believed that recovery from the global recession remains distant. Friday's economic data showed that consumer confidence dropped in the middle of July due to worries about jobs. Earnings reports so far show that companies are still using cost cuts to bolster their profits and are yet to see sales rebound.
On Friday, the Australian market closed higher led by banking and mining stocks. The benchmark S&P/ASX200 index was up 30.8 points, or 0.8 per cent, at 3794.1 points, while the broader All Ordinaries index gained 29.2 points, or 0.8 per cent, to 3790.6 points. For the week, both benchmarks lost about 0.9 per cent.
Key Economic Facts and Figures
The NSW Business Chamber Business Conditions Survey showed that 30 per cent of businesses expect better conditions in the coming three months and only 23 per cent think things will get worse. The survey also found 36 per cent of businesses expect an increase in sales.
The Australian Bureau of Statistics will release lending finance data for May on Monday.
M&A News
CSR Limited (ASX:CSR) is considering a range of options for the structure of the two businesses on demerger, as part of the due diligence of a potential demerger of its suger and renewable energy business. CSR said no decisions have yet been taken on the range of options available in response to the market speculation that British Sugar and Brazil's Cosan, the world's biggest sugar cane processor, are believed to either become a major shareholder or circumvent the demerger process and buy the entire business from CSR in a trade sale.
Important Corporate News
Shares in Virgin Blue (ASX:VBA) are placed in trading halt pending the release of an announcement by the company. The airline is expected to announce a significant capital raising of up to A$400 million this week. It is speculated the airline would bring in a cornerstone investor to achieve the target.
Ten Network's (ASX:TEN) cash-strapped majority shareholder, CanWest (TSE:CGS), has signaled it is still a step away from bankruptcy. On Friday the company posted a $C110 million quarterly net loss, compared with a $C28 million loss last year. Its biggest revenue declines came from Ten, which last month reported a 76 per cent fall in earnings for the quarter.
Investment company Mirrabooka (ASX:MIR) posted a net loss of A$6.75 million, down 123% from the previous corresponding period. The company declared a final dividend of 6.5 cents per share, inline with last year's payout.
Fortescue Metals Group Ltd (ASX:FMG) says June quarter and full year mining rates exceeded expectations and it expects to maintain a run rate of 35 million tonnes per annum for now. Total iron ore shipped in the group's fourth quarter was 7.98 million metric tons, up from 6.17 million tons in the third quarter.
Contact
Michelle LiangAsia Business News Asia Bureau
Tel: +61-2-9247-4344
Email: michelle.liang@abnnewswire.net
Related Companies
Mirrabooka Investments Limited
CanWest Global Communications Corp.
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