Thursday February 8, 5:37 AM MARKET TALK/AU-EQ: Telstra Completes PCCW Deal
[Contact Us: Sydney 61-2-8235-2950; djnews.sydney@dowjones.com]
0829 [Dow Jones] Telstra (TLS) shares could gain following completion of strategic alliance with HK's Pacific Century (Singapore: PCEN.SI - news) CyberWorks. Telstra executive Gerry Moriarty upbeat on Reach Internet backbone joint venture in particular; says IPO will be considered but not necessary as has strong profits and cash flow; alternative to listing could be inclusion of 3rd partner but no talks underway. PCCW partnership cost Telstra dearly in 2000 as investors dumped stock on view deal was too expensive and unwieldy. (IGP)
0827 [Dow Jones] Treasurer Peter Costello pleased big four banks quickly pass on full rate cut to home borrowers following RBA reduction. But in Sydney radio station interview focuses on business activity tax statement issue, which is putting pressure on government in parliament and potentially in the polls. Costello says government to act quickly to lessen paperwork for small business, with first changes announced before forms next due in April. (IGP)
0824 [Dow Jones] Diversified mining company BHP (BHP) expected to announce A$1.7 billion on-market share buyback scheme Thursday, reports The Australian newspaper. Buyback to be announced alongside BHP's 1H earnings this morning. Analysts tip a net profit of A$1.44 billion, up 33% from year before. (GFM)
0822 [Dow Jones] Suncorp Metway (SME) signs confidentiality agreement with AMP (AMP) on possible purchase of AMP's GIO division, reports the Australian Financial Review. AMP in talks with several other companies on whether it will undertake a A$1.65 billion trade sale or GIO will form a joint venture. (GFM)
0820 [Dow Jones] January employment data at 0030 GMT to be focus for local markets today, with number much stronger than median forecast gain of 5,000 jobs likely to provide some support for AUD/USD. Macquarie Bank economist Brian Redican, expecting gain of 10,000 jobs, says data likely to confirm view of softening labor market leading to benign wages growth. (CMR)
2105 GMT [Dow Jones] AUD/USD down with EUR/USD, which lost ground after failing to take advantage of weaker U.S. equities; pair finding some support around 0.5460 but dealers think test down to 0.5420-30 likely before recovery. (CMR)
0819 [Dow Jones] AUD/USD down with EUR/USD, which lost ground after failing to take advantage of weaker U.S. equities; pair finding some support around 0.5460 but dealers think test down to 0.5420-30 likely before recovery expected. (CMR)
0815 [Dow Jones] News Corp (NCP) shares could gain in local trade following 2Q results which were at top end of market expectations, and confident comments about Sky Global Networks. 2Q pre-abnormal profit rose A$98 million to A$492 million, taking 1H profit to A$751 million, up 16%. But 2Q bottom-line loss was A$36 million with abnormal charges of A$528 million included restructuring costs of WebMD Corp. (HLTH) alliance and writedowns of Zee Telefilms and new media interests. 1H bottom-line loss A$475 million.(IGP)
0810 [Dow Jones] OUTLOOK:
0830 BHP (BHP) 1H profit result due, Melbourne
1030 Lend Lease (LLC) US Office Trust annual profit result briefing, Sydney
1130 ABS issues January employment data
Rural Press (RUP) 1H results due
Jupiters (JUP) 1H results due. (IGP)
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