Australian shares edged down 0.2 percent in low volume, dragged down by miners, as investors took profits after recent rallies.
- RBA says it has room for rate cuts
- Fortescue gets $4.3 billion lifeline
- Iron ore revenue forecasts slashed by 20%
- Dollar eases after poor US manufacturing
4.45pm: That's all from us here at blog central, thanks for reading and commenting, we'll be back tomorrow from 9.30am.
4.40pm: The Australian dollar nudged lower to $US1.0451, from $US1.0471 in early trade, last week’s near six-month peak of $US1.0625. It came under pressure overnight as investors booked profits following a stellar rally late last week, having climbed four cents in just seven sessions.
4.32pm: While Fortescue is the story of the day, jumping more than 17 per cent after reaching a deal with its debtors, the other big miners didn't perform so well.
Here's a look at how blue chip stocks performed today:
- BHP: -0.57%
- Rio: -0.44%
- ANZ: flat
- CBA: flat
- NAB: +0.08%
- Westpac: -0.07%
- Woolworths: -0.2%
- Wesfarmers: -0.32%
- Telstra: +0.26%
4.22pm: European stock index futures pointed to a slightly lower open with stocks set to add to the previous session's dip as investors continue to book profits, worrying about whether debt-stricken Spain will request a bailout.
Futures for the FTSE 100, Euro STOXX 50, Germany's DAX and France's CAC 40 were down 0.1-0.2 percent.
4.16pm: The materials sub-index traded flat, while energy stocks shed 0.8 per cent. Financials fell 0.3 per cent and IT lost 1.2 per cent. Health and telecommunications bucked the trend, adding 1.3 per cent and 0.3 per cent respectively.
4.14pm: The market has modestly lower, ending two sessions of gains. The benchmark S&P/ASX200 lost 7.8 points, or 0.2 per cent, to finish at 4394.7, while the broader All Ords dropped 4 points, or 0.1 per cent, to 4417.8.
3.53pm: The bond market is signaling expectations the Bank of Japan will bolster monetary stimulus after the Federal Reserve’s easing last week strengthened the yen, threatening the Asian nation’s exporters.
The fixed rate traders pay to receive floating payments for three years declined to 0.291 percent on September 14, the lowest level since August 6, and near the seven-year low of 0.284 per cent reached last month. Equivalent U.S. interest rate swaps were at 0.455 per cent on September 14. Sixteen of 21 economists surveyed by Bloomberg News predicted the BOJ will ease policy by October, with five expecting the move at a meeting ending tomorrow.
3.38pm: With a short while to go before the close of trade, here’s what CMC markets sales trader Ben Taylor had to say about today’s movements:
- Volumes remain light and investors cautious as we settle in post European and US stimulus announcements. The market remains elevated but taking a defensive stance today preferring to increase exposures in healthcare and utilities.
- The next big hurdle we need to clear is China. The slowdown is being noticed across the world and traders are particularly concerned. Thursday’s Chinese manufacturing PMI will bring some clarity but I expect we need to see less talk and more action by the authorities before the market is off to the races.
- A potential build-up of inflationary pressure is also causing some traders to question unlimited US bond purchases which target US employment. There is an expectation that China’s central bank will now hold fire on their own stimulus and take a wait and see approach following the recent US and European central bank announcements.
- Today’s RBA minutes were positive and proved we have room to move with rates in the future. Falling commodity prices, especially iron ore and coal have and will continue to affect our terms of trade and Australia’s prosperity, this fall off has occurred whilst our dollar remains elevated which weighs on our economy negatively.
3.29pm: Monday’s sharp fall in oil prices sparked rumours of a ‘fat finger’ error or an algorithm gone awry. However Nanex says the slide didn’t have the usual hallmarks of a fat-finger error. CME Group said it saw no technical trading issues.
Oil is trading flat around $US96.6 per barrel.
3.07pm: Here's an interesting read, Adele Ferguson weighs in on chief executive pay.
The massive $169 million options payout that the boss of struggling iron ore miner Aquila Resources bagged in the past year has opened a can of worms in terms of remuneration reports and the lack of transparency.
A report into CEO salaries released by Australian Council of Superannuation Investors (ACSI) yesterday rammed home the disconnect between what is disclosed in annual reports and what an executive may pocket in any one year. In the case of Aquila Resources, its CEO Tony Poli pulled in more than $169 million last year but the annual report shows his remuneration was $572,000.
From the point of view of shareholders, they want to be able to know that what they are seeing in each company's remuneration report is what the company is actually paying out to its executives.
Poli's is a glaring example of how this is not the case due to confusing accounting compliance issues which forces companies to issue a theoretical value onto a remuneration package based on a certain prescribed formula that bears little relation to the actual pay.
2.58pm: As we approach the last hour of trade, here's a look at how markets around the region are performing:
- Nikkei(Japan): -0.14%
- Shanghai: -0.64%
- Taiwan: -0.31%
- South Korea: +0.05%
- Singapore: -0.18%
- New Zealand: -0.26%
2.55pm: And now for some free advice from our small business section.
Are you a shocking morning person? If so, you might want to read this in preparation for 'hump day' tomorrow. Three entrepreneurs tell how they get off to a snappy start each day.
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2.27pm: BusinessDay's Michael Pascoe has filed: Australia: better than we think.
The industry devoted to reading between the lines of Reserve Bank minutes must focus on the explicit concern about bulk commodity prices and hints of disagreement or at least debate by board members about the strength of our dollar and what it means, but that tends to overshadow some other neat stuff.
Stuff like a promise of rising retail sales after the commentariat’s hysteria over the July fall. Says the bank:
“Retail spending had fallen in July, although liaison suggested that spending had picked up in August. Measures of consumer sentiment remained close to their long run average levels.”
In other words, the big retailers the RBA has a quiet chat with had a better August, as well you would expect them to given the pattern of seasonally adjusted and trend figures.
2.20pm: The head of Tourism Australia wants to grab a bigger slice of growing Asian tourism market through online charm offensive.
Andrew McEvoy, managing director of Tourism Australia, said he would shift the focus of his marketing campaign from traditional advertising to digital and social media platforms.
‘‘The effective use of digital and social media is the battleground for our sector,’’ he said, ‘‘at moment, we are spending 70 per cent in mainstream and above-the-line media, but 30 per cent in the digital space. In the next 5 to 10 years, that will probably swap over completely.’’
Since 2000, the number of Chinese visitors to Australia has soared by 376 per cent, with their total spending up 770 per cent, Deloitte says.
Almost 600,000 Chinese now holiday in Australia every year.
2.13pm: Fortescue is continuing its rise, up almost 20 per cent, here's a look at how the stock has performed today:
2.00pm: The chief executive of Rio Tinto's Australian business, David Peever, said today the slowdown in China appeared to have reached its bottom, and the country's economic problems had been "overstated."
Chinese government attempts to stimulate the economy in May were beginning to lead to credit growth and investment, he said.
"I think the moves by the government to let the handbrakes off following putting them on post the GFC stimulus and the May announcements about investments in infrastructure are two good signs we think that we'll start to see some rebound in demand over the coming months and into next year," Mr Peever said in Canberra today.
1.52pm: About 16,600 more homes and businesses in north Queensland will be able to connect to the national broadband network (NBN) within 12 months.
The coverage area includes a total of 12 suburbs in Cairns, Mackay and Townsville.
1.43pm: Gindalbie Metals chairman George Jones speaking at an opening of an iron ore export terminal in Geraldton for its Ansteel joint venture Karara Mining.
He said Fortescue's "woes" had "dragged the whole market down".
"It affects the whole market," he said.
"But I would expect that they're going to make some announcements this week to pick everyone up and make everyone happy," Mr Jones said.
"But it can't fail - China won't let Fortescue fail and the market won't let it fail.
"It needs some readjustment maybe and that's up to Andrew and he's capable of doing it."
1.35pm: JP Morgan Australia chief economist Stephen Walters said a lot had happened since the RBA’s board meeting two weeks ago.
He said an announcement of new policies by the US Federal Reserve and the European Central Bank (ECB) had helped to boost market optimism about the global economy.
‘‘We remain content, then, that near-term rate cuts from the RBA remain unlikely,’’ he said.
‘‘Indeed, we continue to favour December as the most likely timing for the next RBA rate cut, followed by a further and final quarter point cut at the February 2013 board meeting.’’
1.31pm: St George economist Janu Chan said the RBA minutes suggested it was leaning towards further rate cuts.
‘‘There seems to be a clearer easing bias than we saw in the previous statement, in my view,’’ she said.‘‘It seems the RBA is recognising the downside risks for the economy.’’
Ms Chan said she expected the bank to keep the cash rate on hold in October but to cut again in November.
1.25pm: China's Meijin Energy Group has bid $435 million to acquire Australian diversified miner Western Desert Resources, Western Desert said today.
The offer of $1.08 per share is a 26 per cent premium to Western Desert's last closing price. Western Desert said the offer value includes the rights for option holders to exercise their options and participate in the offer.
1.17pm: Today’s RBA September board minutes still appear to indicate that another cash rate cut is coming, says CBA economist Michael Workman:
- For us, November is more likely than October. Downside growth risks offshore, mainly via the EU’s financial issues, are “significant”.
- It means that the potential to negatively influence activity here, via financial and confidence channels, is also significant. The benign domestic inflation outlook reduces the risk of moving interest rates lower here.
- RBA commentary of the past few months has been along the lines that the policy stimulus applied since late 2011 required an assessment period.
- Today’s minutes observe that, “… there were signs that previous interest rate cuts were working through the domestic economy”. From our viewpoint that looks a little less enthusiastic than it could be and most probably points to an easing bias.
1.10pm: Regulatory reforms will act as a stabiliser in less certain economic times, the Reserve Bank of Australia says.
Speaking to the Financial Services Institute of Australia, RBA assistant governor (financial markets) Guy Debelle said reforms to Australia’s banking system - including the Basel III proposals - would not have as great an impact as expected.
‘‘Regulatory reforms have often served to reinforce changes resulting from a self-reassessment or resulting from market pressures,’’ he said.
12.49pm: Robbie Cooke is leaving Wotif for a stint at Tatts, where he will succeed CEO Dick McIlwain.
Cooke is set to earn as much as $2.8 million in his first year at his new employer, Tatts says.
McIlwain, by the way, is the current chairman of Wotif.
Tatts shares are up 1.1 per cent.
12.46pm: Wotif.com chief Robbie Cooke has tendered his resignation - and shareholders aren't liking it.
Cooke will leave the company by the end of the year, after seven years at the helm.
Wotif stocks have slumped on the news, and are currently down 5.2 per cent after earlier being slightly higher.
12.43pm: TPG Telecom has posted a 46 per cent increase in net profit over 2011-12 thanks to growth in its profitable corporate services division and steady growth in the consumer business.
However, TPG’s normalised net profit of $114.2 million does not include a one-off tax expense of $23.2 million, which it warned the market about several times during the year. Once the tax expense it taken into account, profits were up 16 per cent to $91 million.
The final dividend will increase to 2.75 cents compared to 2.25 cents last financial year, for a total dividend of 5.5 cents fully franked.
TPG shares are up 0.5 per cent.
12.39pm: Some more on China: Forex.com research analyst Chris Tedder says the Chinese central bank could react to the US Fed's latest round of quantitative easing (QE3) by holding back on its plans to give its own economy a kick-start.
- There’s the concern that QE3 will cause inflationary pressure in the US but that could also have a flow-on affect to China.
- So, the PBOC (People’s Bank of China) is going to be very aware of that and they are going to be very concerned that if they increase their own stimulus it will stoke inflation even more.
- It might cause them to hold off a little bit and see what happens.
12.32pm: On an analyst call this afternoon, Fortescue CFO Stephen Pearce has confirmed that the company's new $US4.5 billion, 5-year loan secured credit facility from Credit Suisse and JPMorgan would have a coupon (interest rate) of about 200 basis points below the level of its unsecured facilities, or about 5 per cent.
Pearce said the fees on the facility would be "nothing like" the 300 basis points suggested by one analyst.
12.27pm: The region's sharemarkets are trading flat to slightly lower:
- Japan (Nikkei): +0.1%
- Hong Kong: flat
- Shanghai: -0.6%
- Taiwan: -0.2%
- Korea: flat
- Singapore: -0.1%
- New Zealand: -0.2%
12.19pm: Apart from overnight losses on Wall Street, analysts say the Australian market remains concerned about a slowdown in China.
"We did see a pretty big fall in the China market yesterday, particularly the Shanghai Composite, so it seems like these China growth concerns continue to be a bit of headache for the local market," says Stan Shamu, market strategist at IG Markets.
Until they got more positive evidence out of China, investors would remain cautions on the outlook.
"Investors are really in defensive mode today, and probably will stay that way until Thursday, when we get the fresh read on manufacturing out from China," says CommSec market analyst Juliana Roadley.
IG Markets strategist Stan Shamu agrees that lingering concerns over the slowdown of the Chinese economy are affecting mining stocks.
‘‘We’ve heard pledges (from Chinese leaders) to support growth targets, but we haven’t quite heard how this will actually happen yet, so there’s a little bit of uncertainty,’’ he says.
12.10pm: Some import data is in: imports of goods fell $373 million, or 2 per cent, to $21.244 billion, seasonally-adjusted, in August, ABS figures show.
Unadjusted, imports of goods rose $1.17 billion, or 6 per cent, to $21.652 billion.
Imports of intermediate and other merchandise goods fell 4 per cent or $360 million (unadjusted), mainly influenced by the fuels and lubricant component, while consumption goods rose by $107 million, or 2 per cent.
12.06pm: Fortescue's $4.3 billion debt deal eases the pressure on billionaire Andrew Forrest, the biggest shareholder and chairman, to sell more assets or shares to bolster the company’s finances, analysts say.
It gives Fortescue nearly $900 million in extra cash to assist with expansion projects.
‘‘It will be sufficient to cover their working capital requirement and obviously to repay those debts that were associated with the covenants,’’ Fat Prophets resources analyst David Lennox says.
It gives ‘‘them a needed cash injection and removes some of the risks that they had in those projects,’’ he says.
11.58am: The dollar is generally struggling today against most of its major peers as concern about Europe’s debt crisis and mounting tensions between China and Japan dim the allure of higher-yielding assets.
‘‘It does seem that there is a degree of skepticism that the Aussie can make substantial gains simply on the back of the Fed printing more money,’’ says Westpac currency trader Sean Callow.
‘‘We’ve had a bit of a soft start to the week on a handful of modest negatives that all seem to add up to an excuse for profit taking.’’
It's trading at 79.95 euro cents and 82.4 yen.
11.51am: The dollar slipped briefly to $US1.0436 on the release of the minutes but has since recovered to $US1.0460, to where it was before the release.
11.45am: The Reserve Bank says it has room to cut interest rates further to support the national economy in the face of falling commodity prices, the high Australian dollar and weaker global growth.
Minutes of the RBA's September 4 meeting show the central bank decided to keep the cash rate on hold at 3.5 per cent despite concerns about falling iron ore and coal prices and the high value of the Australian dollar.
However, it said the current inflation outlook, which is expected to remain within the RBA's target range of two to three per cent through to 2013, meant it had room to cut rates again if necessary.
The central bank noted the falls in iron ore prices and a weaker outlook for the global economic growth had not had a substantial impact on the value of the Australian dollar, indicating the currency may be somewhat overvalued and may be weighing more heavily on the domestic economy than previously expected.
11.30am: The Bureau of Resources and Energy Economics is also forecasting revenue from iron ore, Australia's largest single export, to fall to $53.15 billion in the current fiscal year. This compared to a June forecast of $67 billion and around $63 billion for last year.
"Although this is not good news, it is by no means a death knell for the Australian resources industry," Resources Minister Martin Fergusson has told a minerals and energy conference.
11.26am: The government's official commodities forecaster is predicting contract prices for iron ore to be $US126 per tonne through 2012 and $US101 in 2013.
The price of iron ore traded as high as $US180 a tonne a year ago, but plummeted to a 3-year low of $86 earlier this month as demand in China fell.
Benchmark iron ore prices have regained $US100 a tonne and were trading at $US105 overnight, according to data provider Steel Index, helped by China's plans to spend 1 trillion yuan ($158 billion) on infrastructure.
BREE said metallurgical coal exports were set to ease slightly to 160 million tonnes, from the previous forecast of 161 million. But revenues were expected to fall 15 per cent to $26 billion due to softer prices.
11.22am: Fortescue shares, on the other hand, are clinging to their strong gains, up 15 per cent. But some are suggesting the gains may not last:
Surge in #fortescue shares nothing more than a short squeeze. Real test of investor confidence will come in the days ahead #stocks #ausbiz
11.11am: Local stocks are slipping further into the red now. The ASX200 is down 0.4 per cent, led down by the big miners. Rio has fallen 1.5 per cent and BHP is down 1 per cent.
11.04am: Fortescue says it expects iron ore prices to continue to edge up in the near term to around $120 a tonne. They're currently trading at $US105.10.
"We do expect the iron ore price to recover to more sustainable levels," chief executive Nev Power told reporters after the company lined $4.5 billion in debt to refinance all existing debt facilities
Here's the full story on this morning's announcements by Fortescue.
10.56am: Coal baron Nathan Tinkler and Mirvac were in court again this morning. Property giant Mirvac will attempt to sequester mining magnate Tinkler’s assets in a two-day court hearing next month.
Mirvac and Mr Tinkler are embroiled in a legal stoush over a multi-million-dollar agreement to buy industrial land for a new coal terminal in Newcastle, in the NSW Hunter region.
Mirvac arm Domaine Steel successfully sued two of Mr Tinkler’s companies, Ocean Street Holdings and guarantor Buildev Group, in the NSW Supreme Court after they failed to honour the agreement.
10.53am: Sean Callow, senior currency strategist at Westpac, says there are a few things weighing on investor sentiment at the moment. In a note, Mr Callow said:
A pause in post-QE3 euphoria saw major asset classes pare recent advances. Lingering concern at Spain's brave fiscal face, geopolitical tension in the Middle East and in China/Japan, and a disappointing NY regional manufacturing report all weighed on sentiment.
And now the major central bank action is out of the way, Barclays Capital analysts say the market's focus is expected to ‘‘shift gradually to economic fundamentals".
10.47am: Fortescue shares were the most-traded stock by volume in early trade, with 21.7 million Fortescue securities changing hands through the first 30 minutes of trade.
Bell Potter senior adviser Stuart Smith said about two million Fortescue shares a minute were being traded after the company came out of the trading halt at 10am.
Mr Smith said the share price performance indicated investors were anticipating Fortescue coming to an agreement with its bankers. ‘‘Fortescue is too big a company to be swept under the carpet,’’ Mr Smith said.
10.43am: It's worth comparing how the other big banks see rates moving over coming months:
- Westpac forecasts a cash rate of 3 per cent by year end, with a further 25 basis points in cuts in the first quarter of 2013, according to Bloomberg
- Commonwealth Bank tips one more 25-basis point cut in the fourth quarter of 2012
- National Australia Bank sees no more cuts, with the possibility of a rate rise in the third quarter of 2013 if the global picture begins to improve by then
10.39am: Here is ANZ’s head of Australian economics Ivan Colhoun on the bank's reasons for changing its rates outlook:
The main reason for the change of view is that lower commodity prices coupled with the persistently high Australian dollar will have a significant contractionary effect on the economy.
With inflation comfortably at the low end of the Bank’s target band, global growth continuing to moderate and leading indicators of unemployment deteriorating, there is no reason for the RBA to wait another month to ease policy and overall financial conditions.
10.35am: ANZ has changed it rates outlook, saying it now expected the RBA to cut rates next month. ANZ now tips back-to-back RBA rate cuts in October and November, a change from an earlier call for a November reduction followed by another in the first quarter of 2013.
The cuts would see the official cash rate, currently at 3.5 per cent, drop to 3 per cent by the end of the year, the same level as during the global financial crisis.
10.28am: Here are the early sliders on the ASX200:
- Resolute Mining: -4.97%
- Toll: -4.84%
- Energy World Corp: -4.6%
- Aquila Resources: -4.33%
- Iluka: -3.79%
10.25am: Fortescue is leading the market higher today - up 15.9 per cent now. Here are the other early gainers on the ASX200:
- Aquarius Platinum: +7.84%
- Intrepid Mines: +6.94%
- Mesoblast: +3.7%
- FKP Property: +2%
- Duet Group: +1.99%
10.21am: BHP Billiton chief executive Marius Kloppers’ full-year pay has fallen to under $US10 million because of his decision not to accept a cash bonus.
The mining giant also has introduced a salary freeze for its senior management group. Mr Kloppers’ pay totalled $US9.82 million ($A9.41 million) in the year to June 30, down from $US11.63 million ($A11.15 million) in the previous year.
His pay packet for the past year was slashed following the decision to write down the value of the Fayetteville shale gas assets acquired from Chesapeake Energy in March 2011, which saw the BHP head miss out on receiving any short term incentive payment. Full story.
10.15am: Looking at how the various sub indices on the ASX200 are performing, defensive are up, financials are flat and the rest are in negative territory:
- Utilities: +0.85%
- Health: +0.5%
- Telecoms: +0.48%
- Info tech: -1.64%
- Energy: -0.9%
- Industrials: -0.63%
- Materials: -0.53%
10.11am: The benchmark S&P/ASX200 index has opened down 13.3 points, or 0.30 per cent, at 4389.2, while the broader All Ordinaries index has lost 10.2 points, or 0.23 per cent, at 4411.6.
On the ASX 24, the September share price index futures contract was down eight points at 4,390, with 32,409 contracts traded.
10.05am: Fortescue shares are soaring after securing relief on its debts - up as much as 44 cents, 14 per cent, to $3.50.
9.57am: A quick look at the dollar now, which is down 1.5 US cents since early Saturday. IG Markets analyst Stan Shamu said the Aussie remains at risk of further falls as the outlook for iron ore becomes less certain.
‘‘With iron ore prices having slumped and some key mining projects in Australia having been delayed, the currency is at risk if the mining companies' large capital expenditures peak earlier than the next one to two years that is the RBA's current base case.
‘‘Some traders are nervous about remaining bid in the Australian dollar without further proof the recent slowdown in China is bottoming out,’’ he said.
‘‘Today’s RBA minutes are unlikely to be a big influence on trade and are normally fairly old news,’’ said Mr Shamu. ‘‘A fair bit has changed in the world since the actual meeting.’’
9.54am: Ric Spooner of CMC Markets says the ASX is likely to be steady when it opens today ‘‘as investors settle down to wait for more information on the state of world economies’’:
In recent months, markets have been driven by the outcomes of major decisions by central banks and European policy makers. The net effect of those decisions has been to reduce the risks of short term financial crisis and to support asset valuations. What happens from here is likely to depend on the extent of improvement in consumer confidence after these decisions and the flow through impact on growth and corporate profitability. It will take some months for this to become evident in the economic data.
9.50am: Some recent analyst rating changes:
- Iluka raised to 'overweight' from 'neutral' at JPMorgan
- Tiger Airways cut to 'neutral' at CIMB
- Leighton raised to 'buy' from 'hold' at Deutsche Bank
- Myer raised to 'buy' from 'hold' at Deutsche Bank
9.48am: If you're just tuning in, Fortescue has announced the results of its debt negotiations. Here's the full story.
9.45am: The iron ore price posted its second day of gains. China iron ore rose $US3.50 to $US105.10 a metric tonne, but BHP and Rio both slipped in US trade. BHP lost 1.41 per cent and Rio fell 2.82 per cent.
Oil, on the other hand, posted its biggest loss in eight weeks, declining more than $US3 in less than a minute in late trading, as October options were about to expire. But there wasn't anything too sinister behind the slide.
"Today it's the price making the news, not the news making the price," said Tim Evans, an energy analyst at Citi Futures Perspective in New York. "In the larger scheme of things, I would go with the idea that this is profit taking run amok."
9.40am: Leyland Asset Management senior portfolio manager Rohan Schmidt said the Fortescue deal would be positive for company's stock this morning but over the longer term fate of the company was still tied to iron ore prices.
“It looks like Fortescue stock may bounce on the open but it’s still very much an iron ore price story,” he said.
“If the iron ore price stays under $US100 per tonne in the mid-term or well below, this company would still be in trouble.”
Mr Schmidt said the deal announced this morning showed Andrew Forrest “still has a very good relationship with his bankers.”
9.37am: Some more detail here on Fortescue. The iron ore miner this morning announced a commitment for a senior secured credit facility of up to $US4.5 billion from backers including Credit Suisse and JP Morgan. The deal gives the troubled iron ore miner more time to manage its $A9 billion in debts, as the outlook for iron ore commodity grows less certain.
"This facility will be used to refinance all existing bank facilities and provide Fortescue with additional liquidity," the company said.
"The facility extends the earliest repayment date for any of the company’s debt to November 2015 and removes financial maintenance covenants which applied under previous facilities,’’ the company said, noting that Credit Suisse and JP Morgan both signed a full underwriting commitment for the Facility that provided "funding certainty to Fortescue." Full story.
9.35am: The keenly anticipated Fortescue debt new has arrived. In a nutshell, FMG has secured a $4.5 billion facility that extends the earliest repayment date for any of the company's debt to November 2015. More here.
The statement also said the company had received "strong interest ... by a range of parties ... in certain of its assets. Fotescue is currently evaluating these approaches." Full story.
9.32am: After a few days of solid gains on global markets following the US Fed's announcement of QE3 last week, markets took a breather overnight. US stocks slipped after the Federal Reserve's Empire State manufacturing index for the New York region fell for a second straight month in September. European stock markets retreated as traders banked profits following last week's rally. And commodities slipped.
For a comprehensive look at this morning’s business news, check today’s need2know. Here are this morning’s key market links:
- SPI futures are 1 point lower at 4397
- The $A is lower at $US1.0476
- In the US, the S&P500 fell 0.31% to 1461.19
- In Europe, the FTSE100 fell 0.37% to 5893.52
- China iron ore added $US3.50 to $US105.1 a metric tonne
- Gold fell $9.30 to $US1764.40 an ounce
- WTI crude oil fell $2.66 to $US96.34 a barrel
- Reuters/Jefferies CRB index fell 2% to 314.46
9.30am: Good morning all. Welcome to the Markets Live blog for Tuesday.
This blog is not intended as investment advice
Contributors: Thomas Hunter, Peter Litras, Jens Meyer
BusinessDay with agencies