The market is up 2. The SFE Futures were down 12 this morning.

The Dow closed up 35 on Friday. It was up 54 at best and down 43 at worst. The index ended the week down 1.1%. European markets were higher on Friday but also ended the week with a loss. The gold price was up $19.90 to $1662.40 for its largest one-day gain in a month. It also recorded its first weekly gain in four weeks. Metals were mostly up on the LME. Oil was up 1.4% to $106.87 a barrel. The Aussie dollar was higher and is now buying 104.63¢. All S&P 500 sectors were higher except for Tech stocks which ended with a slight loss.

Main points:

  • Bank of Queensland (BOQ) has announced a profit warning and expects to post a $91m interim loss after a large increase in impairments on loans after a downturn in tourism and the recent natural disasters. BOQ has also announced a $450m capital raising to help strengthen the company’s balance sheet. The offer is $6.05 per new share which is a 17.1% discount. BOQ is in trading halt.
  • Qantas Airways (QAN) has announced it will setup a new budget airline in China under an agreement with China Eastern airlines. The airline will be called Jetstar Hong Kong and plans to start flying next year servicing routes to China, Japan, South Korea, South East Asia. Airfares will be 50% less than existing full-service carriers which is expected to create new travel demand in the local market across Asia.
  • Atlas Iron (AGO) has announced the acquisition of the iron ore rights from Haoma Mining. Daltons has a probable reserve of 22.8Mt at 58.3% grade iron. AGO will pay $33m on completion of formal documentation. No future royalties are payable. AGO is unchanged on 288c.
  • Leighton Holdings (LEI) subsidiary Visionstream Australia has been awarded a $400m contract with NBN Co for the rollout of the NBN in Tasmania. The project will span 4 years and provide a number of new employment opportunities for Tasmanians using local skill and talent.
  • Perpetual (PPT) is planning to complain to the Takeovers Panel about the cross sharing relationship between Washington H Soul Pattinson (SOL) and Brickworks (BKW). The arrangement whereby SOL owns 48% of BKW and BKW owns 42% of SOL has been in place for decades. PPT manages a 12% stake in both and believes they are trading at a discount because of their exposure to each other.
  • Insurance Australia (IAG) has announced a $350m hybrid issue paying 400 basis points over the bank bill rate above the 380 basis points AGL Energy (AGK) has offered. IAG will not be an easy sell as the hybrid market has been saturated with $3.7bn of securities since the start of the year.
  • Westpac Notes listed this morning (WBCPC) — opening price $99.75.  Issue price $100.

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