Euro Down 2%, German Production Up

123jump.com Staff
08 Feb, 2008
New York City

West LB, German regional bank controlled by State of Nord-Rhein Westphalia received a gurantee to cover losses up to 5 billion euros. The regional bank faltered after its international expansion in the UK and US led to a massive subprime losses. Dusseldorf based bank also agreed to elimiate nearly 25% of its staff to save 300 million euros by 2010. German industrial production in December rose 0.8% from November. Alcatel writes down assets worth 2.58 billion euros.

[R]10:00PM Frankfurt, 4:00PM New York, 8:00AM Sydney – Euro for the week fell 2% after the talks of interest rate drop in the region intensified. Financial markets recovered from earlier losses but appear to be on the edge.[/R]


European Markets

In London FTSE 100 Index closed higher 59.90 or 1.05% to 5,724.10, in Paris CAC 40 Index decreased 14.15 or 0.30% to close at 4,709.65 and in Frankfurt DAX index higher 33.56 or 0.50% to close at 6,767.28. In Zurich trading SMI increased 26.94 or 0.36% to close at 7,446.95.

North American Markets indexes

Dow Jones Industrial Average lost 64.87 or 0.53% to a close of 12,182.13, S&P 500 closed down 5.61 or 0.42% to 1,331.30, and Nasdaq Composite Index traded up 11.82 or 0.52% to a close of 2,304.85.

In Toronto TSX Composite closed up 68.51 or 0.53% to close at 12,993.88.

Of the 30 stocks in Dow Jones Industrial Average, 9 closed higher, 21 closed lower, and none were unchanged.

American Express led the decliners in the index with a fall of 2.9% followed by losses in JP Morgan of 2.7%, in Citigroup of 2.58%, and in Merck of 2.4%. Hewlett Packard led the gainers in the index with a rise of 3.5% followed by increases in Alcoa of 2.4%, in McDonald’s of 2.3%, and in Disney of 1.4%.

Of the stocks in S&P 500, 176 closed higher, 322 fell, and 2 were unchanged. Of the index stocks, 71 rose more than 3% and 13 stocks fell more than 3%.

General growth Properties led the decliners in the index with a fall of 7.9% followed by losses in DR Horton of 6.2%, in Micron Technology of 6.1%, in Allergan of 6%, and in Kimco Realty of 5.7%. Cognizant led the gainers in the index with a rise of 17% followed by gains in Marathon of 6.5%, in E*Trade of 6.4%, in Monsanto of 5.96%, and in Embarq of 5.9%.


South American Markets Indexes

In Latin Markets Colombia led the gainers in the region with a rise of 2.69% followed by increases in Peru of 2.55%, in Brazil of 0.19%, in Mexico of 0.18%, and in Chile of 0.14%.

Argentina declined 0.92%.

Asian Markets

In Tokyo Nikkei 225 Index closed lower 189.91 or 1.44% to 13,017.24, in Australia ASX 200 index increased 61.30 or 1.10% to close 5,658.00. Markets in Hong Kong were closed today.

Thailand SET index closed higher 13.27 or 1.67% to 806.44. Sensex index in India decreased 62.00 or 0.35% to 17,464.89. Markets of South Korea and Indonesia were closed today.


Bond Yields decreased on 10-year U.S. bonds to 3.65% and on 30-year bonds fell to 4.43%.


[R]Commodities, Metals, and Currencies[/R]

Crude oil added $3.74 to close at $91.85 per barrel for a front month contract, natural gas increased 18 cents to $8.28 per mBtu, and gasoline futures increased 8.94 cents to close at 235.72 cents per gallon.

Gold increased $13.60 in New York trading to close at $923.60 per ounce, silver closed up 38 cents to $17.155 per ounce, and copper for front month delivery increased 6.90 cents to 352.30 per pound and in London copper futures increased $225.00 to $7,565.00.

Wheat futures rose to the daily limit of 30 cents for the fifth day in a row in Chicago trading and closed at $10.93 per bushel. Sugar added 0.73 cents or 6.1% to 12.71 cents per pound. Soybean future closed up 7.5 or 0.56% to $13.39 per bushel.

Dollar edged higher but traded near record lows against euro to $1.4514 and edged lower against yen to 107.35.



[R]1:30AM New York – Earnings from Cott, Weyerhaeuser, and Beckman Coulter declined.[/R]

U.S. market averages fell in the afternoon the day’s low after the fears recession gripped investors. Latest data on rising wholesale inventories put investors on defensive. Tech stocks remained firm, but as broader stocks declined, sellers began to swamp tech stocks as well.

Google, Apple, and Research in Motion, three tech stocks favored by momentum investors retreated from their highs in the morning. Dow Jones Industrial Average fell 1%, Nasdaq declined 0.3%, and S&P 500 lost 1%.

Earnings Update

Beckman Coulter ((BEC)) maker of bio medical testing equipment reported 69 cents per share earnings a decline of 29% on 11% rise in sales in the fourth quarte.

Brush Engineered Materials ((BW)) reported fourth quarter 2007 sales of $236.3 million, up $28.4 million or 14% compared to the fourth quarter of 2006. Net income for the fourth quarter was $12.3 million or $0.60 per share, diluted.

Chindex International ((CHDX)) revenue for the third quarter ended December 31, 2007 was $36.0 million, a 19% increase over revenue of $30.3 million in the quarter ended December 31, 2006. Net income from continuing operations for the quarter ended December 31, 2007 was $3.9 million or earnings per basic share on continuing operations of $0.50 compared to $0.7 million or $0.10 per share a year ago.

Cott Corporation ((COT)) revenues in the fourth quarter were $412.4 million, up 3.1% from $400.1 million in the comparable prior year period. This increase was primarily due to an 18.0% improvement in the International division, principally in the U.K., while revenues in North America were down 2.5%.

Net loss in the fourth quarter was $76.8 million or $1.07 per diluted share, compared to a net loss of $29.6 million or $0.41 per diluted share in the fourth quarter of 2006.

Lubrizol Corporation ((LZ)) earnings from continuing operations for the fourth quarter ended December 31, 2007 were $59.7 million, or $.86 per diluted share, including after tax restructuring and impairment charges of $0.6 million, or $.01 per diluted share.

Comparable earnings from continuing operations for the fourth quarter of 2006 were $21.4 million, or $.31 per diluted share, which included after tax restructuring and impairment charges of $28.4 million, or $.41 per diluted share, consisting primarily of a $.37 per diluted share non-cash charge related to the impairment of the Noveon trade name.

Weyerhaeuser ((WY)) reported net earnings of $790 million for 2007, or $3.59 per diluted share, on net sales of $16.3 billion. This compares with net earnings of $453 million for 2006, or $1.84 per diluted share, on net sales of $18.7 billion.

For the fourth quarter 2007, net loss of 63 million, or 30 cents per diluted share, on net sales of $3.9 billion compared to $507 million, or $2.12 per diluted share, on net sales of $4.8 billion.

Aruba Networks, Inc. ((ARUN)) reported preliminary results for its second fiscal quarter ended January 31, 2008. Second quarter revenues are currently expected to be in the range of approximately $40.0 to $41.0 million, and GAAP net loss is expected to be in the range of approximately $0.04 to $0.05 per diluted share. Non-GAAP net income (which excludes the impact of stock-based expenses) is expected to be approximately break-even. The Aruba Network stock fell 35% or $2.77 to $4.99.


Wheat Prices Soar

Wheat prices rose to a record rise after the U.S. Department of Agriculture estimated that the wheat inventories will be at 60-year low of 272 million bushels. The latest projection shows a 7% decline from the earlier projection in January and 40% lower from a year ago. Wheat futures rallied to the daily limit of 30 cents for the fifth session in a row and closed up 16% for the week. Wheat prices at mid-day were trading at $10.93 per bushel, up 30 cents in Chicago and in Kansas were up 30 cents to $11.4025 per bushel.

The World Agricultural Supply and Demand Estimates report released today by U.S. Dept of Agriculture noted the following.

“Projected U.S. wheat ending stocks for 2007/08 are lowered 20 million bushels this month as a reduction in feed and residual use is more than offset by higher projected exports.

At 272 million bushels, this year's ending stocks are the lowest since 1947/48. Ending stocks as a percentage of use (stocks-to-use) at 12 percent would be the lowest since 1946/47. Feed and residual use is projected 5 million bushels lower as high prices and tight supplies reduce the expected residual.

Exports are raised 25 million bushels with hard red spring wheat increased 20 million and soft red winter wheat increased 5 million. The season-average farm price projection is unchanged at $6.45 to $6.85 per bushel, well above the record of $4.55 per bushel in 1995/96.”

Wholesales Inventories Rise

December 2007 sales of merchant wholesalers were $376.6 billion, down 0.7% from the revised November level and were up 10.6% from the December 2006 level. The November preliminary estimate was revised downward $1.1 billion or 0.3%.

Total inventories of merchant wholesalers were $411.6 billion at the end of December, up 1.1% from the revised November level and were up 6.1% from a year ago. The November preliminary estimate was revised upward $0.8 billion or 0.2%.

End-of-month inventories of durable goods were up 0.9% from last month and were up 1.9% from last December. Inventories of motor vehicle and motor vehicle parts and supplies were up 3.5% from last month, and inventories of metals and minerals, except petroleum, were up 1.7%.

International Markets

In Tokyo Nikkei 225 Index closed lower 189.91 or 1.44% to 13,017.24, in Australia ASX 200 index increased 61.30 or 1.10% to close 5,658.00. Markets in Hong Kong were closed today.

Thailand SET index closed higher 13.27 or 1.67% to 806.44. Sensex index in India decreased 62.00 or 0.35% to 17,464.89. Markets of South Korea and Indonesia were closed today.

In London FTSE 100 Index closed higher 59.90 or 1.05% to 5,724.10, in Paris CAC 40 Index decreased 14.15 or 0.30% to close at 4,709.65 and in Frankfurt DAX index higher 33.56 or 0.50% to close at 6,767.28. In Zurich trading SMI increased 26.94 or 0.36% to close at 7,446.95.


[R]9:00AM New York, 6:30PM Mumbai – Stocks in India fell after inflation rose, weakness in retail investors, and jittery IPO market.[/R]

Market Sentiment

India markets closed flat on Friday with the benchmark index Sensex declining 0.4% or 62.04 to 17,464.89. In the broader market, Nifty was down 0.3% or 12.9 at 5,120.35.

Reliance Industries and State Bank of India rebounded from the lows of the day. Realty, metal and consumer durable stocks dropped. Hindustan Unilever and ITC rose.

Of the BSE shares, 506 stocks advanced, 2,259 declined, and 37 stocks remained unchanged. Among the Sensex index shares, 16 stocks gained while the rest fell.

IT stocks rebounded while real estate, metal and banking stocks fell. HCL tech, Satyam Computers, Roltas India, and Infosys advanced more than 4.7% each.

HDFC, ICICI Bank, DLF, HDFC Bank, L&T and Tata Steel led the decliners in the index.

Of the National Stock Exchange CNX Nifty 50 stocks, VSNL, SAIL, Tata Power Company, Cairn India and Reliance Energy declined more than 4.3% each.

Realty developers Kolte-Patil, Purvankara Projects, Omaxe, Parsvnath Developers and Housing Development Infra fell more than 2.8% each.

IPO News

Emaar MGF Land pulled its offering after Wockhardt Hospitals withdrew its offering yesterday.

Daily turnover of the BSE stood at 6,334 crore rupees and on the National Stock Exchange was at 13,650 crore rupees.

Reliance Natural Resources led the most active with a turnover of 573.83 crore rupees on BSE followed Reliance Energy, Reliance Industries,, Reliance Petroleum and Reliance Communications.


Economic News

Annual inflation based on the wholesale price index rose to 4.11% in the week ended 26 January 2008 from 3.93% in the week ended 19 January 2008.


Gainers and Decliners

Hindustan Unilever rose 6.1% to 211.75 rupees, ONGC rose 0.9% to 997.25 rupees, ITC surged 2.5% to 196.95 rupees while Ranbaxy Laboratories rose 2.3% to 382.3 rupees.
HDFC fell 4.47% to 2,796.20 rupees.

Infosys traded up 4.8% to 1,551.35 rupees, Satyam Computer Services surged 4.9% to 410 rupees, Tata Consultancy Services climbed 1.9% to 899.95 rupees and Wipro jumped 3.1% to 422.45 rupees.

Steel Authority of India fell 4.6% to 200.6 rupees, Sterlite Industries was down 2.8% to 737.55 rupees, Tata Steel shed 2.7% to 750.40 rupees and Hindalco Industries slumped 1.7% to 160.5 rupees.

ICICI Bank declined 3.5% to 1,066.7 rupees, HDFC Bank fell 3.1% to 1,445.95 rupees. State Bank of India rose 1.7% to 2,191.45 rupees.

Bharat Heavy Electricals declined 0.3% to 2,013.70 rupees despite winning a contract worth 3,390 crore rupees.

Bharti Airtel rose 2.1% to 880.8 rupees.

Reliance Group Update

Reliance Industries declined 0.1% at 2,421.75 rupees and Reliance Communications declined 1.6% to 633.7 rupees. Reliance Infratel, the tower subsidiary of Reliance Communications will build 56,596 telecom towers by financial year 2010, increasing the total number of towers to 100,000.

Reliance Natural Resources clocked the highest volume of 3.79 crore shares on BSE.

Deals

Larsen & Toubro Limited has received orders worth 1,107 crore rupees from SAIL for the turnkey construction of coal & coke handling plant in West Bengal. ECC, Engineering & Construction Company will execute this project with a deadline of 26 months.

Larsen & Toubro stock fell 2.8% to 3,527.3 rupees.

Suzlon Energy rose 0.9% to 310.10 rupees. Suzlon Energy, through its wholly owned subsidiary company, SE Drive Technik, Germany is in joint venture with REpower Systems AG, Germany has established a new company Renewable Energy Technology Centre. Both the firms hold 50% stake each in the new company.

International Markets

In Tokyo Nikkei 225 Index closed lower 189.91 or 1.44% to 13,017.24, in Australia ASX 200 index increased 61.30 or 1.10% to close 5,658.00. Markets in Hong Kong were closed today and will reopen on Tuesday. Tokyo markets will reopen on Tuesday.

Thailand SET index closed higher 13.27 or 1.67% to 806.44. Sensex index in India decreased 62.00 or 0.35% to 17,464.89. Market of South Korea and Indonesia were closed today and will reopen on Tuesday.


[R]5:00AM New York, 7:00PM Tokyo – The computer malfunction on the TSE leads to cancellation of all Topix futures trades done in the morning session. Japan’s private sector machinery orders drop a seasonally adjusted 3.2% in December. Isuzu Motors and Japan Airlines profit exceeds expectations.[/R]

Trading Halts

The Tokyo Stock Exchange suffered another computer related malfunction this time in the trading of Topix index March futures on the new trading system modules launched on Jan 15th of this year. The problem occurred near the end of the close of the morning session prompting officials to cancel all the trades on the futures in the morning. Other futures contracts were not affected by the computer system problems.

The problem was discovered in the early afternoon when the system failed to calculate and appropriate proper values to the futures contracts and match and process order flow received in the morning. The cause of the malfunction is still not known according to local media reports.

Market Sentiment

In Tokyo trading Nikkei 225 stocks fell 1.44% or 189.91 to 13,017.24, and the broader Topix Index shed 1.4% or 17.94 to 1,287.14.

In the first section of the Tokyo Stock Exchange shares 11.6 billion shares worth 1.4 trillion yen changed hands and in the second section 314 million shares valued at 2.6 billion yen were traded.

The Tokyo Stock Exchange suspended trading of the March 2008 TOPIX futures after computer systems glitch during the morning session.

Of the Nikkei 225 stocks 56 rose, 163 declined, and 6 were unchanged. Isuzu Motors led advancers with a rise of 7.28% after sales in Russia and South Africa helped boost net income by 12%.

Machinery Orders Fall

The Cabinet Office reported today that total machinery orders from 280 manufacturers declined by a seasonally adjusted 6.8% to 2.4 trillion yen in December from the previous month, but rose 2.5% to 7.9 trillion in the quarter to December compared to the previous quarter.

Total machinery orders from January to March are forecasted to rise 10.2% to 8.7 trillion yen. Private sector machinery orders, excluding volatile ones, fell a seasonally adjusted 3.2% in December to 1 trillion yen and increased 0.9% to 3.1 trillion yen in the quarter to December. Overall private sector orders fell 4% in 2007.

Orders are also forecasted to jump 3.5% to 3.2 trillion yen in the three months to March.

Machinery orders for the non-manufacturing sector declined 5.2% in December to 541 billion yen and edged down 2.7% to 1.66 trillion yen in the quarter ended December 31st.

In 2007, non-manufacturing orders fell by 4%. However, orders in the sector are expected to rebound 3.1% to 1.7 trillion yen between January and March.

Government orders rose 8.8% to 729 billion yen, in the three months to December, while during the quarter to March orders are expected to soar 19.6% to 872 billion yen. In December 2007 orders declined 19% to 218 billion yen.

Cumulatively, government orders declined 1.1% in 2007.

Overseas orders plummeted 4.9% to 1 trillion yen in December and rose 1.3% in the quarter to December, but rose 1.3% between October and December 3.3 trillion yen. Orders are forecasted to rise 17.9% to 3.9 trillion yen in the three months to March.

Overall, overseas orders rose 7.2% in 2007.

Tokyo Office Vacancies Fall

The Japan Times online edition reported today that Miki Shoji Co. said yesterday in a report Tokyo office vacancies dropped for the first time in six months in January to a seven-year low as vacancy rates in five central wards fell to 2.55% in January from 2.65% in December.

According to the report, despite the slowing economic growth, rents continue to increase on shortages of Grade A offices.

Office rents in the five main business districts in Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards rose to 22,452 yen per tsubo in January from 21,998 yen the previous month.

In addition, developers and landlords are expected to add 220,000 ""tsubo"" or 726,000 square meters of new space this year.

Spring Wage Negotiations Begin

The Nikkei online news edition reported today that companies and labor unions have begun wage talks and major steel makers, shipbuilders and heavy machinery workers are asking for an upward review in wages.

Japan Engages EU on Tariffs

Separately, the Nikkei online edition also reported that Japan is proposing the removal of tariffs on passenger cars and consumer electronic goods in a draft report that is expected to constitute a pact for a possible Japan-European Union Free Trade Area.

Gainers and Losers

Isuzu Motors led advancers in the Nikkei 225 Index shares with a rise of 7.28% followed by rises in Hokuetsu Paper of 6.62%, in Kirin Holdings of 4.69%, in Kikkoman Corp of 4.14%, and in Asahi Brewers of 3.88%.

Isuzu Motor rose after 12% rise in third quarter net income on the back of increased sales in Russia and South Africa.

Sumitomo Heavy led decliners in the Nikkei 225 index shares with a fall of 11.44% followed by losses in Okuma Corp. of 10.58%, in Sumitomo Realty of 8.45%, in Kawasaki Kisen of 7.61%, and Komatsu Limited of 6.76%.

Industrial companies fell after a government report showed that private sector machinery orders declined by a seasonally adjusted 3.2% in December.

Exporters also fell after the yen firmed 0.77% from 107.31 to 107.29 against the dollar. Canon fell 2.93%, Toyota slid 0.84% and Sony Corp. shed 1.49%

Earnings Update

Japan Airlines Corp. reported third quarter net income rose to 13.1 billion yen from 10.9 billion yen a year earlier as the company increased profits on international routes and cut costs through a staff restructure.

In the quarter, customers for international trip rose 1.6% to 3.36 million customers, while domestic customers fell 6.5% to 10.5 million customers. The company plans to tap from high growth markets such as China, India and Vietnam.

Japan Airlines stock rose 2.72%.

Inpex Holdings revised upwards its full-year profit forecast to 153 billion yen in the year through March from 127 billion yen forecasted in November. Sales are also projected to rise to 1.165 trillion yen from an earlier estimate of 1.02 trillion yen on rising crude oil prices.

[R]3:00AM New York, 7:00PM Sydney - ASX 200 index rose 1.1% on gains in retail[/R]

Market Sentiment

ASX 200 index lost 1.1% or 61.3 to close at 5,658.

The Preliminary market turnover was 1.4 billion shares worth $4.5 billion, with 698 stocks moving up, 496 moving down and 317 unchanged.

The most actively traded stock Empire Oil and Gas with 2.6 million shares worth $6.2 million changing hands.

Market Drivers

Australia's second- largest retailer, Wesfarmers Ltd’s share gained 4.9% today after yesterday’s report that it had hired UK retailer, Ian McLeod to run its Coles supermarket chain.

McLeod, who assumes office in May, would be the sixth person since 2003 to take charge of Coles supermarkets retail business. Wesfarmers last year spent $18.2 billion on acquisitions of supermarkets including the takeover of Coles Group Ltd.

Gainers and losers

Of the ASX 200 Index shares, Centro Retail Group led the gainers with a rise of 15.4% followed by increases in Commonwealth Properties of 9.1%, in Kugara Limited of 7.7%, ING Office Fund of 6.3%, and in Australian of 6.2%.

Of the ASX 200 Index stocks, AED Oil Limited led the decliners with a fall of 11.3% followed by losses in Resmed Inc of 6.4%, in Beach Petroleum of 4.6%, in Challenger Finance of 4.6% and in Centennial Coal of 4.1%.

NAB increases interest rates

The National Australia Bank today followed Commonwealth Bank lead by raising its mortgage rate above the Reserve Bank of Australia's official interest rate rise.

NAB raised its standard variable rate by 0.29% to 8.98%.

NAB chief executive for Australia Ahmed Fahour told reporters that the central bank’s cash rate did not reflect the true cost of funding a home loan, given the situation in the country.

He added that even with this additional 0.04% change on variable rate products NAB was continuing to absorb a significant portion of the increased wholesale funding costs we have incurred since August 2007.

Commonwealth Bank of Australia raised its variable rate by 0.30% while ANZ, St George and Westpac lifted rates by 0.25% in line with the central bank.

NAB gained 1.9%, Commonwealth rose 2.7% and St George Bank added 3.5%.

Xstrata sweetens Resource bid

The world's biggest exporter of power-station coal, Xstrata Coal today sweetened its unconditional cash offer price for Resource Pacific Holdings Ltd by 12% from $2.85 per share to $3.20 per share, two hours before the expiry of its earlier bid.

The new offer values the Resource pacific at $1.077 billion, 7.4% above its closing price on the exchange today.

Xstrata said the offer price was final. Resource Pacific advised shareholders to take no action in relation to the offer and said in a statement that the offer was “unimpressive”.

Xstrata however maintained that the new offer was good as it was in excess of the levels that its target’s shares have ever traded.

Xstrata is seeking to gain control of the Newpac mine, where Resource Pacific, which has missed previous production targets, is seeking to triple output of semi-soft coking coal to 8 million metric tons a year. Resource Pacific share edged 0.7% higher.


Rio Tinto Alcan to spend $691 million on smelter

Rio Tinto today said that it has earmarked 691.74 million to modernize and extend the life of the Boyne Island aluminium smelter in Queensland in collaboration with its partners.

The modernization would include the construction of a new baking furnace to reduce onsite greenhouse gas emissions, and replacement of the overhead crane and upgrade of its runway. The Boyne aluminium smelter is Australia's largest and produces more than half a million ton of aluminium each year.


AED Oil plunges 23% in 2-Day slide

AED Oil Ltd today said that it had no explanation for the current stock price fall. The company’s shares shed 11.3% extending its two-day drop to 23% and led the decliners in the ASX 200 index today.

AED said that with the exception of some minor downtime, there had been no change in activities from its previous reports to the market.

The company appointed Macquarie Group Ltd to undertake a strategic review after admitting the company required ""additional funding"" to pursue its opportunities.

Newmont says Boddington costs up

Newmont Mining Corp has revised upwards its costs forecast for the Boddington gold mine in Western Australia on the back of higher labor and material expenses and a stronger Australian dollar depressing export earnings.

Newmont, the world's second largest gold miner, said its share of the development cost had increased to between $1.4 billion and $1.6 billion, up from its earlier estimate of $900 million to $1.1 billion.

Boddington was expected to produce about one million ounces a year for the first five years of its operational life, after which production would average about 850,000 ounces a year for the remainder of the mine's life.

The mine was expected to start up in late 2008 or early 2009. Newmont, which owns 66.67% of the operation, was developing the mine south-east of Perth, in partnership with South African gold miner AngloGold Ashanti Ltd.

Newmont also forecast increased costs and a drop in production from its Australian and New Zealand operations in 2008. The gold miner said production was expected to fall between 1.06 and 1.12 million ounces following the sale of its Pajingo mine in Queensland and lower grades at its Tanami mine.

Zinifex quiet on Allegiance bid

Zinifex issued no information on its bid for Tasmanian company Allegiance despite the closure of its bid at 6pm today.

The Allegiance board had advised shareholders to reject the bid. The market was awash with expectations that Zinifex would extend its $700 million offer for Allegiance.

Corporate Express Australia earnings

Office products supplier Corporate Express Australia halted more acquisitions after posting a net profit of $68.039 million for calendar 2007.

Net Profit was up 0.6% on the previous corresponding period while revenue rose by 5.1% to $1.3 billion. Earnings before interest, tax, depreciation and amortization rose 7.2% to $112.9 million. Corp Express stock fell 3.9%.