FYI | May 07 2007
By Greg Peel
There have been very few leaks ahead of Tuesday night’s annual budget, suggesting Treasurer Costello may have the odd sweetener up his sleeve in order to head off ALP election traction. However, economists largely agree there will be middle income tax cuts, and spending on skills training, infrastructure, green initiatives and families, among other changes. The RBA is not concerned about budget-inspired inflation.
Today in Australia we will see AiG performance of construction index and the NAB business survey for April. Tuesday brings March retail sales and building approvals. Wednesday is the first quarter house price index.
The RBA is closely watching the workforce situation and Thursday brings the April labour force numbers (employment/unemployment etc). Friday is March housing finance.
Over in the US, Monday reveals March consumer credit and Tuesday wholesale inventories. Wednesday is rate decision day for the Fed. There is little likelihood of any change from 5.25%.
On Thursday we learn the March trade balance and April import prices while Friday brings April retail sales, business inventories, and the purchaser price index (PPI).
Both the Bank of England and the European Central Bank make their rates decisions on Thursday.
Tonight will also be an interesting one in the US when Nymex launches the first ever uranium futures contract. Watch out for possible uranium market volatility ahead. Uranium consultant TradeTech has registered a new traded price of US$120/lb last week in the auction market, up from US$113/lb.
Highlights on the local share market front include a possible announcement on Coca-Cola Amatil’s (CCL) South Korean sale at its AGM on Tuesday. Wednesday sees David Jones (DJS) third quarter sales, News Corp’s (NWS) interim profit result and the likely opening of Publishing & Broadcasting’s (PBL) Macau casino. National Australia Bank (NAB) will release its interim result on Thursday.
Another point of interest this week will be the opening traded price of Qantas (QAN) shares, given the buyout failed over the weekend. Qantas is expected to go into a trading halt this morning. APA is expected to take whatever legal steps it can to revive what now looks pretty much dead in the water.
The Dow was up slightly on Friday and the SPI Overnight posted +16. Base metal prices were healthy, while gold rallied again to possibly make another (final?) assault on the brick wall at US$690/oz. The oil price slipped 2%.