Daily FNArena News - Australia

Transpacific Industries rates quite highly among brokers in the FNarena database at current levels but Austock has downgraded its rating to Sell on concerns earnings won’t meet market expectations.

Gearing levels in the listed property trust sector remain above targeted levels and with other options not proving successful in bringing down gearing equity raisings are being seen as an alternative.

Ten Network has lowered guidance for its TV division to reflect lower ratings and advertising spending and with forecasts cut accordingly brokers see little reason to be in the stock.

RBA governor Glenn Stevens believes the commodity boom could potentially destabilise the Australian economy over the longer term. Higher inrterest rates remain very much on the agenda.

It’s more blood on the floor for Babcock & Brown today as the covenant breach moves the goal posts.

To hike or not to hike remains the main question for the RBA. Even though economic indicators are increasingly showing weakness is kicking in. Today’s May labour market data were weaker than expected.

The Westpac-MI Index of Consumer Sentiment has fallen to its lowest level since 1992, a decline seen as likely to keep the RBA on the sidelines with respect to interest rates.

That Foster’s should downgrade earnings and write down assets is irrelevant. What is relevant is what happens next.

A surging population in Australia and an influential new relationship with China is changing the face of Australia’s economy, according to CommSec.

Salmon farmer Tassal Group has a solid earnings growth outlook but this is largely priced according to Austock Securities, which has initiated coverage with a Hold rating.