Daily FNArena News - Australia

ChemGenex re-owns the rights to its omacetaxine compound and with the company now focused on cancer ABN Amro Morgans sees it as a possible corporate target.

Market speculation is increasing Transurban will need to cut distributions to free up funds for capital expenditure, but brokers see value in the stock regardless.

US airlines are facing their toughest challenge since 9/11, while locally one broker questions Virgin Blue’s ability to survive. Qantas continues to slash capacity.

An explosion at the Varanus Island gas project in WA may impact on earnings for companies such as Iluka, Minara and Tap Oil, but the extent of any impact is currently unknown.

A swap of businesses between AXA and Challenger, a cashed up Macquarie sniffing around, and much asset divestment opens the door for plenty of activity in this space.

Australian GDP came in stronger than expected for the March quarter and has caused some difference of opinion among economists with respect to the outlook for interest rates.

Higher fuel prices are acting as a further tax on households and this is bringing down demand, adding to the evidence of a weakening Australian economy.

The June policy statement was almost identical to May’s.

The cash rate remains at 7.25%.

While the “opportunistic” offer by Solomon Lew’s Premier Investments has been rejected by Just Group brokers see little reason to be in the stock given current tough operating conditions.