Daily FNArena News - Australia

While essentially a merger of equals brokers see Oxiana shareholders as gaining more from the proposed “merger” with Zinifex.

The RBA has today increased its target funds rate to 7.25%.

While a 25bps rate hike today is as good as given it is more than possible banks will add up to another 15bps on lending rates. A 50 point hike by the RBA is not beyond the bounds.

There could be more than just stormy weather ahead for Insurance Australia as assurances from management on the company’s capital position are brought into question.

DUET Group delivered with a slightly better than expected profit result and the solid cash flow and distribution outlook sees brokers remain broadly positive on the stock.

The TD Securities – MI Monthly Inflation Gauge shows inflationary pressures remain elevated, meaning more increases in interest rates can be expected.

Perilya has delivered another disappointing earnings result and brokers have slashed earnings forecasts as a result, with Citi and Macquarie also downgrading the stock from Buy to Hold.

Suncorp-Metway delivered a result broadly in line with expectations but Macquarie and Citi have downgraded to Hold from Buy given increased capital requirements and lower reserve releases.

Capital expenditure figures for the third quarter came in well above market expectations and analysts suggest the numbers show the underlying strength of the Australian economy.

Energy Developments has again disappointed analysts, despite its obvious potential in a carbon reduced world.