Daily FNArena News - Australia

PaperlinX has addressed its debt issues but at the same time management has indicated earnings remain under significant pressure.

Retail sales and company profits data for Australia were released today and the numbers haven’t changed economist expectations of a small fall in GDP in the March quarter.

WilsonHTM has intiated coverage on Premier Investments with a Buy rating, taking the view the stock is mis-priced at present as it is being valued as an investor and not an operator of businesses.

Australian new capex expenditure fell by more then expected in the March quarter, increasing the chance of a negative GDP result.

Australian construction work done for the March quarter was in line with market estimates and so is likely to have little impact on expectations of a modest fall in GDP in the March quarter.

The ability to maintain margins in a tough operating environment sees most stockbrokers remaining positive on Campbell Bros.

BA-Merrill Lynch has caught up to the US rejection of CSL’s proposed acquisition of Talecris.

The Leading Index for Australia showed some positives in May, but don’t expect a recovery until the final quarter, say Westpac economists.

The company’s proposed Talecris acquisition in the US now appears unlikely to proceed but with solid earnings growth still expected brokers remain positive on the outlook for CSL.

Any move by the Australian government to increase its flu vaccine supplies should benefit CSL but US authorities seem ready to block the Talecris deal.