Daily FNArena News - Australia

The RBA has kept the official cash rate unchanged at 3% at its May Board meeting.

The RBA today has left the cash rate unchanged at 3.00%.

Ship builder Austal has announced a second combat ship contract with the US Navy and with a strong order book and scope for additional deals Macquarie has the stock as a preferred pick.

Orica has delivered a solid and good quality interim profit result but most analysts remain cautious on the stock given concerns over demand from its customers.

Underlying earnings for Macquarie Bank largely met expectations, but brokers continue to see further downside earnings risk.

Australian job ads in April fell a further 7.5% and according to ANZ Bank the numbers are consistent with unemployment moving above 8% sometime in 2010.

Recent gains in the Rio Tinto share price mean one of the conversion milestones of the Chinalco proposal has been breached, increasing the chances an alternative to the original deal emerges.

With leave to entertain further takeover offers, RBS believes Gloucester is undervalued whichever way you look at it.

CSL’s takeover proposal for Talecris is the major short-term catalyst for the stock but in the view of Southern Cross Equities there are also other reasons to buy the stock at present.

The March quarter business survey by National Australia Bank showed further weakness in the Australian economy is likely.