LONDON, Sept 14 AFP - US investment giant Lehman Brothers was heading for possible liquidation late today after the front-runner to bail out the embattled firm, Barclays, pulled out of negotiations.

WASHINGTON - The United States is mired in a “once-in-a century” financial crisis which is now more than likely to spark a recession, former Federal Reserve chief Alan Greenspan said today.

ZURICH- Switzerland’s biggest bank, UBS, is set to write down a further $US5 billion ($A6.24 billion) in assets amid continuing financial turmoil, Swiss weekly SonntagsZeitung reported Sunday.

LAGOS - The most prominent militant group in oil-rich southern Nigeria on Sunday said it had declared an “oil war” and threatened all international industry vessels that approach the region.

HOUSTON - Federal officials say it appears Hurricane Ike destroyed a number of oil production platforms and damaged some of the pipelines in the Gulf of Mexico.

LONDON - A second British vacation company has gone bust, the country’s aviation regulator said Sunday, the same week the UK’s No 3 tour operator collapsed.

LOCAL NEWS

SYDNEY - Oil and gas giant Santos is facing a ten-fold cost blow-out in its clean-up of the world’s largest mud volcano in East Java, a new report shows.

SYDNEY- Eastern Star Gas Ltd chief executive David Casey said the hidden value of coal seam gas reserves was that coal beds ran for considerable lengths, with embedded gas resources possibly far larger than presumed.

SYDNEY - Forty per cent of Australians say their income fell between 2001 and 2005, despite the former federal government claiming the period was a golden age.

PERTH - Conservative parties - with the help of independents - are set to control both houses of Western Australia’s parliament for the first time in 12 years.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

STO - SANTOS LTD - closed on Friday at $19.37
Oil and gas giant Santos is facing a ten-fold cost blow-out in its clean-up of the world’s largest mud volcano in East Java, a new report shows.

ASL - AUSDRILL LTD - up 15 cents to $2.15
MAH - MACMAHON HOLDINGS LTD - up 3.5 cents to $1.835
Takeover target Ausdrill has blamed a fall in the company’s share price on hedge fund selling after comments from suitor Macmahon Holdings that its bid was unlikely to succeed.

RPG - RAPTIS GROUP LTD - suspended from trading at 40 cents
Shares in Surfers Paradise-based property developer Raptis Group have been suspended from trading on the Australian stock exchange, pending an announcement about a potential funding injection into the company.

HWI - HOUSEWARES INTERNATIONAL LTD - up two cents to $1.26
Housewares International has appointed Stephen Audsley as its chief executive officer.

BSL - BLUECSOPE STEEL LTD - up 38 cents to $8.25
BlueScope Steel says an emissions trading scheme must allow the company to remain competitive so it is able to generate cash and fund individual carbon reduction initiatives.

ALL - ARISTOCRAT LEISURE LTD - up 19 cents to $7.00
Poker machine maker Aristocrat Leisure has appointed a new head in North America, replacing its previous boss with its head of European, Middle Eastern and African operations, Nick Khin.

WHS - THE WAREHOUSE GROUP LTD - up one cent to $2.63
Dual-listed shopkeeper The Warehouse Group has posted a 21 per cent fall in annual net profit to $NZ90.8 million ($A74.63 million), hit by economic slowdown and pressure on household budgets.

CWN - CROWN LTD - up 19 cents to $9.00
The Packer-controlled Publishing and Broadcasting Limited pays rent of just $1 a year for its Crown casino complex in Melbourne.

NWS - NEWS CORPORATION - up 25 cents to $17.75
NWSLV - NEWS CORPORATION NON-VOTING - up 42 cents to $17.45
French outdoor advertising firm JCDecaux SA says it is negotiating to buy Russian rival News Outdoor Group from global media giant News Corp.

CHN - CHALICE GOLD MINES LTD - up one cent to 12 cents
PEM - PERILYA LTD - up 12.5 cennts, or 60.98 per cent, to 33 cents
Perilya is to gain a 73 per cent interest in Chalice Gold Mines after the unior gold explorer agreed to issue the lead and zinc miner with 200 million new shares as consideration for Perilya’s Mount Oxide copper and cobalt project in Queensland.

WASHINGTON - The US trade deficit soared in July to the highest level in 16 months, as oil imports hit an all-time high, offsetting strong export growth.

WASHINGTON - New applications for unemployment benefits fell less than expected last week, the US government said Thursday, as the struggling economy continues to take a toll on workers.

NEW YORK - The US dollar rose to its highest level in nearly a year against the euro today, even as the US trade deficit for July soared. Falling oil prices helped support the battered buck.

MOSCOW - Russian President Dmitry Medvedev has ordered the Government and central bank to boost funds flowing into financial markets to curb a four-month slump which has seen stock prices fall by nearly half.

NICE - EU finance ministers will try to figure out ways to lift a European economy flirting with a recession when they meet for two days of talks starting Friday, even though some won’t even mention the word “recession”.

NEW DELHI - India’s inflation rate has slowed for a third consecutive week, official data showed Thursday, but remained above the 12 per cent mark.

WELLINGTON - Dual-listed shopkeeper The Warehouse Group has posted a 21 per cent fall in annual net profit to $NZ90.8 million ($A74.63 million), hit by economic slowdown and pressure on household budgets.

WELLINGTON - The New Zealand dollar dropped to a two-year low against the greenback in the aftershocks from yesterday’s half a percentage point cut in official interest rates.

WASHINGTON - The US Treasury has moved to quash rumours that Congress could overturn the Fed’s pledge to bail out Freddie Mac and Fannie Mae.

DETROIT - Ford Motor Co said it wants to cut its blue-collar work force by another 4,200 employees, as the struggling automaker offers redundancy packages at manufacturing operations in Ohio, Michigan, Kentucky and Indiana.

TOKYO - The world’s largest financial institutions are getting healthier, with credit-related losses expected to ease over the next year, the head of an international banking group said Thursday.

FRANKFURT - Deutsche Bank AG, confirming market rumours and conjecture, said it is advanced talks with Deutsche Post about taking a stake in Postbank, Germany’s biggest consumer retail bank.

WASHINGTON - Federal regulators said they were unable to quantify the number speculators in oil markets, as the US Commodity Futures Trading Commission released a much-anticipated report calling for new rules to curtail swap dealers.

PARIS - French outdoor advertising firm JCDecaux SA says it is negotiating to buy Russian rival News Outdoor Group from global media giant News Corp.

LOCAL NEWS

BRISBANE - About 500 workers on a large Gold Coast construction site now in the hands of receivers are concerned their entitlements will not be fully met. The Raptis Group’s Southport Central project, which is about eight storeys from completion, was placed into receivership on Wednesday.

MELBOURNE - Packer-controlled Publishing and Broadcasting Limited (PBL) pays rent of just $1 a year for its Crown casino complex in Melbourne, according to a Victorian Commission for Gambling Regulation report tabled in parliament yesterday, Fairfax newspapers said.

PERTH - Perilya Ltd will take a 73 per cent interest in Chalice Gold Mines Ltd, after the junior gold explorer agreed to issue the lead and zinc miner with 200 million new shares as consideration for Perilya’s Mount Oxide copper and cobalt project in Queensland.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

RPG - RAPTIS GROUP LTD - in trading halt at 40 cents
About 500 workers on a major Gold Coast construction site now in the hands of receivers are concerned their entitlements will not be fully met.

WHS - THE WAREHOUSE GROUP LTD - opens at $2.62
Retailer The Warehouse Group has posted a 21 per cent fall in annual net profit to $NZ90.8 million ($A74.63 million), hit by economic slowdown and pressure on household budgets.

CWN - CROWN LTD - opens at $8.81
The Packer-controlled Publishing and Broadcasting Limited (PBL) - pays rent of just $1 a year for its Crown casino complex in Melbourne.

NWS - NEWS CORPORATION - opens at $17.50
NWSLV - NEWS CORPORATION NON-VOTING - opens at $17.03
French outdoor advertising firm JCDecaux SA says it is negotiating to buy Russian rival News Outdoor Group from global media giant News Corp.

CHN - CHALICE GOLD MINES LTD - opens at eleven cents
PEM - PERILYA LTD - opens at 20.5 cents
Perilya is to gain a 73 per cent interest in Chalice Gold Mines after the junior gold explorer agreed to issue the lead and zinc miner with 200 million new shares as consideration for Perilya’s Mount Oxide copper and cobalt project in Queensland.

LNC - LINC ENERGY LTD - up one cent to $4.15
Linc Energy has signed a deal with Xinwen Mining Group to develop underground-coal-gasification (UCG) and gas-to-liquids (GTL) projects in China.

OZL - OZ MINERALS LTD - down eight cents to $1.27
Oz Minerals has temporarily shut down its Prominent Hill site in South Australia after a contracting firm employee was killed.

PMM - PORTMAN LTD - up $3.40, or 19.21 per cent to $21.10
Cleveland Cliffs Inc, the largest iron ore producer in the US, has launched a bid to buy the 14.81 per cent of Portman that the company doesn’t already own.

RIO - RIO TINTO LTD - down 48 cents to $101.55
Rio Tinto Ltd, the world’s second-largest iron ore producer, has agreed to further discussions with the Guinea government to resolve issues threatening its Simandou mining concession.

AWB - AWB LTD - down four cents to $2.95
Agribusiness AWB has been accredited to export bulk wheat.

AHI - ALLCO HIT LTD - down 0.5 cents to 1.6 cents
Strategic Finance investors are going to have to wait for interest and dividend payments as the company works on a capital restructure proposal.

MIAMI - President George Bush has declared four Florida counties hit hardest by Tropical Storm Fay as major disaster areas, making them eligible for federal aid.

NEW YORK - If the gauge of Wall Street’s confidence in Lehman Brothers is its stock price, then the shares’ gyrations this past week indicate investors are both petrified of a collapse and encouraged about a possible buyout.

WELLINGTON - Sky City Entertainment Group has posted a 49 per cent fall in full year net profit to $49.9 million.

WELLINGTON - Small Dunedin-based finance company St Kilda Finance has stopped taking new investments after reinvestment levels fell from 65 per cent to 15 per cent.

LOCAL NEWS

SYDNEY - The federal government has approved Aluminium Corporation of China Ltd’s proposal to acquire a stake in miner and takeover target Rio Tinto Ltd.

SYDNEY - NSW Opposition Leader Barry O’Farrell is facing increasing pressure to take a stance on the state government’s proposed electricity sell-off which goes to a parliamentary vote this week.

SYDNEY - Caltex Australia Ltd says the Australian public has started to focus more on the crude oil price when it considers the cost of petrol.

SYDNEY - ANZ Banking Group Ltd said it would have to wait and see whether it would create an individual provision for troubled investment house Babcock & Brown Ltd.

CANBERRA - The federal government has rejected claims that plans by a number of major companies to axe hundreds of jobs in the coming months is evidence the economy has slowed too much.

MELBOURNE - A review of Melbourne’s transport system has called for a congestion tax and tolls on public roads.

MELBOURNE - Secret information from business partner Malcolm Turnbull torpedoed media tycoon Kerry Packer’s bid to take over the Fairfax group 17 years ago, the ABC will reveal tonight.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

SKC - SKY CITY ENTERTAINMENT GROUP LTD - up two cents to $2.81
Sky City has posted a 49 per cent fall in full year net profit to $NZ49.9 million ($A40.97 million).

RIO - RIO TINTO LTD - up $2.10 to $121.00
The federal government has approved Aluminium Corporation of China Ltd’s proposal to acquire a stake in miner and takeover target Rio Tinto Ltd.

ASL - AUSDRILL LTD - up one cent to $2.30
MAH - MACMAHON HOLDINGS LTD - up 8.5 cents to $1.71
Mining services company Ausdrill has posted a record full year profit, reflecting strength in its client base, and says it expects to deliver earnings growth of at least 20-30 per cent in the 2009 year.

BBW - BABCOCK AND BROWN WIND PARTNERS GROUP - up 9.5 cents to $1.245
A delay in commissioning the second stage of turbines at the Te Rere Hau windfarm near Palmerston North caused NZ Windfarms Ltd to miss its prospectus revenue forecast.

QAN - QANTAS AIRWAYS LTD - up one cent to $3.49
Qantas has reiterated pre-tax profit guidance for 2008/09, saying the result is expected to be broadly in line with analyst consensus forecasts. Qantas will inevitably merge with another major carrier sooner rather than later, outgoing chief executive Geoff Dixon says.

AWE - AUSTRALIAN WORLDWIDE EXPORATION LTD - up 19 cents to $3.30
Australian Worldwide Exploration, which is merging with Arc Energy Ltd, says it will pursue gas opportunities in Europe after delivering a rise in profit for the year.

CTX - CALTEX AUSTRALIA LTD - up 20 cents to $11.95
Caltex has reported a 33 per cent fall in first half earnings, due to lower refinery production, but says refiner margins are expected to remain robust in the period ahead.

IAG - INSURANCE AUSTRALIA GROUP LTD - up six cents to $3.75
IAG has reported a $261 million loss for the year, but says the current financial year would bring an improved performance. IAG says the process of divesting UK assets was on track and likely to accelerate after the northern summer holidays.

BBG - BILLABONG INTERNATIONAL LTD - up 55 cents to $11.30
Global surfwear retailer Billabong International is confident it will book good growth in the current year after posting a 5.5 per cent lift in its 2008 bottom line.

ANZ - ANZ BANKING GROUP LTD - up eight cents to $15.67
A review of ANZ Banking Group’s securities lending operations has found risk controls were inadequate in the period leading up to the Opes Prime crisis and that some employees breached the bank’s code of conduct.

GMG - GOODMAN GROUP - up 11 cents to $2.82
Integrated industrial property giant Goodman Group expects earnings per security (EPS) growth of six per cent in the current financial year but says market conditions are the worst for some time.

GNS - GUNNS LTD - untraded at $1.675
Timber company Gunns is unlikely to meet a deadline for providing environmental information for its proposed $2 billion Tasmanian pulp mill, federal Environment Minister Peter Garrett says.

WASHINGTON - Days after he cracked that being rich in the US meant earning at least $US5 million ($A5.7 million) a year, Republican presidential candidate John McCain acknowledged that he wasn’t sure how many houses he and his wealthy wife own.

NEW YORK - Oil prices shot up more than $US5 a barrel today, rising to the highest level in over two weeks as escalating tensions with Russia stoked fears of supply disruptions to the West.

WELLINGTON - Trade Me founder Sam Morgan is getting a bonus of about $NZ14 million ($A11.44 million) from the success of the online auction site.

LOCAL NEWS

CANBERRA - Big business has told the federal government to go back to the drawing board on climate change, saying emissions trading could drive one-third of trade-exposed businesses bust.

MELBOURNE - Ford Australia will cut up to 350 jobs - 15 per cent of its Australian manufacturing workforce - blaming a slump in large car sales.

SYDNEY - Qantas Ltd expects a 41 per cent fall in profit this financial year as the airline faces the headwinds of rising fuel costs and a slowing global economy.

PERTH - Mineral sands miner Iluka Resources Ltd has reported a sharp drop in first half profit because of the stronger Australian dollar and gas supply disruption in Western Australia, but says it expects robust global demand for its products to continue.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

SHL - SONIC HEALTHCARE LTD - up 10 cents to $13.82
Pathology and radiology group Sonic Healthcare expects revenue growth above 15 per cent in the current financial year, after lifting annual net profit for 2007/08 by nearly 24 per cent.

NAB - NATIONAL AUSTRALIA BANK LTD - down 55 cents to $23.55
National Australia Bank has broken ranks with the other banks to declare it will pass on in full a 25 basis point rate cut if the Reserve Bank of Australia reduces the official cash rate by that amount at its September board meeting.

BNB - BABCOCK AND BROWN LTD - down $1.23, or 35.65 per cent, to $2.22
The chairman and chief executive officer of Babcock & Brown both have stepped down from their roles at the investment firm, which announced a 34 per cent dip in interim profit.

QBE - QBE INSURANCE GROUP LTD - down 51 cents to $23.40
Australia’s largest insurer, QBE Insurance Group, is confident of meeting its full year 20 per cent profit margin target despite booking a seven per cent dip in its interim profit.

DOW - DOWNER EDI LTD - up 35 cents to $7.05
Engineer Downer EDI has announced a 63.4 per cent full year profit rise, predicting more “double-digit” growth ahead.

AMC - AMCOR LTD - down four cents to $5.21
Packaging group Amcor says has posted a 51.5 per cent fall in annual profit and said slowing world economic growth may hurt its sales in the new financial year.

HSP - HEALTHSCOPE LTD - down eleven cents to $4.24
Private hospitals operator Healthscope says it has had a positive start to the 2009 financial year and will begin a significant expansion of its capacity to meet growing demand for medical services from an ageing population.

CTY - COUNTRY ROAD LTD - untraded at $3.50
Clothing retailer Country Road has reported a 42.5 per cent fall in annual profit and will focus on controlling costs in what is expected to be tough retail conditions this year.

OZL - OZ MINERALS LTD - down 14.5 cents to $1.685
Miner Oz Minerals has posted a first half loss and says the result would have been been better but for volatility in base metals markets and higher operating costs.

FXJ - FAIRFAX MEDIA LTD - up four cents to $2.82
Fairfax Media has lifted its annual by nearly 47 per cent following its merger in 2007 with Rural Press, and says advertising markets have slowed going into the new year.

STO - SANTOS LTD - up 98 cents to $18.18
Santos, Australia’s third largest oil and gas producer, has delivered a rise in half year profit and flagged a proposal to construct an $800 million gas power station in Victoria.

LLC - LEND LEASE CORPORATION LTD - up nine cents to $9.09
Property Group Lend Lease has posted a 46.7 per cent fall in annual profit, after booking negative property revaluations and adjustments to the carrying value of some UK assets. It has begun a global search for a successor to chief executive and managing director Greg Clarke.

MAP - MACQUARIE AIRPORTS - up seven cents to $3.15
Britain’s competition watchdog said on Wednesday it may force airports operator BAA to sell three of its seven airports, including two in London. Macquarie Airports is among potential buyers identified by analysts.

AIA - AUCKLAND INTERNATIONAL AIRPORT LTD - up 1.5 cents to $1.625
Auckland International Airport posted a 3.3 per cent rise in full year adjusted net profit to $NZ103.7 million ($A84.99 million), partly due to strong growth in domestic passenger numbers as the local airline industry became more competitive.

WASHINGTON - US mortgage finance giants Fannie Mae and Freddie Mac saw their share prices plummet today amid heightened concerns about their ability to ride out the credit crisis without government help.

LONDON - Britain’s competition watchdog said it may force airports operator BAA to sell three of its seven airports in London following fierce criticism of poor customer service, overcrowding and long delays. Macquarie Airports is among potential buyers identified by analysts.

BERLIN - The German government on Wednesday approved a draft law that would allow it to block moves by foreign investors to take large stakes in German companies, if it concludes that they endanger the country’s interests.

WELLINGTON - Auckland International Airport (AIA) posted a 3.3 per cent rise in full year net profit to $NZ113 million ($A92.62 million), partly due to strong growth in domestic passenger numbers as the local airline industry became more competitive.

WELLINGTON - Ports of Auckland has thrown the idea of buying rival Port of Tauranga’s container business into the great supply chain debate.

WELLINGTON - Compass Capital has stopped repaying investors, blaming deteriorating credit and property markets.

KUALA LUMPUR - Malaysia’s long-haul budget carrier AirAsia X said today it will begin flights to Melbourne, its third Australian destination, from November.

LOCAL NEWS

SYDNEY - Australians lose at least $36 million a year to so-called Nigerian scammers via the internet.

SYDNEY - NSW Labor would lose 21 seats and be swept from government if a state election were held today, the party’s internal polling shows.

CANBERRA - Having your horoscope texted to your mobile phone each day may sound like a good idea, but many consumers are being hit with massive and unexpected bills for the privilege, the consumer watchdog warns.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

CWN - CROWN LTD - down three cents to $8.20
Casinos operator Crown Ltd says its Australian casinos have been trading satisfactorily since the start of the 2009 financial year.

BNB - BABCOCK AND BROWN LTD - in trading halt, last traded at $3.45
Shares in Babcock & Brown will be in a trading halt today after the investment group last night requested the suspension ahead of a meeting of a board subcommittee.

JHX - JAMES HARDIE INDUSTRIES NV - down seven cents to $4.43
James Hardie Industries has suffered a fall in first quarter earnings following a downturn in the US housing market.

BXB - BRAMBLES LTD - down $1.11 to $7.41
Brambles has increased its full year profit from ongoing operations by 49 per cent as the world’s biggest pallet maker and distributor signed new contracts in the US and Europe.

MOC - MORTGAGE CHOICE LTD - up 11.5 cents to $1.185
Mortgage originator Mortgage Choice has reported a 1.2 per cent fall in annual profit but says it is well positioned for the new financial year.

QGC - QUEENSLAND GAS COMPANY LTD - in trading halt, last traded at $4.32
Queensland Gas Co has requested a trading halt of its shares ahead of an announcement about a potential takeover.

TRS - THE REJECT SHOP - up 81 cents to $10.71
Discount retailer The Reject Shop expects strong growth in the current year after booking a 35.6 per cent rise in annual profit.

MAP - MACQUARIE AIRPORTS - up 26 cents to $3.08
Macquarie Airports has delivered a half year net loss of $274 million, but says the outlook for the rest of the year is solid.

MAH - MACMAHON HOLDINGS LTD - up 6.5 cents $1.55
Macmahon Holdings, which provides services to the mining and construction sectors, has lifted its takeover bid for drilling contractor Ausdrill Ltd after delivering a rise in annual profit.

CCL - COCA COLA AMATIL LTD - up 40 cents to $8.34
Beverage maker Coca Cola Amatil says it is on track for high single digit second half earnings growth after posting a 22.0 per cent lift in its interim profit.

AGK - AGL ENERGY LTD - up 48 cents to $14.40
AGL Energy has posted a 44.2 per cent fall in its annual reported profit, but Australia’s biggest gas and electricity supplier maintained its guidance for underlying earnings for this year.

PPT - PERPETUAL LTD - down 38 cents to $45.52
Perpetual has reported a 29 per cent fall in annual profit after weathering significant volatility in global credit and equity markets, following the US sub-prime mortgage crisis.

PBG - PACIFIC BRANDS LTD - down five cents to $2.02
Pacific Brands has reported a ten per cent rise in annual profit but expects flat to negative sales for the remainder of 2008 before recovery in 2009.

ORG - ORIGIN ENERGY LTD - down 13 cents to $15.97
British oil and gas giant BG Group says its $13.8 billion hostile takeover bid for Origin Energy represented “full and fair value.”

DMP - down five cents to $3.50
Domino’s Pizza has boosted its annual profit by 29.6 per cent after generating strong sales growth across the group, particularly in Europe.

SKT - SKY NETWORK TELEVISION LTD - up one cent to $4.08
New Zealand’s Sky Network Television posted a 25.5 per cent increase in full year net profit to $NZ97.7 million ($A80.01 million), as viewership, subscriber numbers and average revenue per subscriber rose.

WASHINGTON - A pair of troubling US economic reports released today showed wholesale prices had spiked dramatically in the past year while new home construction slumped heavily last month.

NEW YORK - Crude oil prices spiked higher after OPEC member Venezuela said it would ask the cartel at its September meeting to cut production if downward price pressure continues.

LONDON - British oil and gas giant BG Group said that its 8.2 billion euros ($A13.89 billion) hostile takeover bid for Origin Energy represented “full and fair value”.

TOKYO - Japan’s central bank chief said on Tuesday that he expects the world’s second-largest economy to stay stagnant for the time being but denied it was headed toward the sort of deep slump that crippled the country in the 1990s.

TOKYO - Japan will start an aggressive push to market abroad its mobile technology, especially the nation’s popular “wallet phone,” a government official said.

SHANGHAI - China’s auto imports grew rapidly in the first half of 2008, underlining its increasing importance as a market for carmakers, but export growth slowed, state media said Tuesday.

BERLIN - German investors do not expect a recession in Europe’s biggest economy, a key indicator suggested Tuesday, as cheaper oil and a weakening euro ease some of the pressure on firms and consumers.

CARACAS - The Venezuelan government has locked up control of more than 90 per cent of the domestic cement industry with its nationalisation of one foreign-owned plant and pressured buyout of two others.

LOCAL NEWS

MELBOURNE - The Victorian opposition has become the latest state conservative party to close the gap on a Labor government - a trend that is occurring Australia-wide, according to the latest Newspoll.

SYDNEY - The securities of Babcock & Brown Ltd have been placed in a trading halt at the request of the company, pending an announcement by it, the Australian stock exchange (ASX) said last night.

PERTH - The Chinese government and Australia’s Foreign Investment Review Board have approved a proposed share placement by iron ore explorer Golden West Resources Ltd to China’s Hunan Valin Steel Tube & Wire Co Ltd.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

CMJ - CONSOLIDATED MEDIA HOLDINGS LTD - up seven cents to $3.27
Consolidated Media Holdings says it is well positioned to capitalise on growth in the pay television market after booking a pro-forma full year net profit of $105 million.

VBA - VIRGIN BLUE HOLDINGS LTD - down 32.5 cents, or 27.9 per cent, to 84 cents
Australia’s second biggest airline, Virgin Blue, has posted a 54.7 drop in annual profit, after its earnings were hit by surging jet fuel costs.

OSH - OIL SEARCH LTD - down 16 cents to $4.99
Oil Search has produced a massive leap in first half profit, driven by record high oil prices and stable operating costs, and says it is on track to meet its production guidance for the full year.

ORG - ORIGIN ENERGY LTD - down five cents to $16.10
Origin Energy has formally rejected a $13.8 billion takeover offer from Britain’s BG Group and says it has short-listed candidates to help develop its coal seam gas (CSG) reserves.

BLD - BORAL LTD - down eight cents to $6.03
Boral’s full year net profit has dropped 18.6 per cent as the construction materials group suffered falling sales amid the worsening housing slump in the US, its largest market.

OST - ONESTEEL LTD - up 42 cents to $6.21
OneSteel, Australia’s second biggest steelmaker, says the outlook for the resources sector and steel prices remain strong, after delivering a rise in annual profit.

NCM - NEWCREST MINING LTD - up 42 cents to $25.00
Newcrest Mining, Australia’s biggest gold company, says it is well positioned for future growth after delivering an increase in profit for 2007/08.

LGL - LIHIR GOLD LTD - down four cents to $2.20
Lihir Gold has reported half year net profit up 178 per cent, with the miner predicting a “solid improvement” in profit for the full year.

PRY - PRIMARY HEALTH CARE LTD - up 23 cents to $5.40
Primary Health Care has entered into an agreement with Zuellig Australian Pharmacy Services Pty Ltd to sell the Symbion pharmacy business for $505 million.

JBH - JB HI FI LTD - up 21 cents to $12.59
Electronics retailer JB Hi-Fi has delivered an upbeat outlook on its sales growth for the current year after its 2007/08 net profit exceeded its own guidance.

MLB - MELBOURNE IT LTD - up three cents to $3.10
Online services provider Melbourne IT says it is on track to deliver a sixth consecutive year of growth in revenue and profit, after booking a 20 per cent lift in half year profit.

GWT - GWA INTERNATIONAL LTD - down 19 cents to $2.91
Bathroom fixtures and homewares company GWA International says its annual profit has fallen by 18.5 per cent and that, until economic conditions improve, it expects demand to remain flat.

AMP - AMP LTD - down 35 cents to $6.40
Rising rental income helped the AMP NZ Office Trust lift full year operating profit after current tax 27 per cent to $NZ52.2 million ($A42.7 million).

MAP - MACQUARIE AIRPORTS - down eight cents to $2.82
Macquarie Airports has been identified by analysts as a potential bidder for airports in the UK should British authorities force current owner BAA Ltd to divest one or more of the seven airports it owns now. BAA owns Heathrow, Gatwick and Stansted in London, Glasgow, Edinburgh and Aberdeen airports in Scotland, and Southampton in southern England.

WASHINGTON - Shares of mortgage finance giants Fannie Mae and Freddie Mac tumbled Monday amid renewed fears that shareholders will wind up with nothing if the government intervenes to bail out the troubled companies.

WASHINGTON - The US Treasury swiftly played down a media report Monday that suggested the government could be poised to extend significant financial aid to the struggling mortgage-finance giants Fannie Mae and Freddie Mac.

WASHINGTON - US federal regulators are working on a stronger label for a widely used diabetes drug marketed by Amylin Pharmaceuticals Inc and Eli Lilly & Co after deaths continue to be reported despite earlier government warnings.

LOS ANGELES - Homebuilders are a little more optimistic about the prospects for home sales over the next six months, but an index reflecting the sector’s confidence overall remained at an all-time low, an industry trade association said Monday.

KERMIT - While most Americans are tightening their belts, scrapping vacation plans and getting rid of their SUVs, in oil-and-gas rich West Texas, folks are living large - again.

LONDON - The Organization of Petroleum Exporting Countries may decide to cut the cartel’s oil output quota as the price of crude risks falling under 100 dollars a barrel, energy consultancy CGES said.

LONDON - Airports operator BAA Ltd says it has successfully completed the refinancing of some STG13.3 billion ($A28.72 billion) of debt just days before Britain’s antitrust regulator is expected to recommend the sale of one or more of its seven airports.

TOKYO - Japan Airlines and All Nippon Airways on Monday announced plans to raise their air fares on some international routes as they struggle to cope with the soaring cost of jet fuel.

ISTANBUL - Turkey’s energy minister says oil flow in the Baku-Tbilisi-Ceyhan pipeline through Georgia might resume soon.

SANTIAGO - Chile’s Central Banks says the nation’s copper sales surged 8.8 per cent in the first seven months of the year over the same year-ago period.

BRUSSELS - Euro nations’ trade deficit with the rest of the world came close to balance in June, the EU statistics agency said.

WELLINGTON - Rising rental income helped the AMP NZ Office Trust (ANZO) lift full year operating profit after current tax 27 per cent to $NZ52.2 million ($A42.7 million).

LOCAL NEWS

CANBERRA - Analysts who expect the key cash rate to be cut next month will be watching with interest when the Reserve Bank of Australia (RBA) releases its August 5 board meeting minutes today.

CANBERRA - Australia should allow East Timorese guest workers into the country, a Timorese government official says.

STOCKS TO WATCH ON THE aUSTRALIAN STOCK EXCHANGE TODAY:

BHP - BHP BILLITON LTD - up 62 cents to $38.60
BHP Billiton , the world’s largest mining company, has reported a record annual profit and says it expects demand for commodities to remain strong. The result was in line with analysts’ forecasts.

BNB - BABCOCK AND BROWN LTD - up six cents to $4.51
BBP - BABCOCK AND BROWN POWER - down 17.5 cents, or 41.18 per cent, to 25 cents
Debt-laden specialist fund Babcock & Brown Power Ltd will book writedowns in fiscal 2008 worth $452 million, sending its securities plunging. Babcock & Brown Power says it would consider options in the event of takeover offers for the entire business.

TLS - TELSTRA CORPORATION LTD - down four cents to $4.38
Telstra’s head of public policy and communications Phil Burgess is leaving the company and will return to the US, due to illness in his family.

IMD - IMDEX LTD - steady at $1.68
Drilling services and products provider Imdex has lifted annual profit by 73 per cent and says it expects revenue in the new year to grow by up to 20 per cent.

ANG - AUSTIN ENGINEERING LTD - up eleven cents to $2.40
Austin Engineering, which provides services to the resources sector, expects further earnings growth this year after delivering a significant rise in profit for 2007/08.

ANN - ANSELL LTD - up 17 cents to $11.40
Gloves and condoms maker Ansell expects higher earnings per share in 2008/09, in the range of 70 US cents to 74 US cents, despite global economic uncertainty and high costs of key inputs such as rubber.

COU - COUNT FINANCIAL LTD - down 0.5 cents to $1.69
Financial planning franchise Count Financial is confident it can improve its net profit in the current year after booking a six per cent dip in its annual bottom line.

SRL - STRAITS RESOURCES LTD - down eight cents to $4.92
Straits Resources will sell its coal interests in Madagascar and Brunei to its Asian subsidiary for $US100.3 million, as part of a previously announced restructure of the group.

SEK - SEEK LTD - up 14 cents to $5.23
Online employment agency Seek has lifted full year profit by 37 per cent, and says it’s confident of improving profitability further in the current year.

BSL - BLUESCOPE STEEL LTD - down 13 cents to $9.00
BlueScope has reported a fall in annual profit after booking one-off charges, but its underlying result lifted as strong global demand for steel raised prices and offset rising raw material costs.

AMP - AMP LTD - $6.75
Rising rental income helped the AMP NZ Office Trust lift full year operating profit after current tax 27 per cent to $NZ52.2 million ($A42.7 million).

MAP - MACQUARIE AIRPORTS - $2.90
Macquarie Airports has been identified by analysts as a potential bidder for airports in the UK should British authorities force current owner BAA Ltd to divest one or more of the seven airports it owns now. BAA owns Heathrow, Gatwick and Stansted in London, Glasgow, Edinburgh and Aberdeen airports in Scotland, and Southampton in southern England.

LONDON - An influential body representing British business said there was a “distinct possibility” of the United Kingdom facing recession in the next six or nine months, in a report published on Sunday.

BERLIN - Germany’s Deutsche Telekom, the biggest telecoms group in Europe, intends to shut nearly half its call centres in Germany, according to a report due out Monday in the Focus newsweekly.

ZURICH - Switzerland’s biggest bank UBS, which has lost billions in the United States subprime crisis, would return to profitability next year, its chairman Peter Kurer said in remarks published Sunday.

DUBAI - The government of Dubai, which is vying to become a global financial hub, vowed on Sunday to crack down on corruption amid a series of probes into alleged financial irregularities in high-profile firms.

HONG KONG - Growth in Hong Kong air passenger traffic slowed last month to the lowest rate this year as soaring crude oil prices dampened demand for air travel, the airport authority said.

SINGAPORE - Foreign talent and migrants in Singapore give the economy an extra boost, Prime Minister Lee Hsien Loong said on Sunday amid worries among locals that they are losing out to the newcomers.

LOCAL NEWS

CANBERRA - The federal government is insisting it will fight to establish a national FuelWatch scheme, saying it could save motorists $10 on a tank of petrol.

SYDNEY - A rudder problem has forced Qantas to delay the departure of a Sydney-bound airliner from London’s Heathrow airport by more than 16 hours.

SYDNEY - Fears are growing that the commodities boom is ending as investors who have fled the oil market desert gold, copper and other metals.

MELBOURNE - Former federal treasurer Peter Costello is by far the most popular choice to lead the Liberal Party, a Fairfax/Nielsen poll has found.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

CSR - CSR LTD - down nine cents to $2.43
CSR has warned shareholders to beware of unsolicited offers they may receive for their shares. The warning follows CSR being approached for a copy of its share register by Share Buying Group Pty Ltd.

GNS - GUNNS LTD - down 16 cents to $2.15
Woodchipping firm Gunns expects to report a net profit of about $67 million for 2007/08, based on unaudited figures.

BJT - BABCOCK AND BROWN JAPAN PROPERTY TRUST - up four cents to 83.5 cents
BNB - BABCOCK AND BROWN LTD - down 55 cents to $4.45
Babcock & Brown Japan Property Trust has forecast total distributions in fiscal 2009 to at least stay steady, helping its units to surge over 14 per cent.

MAP - MACQUARIE AIRPORTS - down four cents to $2.81
The east-west runway at Sydney airport will remain open during upcoming safety upgrades, federal Transport Minister Anthony Albanese says.

FUN - FUNTASTIC LTD - in trading halt, up 0.5 cent to 49.5 cents
Shares in toy wholesaler Funtastic Ltd have been placed in a trading halt pending an announcement.

QAN - QANTAS AIRWAYS LTD - up six cents to $3.50
Qantas flights continue to be dogged by maintenance issues. A small body panel has fallen off a Jumbo jet on its way to Singapore from Melbourne, and a flight from Brisbane to Melbourne was delayed by more than half an hour today due to a technical problem. On the brighter side, Qantas has confirmed its new A380 super jumbo will make its debut flight for paying passengers on October 20.

MCW - MACQUARIE COUNTRYWIDE TRUST - down 0.5 cents to 97 cents
Retail sector property vehicle Macquarie Countrywide Trust has moved to reduce debt by selling its Adelaide-based Seaford Plaza shopping centre for $72 million.

IRN - INDOPHIL RESOURCES NL - steady at $1.33
Xstrata Plc has extended its $540 million takeover bid for Indophil Resources NL, its joint venture partner in the $3 billion Tampakan copper and gold project in the Philippines.

MTN - MARATHON RESOURCES LTD - down 3.5 cents to 72.5 cents
Marathon Resources says it aims to prove the company can be “responsible participants” in the mining industry after drilling at a South Australian uranium project was suspended following the incorrect disposal of waste.

MAH - MACMAHON HOLDINGS LTD - down two cents to $1.53
Contracting and services group Macmahon Holdings has won a $78 million design and construct contract to extend the Reid Highway in Perth.

NCK - NICK SCALI LTD - up three cents to 66 cents
Listed furniture retailer Nick Scali says conditions in the industry remain subdued after booking a 24 per cent decline in its 2007/08 profit.

AIA - AUCKLAND INTERNATIONAL AIRPORT LTD - up one cent to $1.63
An expenses claim following the unsuccessful Canadian bid for a stake in Auckland International Airport (AIA) has been settled, the parties say.

TEL - TELECOM CORPORATION OF NEW ZEALAND LTD - steady at $2.63
FCL - FUTURIS CORPORATION LTD - up 10 cents to $1.40
New Zealand Telecom is suggested as a possible buyer of the 50 per cent stake in Perth telecommunications company Amcom being sold by Australian agribusiness and car parts supplier Futuris Corporation.

BRUSSELS - Europe has swung towards recession, with the eurozone economy shrinking for the first time since its formation and inflation hovering at a record high as the sharp global downturn takes hold.

BERLIN - Germany’s economy contracted for the first time for nearly four years in the second quarter of 2008, as demand for its exports fell and inflation hit consumer confidence.

PARIS - The French economy suddenly recoiled under global pressures in the second quarter, contracting by 0.3 per cent, raising a strong prospect of recession.

MOSCOW - A court in the Russian capital on Thursday barred the chief executive officer of oil company BP’s troubled Russian joint venture, TNK-BP, from office for two years, TNK-BP said.

WASHINGTON - The United States Federal Reserve said banks borrowed slightly more over the past week from its emergency lending program while Wall Street firms did not draw any loans for a second straight week.

NEW YORK - US banks JPMorgan Chase and Morgan Stanley joined other large banks in agreeing to buy back billions of dollars of stressed securities from investors, New York officials said.

LONDON - American Airlines, British Airways and Iberia of Spain said Thursday they had signed a commercial agreement to co-operate over flights between North America and Europe to help overcome soaring fuel costs.

CONCORD - New Hampshire securities regulators on Thursday accused Swiss banking giant UBS of defrauding the state’s leading issuer of student loans.

SEATTLE - Yahoo Inc said Thursday it will add the former chief executives of Viacom and Nextel Partners to its board of directors as part of the company’s deal to ward off a proxy fight with billionaire investor Carl Icahn.

WELLINGTON - Invercargill-based co-operative the Alliance Group said with sheep numbers declining around the world, Alliance was looking at supplying North American and European markets with South American lamb to meet demand.

WELLINGTON - Grocery co-operative Foodstuffs is understood to be one of several parties interested in buying liquor retailer Liquorland.

LOCAL NEWS

SYDNEY - Qantas said the steering of a Boeing 767 was affected as it landed at Sydney airport on Wednesday. A trail of hydraulic fluid was left along the runway, forcing closure for 40 minutes.

MELBOURNE - The review of Australia’s car industry by former Victorian premier Steve Bracks will be released in Melbourne today. The Federal report is expected to recommend a soft approach toward reducing tariff protection.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

LEI - LEIGHTON HOLDINGS LTD - in trading halt at $42.36
Leighton Holdings forecast that net profit would grow by at least 15 per cent this year, as Australia’s biggest construction firm continues to benefit from spending on infrastructure and resource development.

DJS - DAVID JONES LTD - up 39 cents to $4.04
David Jones upgraded its full-year profit guidance after increasing annual sales by 5.8 per cent.

SGP - STOCKLAND GROUP LTD - down 31 cents to $4.68
Property developer Stockland Group reported a fall in bottom-line annual profit and said it faces a tough market in the year ahead.

ORI - ORICA LTD - up 25 cents to $23.85
Orica, the world’s largest explosives maker, acquired a partner’s interest in the Samex joint venture in Peru for $US58.2 million ($A66.61 million).

FCL - FUTURIS CORPORATION LTD - up five cents to $1.30
Futuris Corp reported a 65.4 per cent fall in full-year profit and maintained its earnings guidance for the new year, saying agricultural markets remain strong.

ASX - ASX LTD - up 86 cents to $35.66
ASX Ltd, the owner of the Australian Securities Exchange, said it remains cautiously optimistic for the medium term after delivering a 16.9 per cent increase in annual profit.

PMP - PMP LTD - up 10.5 cents to $1.25
Printer PMP Ltd said it expects challenges in the current year after booking a 70.2 per cent lift in annual profit.

CDI - CHALLENGER DIVERSIFIED PROPERTY GROUP - untraded at 56 cents
Challenger Diversified Property reported full-year net profit down 41 per cent as the group’s portfolio value declined.

TBG - TUTT BRYANT GROUP LTD - down 9.5 cents to $1.40
Tutt Bryant Group said first-quarter net profit rose 17 per cent, in-line with expectations, and said it expects to achieve a strong full-year result.

UGL - UNITED GROUP LTD - up 12 cents to $13.24
Infrastructure services company United Group secured a 27-year, $100 million contract to provide facilities maintenance and operation management for the new Institute of Technical Education College West in Singapore.

PSA - PETSEC ENERGY LTD - up four cents to 50 cents
Gas producer Petsec Energy downgraded its full-year production forecast, with pipeline issues preventing output from its Main Pass 270 operation in the United States for longer than expected.

WASHINGTON - US retail sales declined 0.1 per cent in July in the face of slumping car and truck sales as Americans cut back on large purchases.

NEW YORK - Macy’s Inc’s saw its second-quarter earnings drop slightly and warned on Wednesday that full-year profits will be below Wall Street expectations as shoppers are more cautious about spending.

WASHINGTON - Government data show US businesses added to their inventories in June at the fastest pace in five months, a bigger gain than had been expected.

NEW YORK - Oil prices rallied today after a weekly US Government snapshot showed a surprisingly sharp drop in petrol stockpiles amid the peak demand season.

LONDON - The head of the Bank of England forecast today that Britain faced increased risk of recession, with economic growth set to slow further and inflation expected to spike.

LONDON - British mining company Lonmin PLC ramped up its defence against a hostile STG5 billion ($A10.88 billion) takeover approach from Anglo-Swiss miner Xstrata PLC on Wednesday, telling shareholders that the offer does not recognise its potential for growth.

TOKYO - Japan’s economy shrank for the first time in a year in the second quarter, the government said Wednesday, but officials - joined by many economists - denied the downturn heralded a return of the “lost decade” economy of the 1990s.

AMSTERDAM - Dutch banking and insurance group ING reported on Wednesday a 28.8 per cent fall in net profit for the second quarter, but performed far better than analysts’ forecasts.

FRANKFURT - The Axel Springer group, the biggest newspaper publisher in Europe, reported on Wednesday a six-fold rise in first-half net profit on a strong second-quarter performance.

NEW YORK - Biotechnology giant Genentech Inc rejected a $US43.7 billion ($A50.21 billion) buyout offer from Swiss drug developer Roche, its majority owner, on Wednesday but said it is open to a higher takeover bid.

NEW DELHI - India said it will return to global trade talks if the United States signals it believes a log-jam over safeguards for poor farmers in developing countries can be broken.

BRUSSELS - Brussels Airport returned to normal on Wednesday after a two-day strike by luggage handlers caused delays and cancellations of hundreds of flights and separated 20,000 pieces of luggage from their owners.

WELLINGTON - After plunging to its lowest level in about a year against the greenback yesterday afternoon, the New Zealand dollar has rebounded strongly.

WELLINGTON - The two candidates for Telecom’s board of directors nominated by United States hedge fund Elliott International say they are standing to be independents representing all shareholders, not just their sponsor.

WELLINGTON - Auckland Airport has dropped plans to cut the number of duty free retailers from two to one, rather than face the prospect of an extended dispute with the Commerce Commission, which had been investigating the proposal.

LOCAL NEWS

CANBERRA - Speculation remains rife that the RBA will cut its key cash rate next month, despite figures showing stronger than expected wage growth and a large rebound in consumer sentiment.

SYDNEY - Telstra is preparing to offer its staff non-union enterprise agreements in a secret strategy aimed at saving the company $50 million over the next three years.

SYDNEY - Qantas grounded one of its Boeing 747 jets because a crucial screw, which could lead to the aircraft’s tail breaking away if it failed.

SYDNEY - The competition watchdog says it won’t oppose the proposed $18.2 billion takeover of St George Bank Ltd by Westpac Banking Corp.

PERTH - Qantas Airways Ltd is adding new services between Perth and Western Australian regional destinations of Kalgoorlie, Newman, Paraburdoo and Port Hedland to support the state’s booming resources sector.

CANBERRA - Nationwide planning reforms will be fast-tracked to try to improve housing affordability. Local government and planning ministers from state and territory governments have formed a sub-group to work on greater national consistency in planning decisions.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

CBA - COMMONWEALTH BANK OF AUSTRALIA LTD - down 46 cents to $44.05
Commonwealth Bank has lifted reported profit by seven per cent and said volatility in financial markets is putting pressure on its funding costs. The bank has withdrawn from talks with Royal Bank of Scotland to acquire ABN Amro Australian Holdings.

TLS - TELSTRA CORPORATION LTD - down 18 cents to $4.32
Telstra Corp has posted a 13.3 per cent rise in annual profit after its broadband and mobile revenue lifted and the telco slowed declines in its traditional fixed line earnings.

OST - ONESTEEL LTD - down 36 cents, or 5.75 per cent, to $5.90
OneSteel, Australia’s second biggest steel maker, says it expects to book interest, depreciation and amortisation expenses of $355 million for the 2008 fiscal year.

CPU - COMPUTERSHARE LTD - down 53 cents, or 5.31 per cent, to $9.46
Share registry provider Computershare expects to grow its earnings per share (EPS) by 10 per cent in the current year after booking 20 per cent growth in fiscal 2008 profit.

CSL - CSL LTD - in trading halt at $39.00
Blood products and vaccine firm CSL will acquire Talecris Biotherapeutics Holdings Corp for $3.48 billion to boost its presence in the plasma therapeutics market.

SFH - SPECIALITY FASHION GROUP LTD - down six cents to 82.5 cents
Specialty Fashion Group has reported a fall in annual profit due to a slowdown in consumer spending, and said trading for the first month of the new year has met expectations.

GFF - GOODMAN FIELDER LTD - steady at $1.51
The breads and spreads company has announced a $170 million impairment charge attributable to its New Zealand-based Fresh Dairy division, but has maintained guidance for profit and dividends in fiscal 2008.

QAN - QANTAS AIRWAYS LTD - up three cents to $3.53
Qantas said it will temporarily pull six aircraft from service after discovering irregularities with paperwork during a routine check. Another jet, a jumbo, has been grounded due to a faulty tail bolt.

FBU - FLETCHER BUILDING LTD - up 24 cents to $5.24
Fletcher Building reported a four per cent fall in net profit to $NZ467 million ($A370.0 million), even as earnings before interest and tax (ebit) rose 10 per cent to $NZ768 million ($A608.49 million).

MAP - MACQUARIE AIRPORTS - down four cents to $2.91
Brussels Airport, 20 per cent owned by Macquarie Airports, returned to normal on Wednesday after a two-day strike by luggage handlers caused delays and cancellations of hundreds of flights and separated 20,000 pieces of luggage from their owners.

SGB - ST GEORGE BANK LTD - down 87 cents, or 2.78 per cent, to $30.43
The ACCC says it won’t oppose the proposed $18.2 billion takeover of St George Bank Ltd by Westpac Banking Corp. The Australian Competition and Consumer Commission said a merger was unlikely to substantially lessen competition in the banking sector.

BOL - BOOM LOGISTICS LTD - steady at 96 cents
Crane hire company Boom Logistics Ltd has posted a sharp drop in annual profit due to several million dollars in asset writedowns.

AIA - AUCKLAND INTERNATIONAL AIRPORT LTD -
Auckland Airport has dropped plans to cut the number of duty free retailers from two to one, rather than face the prospect of an extended dispute with the NZ Commerce Commission, which had been investigating the proposal.

WASHINGTON - The US Government said the federal budget deficit soared in July, pushed higher by economic stimulus payments and $US15 billion in outlays to protect depositors at failed banks.

NEW YORK - US stocks closed lower today as several major banks unveiled fresh losses reminding investors that an already lengthy credit crunch is still biting financial firms balance sheets.

NEW YORK - JPMorgan Chase & Co said it has lost about $US1.5 billion to-date in the September quarter, in comparison with an $US1.1 billion loss in the previous quarter.

WASHINGTON - The US Federal Reserve has auctioned another $25 billion in loans to US banks and given them more time to pay the money back in an effort to combat a serious credit squeeze.

NEW YORK - The US dollar upsurge continued after Washington said the US trade deficit shrank and exports rose to a record high and as oil futures slipped back under $US114.

WELLINGTON - The New Zealand dollar hit a new 11-month low against the greenback to around $US0.6925 but then bounced back to be little changed at the end of the overnight session.

ZURICH - Switzerland’s biggest bank UBS on Tuesday took another hit of $US5.1 billion ($A5.78 billion) in subprime-related asset writedowns, as its total damages incurred from the market crisis climbed to $US42.5 billion ($A48.19 billion).

BERLIN - German police said Tuesday they have raided homes and offices of five former executives of SachsenLB, the state-owned bank that came within a whisker of bankruptcy because of the subprime crisis.

HANOI - Vietnam has allowed global banking giant HSBC to raise to 20 per cent its stake in Techcombank, one of the largest private banks in the communist country.

BRUSSELS - Scores of arriving and departing flights were cancelled or delayed on Tuesday at the Brussels airport where luggage handlers struck for better working conditions for a second day.

WASHINGTON - A United States government order expires on Tuesday that temporarily banned a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae and Freddie Mac and 17 large investment banks.

LOCAL NEWS

CANBERRA - Qantas will temporarily pull six aircraft from service after discovering an irregularity with paperwork during a routine check.

PERTH - The global shortage of platinum is not being reflected by the low price of the precious metal, explorer and budding miner Platinum Australia Ltd said.

SYDNEY - The Federal Government’s FuelWatch scheme is under threat after a key independent senator withdrew his support for the measure.

CANBERRA - Federal Health Minister Nicola Roxon will be under pressure to explain potential increases in the price of health insurance because of changes to the Medicare levy surcharge threshold.

CANBERRA - Australians are paying too much to use their mobile phones overseas, a KPMG report into international mobile roaming said.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

QAN - Qantas - up 12 cents, or 3.5 per cent to $3.50
Qantas said it will temporarily pull six aircraft from service after discovering an irregularity with paperwork during a routine check.

SGB - ST GEORGE BANK LTD - up $1.07, or 3.54 per cent, to $31.30
St George Bank said it can reconcile the bullish nature of its operational update with its recommendation of a takeover offer from Westpac. St George has reaffirmed its fiscal 2008 earnings guidance after posting a 12.5 per cent rise in cash profit for the first 10 months of the year.

AAC - AUSTRALIAN AGRICULTURAL COMPANY LTD - steady at $3.01
Grazier Australian Agricultural Company is expecting a rapid rise in prices over the rest of calendar 2008, after reporting a net loss in the first half.

BKN - BRADKEN LTD - up 30 cents to $10.00
Bradken, a supplier of equipment and services to the rail and mining industries, has forecast continued strength in the resources sector after delivering a rise in net profit for 2007/08.

COH - COCHLEAR LTD - up 32 cents to $47.14
Hearing implant company Cochlear has lifted its annual profit by 15 per cent on the back of record sales and said it expects to again post double-digit earnings in the current financial year.

WOR - WORLEYPARSONS LTD - up $1.23 to $34.68
Worley Parsons expects to increase earnings again this financial year, after delivering a 53 per cent lift in annual profit.

APN - APN NEWS & MEDIA LTD - down 15 cents, or 4.35 per cent, to $3.30
Trans-Tasman media company APN said it is “comfortable” with market forecasts for its annual earnings, after booking a slight dip in interim profit.

SGT - SINGAPORE TELECOMMUNICATIONS LTD - down five cents to $2.81
Singapore Telecommunications’ first-quarter profit fell 5.3 per cent as earnings from regional mobile carriers were hit by a rising Singapore dollar.

DEX - DEXION LTD - down 21 cents to $1.02
Dexion, a manufacturer of industrial and office storage equipment, has delivered a drop in first half profit and lowered its full-year guidance due to poor economic conditions in New Zealand.

RIO - RIO TINTO LTD - up $2.34 to $114.00
Rio Tinto has sold its Kintyre uranium exploration project for $US346.5 million to the world’s largest uranium producer, Cameco Corporation, and its partner Mitsubishi Group.

BEIJING - China’s trade surplus swelled in July to its highest level in eight months, as its trade gap with the United States and Europe grew.

NEW YORK - New York Attorney General Andrew Cuomo said Monday he is expanding his investigation into the collapse of the auction-rate securities market to include JPMorgan Chase & Co, Morgan Stanley and Wachovia Corp.

SASKATOON - Cameco Corporation, the world’s biggest uranium producer, says it has closed the acquisition of a 70 per cent stake in the Kintyre uranium exploration project in Australia from Rio Tinto Ltd for $US346.5 million ($A391.1 million), together with partner Mitsubishi Group.

NEW YORK - Tiffany & Co on Monday challenged a federal ruling that largely absolved eBay Inc of policing its auction site for counterfeit items, saying the judge was wrong to leave the primary burden to the jewelery maker.

LONDON - Virgin Atlantic boss Richard Branson has written to US presidential candidates Barack Obama and John McCain to warn against a potential alliance between British Airways and American Airlines.

BRUSSELS - Negotiators failed on Monday to end a baggage handlers’ strike which badly affected flights at Brussels international airport, 20 per cent owned by Macquarie Airports, paving the way for a second day of misery for travellers.

DUBAI - Goldman Sachs Group Inc, Morgan Stanley and four energy-related companies are taking minority stakes in Dubai Mercantile Exchange Ltd, adding clout to the fledgling exchange as it seeks to establish itself as a major player in the global crude oil market.

HONG KONG - Cathay Pacific said it will cut the number of flights to North America by 10 per week in a bid to offset the impact of soaring fuel prices.

JAKARTA - A tribal chief in Indonesia’s West Papua launched a campaign Monday to get compensation from US mining giant Freeport for environmental damage to his homelands.

WASHINGTON - More US banks are tightening lending standards on home mortgages and other consumer and business loans as a deepening credit crisis exerts a heavier toll on the economy.

TRAVERSE CITY, Michigan - Even with high petrol prices, US consumers still want high-quality vehicles that haul a lot of people and perform well, and that is forcing automakers to make radical changes in the way they manufacture vehicles.

WELLINGTON - United States hedge fund Elliott International’s promotion of the structural separation of Telecom has been met with a cool response.

LOCAL NEWS

CANBERRA - Australia and South Korea will move toward a free trade agreement (FTA) as the Federal Government looks at ways to boost political ties with the Asian power.

SYDNEY - Brendan Nelson’s rating as opposition leader has slumped to its lowest level since he was elected.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

RIO - RIO TINTO LTD - down $4.34 to $111.66
Rio Tinto has sold its Kintyre uranium exploration project in Australia for $US346.5 million to the world’s largest uranium producer, Cameco Corporation, and its partner Mitsubishi Group.

TEL - TELECOM CORPORATION OF NEW ZEALAND LTD - down three cents to $2.66
United States hedge fund Elliott International’s promotion of the structural separation of Telecom has been met with a cool response.

BNB - BABCOCK AND BROWN LTD - down 80 cents, or 11.78 per cent, to $6.00
Babcock & Brown Ltd has downgraded its annual calendar 2008 profit guidance and forecast a fall in first half earnings.

UGL - UNITED GROUP LTD - up 64 cents to $13.99
United Group has increased full-year profit by 47 per cent and expects another year of “double-digit earnings growth” in 2009 on the train maker’s growing sales to mining companies and public transport providers.

WOR - WORLEYPARSONS LTD - up 33 cents to $33.45
Engineering company WorleyParsons has been awarded a lucrative contract for the second phase expansion of Fortescue Metals Group Ltd’s iron ore development project in the Pilbara region of Western Australia. WorleyParsons releases annual results today.

BEN - BENDIGO AND ADELAIDE BANK LTD - up 65 cents to $11.41
Bendigo and Adelaide Bank says it expects further solid improvement in profit in 2009, after beating beat its own earnings per share (EPS) target for 2008.

CRG - CRANE GROUP LTD - up 38 cents to $13.80
Crane Group Ltd, a manufacturer and distributor of pipeline products, expects improved profit performance this year after delivering an increase in earnings for fiscal 2008.

FCL - FUTURIS CORPORATION LTD - up one cent to $1.295
Agribusiness company Futuris has reaffirmed its annual earnings guidance and will cease non-core operations at Elders Rural Services.

VBA - VIRGIN BLUE HOLDINGS LTD - up 2.5 cents to 94 cents
Pacific Blue is moving quickly to expand its activities out of Auckland, with the introduction of nine return flights a week to Sydney starting in October.

RKN - RECKON LTD - up 6.5 cents to $1.15
Accounting software maker Reckon Ltd has lifted first-half net profit by 12 per cent after sales of its professional products improved.

NEW YORK - Swiss bank UBS has reached a $US19.4 billion ($A21.4 billion) agreement to buy-back bonds in the biggest settlement yet over claims that banks misled investors to buy auction-rate securities, the Massachusetts Secretary of State office said.

GENEVA - UBS will appoint the head of insurer Swiss Life to its board in a bid to restore confidence after a year of record losses and legal turmoil, weekly SonntagsZeitung reported on Sunday.

NEW YORK - The US dollar soared on Friday in what analysts were calling a game-changing move, as concerns about the deteriorating euro zone economy gripped investors and commodities sold off.

SHANGHAI - China Eastern Airlines said on Sunday that its agreement to sell a strategic stake to Singapore Airlines and Temasek Holdings has expired and cannot be completed, although the carrier is still looking for strategic investors.

PARIS - French energy provider EdF and state-run Chinese producer China Guangdong Nuclear Power Corp signed a deal on Sunday creating a joint venture to build two nuclear reactors in the booming Asian nation, EdF said in a statement.

LONDON - Western concerns are growing over the impact of bloody clashes between Georgia and Russia on a key oil pipeline through the region from the Caspian Sea to the West, analysts say.

BAGHDAD - Iraq’s oil ministry said Sunday it plans to resurrect a major oil deal with China that fell apart amid crippling United Nations sanctions and the aftermath of the 2003 US-led invasion.

PARIS - The Organisation for Economic Co-operation and Development said its advanced indicator continued to point to a weakening growth outlook for the world’s seven-largest economies.

WELLINGTON - Pacific Blue is moving quickly to expand its activities out of Auckland, with the introduction of nine return flights a week to Sydney starting in October.

LOCAL NEWS

CANBERRA - A Senate committee today will hear what small retailers think of a plan to make supermarkets display the unit prices of groceries.

SYDNEY - The Department of Defence has been forced to recall a bungled $1.6 billion tender for trucks, amid claims the former federal government rushed the decision through in a bid to win votes ahead of the last election.

SYDNEY - Gas will be a transitional fuel until 2020, Origin Energy chairman Kevin McCann says.

CANBERRA - Non-bank lenders will not disappear completely and will provide competition for traditional retail banks, federal Assistant Treasurer Chris Bowen says.

SYDNEY - Leighton Holdings Ltd is likely to increase its full year profit by over 30 per cent to a record when it reports its result this week, as Australia’s biggest construction company takes advantage of an infrastructure boom in its local market and the Middle East.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

WBC - WESTPAC BANKING CORPORATION - up 40 cents to $23.55
SGB - ST GEORGE BANK LTD - up 13 cents to $29.42
Westpac says its earnings growth would slow but remain solid in the second half of fiscal 2008. Westpac believes the next move in official interest rates will be down, but it would not guarantee that it would pass a cut onto its customers in full.

MOF - MACQUARIE OFFICE TRUST - up 0.5 cents to 96.5 cents
Macquarie Office Trust said the book value of its property portfolio had fallen by 2.5 per cent over the past three months, down $149.6 million against May 2008 valuations.

TEL - TELECOM CORPORATION OF NEW ZEALAND LTD - down 21 cents to $2.69
Telecom Corporation of New Zealand is forecasting net profit for fiscal 2009 to decline as much as 30 per cent, as NZ’s biggest listed company funds operational separation and network upgrades.

GPG - GUINNESS PEAT GROUP PLC - up five cents to $1.20
TAL - TOWER AUSTRALIA GROUP LTD - up 14 cents to $2.93
UK-based investment company Guinness Peat Group is selling its entire cornerstone stake in Tower Australia Group for $376.3 million, a premium to its current market value, to major Japanese life insurer Dai-ichi.

CDR - COMMANDER COMMUNICATIONS LTD - trading suspended at 8.2 cents
Commander Communications’s banking syndicate has appointed McGrathNicol as receivers of the embattled IT and telecommunications provider.

PRG - PROGRAMMED MAINTENANCE SERVICES LTD - down two cents to $3.70
Property maintenance and facilities management firm Programmed Maintenance Services Ltd has affirmed its annual earnings guidance and said it is well placed for growth. Programmed says it is “very happy” with the way its businesses had traded over the first three months of fiscal 2009.

FRANKFURT - Europe’s main interest rates remained on hold today when European Central Bank and Bank of England governors balanced their fight against rising inflation with the possibility of a continental recession.

WELLINGTON - New Zealand’s largest listed company, Telecom, has reported an annual operating surplus from continuing operations down 15.5 per cent to $NZ713 million ($A563.64 million).

TOKYO - Japan’s longest sustained economic expansion since World War II appears to have ended amid growing fears of a recession in Asia’s largest economy, a Japanese Government report said today.

TOKYO - Japan Airlines, Asia’s largest carrier, said today it had returned to an operating profit in the three months to June as route cuts and layoffs helped offset soaring jet fuel costs.

WASHINGTON - Troubled US banking giant Citigroup has agreed to buy back $US7.5 billion ($A8.2 billion) of tainted securities it marketed to tens of thousands of investors, US regulators announced today.

LONDON - British bank Barclays said that net profit slumped 35 per cent in the first half, hit by writedowns of $US2.1 billion ($A2.31 billion) from the US sub-prime housing and credit crises.

PARIS - French insurance giant AXA reported a 32 per cent slump in net first-half profit today, reflecting a fall in the value of selected assets due to the credit crisis.

JOHANNESBURG - South Africa’s gold production declined by 12.3 per cent in June 2008 compared with the same period last year.

WELLINGTON - A retired Taupo couple have been told they will lose their home if they do not pay $18,000 for a Blue Chip development that was never built.

LOCAL NEWS

SYDNEY - Sydney’s debt-laden Lane Cove tunnel owner and operator, Connector Motorways Pty Ltd, has received an underlying credit rating downgrade to B from Standard & Poor’s (S&P).

MELBOURNE - Australia’s corporate watchdog is putting unlisted property schemes, credit ratings agencies and listed investment funds under the microscope in response to concerns sparked by the ongoing financial market turmoil.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

TEL - TELECOM CORPORATION OF NEW ZEALAND LTD - down two cents to $2.90
New Zealand Telecom has reported an annual operating surplus from continuing operations down 15.5 per cent to $NZ713 million ($A563.64 million).

NWS - NEWS CORP - up down 56 cents to $16.17
NWSLV - NEWS CORP NON VOTING SCRIP - down 73 cents to $15.55
A more challenging outlook than expected for News Corp has forced analysts to downgrade their 2009 fiscal guidance for the media giant.

TAH - TABCORP HOLDINGS LTD - up 57 cents to $9.17
Tabcorp reported a net loss of $164.6 million as the Victorian Government indicated it won’t compensate the gaming company for terminating a key licence.

SGB - ST GEORGE BANK LTD - up 44 cents to $29.29
WESTPAC BANKING CORPORATION - up 16 cents to $23.15
St George Bank has a far worse outlook than any of its peers, but is likely to talk up its prospects to attract a higher takeover bid, according to JPMorgan.

MRE - MINARA RESOURCES LTD - steady at $1.49
Australia’s second largest nickel producer has posted an 80 per cent fall in net profit for the half-year amid rising costs and declining commodity prices.

KBC - KEYBRIDGE CAPITAL LTD - up 17.5 cents to 94.5 cents
Infrastructure and property investor Keybridge Capital said it is going into funds management, and forecast fiscal 2009 earnings to grow by as much as 32 per cent after rapidly growing profit in 2008.

AHI - ALLCO HIT LTD - went into a trading halt at 15 cents
A halt was placed on trading in the securities of Strategic Finance listed on the NZDX market, ahead of an announcement. Owner Allco HIT announced that a consortium including senior management was planning to buy Strategic Finance.

CEU - CONNECTEAST GROUP - down 14.5 cents to 85 cents
ConnectEast Group has reported average daily traffic volume of 133,722 trips during the EastLink motorway’s inaugural tolling week, down from 270,868 average daily trips taken when the Melbourne based toll-road was offered free from June 29 to July 23.

NKP - NKWE PLATINUM LTD - down eight cents to 90 cents
Xstrata Plc, which is pursuing Lonmin Plc through a $US10 billion ($A11 billion) takeover, has signed an agreement with Nkwe Platinum Ltd to earn a significant stake in five South African platinum projects.

SRA - STRATHFIELD GROUP LTD - steady at four cents
Audio and mobile products retailer Strathfield Group has acquired two businesses in the electronics and communications sector for $140 million to strengthen its business in a challenging market.

WASHINGTON - Troubled mortgage finance giant Freddie Mac reported a markedly higher second-quarter loss than expected as the US housing slump deepened. The mortgage monolith slashed its dividend by around 80 per cent.

NEW YORK - Time Warner Inc’s second-quarter earnings fell 26 per cent on declining subscriber fees at its AOL online unit, together with lower ad revenue at the Time publishing business.

LONDON - The International Monetary Fund slashed its growth forecasts for the British economy, pointing to high inflation curbing expectations of Bank of England interest rate cuts.

LONDON - A $US10 billion takeover bid from Anglo-Swiss mining giant Xstrata Plc sent shares in rival Lonmin Plc soaring Wednesday, but the world’s number-three platinum producer rejected the offer as being too low.

FRANKFURT - Reinsurer Munich Re AG said second-quarter net profit fell by 47 per cent amid market turmoil and asset writedowns of 889 million euros ($A1.5 billion).

FRANKFURT - Commerzbank, the second-biggest German bank, posted a gain in second-quarter net profit owing to a favourable tax offset. The bank however reported a plunge in operating earnings due to the global credit crisis.

PARIS - French bank BNP Paribas reported a 34 per cent fall in second-quarter profit, citing the impact of the US sub-prime meltdown, but said it remained in better shape than most of its competitors.

LOCAL NEWS

MELBOURNE - Giant B-triple trucks could soon be allowed on Victorian roads under a State Government plan to cut road congestion.

CANBERRA - Treasurer Wayne Swan vowed to keep an “eagle eye” on the banks to see if they pass on any interest rate cuts to consumers, but he admitted he can’t force them to do so.

SYDNEY - A Japanese company is looking to export water to Australia in large ships for agriculture and industrial use. Nomura Research Institute proposes delivering the water on ships that carry Australian coal to Japan’s second-largest steelmaker, JFE Holdings, which has a mill in Kawasaki near Tokyo.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

TAH - TABCORP LTD - up four cents to $8.60
Tabcorp Holdings Ltd releases its annual results today.

NWS - NEWS CORPORATION - up 63 cents, or 3.91 per cent, to $16.73
NWSLV - NEWS CORPORATION NON-VOTING - up 69 cents, or 4.43 per cent, to $16.28
News Corporation has reported a 57.2 per cent jump in annual profit following strong results for its film and cable businesses, but warned of less robust growth this year.

CXP - CORPORATE EXPRESS AUSTRALIA LTD - down one cent to $5.59
Business supplier Corporate Express has reported interim net profit down 4.4 per cent, but says the company is on track to achieve its earnings targets for the full year.

WAN - WEST AUSTRALIAN NEWSPAPERS HOLDINGS LTD - down 73 cents, or 8.15 per cent, to $8.23
West Australian Newspapers Holdings Ltd (WAN) has delivered a significant increase in annual net profit but says it remains cautious about the outlook for advertising revenue.

AIO - ASCIANO LTD - up four cents to $5.08
Ports and rail operator Asciano Group says it has an “open mind” towards any takeover proposal, provided it reflects fair value for the company.

CFE - CAPE LAMBERT IRON ORE LTD - in trading halt at 58 cents
Cape Lambert Iron Ore Ltd has entered a trading halt as the company finalises the $400 million sale of an iron ore project to China Metallurgical Group Corp (MCC).

TAL - TOWER AUSTRALIA LTD - down 16 cents, or 5.59 per cent, to $2.70
SGB - ST GEORGE BANK LTD - up $1.41, or 5.14 per cent, to $28.85
Tower Australia says the loss of corporate customer St George Bank will reduce its $700 million book of business by eight per cent and have a “part impact” on its 2009 profit.

NCM - NEWCREST MINING LTD - down 91 cents to $25.40
Newcrest Mining Ltd, Australia’s largest gold company, says gas supplies have resumed from Apache Energy Ltd’s Varanus Island facility, two months after an explosion cut the gas line.

RMD - RESMED INC - up 57 cents, or 14.14 per cent, to $4.60
Investors in ResMed Inc will be having sweet dreams after the sleep management company increased its annual profit by two thirds on improved US sales, sending its shares up 14 per cent.

Gold is the December contract on the COMEX division of the NY Mercantile Exchange. Silver and Copper are the September contracts on NYMEX.)

NEW YORK - Wall Street retreated again on Friday after readings on jobs and manufacturing - the first reports for the third quarter - indicated that businesses and workers still face a tough economy. The major indices ended a turbulent week mixed.
A massive quarterly loss at General Motors Corp and rising oil prices also gave investors reason to trade cautiously, but the market was considerably calmer than the first four sessions of the week, when the Dow Jones industrials rose or fell by triple digits each day.
The Dow fell 51.70, or 0.45 per cent, to 11,326.32, ending the week down 0.39 per cent.
Broader stock indicators also lost ground on Friday. The Standard & Poor’s 500 index fell 7.07, or 0.56 per cent, to 1,260.31, and the Nasdaq composite index fell 14.59, or 0.63 per cent, to 2,310.96.

LONDON - European share prices suffered steep falls on Friday as oil prices climbed and US automaking giant General Motors reported a huge loss.
In London, the FTSE 100 index shed 57.2, or 1.06 per cent, to end the week at 5,354.70.

FRANKFURT - The DAX fell 83.1, or 1.28 per cent to finish at 6,396.46.

PARIS - The CAC 40 lost 78.02, or 1.78 per cent to close at 4,314.34.

TOKYO - Japanese share prices closed down 2.1 per cent on Friday at a two-week low, hit by a slump on Wall Street, disappointing domestic earnings news and political uncertainty, dealers said.
The Tokyo Stock Exchange’s benchmark Nikkei-225 index slid 282.22 points to end at 13,094.59.

HONG KONG - Hong Kong share prices closed 0.6 per cent higher on Friday, tracking a recovery in the mainland on hopes that Beijing may ease controls to spur growth, dealers said.
The benchmark Hang Seng Index was up 131.5 points at 22,862.6.

WELLINGTON - The New Zealand share market as a whole was down, with the benchmark NZSX-50 index off 33.12 points to 3303.16.

SYDNEY - The Australian stock market is expected to fall after US equities slumped on readings on jobs and manufacturing which indicated that businesses and workers still face a tough economy.
The miners may decline as metals including gold and copper slipped on Friday.
At 0745 AEST on the Sydney Futures exchange, the September share price index futures contract was 38 points lower at 4,875.
In economic news today, the Australian Bureau of Statistics releases its house price indices for the June quarter.
Australia and New Zealand Banking Group releases its job advertisements data for July.
In other news, the Diggers & Dealers Mining Forum begins today in Kalgoorlie.
Argo Investments announces its annual results.
The Australian share market resumed its downward march on Friday, closing almost 1.5 per cent lower, led by falls from the financial sector amid further signs of a deteriorating economy.
The benchmark S&P/ASX200 fell 73.4 points, or 1.47 per cent, to 4904, while the broader All Ordinaries shed 74.6 points, or 1.48 per cent, to 4978.

NYMEX
Oil prices ended slightly higher on Friday, pushing back above $US125 a barrel as the threat of a conflict with Iran rattled energy markets after a week of wild swings.
The gains, however, were limited by lingering beliefs that fuel prices are still too high for cash-strapped Americans who are already cutting back on driving to save money.
Light, sweet crude jumped more than $US4 to a high of $US128.60 a barrel on the New York Mercantile Exchange, its highest level in nine sessions, before easing back later to settle at $US125.10, up $US1.02. Prices fell $US2.69 to settle at $US124.08 on Thursday.
In other Nymex trading, heating oil futures fell about 2.25 cents to settle at $US3.437 a gallon while gasoline futures added 1.34 cents to $US3.0843. Natural gas futures added 27 cents to settle at $US9.389 per 1,000 cubic feet.
In London, September Brent crude rose 62 cents at $US124.60 a barrel on the ICE Futures exchange.

COMEX
Gold futures turned lower after the dollar strengthened against the euro, weakening the metal’s appeal as a safe haven against inflation and weakness in the US currency.
Gold for December delivery fell $US5.20 to settle at $917.50 an ounce on the Nymex, after earlier falling to $910.30 an ounce.
Other precious metals also fell. September silver lost 27 cents to settle at $US17.52 an ounce on the Nymex.
September copper dropped 8.3 cents to settle at $US3.5785 a pound.

INTERNATIONAL NEWS

BOSTON - The rich are sharing America’s financial pain - and contributing to it. It may have taken longer and it may not be as acute as for the middle class, but there are early hints that the economic slump is crimping the lifestyles of rich Americans.

LONDON - The Royal Bank of Scotland (RBS) will this week unveil the biggest loss in the history of British banking due to a multi-billion-pound hit from the global credit crunch, The Sunday Times reported.

MADRID - Spain’s once-booming economy is in worse shape than expected and could slip to zero growth, the finance minister said in an interview published Sunday.

BAGHDAD - Iraq is inviting bids from contractors to drill seven new oil wells and complete work on four natural gas wells.

LOCAL NEWS

CANBERRA - Official house price figures due out today could give another clue to the prospects of an early interest rate cut.

CANBERRA - The aviation watchdog has formed a special team to investigate Qantas amid growing public concern the airline’s safety standards may have slipped.

SYDNEY - Qantas cabin crew have ruled out any industrial action over recent security scares, despite asking to meet company officials after another of the airline’s jets was forced to make an emergency landing.

MELBOURNE - Australian banks are profiteering from customers despite claims by the industry that margins are suffering from a troubled credit market, a new report shows.

MELBOURNE - The latest Ford Falcon is the first Australian-built car to win a world-best five-star rating for its crash safety.

SYDNEY - Iron ore tycoon Andrew Forrest’s paper fortune has slumped by more than 37 per cent in the past month in response to a short-selling blitz by international hedge funds against his Fortescue Metals Group.

MELBOURNE - Junior explorer Avalon Minerals Ltd plans to spin out the company’s Western Australia uranium assets into a new vehicle, Caliburn Resources Ltd, through a $2.4 million initial public offer (IPO).

MELBOURNE - The number of job ads dropped slightly in July despite a host of falling economic indicators, with the building and construction sector hardest hit, according to a survey.

STOCKS TO WATCH ON THE AUSTRALIAN STOCK EXCHANGE TODAY:

QAN - QANTAS AIRWAYS LTD - down one cent to $3.31
Australia’s aviation watchdog will launch an investigation into Qantas safety and maintenance operations following three mid-air emergencies on its jets in less than 10 days.

SUN - SUNCORP-METWAY LTD - down 1.85, or 13.83 per cent, to $11.53
Suncorp Metway Ltd says severe storms and the global credit crunch would cut its annual profit by half, prompting it to maintain a flat dividend in fiscal 2009, and sending its shares into a tailspin.

FMG - FORTESCUE METALS GROUP LTD - down 43 cents to $8.27
Shares in Fortescue Metals Group fell by as much as six per cent after a bulk carrier, transporting the company’s iron ore, lost steering and ran aground off Western Australia, blocking the vital Port Hedland shipping channel.

BUG - BUDERIM GINGER LTD - up 1.5 cents to 48.5 cents
Buderim Ginger Ltd has forecast its annual pre-tax profit to rise by as much as $2 million, in line with guidance.

CSR - CSR LTD - up one cent to $2.12
CSR Limited will spend $17.8 million to increase its ethanol production capacity to 60 million litres per annum, the