Australian Markets

As the Westpac's deal foresees counter bid from other banks, trading of bank stocks have plummeted over the last week. The Big Four banks have rallied and the five biggest players have touched their record high. The Westpac deal with St. George has renewed interest in bank stocks which are usually taken as safe haven. According to portfolio manager, Matthew Kidman from Wilson Asset Management, "For 10 years everyone has said that banks are a safe haven -- and they're definitely not that because they're highly geared and we've seen the share prices get thumped."

BHP shares have hit record high at all the major stock exchanges including ASX and NY Stock exchange. BHP Billiton witnessed a jump of nearly 4 percent after rumours hit the market about undisclosed Chinese interests to hold stakes in the company. The intraday trading of shares witnessed a surge of $50 today amidst strong speculations. BHP Billiton shares opened 4 percent higher at $49.95 before reclining back $1.56 or 3.25 percent at $49.54 by 10 am.

National Bank of Australia is planning to offer a counter bids on St. George. The Chief Executive of NAB commented that his bank is looking at options to run numbers on St George bank takeover. "We look at all opportunities and in due course we will look at this transaction, but just now we're literally on the sidelines watching with interest what is happening," said Mr. Stewart at the National Press Club lunch in Canberra.

The global media conglomerate reported a healthy third quarter profits. Most of the profits have been attributed to the growth in advertising revenue at Fox News and Fox Channel that pertain to its broadcasting and newspaper assets.

Nippon Steel from Japan have agreed to a 65% rise in the price the company will pay for iron ore in term contracts which begin effective on April 1: Which will be great for Rio Tinto and BHP. A price rise of 50% or more has been widely expected after record highs in 2007 and continuously strong Chinese demand. Traditionally, all steel mills accept whatever price is first settled by any steel mill and one of the three top miners, Brazil's Vale or Rio Tinto and BHP Billiton.

Macquarie Bank CEO Alan Moss will leave the Bank in May after 15 years in the top executive position. Mr Moss turns 60 this year. It is likely that Alan Moss could receive between $36 million to $38 million this year before retiring. He is also a significant individual shareholder in Macquarie with a stake worth $25 million at today's prices. Mr Moss will be replaced by the head of Macquarie's investment banking division, Nicholas Moore, whose salary and bonuses came in just below that of his soon-to-be predecessor, at $32.89 million.

Australian interest rates rise again for the 11th time since 2002. The Reserve Bank of Australia (RBA) announced its decision to lift official interest rates today by 0.25 percentage points to 7 per cent following their meeting this morning.

Have you noticed the number of company takeovers lately? Macquarie Research Equities (MRE) have noticed the trend and have made the following observations. They note that the current takeover and rumour frenzy has had its equivalent in the past, namely the year of 1986. They note that there are similar drivers to the takeover frenzy as there was in 1986. There are two drivers to the phenomenon.

Uranium King (UKL) officially listed today and started trading ay 48 cents a share which represents a 92 percent rise from their float offer price of only 25 cents. The company was established to acquire, explore and potentially develop uranium projects within the United States. The company had planned to sell up to 26 million shares to raise $6.5 million. The prospectus had stated that Uranium King is planning to spend $5.19 million on exploration, while the costs of the initial public offer would be $455,000 and working capital needs would be about $943,000.

Shares in CuDeco surged after drilling results confirmed an 850-metre long mineralised zone