As discussed above, the June 30 corporate reporting season peaks this week with some good results but also slashes of red ink.
Economically, interest rate discussion will also occupy headlines with the crucial Reserve Bank meeting just over a week away on September 2.
We also see more signs of the way June quarter economic growth went with construction figures for the quarter and the highly important new capital spending figures.
The June quarter new private capital figures will probably show a softening in the resources boom. While a rebound is expected in the June quarter from March’s surprise fall, intentions for the next year are likely to show the influence of the global slowdown and the uncertain credit and financial markets.
The downturn in metal prices has already seen a number of smaller companies close mines, curtail expansion and sack workers: lead, zinc and nickel producers have been particularly active in this respect, the most recent Perilya at Broken Hill in NSW.
The credit figures for July will show a continued softening in the take up of credit for housing, business and personal use.
In the US, it’s a holiday weekend ahead for Labor Day, so the current low trading volumes should be maintained as investors stay on the sidelines and worry about the credit crisis, oil and commodity prices, growth and Fannie Mae and Freddie Mac.
Some US analysts reckon that if the Bush Administration was going to do something, a holiday long weekend would be the ideal team to formalise a rescue for the two embattled mortgage giants.
It could however be seen playing into the hands of the US Democratic Party which holds its nominating convention this week with a Vice Presidential Candidate due to be announced by Barack Obama.
Lehman Brothers remains in the spotlight with the state-run Korea Development Bank saying Friday that shrinking US investment bank was one of its options for acquisitions. Lehman’s days as an independent bank are numbered. If no one takes a big stake or buys it, its future will be under more pressure.
But the US housing depression remains a major area of interest with the monthly figures on existing home sales for July tonight and the the S&P Case-Shiller home price index and new home sales for July tomorrow night. Last week’s new home starts and permits were down, but some analysts reckon they are seeing a floor in the slump.
But the most watched figure will be the second reading for second quarter GDP growth in the US.
Its out on Thursday and expected to show second-quarter growth at an annual rate of 2.7% again the first estimate (without US trade and a couple of other new figures) of 1.9%
July durable goods orders on Wednesday and initial jobless claims data on Thursday will probably give a better feeling on the state of the economy.
MONDAY:
Annual results for Transfield Services, Ramsay Health, IBA Health, Austero, Pattie Foods Challenger Financial Services, Arrow Energy, Ridley Corp.
TUESDAY:
Annual results for Woolworths, Fosters, Toll Holdings, Flight Centre, Primary Health, Babcock and Brown Infrastructure, APA Group, Goodman Fielder, Suncorp Metway, Emeco Holdings, Mirvac, Becton, Air New Zealand. Interims from Rio Tinto, Boart Longyear
WEDNESDAY:
The Australian Bureau of Statistics releases new construction work done figures for the June quarter. Annual results for Regional Express, Gloucester Coal, Macquarie Media, Transurban, Australian Infrastructure Fund, Australian Vintage, Trans Pacific Industries, Wotif, Connecteast, Hastie Group, Babcock and Brown Communities, Allco Equity Partners, Walter Diversified Services. Interim results for GPT, Westfield Group, Woodside Petroleum.
THURSDAY:
The ABS releases new private capital spending figures for the June quarter and June year. Annual results from Macarthur Coal, Village Roadshow, Origin Energy and Tatts Group, Babcock and Brown Wind Partners, Gunns, Coffey International. Petsec, AMP, Aristocrat interim figures
FRIDAY:
RBA financial aggregates for July. Annual results from Centro, Harvey Norman, Duet Group, Sims Group, Babcock and Brown Power, Allco Finance, BSA, FKP Property. Interim results from Roc Oil. .Housing Industry Association new home sales figures for July.
