Daily FNArena News

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

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

According to Westpac Bank while consumer sentiment in the US remains weak it is recovering, but not quickly enough to suggest any sharp improvement in the US economy.

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

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

Weekly musings from your editor. Have we seen the bottom yet?

Most major economies have economic data out next week that will provide investors with a greater understanding of current conditions. Westpac is among Aussie companies releasing results.

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

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

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