Business conditions continue to fall: Midday Roundup

Business conditions have continued to fall, despite gains made in the previous month, according to the latest NAB survey.

NAB says the survey shows a fall that is mostly attributable to worsening employment conditions, along with conditions for profitability and trading.

However, the survey also found that confidence increased for a second consecutive month, with that index rising three points to two.

“While conditions were a little below average levels in the month, trend conditions have been fairly flat and are consistent with an economy that has broadly marked time over recent months,” NAB wrote in the survey.

NAB noted that when the survey was taken consumers were anticipating an interest rate cut – a prediction that was fulfilled last Tuesday, when the RBA cut the official interest rate by 25 basis points.

Trade surplus falls in September

Australia’s trade surplus declined in September, despite analysts’ expectations that the surplus would rise, according to the latest figures from the Australian Bureau of Statistics.

The figures show the surplus was at a seasonally adjusted $2.5 billion, down by $389 million from August. Analysts had expected a surplus of $3.1 billion.

Shares flat after weak overseas leads

The Australian sharemarket has opened flat today after a weak lead from the United States, where investors are keenly waiting on more information out of Greece.

The benchmark S&P/ASX200 index was up 7.4 points or 0.2% to 4280.8 at 12.00 AEST, while the Australian dollar was at $US1.03c.

ANZ rose 1.37% to $21.48, while Commonwealth Bank shares fell 0.04% to $49.30. Westpac rose 0.09% to $21.13, as NAB rose 0.02% to $25.23.

In the United States, the Dow Jones Industrial Average rose 85 points or 0.7% to 12,068.4.

Greece says making progress on naming new Prime Minister

A Government spokesperson says George Papandreou and the head of opposition have held positive talks on who the country’s next Prime Minister will be, following reports former European Central Bank vice-president Lucas Papademos would takeover following Papandreou’s resignation this week.

According to reports, European ombudsman Nikiforos Diamantouros and Greece’s IMF delegate Panagiotis Roumeliotis are other potential candidates.

A deputy Government spokesperson has told AFP an agreement will take time, amid warnings from the US that the next Government should move swiftly to meet the conditions of the EU bailout.

Westfield confirms full-year guidance, dividend

Shopping centre giant Westfield Group has confirmed its full-year guidance and dividend, with retail sales at its Australian centres down 1.7% in the September quarter.

Sales in major stores across Australia fell by 3.8% across the quarter, although specialty stores were down just 1.4%.

Sales in UK and New Zealand rose in the quarter, however, with US sales up 5.6% over the year,
Rents were also up 3.8% over the quarter for Australia.

Westfield says funds from operations will be between 64 and 65 cents per security in 2011.