Facebook considering April 2012 IPO: Midday Roundup

Facebook is reportedly targeting dates between April 2012 and June 2012 for a $US10 billion ($AUS10.27 billion) initial public offering, which would value the social network at $US100 billion.

According to the Wall Street Journal, Facebook is in internal discussions over the timing of its filing with the Securities and Exchange Commission.

The report cites “people familiar with the matter” and claims that Facebook will move to an IPO next year – it comes after separate reports had indicated Zuckerberg was looking to file sooner rather than later.

Facebook is coming under pressure to list quickly as the number of its investors grows. Rules in the United States dictate that when a company has over 500 investors, it must disclose financial details.

However, reports also indicate that Facebook wants to go public in order to reward long-term shareholders and investors.

Shares flat despite strong US lead

The Australian sharemarket has opened flat this morning despite a strong lead from the United States where investors are still waiting on a long-term outlook for the European debt crisis.

The benchmark S&P/ASX200 index was up 6.8 points or 0.2% to 4065 at 12.10 AEST, while the Australian dollar fell after the announcement of the mid-year budget outlook to $US0.98c.

AMP shares rose 0.49% to $4.09, while Commonwealth Bank shares fell 0.8% to $46.49. Westpac shares lost 0.2% to $20.22 as NAB lost 0.44% to $22.64.

In the United States, the Dow Jones Industrial average rose 291 points or 2.6% to 11,523.

Fitch downgrades United States outlook, upgrades Australia

Ratings agency Fitch Ratings has revised its outlook for the United States economy to negative, and warned it may cut the country’s prized AAA rating if it cannot reduce its growing debt by 2013.

The ratings agency warned that there is considerable uncertainty surrounding the potential for growth in the US.

“The longer productive capacity remains idle and unemployment high, the greater the likelihood that the loss of output (and tax receipts) is greater than currently estimated, with negative implications for the medium- to long-term fiscal outlook,” Fitch said in a statement.

It warned that it may take action unless the country’s government can take action to reduce its growing debt.

The same agency today upgraded Australia’s foreign currency issuer default rating to “AAA”, from “AA+”, citing what the ratings agency said was Australia’s fundamental credit strengths, value-added economy and low public debt, among other factors, in upgrading its view.

“The combination of low public debt, a freely floating exchange rate, a credible inflation target framework, and liberal trade and labour markets provides Australian authorities the flexibility to run strong counter-cyclical fiscal and monetary policies during both economic downturns and upturns,” said Art Woo, a director in Fitch’s Asia Sovereign Ratings group, in the release.

Premier claims retail trade on the rise

Premier Investments – owner of brands including Just Jeans and Portmans – has claimed retail trade is improving.

The company reaffirmed its guidance of EBIT in 2012 of between $80 million to $95 million, with chairman Solomon Lew saying the company is doing a large amount of work to ensure brands were ready for Christmas.

“Trade in October improved on the trend we saw in August and September,” he said. “In addition, November is on track.”