Westpac is predicting the Reserve Bank will cut interest rates by 100 basis points over the next 12 months. Westpac says that the debt crisis in Europe and the US as well as increasing consumer caution at home will put the brakes on Australia's economic growth.

 

BHP Billiton has launched a $15 billion takeover of US gas producer Petrohawk Energy. BHP is offering a 65 per cent premium to Petrohawk's last traded price. The miners scrapped a $39 billion offer for Canadian fertilizer maker Potash last November after running into regulatory obstacles.

 

And to the market numbers, local shares have finished lower as nervousness over that BHP Billiton takeover bid weighed down the market. The All Ordinaries index and the ASX 200 shed just under 0.5 per cent by the close. And in the US, markets are stronger. The Dow Jones is up 43 points. The Australian dollar is currently hovering around 106 US cents.