MIDDAY REPORT
(12.15pm AEST)

Australian shares are trading flat at lunchtime in the East, as gains from energy players are offset by losses from the financials. The All Ordinaries Index (XAO) is down 0.7 of a point to 4539.2pts.

Energy players are faring best, with the sector firmer by 0.8pct. Woodside Petroleum (WPL) shares are up 1.7pct to $38.90 after reporting a 17pct rise in 2Q 2011 revenue to $1.19 billion. Production for the same period fell 7pct.

NewsCorp (NWS) shares are bouncing back, ahead of a UK Parliamentary Inquiry into the scandal tonight where CEO Rupert Murdoch and his son James will testify. An unconfirmed report today indicates that independent News Corporation board members are considering replacing Rupert Murdoch with Chief Operating Office Chase Carey. The move would see 80 year old Murdoch remain as the company's Chairman. Chase Carey is a former CEO of DirecTV and is seen as positive by the markets, as he has always been pro share buy-backs. NWS shares are firmer by 2.6pct at lunchtime to $14.53.

Financial stocks are generally weaker, with the ANZ (ANZ) the worst out of the big four, down 0.7pct to $20.61.

Gaming company TabCorp (TAH) has today retained the licence for wagering in Victoria. The new licence comes into effect next year and is current for 12 years. Tabcorp has had a monopoly on off-course betting in Victoria for 50 years and had been competing against British betting giant Ladbrokes and Australian firm Tatts Group (TTS) for the licence. TAH shares are in a trading halt, last at $3.10 while TTS shares are down 0.4pct to $2.31.

The Australian dollar is buying US106.36c, £0.6615 and €75.29c.

(From Juliette Saly, CommSec Market Analyst