Markets Live: Stocks, AUD down early 10:45am: Quick reminder that Ford will hold a press conference in a few minutes on its future in Australia. Meanwhile, Just last month, BHP chairman Jac Nasser, a former chief executive of Ford globally, warned of a domino effect on the other car manufacturers should one shut down in Australia. The removal of one of the three could threaten the industry as a whole as it becomes too small to support its own supply chain, Nasser told an event in Melbourne. ""Let's assume one of the three decide to exit Australia in terms of manufacturing, then you end up potentially with a sub-scale supplier infrastructure,"" he said. ""And once that happens, I think it's a domino effect."" 10:34am: QBE shares are 5 per cent higher after its credit outlook was raised from "negative" to "stable" by Standard & Poor's, which has revamped its rating criteria for insurance companies. Its financial strength rating - which assesses its ability to meet claims by customers - was given the A+ rating by S&P. It comes after Moody's last month cut QBE's issuer credit rating - a separate measure of the company's ability to meet its obligations to bond holders. Chief executive John Neal said: "QBE is one of the few insurers in the world to have retained an unchanged insurer financial strength rating over the past decade." 10:25am: Richard Johns, a consultant with Australian Automotive Intelligence, said local car manufacturers have struggled with the impact of the financial crisis and the strong Australian dollar. He said while Holden and Toyota have seen their exports pick up as global economic conditions improve, ""Ford has very little in the way of exports so it hasn't benefited much from that pick-up"." ""I think the exchange rate has had a particular severe effect on the cost of operations in Australia and that has cost the local producers some sales in the domestic market,"" Mr Johns said. ""More importantly, the damage has been greater in the export markets where Toyota and Holden have to compete against vehicles from other countries including the USA. The export market depends upon on how high and how long the Australian dollar stays up."" The Australian dollar nearly half a cent following the reports that Ford Australia was set to announce large cuts to its operations. It was trading at 96.54 US cents about 10.10am today. 10:16am: The Australian share market has opened more than a third of a per cent lower. The benchmark S&P/ASX200 index was down 20.3 points, or 0.39 per cent, at 5,145.1, while the broader All Ordinaries index was down 20.9 points, or 0.41 per cent, at 5,121.2. 10:15am: The Aussie dollar, meanwhile, fell to its lowest level in almost a year on the Fed news, and has slipped again in morning trade. It was recently buying 96.56, which is below the overnight low of 96.68, and down from around 97 cents before the Ford announcement. It extended its decline this month to 6.8 per cent, set for the biggest drop since September 2011, after Federal Reserve Chairman Ben S. Bernanke said yesterday the central bank may taper monthly bond purchases if it's confident of sustained gains in the economy. ""It's the question now of when does the stimulus start to be wound back?"" said Imre Speizer, a strategist in Auckland at Westpac. ""There will be further fallout to Bernanke's remark over the next few days and that will probably push the US dollar higher and push currencies like the Aussie and kiwi lower."" 10:08am: A quick note on where Aussie stocks could be headed today, and what will be driving them, from Miguel Audencial at CMC Markets: The market's reaction to US economic data may now be harder to predict than usual with some investors considering a good economic figure as an indication of poor future market performance due to the increased possibility that asset purchases could be scaled back sooner. Flash Manufacturing PMI figures from China, France and Germany will be released later today. In the US, weekly unemployment claims and New Home sales are schedule to be released tonight. 9:55am: In corporate news this morning, building materials group James Hardie has posted a fourth quarter to March net profit of $US30.7 million, down from $US34.5 million, amid ongoing tough trading conditions in its key markets. It has declared a final dividend of US13c along with a special 24c a share special dividend. For the full year the net profit fell to $US140.8 million from $144.3 million. The group benefitted from higher sales volumes in all major markets, but with lower average selling prices in the key US and Europe markets. The figures are before asbestos liability and impairment charges. Earnings a share for the full year fell to 10.3 US cents from 138 US cents. 9:51am: We will be watching the Ford story as it develops throughout the morning and bring you news as it breaks. In the meantime, the major news overnight came from the US Federal Reserve, which said it would continue its stimulus efforts but it still sent a shudder through markets. Federal Reserve Chairman Ben S. Bernanke defended the central bank's record stimulus program under questioning from lawmakers, telling them that ending it prematurely would endanger a recovery hampered by high unemployment and government spending cuts. ""A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further,"" Bernanke said today in testimony to the Joint Economic Committee of Congress in Washington. US stocks erased an early rally and Treasuries fell after Bernanke said the Fed could ""take a step down in our pace of purchases"" in the ""next few meetings."" 9:43am: Federal Treasurer Swan has promised to give relief to the Australian workers who may be impacted by an expected imminent announcement by car maker Ford. Ford is reportedly expected to announce a huge cut to its Australian operations from 2016.Mr Swan would not be drawn on whether Ford operations would cease in Australia but said he would respond in detail after the announcement. ""The government will do everything within our power to support workers and local communities that may be affected by the decision taken by Ford,"" Mr Swan told reporters in Sydney. 9:40am: Before we get to the markets news, there's a huge story developing in Australian's car industry. Early reports suggest Ford is about to close its remaining manufacturing operations in Australia, shuttering factories in Geelong and Broadmeadows, Victoria. A press conference is due to commence at 10:45 am, and Ford Australia has sent a release stating it would: "release 2012 financial results and outline important business announcement." "Ford Australia President and CEO Bob Graziano will make an important business announcement today at the company's Broadmeadows headquarters," the statement read. Contributors: Thomas Hunter, Jens Meyer