To all my US friends Happy Independence Day.

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Have to say that recently you have become a disappointment to the British. I think its Trump. Not sure it is your finest hour.

Happy (well not so happy so far )New Year!

Headlines

  • ASX 200 drops 37 points to 5684.5 as banks give up early gains.
  • Cautious start gives way to top ten selling in low volume day.
  • All sectors hit with utilities, consumer and healthcare leading falls.
  • Building stocks ease on housing data. REITS slip on rate fears.
  • Energy stocks rise on oil price.
  • Big Bank Index falls to $171.00 despite broker upgrade.
  • AUD slightly weaker at 76.74c.
  • US Futures up 36 ahead of Independence Day weekend.
  • Asian markets mixed US, CSI 300 down 0.36%. Japan up 0.25%

Stock Stuff:

  • CSL -2.00% profit taking continues
  • MVF -8.15% recent rally unwinds.
  • FLT +1.49% continues to find buyers.
  • MIN -4.06% lower despite broker upgrade.
  • MSB +7.21% rally gathering steam.
  • BKL +3.72% settling after CEO resignation.
  • WOW -1.25% switching to WES +0.12%
  • APE -4.19% consumer stocks suffering.
  • ELD -4.49% Overbought position unwinding.
  • VOC -4.45% No news is bad news. FXJ move causes jitters.
  • FXJ -10.91% Jilted by two PE buyers. Domain separation to continue.
  • REA -2.50% continue to fall after last weeks’ write down.
  • Biggest risers – MSB, BGA, BKL, MND, BSL and BPT.
  • Biggest fallers – FXJ, OGC, VOC, AOG, WTC and APE.

TODAY

  • Sirtex Medical (SRX) -0.12% after it presented findings regarding a cancer treatment, highlighting that the addition of the company’s ‘SIR-spheres’ to treatment significantly improved median overall survival for some conditions.
  • BWX (BWX) +1.70% has acquired Mineral Fusion, the number one natural cosmetics brand in the US for US$43m, and will fund the acquisition by debt.
  • Mirvac (MGR) –1.41% has sold 50% of its 664 Collins Street interest for $138m, becoming partners with Morgan Stanley Real Estate Investing for the project.
  • Fairfax (FXJ) -10.91 % will proceed with the Domain separation after ending discussions with private equity. FXJ also issued a trading update. Group revenues are around 6% lower than last year consistent with previous updates. Domain revenue is up 10% and its digital businesses up 22%. Metro media is down 12% and community media down 11%. Macquarie Media is down 5. The company is expecting EBITDA of between $262m-$266m.
  • Boart Longyear (BLY) +4.00% The recapitalisation will be delayed according to an announcement this morning. Final implementation is now expected late July or early August due to a number of prerequisites, notably the increased asset based loan.
  • Collins Foods (CKF) –0.68% The company has issued the entitlement offer booklets to eligible shareholders for the 1:11 entitlement offer announced last Monday. This marks the opening of the offer for $4.55 per new share which closes on the 12th of July.
  • Virgin Australia Holdings (VAH) +6.25% The company given a cash flow update saying it will be up $90-$140m from the last financial year and EBIT will be up 2-3% on FY16. They also announced that the company’s Velocity Frequent Flyer program reached 8m members this year.
  • Iluka Resources (ILU) +0.23% has suspended shipping of its minerals from its South Australian port as it looks for an alternative means of transport but says this won’t impact 2017 production guidance.
  • Cimic (CIM) +0.21% won the contract for the $400m Airfield Works by Brisbane Airport Corporation in a 50:50 joint venture with BMD Constructions.
  • Hansen Technologies (HSN) is acquiring Enoro Holding, a Nordic customer information systems provider for the energy sector for $96m. The company will start capital raising with $50m from equity including $40m from an underwritten institutional placement and $10m from a share purchase plan.
  • Western Areas (WSA) +0.47% has said its final shipment from the Port of Esperance left on June 30 so will be included in the FY17 report, which will have cash at bank of $140m including a FCF of $28m for June.

ECONOMIC NEWS

  • Australian PMI numbers came in at 56.2 for June, up 0.3 from May and into the expansionary zone. Services increased to 57.0 from 54.8 in May.
  • CoreLogic home value index numbers came out today with Sydney up 0.8%, Melbourne up 1.5% and Brisbane up 0.5% for the quarter.
  • Australian building approvals fell 5.6% in May from April. Far greater than expectations of a 1.3% fall
  • Australian job ads were up 2.7% MoM to 175,091, a greater increase than last months’ 0.4%. This is a 10.5% increase YoY.

ASIAN NEWS

  • Chinese steel futures have climbed to their highest level since March. The most-traded iron ore on the Dalian Commodity Exchange was last up 0.9% at 475 yuan a tonne.
  • China’s Caixin manufacturing PMI was up 0.8 to 50.4 MoM as it moves into expansion. This was above expectations of 49.9.
  • Japan manufacturing PMI fell to 52.4 in June from 53.1 in May. The Tankan report showed the Big Manufacturers Index for June came in higher than expected at +17, compared with forecasts for +15.

EUROPE AND US MORNING HEADLINES

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  • It’s the 4th July and in the US the traditional burger celebration has got cheaper this year. In the two weeks surrounding the holiday Americans spent US$803m on beef. 87% of the US, barbeques on 4th Beef mince is at its cheapest since 2014.

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  • The UK government has been handed a report from L&G warning that even raising the retirement age to 75 will not plug the budget black hole. Higher taxes, more borrowings and cuts to healthcare are possible given the demographic time bomb.

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And finally……………

 

A guy goes to the supermarket and notices an attractive woman waving at him.

She says hello. He’s rather taken aback because he can’t place where he knows her from. So he says, “Do you know me?”

To which she replies, “I think you’re the father of one of my kids.”

Now his mind travels back to the only time he has ever been unfaithful to his wife and says, “My God, are you the stripper from my bachelor party that I made love to on the pool table with all my buddies watching while your partner whipped me with wet celery?”

She looks into his eyes and says calmly, “No, I’m your son’s teacher.”

 

 

Helium walks into a bar. The bartender says “We don’t serve noble gasses in here.” Helium doesn’t react.

 

Clarence

XXXX

mt_tryforfree

NT Markets

Get a Global take on things at http://www.ntmarkets.com

 

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