Sorry was doing Sky Business yesterday but here we are today!
- ASX 200 down 68 points to 5687.
- High 5762. Low 5678.
- Stronger volumes on sell off.
- RBA optimistic on outlook.
- 50% chance of rate rise by February.
- AUD 79.04c jumps on RBA comments.
- Banks fall around 2.5% on APRA fears.
- RIO 2Q report below forecasts.
- SPO throws in towel in DOW takeover.
- Bond yields jump to four-month high.
- Greens Senator quits.US healthcare reforms collapse.
- US Futures down 3.
- Asian markets sag China CSI 300 down 0.83% Japan down 0.58%.
- TLS -0.95% slips late.
- CSL -1.22% continues to slide.
- SAR +8.23% hits 300k oz production.
- WGX -4.91% Purchase of Cue JV.
- ERA +23.71% on Rossing production rising 23% on higher grades.
- MLX -3.25% production report.
- VRL +1.75% after a Wet’n’ Wild ride, down 8% at one stage.
- GXY -3.25% profit taking continues.
- BIG -3.75% finally in profit taking.
- CIM +1.12% positive result NPAT up 22%.
- Biggest risers – SAR, ERA, BIN, SBM, RCR and SCG.
- Biggest fallers –WGX, SXL, CWY, IRE, IPH, and HLO.
- Cimic Group (CIM) +1.12% has reaffirmed 2017 profit around $640m-700m and has lifted its dividend by 25% with first half net profit coming in at $322.9m, up 22% on year. The company also highlighted a strong balance sheet position and a sound level of work in hand.
- Rio Tinto (RIO) -1.49% has released their operations update this morning with chief executive J-S Jacques noting a solid quarter for production, including record output at their bauxite operations. Iron ore production was consistent with last year although slightly weakened following rail track maintenance.
- Oil Search (OSH) –0.74 has released their quarterly production numbers, first half sales revenue was 16% higher than in 2016 at US$676.2m, total production in the first half came in at 14.81m barrels, down 1% due to planned maintenance activities.
- Fortescue Metals Group (FMG) -0.19% has released a response to media speculation on production. The company has said the report in the Australian newspaper regarding (FMG) seeking environmental approval for the future Eliwana mine development, is consistent with normal approval processes and allows future flexibility. It does not reflect Fortescue’s production guidance.
- Spotless (SPO) –unchanged- has said it ‘reluctantly’ recommends the Downer EDI (DOW) hostile take-over offer after its stake rose to 67%.
- Village Roadshow (VRL) +1.75% The company expects full-year earnings from its theme parks division to come in at the lower end of its $55m to $65m guidance. It also announced a $65m pre-tax impairment against Wet’n’Wild in Sydney when it releases its full-year results next month.
- Oil Search (OSH) -0.74% said that output in the second quarter fell from the previous quarter due to maintenance activities
- ANZ Roy Morgan Consumer Confidence Index fell slightly by 0.4% following a 1.3% fall last week.
- Positive RBA minutes have moved the Australian dollar higher it is now trading at a 2-year high.
- The ABS has reported today that new vehicle sales rose by 1.2%in June, signalling the fourth consecutive gain. Annual sales of SUVs and “other vehicles”, like utes, are at record highs.
- Over the ditch NZ Inflation disappointed coming in flat in the second quarter, below the 0.2% expected by analysts, and down sharply from the 1.0% posted in the first quarter. The RBNZ had forecast inflation of 0.3% on a quarterly basis and 2.1% on an annual basis for the second quarter of 2017.
BOND MARKET UPDATE
- China’s giant steel sector churned out 72.78m tonnes of the stuff in June. That was equivalent to annualised production of 891m tonnes.
- Average new home prices in China’s 70 major cities rose 0.7% in June from the previous month, in line with growth in May. Compared with a year ago, new home prices rose 10.2% in June.
- Chinese shadow banking is apparently twice the size of previous estimates, at US$38 trillion. This is bigger than all regular activities of all the other lenders. Previously thought to be 42% of on balance sheet exposure it is now estimated at 110%.
- India brings in new cigarette tax. ITC, second largest Asian cigarette maker falls 13%.
EUROPE AND US MORNING Headlines
- Obamacare reforms collapse as two Republicans cross the floor. Now looking at a two-year repeal to give the administration time to come up with plan B. Repeal is likely to fail though and a significant nail in the reform coffin.
- The new sub-prime in the US is auto loans. In 2009, US$2.5bn of new subprime auto bonds were sold. In 2016, US$26bn were, topping average pre-crisis levels. auto loan fraud is approaching levels last seen in mortgages pre the GFC.
- In the UK, PwC’s economists expect the economy to grow by 1.5% this year, down from 1.8% in 2016. Growth will slow further in 2018 to 1.4%, the new analysis predicts. House price growth could be cut almost in half this year, falling from 7% in 2016 to 2.7% in 2017.
And finally……here’s a thought the authorities spent a long time taking all the inflation out of the system by fiddling with the composition of the CPI..all the things that go up have been taken out..now they want inflation its not happening..trouble is that the cost of stuff that is essential is soaring like power and health insurance and wages are NOT going up at all. Result sadness and worry!!! Need to add them back in to CPI to get any inflation!!!
Anyway I know you really just want this….
There is an old Hotel/Pub in Marble Arch, London,
which used to have a gallows adjacent to it.
Prisoners were taken to the gallows (after a fair trial of course) to be hanged.
? The horse-drawn dray, carting the prisoner, was accompanied by an armed guard,
who would stop the dray outside the pub and ask the prisoner if he would
Like ”ONE LAST DRINK”.
If he said YES, it was referred to as ONE FOR THE ROAD.
If he declined, that
Prisoner was ON THE WAGON.
So there you go …
Ray and Bob, two Government maintenance guys, were standing at the base of a flagpole, looking up. A woman walked by and asked what they were doing.
“We’re supposed to find the height of the flagpole”, said Bob, “But we don’t have a ladder.”
The woman said, “Hand me that wrench out of your toolbox.”
She loosened a few bolts, then laid the pole down. She then took a tape measure from their toolbox, took a measurement and announced, “Eighteen feet, six inches” and walked away.
Ray shook his head and laughed. “Well, ain’t that just like a ‘Miss-know-it-all’ woman?” he said. “We need the height and she gives us the length!”
Ray and Bob are still working for the Government.