Catch Clarence on ABC24 tonight talking banks TLS and BHP!!!
- ASX 200 up 45 points 5732. Banks account for 45 points.
- High 5744. Low 5698.
- Banks relief at APRA changes. 3%- 4% rally.
- APRA ups CET1 requirements to 10.5%. Everyone happy.
- Regional banks muted on relief rally.
- Resources sag on BHP production report.
- Gold miners weaker on lower AUD bullion price.
- Healthcare weighs on stalled US reforms.
- Gaming stocks better led by CWN.
- REITs continue to recovery on rate hopes.
- BAL back tomorrow.
- AUD 79.27c
- US Futures up 2.
- Asian markets mixed China CSI 300 up 1.09% Japan down 0.03%.
- CWN +2.61% on possible SGR tie up.
- DOW +2.89% rerated as SPO close to finality.
- TLS -1.67% after chair raises possibility of dividend cut.
- ACX -2.09% the slide continues.
- GXL -2.48% retail still on the nose.
- CAT -0.47% fails to fire.
- SBM -5.97% on Norwegian central banks now a substantial shareholder.
- IAG +0.30% creates single Australian division.
- IRI +4.17% following profit upgrade of 14%-18% growth.
- GXY +3.08% on a change of director’s interest.
- Biggest risers – CIM, IRI, BLA, SDA, GXY, SXL and CWN.
- Biggest fallers – SBM, ORE, WBA, NST, EVN, HTA and RCR.
- BHP Billiton (BHP) -1.08% provided a quarterly production update. Lower copper production from the Escondida site due to industrial action and power outages. Also, lower metallurgical coal production due to cyclone Debbie damage in Queensland.
- Orocobre (ORE) –6.18% announced a quarterly production report. Highlights included, for the Olaroz Lithium Facility, lithium carbonate production up 72% yoy, FY17 sales revenue US$120m, cash cost of sales up 20% qoq, 1H FY18 production expected to be significantly higher than 2H FY17.
- IAG (IAG) +0.30% created a single Australian division, simplifying its operating model. The division will be headed by current Chief Operating Officer, Mark Milliner.
- Perseus Mining (PRU) –3.45% released its June quarterly activities report. The report noted a strong quarter performance supporting earnings growth in the medium term.
- Monadelphous Group (MND) +1.01% has been awarded a number of new work contracts that are worth a combined $55m. The new contracts are for work at the Oyu Tolgoi Underground Project in Mongolia, Shell Australia’s Prelude Floating Liquefied Natural Gas project in the Browse Basin and the 54 MW Salt Creek Wind Farm for Tilt Renewables.
- Ruralco Holdings (RHL) +4.14% announced it has launched the largest independent water market trading platform in Australia. The platform will be open to all traders in the water market from governments to brokers and hopes to provide a centralised trading hub.
- Bendigo Bank (BEN) +0.62% confirmed that it is well positioned to meet the new APRA requirements through its normal course of business.
- Westpac Bank (WBC)+3.80% The company has said it is well positioned to meet the new CET1 capital requirement of 10.5% as it has proactively boosted its CET1 capital ratio already, being at 10.00% as of 31 March 2017.
- Macquarie Group (MQG) +0.33% said it is well positioned to meet APRA’s new requirements having a CET1 capital ratio of 11.1% as on 31 March 2017, a surplus of $4.1bn to the $1.4bn required.
- ANZ +3.92% is well positioned to meet APRA’s new capital requirements as it’s CET1 capital ratio stands at 10.1% as of 31 March 2017. This standing combined with the current asset sales ANZ has underway will allow them to meet the requirements, business as usual.
- Newcrest Mining (NCM) -0.86% completed testing in response to the seismic event on April 14 and part of the Cadia East site is back in production. The rest of the site remains on track to be back in action in the September quarter of 2017.
- National Australia Bank (NAB) +3.06% is well positioned to meet APRA’s capital requirements, having a CET1 capital ratio of 10.1% as of 31 March 2017. NAB say its strong balance sheet and pre-emptive efforts in regard to the CET1 capital ratio mean it will reach the target in carrying out business in an orderly fashion.
- Commonwealth Bank (CBA) +2.96% said it is well positioned to meet the new APRA capital requirements and will provide a more in-depth response in its annual results on August 9.
- Spotless (SPO) –unchanged -DOW has stated its intention to de-list Spotless from the ASX now it has control and director recommendation.
- Nextdc (NXT) -4.47% after taking a 14.1% blocking stake in Australia Pacific Data Centres (AJD). The trust is under siege from fund manager 360 Capital looking to replace the NXT management with its own. Nextdc has outlaid $29m to buy the stake in the trust ahead of the crucial July 28 shareholder vote.
- The Westpac leading index has dropped 0.1% mom. Another key factor that predicts future economic activity 3-9 months ahead also fell into the negative territory since last month, indicating a slow down for Australian economic growth. This mainly reflected international factors like the 17% fall in commodity price in 1H.
BOND MARKET UPDATE
- Apple has appointed Isabel Ge Mahe, currently vice president of wireless technologies, to assume the newly created position of managing director for greater China, which includes Taiwan and Hong Kong. Chinese revenue has fallen for five consecutive quarters. New Iphone due to be launched in September. 10th
EUROPE AND US MORNING HEADLINES
- UK government has said credit cards will no longer be able to charge fees from next year. All consumer-facing credit and debit fees, which can be as high as 20 per cent, will be outlawed from next year under an EU rule change. The UK ban will apply to consumers paying with Visa, Mastercard, Paypal and American Express cards, the Treasury confirmed.
- Jane Austen is the new face on a British ten-pound note. The Bank of England revealed the design of the new plastic tenner on the 200th anniversary of the author’s death. “I declare after all there is no enjoyment like reading!” is the quote on the note. It even has braille built in. By 2050, the number of people with sight loss in the UK will double to nearly 4m.
- Foreign buyers closed on $153bn worth of U.S. residential properties for the 12 months ended in March. That marks a 49% jump from 2015-2016, according to the National Association of Realtors.
- Akzo Nobel Chief Executive Ton Buechner has stepped down with immediate effect due to health reasons.
- What are the most crowded trades?
Biggest concerns? Bond market crash and Chinese credit tightening. At least according to Bank of America.
And finally…..think I might have written this one already but it is good!!!
A soldier ran up to a nun.
Out of breath he asked, “Please, may I hide under your skirt. I’ll explain later.”
The nun agreed… A moment later two Military Police ran up and asked, “Sister, have you seen a soldier?”
The nun replied, “He went that way.”
After the MPs ran off, the soldier crawled out from under her skirt and said, “I can’t thank you enough, sister. You see, I don’t want to go to Syria.”
The nun said, “I understand completely.” The soldier added, “I hope I’m not rude, but you have a great pair of legs!”
The nun replied, “If you had looked a little higher, you would have seen a great pair of balls…. I don’t want to go to Syria either.”
Here are some facts about the 1500s:
Most people got married in June, because they took their yearly bath in May and they still smelled pretty good by June.
However, since they were starting to smell, brides carried a bouquet of flowers to hide the body odour.
Hence the custom today of carrying a bouquet when getting married.
Baths consisted of a big tub filled with hot water.
The man of the house had the privilege of the nice clean water, then all the other sons and men, then the women and finally the children.
Last of all the babies.
By then the water was so dirty you could actually lose someone in it.
Hence the saying,
“Don’t throw the baby out with the bath water!”
On the ABC 24 tonight at 8.30 talking banks….