Banking chief selfie!!!
- ASX 200 up 29 points to 5761.5 in tight trade.
- High 5771. Low 5744.
- Bank shares continue rally. CBA underperforms.
- Energy shares rise on production reports.
- BHP rallies on iron ore.
- FMG falls on native title ruling
- Gaming stocks fall.
- Myer profit warning.
- Bellamy’s returns to trade.
- S&P flags upgrade of bank hybrids.
- AUD 79.40c
- US Futures down 4.
- Asian markets firm China CSI 300 up 0.12% Japan up 0.57% on BOJ.
- QAN -2.18% on higher oil price.
- FMG -3.53% Native title blow for Solomon Hub mine.
- ALQ -1.78% AGM address and update.
- FBU -5.75% earnings downgrade and CEO resigns.
- SYD +2.91% positive traffic numbers.
- TCL +2.84% toll road expansion in NSW.
- PNI +1.21% Increased FUM.
- RFG -3.22% aggressive shorting continues.
- CSL -0.47% continue to underperform on rising AUD.
- RMD +2.77% bounce despite AUD strength.
- PEP -0.57% Portuguese acquisition.
- BAL -5.04% after return to trading.
- TLS -0.24% tries to steady.
- NXT -3.04% Rival TGP offer to buy out AJD.
- Biggest risers – STO, APO, CAR, WHC, MIN and BPT.
- Biggest fallers – MYR, FBU, BAL, SAR, FMG and RFG.
- Santos (STO) +8.28% has released their quarterly update, production guidance has been upgraded to 57-60mmboe and sales have been upgraded to 75-80mmboe. Production is down 5% year on year to 14.7mmboe and sales volume is down 2% year on year.
- Fletcher Building (FBU) –5.75% has announced that CEO and MD Mark Adamson is leaving the company. Operating earnings are expected to come in at NZ$525m, down from previous guidance of NZ$610-650m.
- Myer (MYR) –9.82% has announced this morning that deputy CEO Daniel Bracken is leaving the company. Myer has said it expects a $66m -70m pre-item profit in FY17, and it will be writing down the A$6.8m full carrying value of the company’s 20% stake in Australia.
- Woodside (WPL) +0.67% Sales revenue of US$867m and production of 20,7MMboe. Long term sale and purchase agreement with Pertamina commencing 2019 to supply 1.1m tonnes pa.
- Ansell (ANN) +0.54%The company has announced write downs of between US$20m–US$30m related to closure of some less efficient production lines. The company has also announced a transformational program following the sale of the Sexual Wellness business. It will invest US$70-US$100m to enhance growth and improve ROC Market is taking the announcement positively.
- South32 (S32) -1.76% Record Mozal Aluminium performance. Worsley production relatively unchanged. Cannington decreased significantly in ore grades and metal production in FY17.Additional uncertainty in South Africa. Buyback continues with US$211m out of a proposed US$500m so far completed at an average price of 266c.
- Sydney Airport (SYD) +2.91% International growth of 9.7% strongest monthly result this year. Domestic traffic up 3.6% and overall up 5.8%
- Nine straight months of jobs gains. Biggest back-to-back job gain in 29 years. Employment increased by 14,000 from May. Unemployment rate at 5.6%. May’s 5.5% rate was revised up to 5.6%. Full-time job numbers grew by 62,000, while 48,000 part-time jobs were lost. The participation rate up to 65.0%, from 64.9%.
- PM speaks on interest rates. And their inevitable rise. “My sense is this risk is being well managed, but high levels of indebtedness with low levels of interest rates always pose a risk, particularly if there’s an assumption of rising asset prices.”
BOND MARKET UPDATE
- The Bank of Japan (BOJ) has kept monetary policy steady and pushed back again the timing for achieving its 2%. It kept its yield target for 10-year Japanese government bonds around 0%. The BoJ delayed the timing for achieving its 2% inflation target, saying it would be met sometime during fiscal 2019.
- The Asian Development Bank raises Developing Asia’s 2017 growth forecast to 5.9% from 5.7% in its latest report. Inflation forecast cut to 2.6% from 3%.
- China 2017 GDP forecast raised to 6.7% from 6.5%; 2018 at 6.4%
- Inflation cut to 2% from 2.4%; 2018 at 2.6%
- India 2017 GDP forecast maintained at 7.4%; 2018 at 7.6%
- Inflation cut to 4% from 5.2%; 2018 at 4.6%
EUROPE AND US MORNING HEADLINES
- ‘Super’ Mario Draghi speaks tonight.
- Senator John McCain diagnosed with brain cnacer.
- US-Sino relations have turned frosty as meetings in Washington have broken up without a joint statement. Treasury Secretary Mnuchin and Commerce secretary Ross said China “acknowledged our shared objective to reduce the trade deficit which both sides will work cooperatively to achieve.” Ross complained about the trade gap with China.
- US rail chief says coal has no future in the US and will not buy new train stock.
- US hedge fund Elliott Advisers has attached BHP for its plan to build a potash mine in Canada. BHP has set aside US$3.8bn to develop the mine, though the total cost has been put as high as US$14bn.
Clarence breaks cover on the ABC
Wednesday markets with Henry Jennings
Q: What can strike a blonde without her even knowing it?
A: A thought.
A guy goes into confession and says to the priest, “Father, I’m 80 years old, widower, with 11 grandchildren. Last night I met two beautiful flight attendants. They took me home and I made love to both of them. Twice.”
The priest says, “Well, my son, when was the last time you were in confession?” “Never Father, I’m Jewish.”
“So then, why are you telling me?” “I’m telling everybody!”