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Back from the Gold Coast and the AIA Conference where Clarence  presented

Today’s headlines

  • ASX 200 falls 28 points to 5744 on weaker miners.
  • High of 5780 Low 5738.
  • Volume muted again. Results focus.
  • Banks, insurers weaker with REITs underperforming.
  • Healthcare stocks rise.
  • Consumer stocks mixed.
  • Energy stocks slip as oil takes a breather.
  • Iron ore falls 1.1% in Chinese trade.
  • RIO numbers underwhelm against high expectations. US110c dividend and $3.9bn earnings $1bn buyback.
  • Surging building approvals.
  • AUD slips to 79.50c.
  • US Futures up 50 on Apple optimism.
  • Asian markets stronger with Japan up 0.58% China up 0.30%.

 

STOCK STUFF

  • ASG +3.17% low volume gain.
  • SKB -4.72% buys Byron Ballooning company.
  • ISD +3.69% rebound from profit downgrade yesterday.
  • ELD -3.50% broken short term support.
  • ALL +2.62% broker upgrades.
  • QAN +3.53% on lower fuel price.
  • AHY +3.64% bounce continues.
  • SGR +3.97% gaming back in fashion.
  • YAL -35.90% US$2.5bn capital raising.
  • FMG -1.20% profit taking on lower iron ore price.
  • BIN +1.62% reverses losses from ABC rumours yesterday.
  • CYB +7.15% on broker upgrades.
  • LYC +18.52% positive rerating.
  • Biggest risers – GMA, HTA, QAN, PLS, ISX and AJA.
  • Biggest fallers – GOR, RMD, SGM, SYR, MYR and MGX.

TODAY

  • Yancoal Australia (YAL) –35.90% Has announced this morning a US$2.5bn equity raising for the acquisition of 100% of the shares of Coal & Allied. Yancoal chairman Xiyong Li, noted the acquisition provides the opportunity to transform Yancoal into Australia’s largest pure-play coal producer.
  • BWP Trust (BWP) –1.69% FY17 profit came in at $223.8m, down 28% on FY16. Mostly due to larger gains in value of property portfolio last year. The company still expects to maintain its distribution in FY18.
  • Alacer Gold (AQG) +2.84% First half net profit has more than doubled, coming in at US$41.7m. Copler Sulfide project costs have fallen to US$726m from US$744m.
  • Webjet (WEB) – In trading halt pending material acquisition in the UK, and capital raising.
  • Genworth (GMA) +5.96% The company announced this morning that First Half 2017 earnings were consistent with expectations and 2017 guidance remains unchanged. Revenue was down 20.3% to $294.5m and net profit came in at $88.7m, down 34.7%. First half dividend at 12c.
  • Resmed (RMD) -5.69% Results out today. The company announced a 12% increase in annual revenue to $US2.1bn for the 2016-17 financial year but various factors, including restructuring, litigation and acquisition expenses, pulled annual net income back by 3% to $US342.3 million. The CEO was very positive in his outlook statement and lifted the dividend by 6% to US35c. A slightly disappointing result.
  • APN Outdoor (APO) -1.08% chief executive Richard Herring will step down from the role at the end of September.

ECONOMIC NEWS

  • Building approvals for June have come in ahead of expectations. Approvals lifted 10.9% over the month, well outdoing forecasts of a 1% rise and following a 5.6% drop in May.

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BOND MARKET UPDATE

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ASIAN NEWS

  • Honda Motor rose 2.88% after better-than-expected net profit and sales in the first quarter prompted the company to raise its full-year forecasts.
  • The China Securities Regulatory Commission collected 6.4 billion yuan (US$951 million) in total penalties in the first six months of the year, the amount already exceeds all of last year.

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EUROPE AND US MORNING Headlines

  • Apple results beat expectations. The behemoth reported fiscal third-quarter earnings of US$8.72bn, or US $1.67 a share, compared with US$7.8bn, or US$1.42 a share, a year earlier. Sales of iPhones totalled 41.03m, edging up from 40.4m in the same period last year but down from 50.8m in the fiscal second quarter. The company has US261.5bn in cash. 90% of the GDP of Singapore. 94% of its cash is stashed outside of the US.
  • Non-financial US companies piled up US$1.84 trillion of cash at the end of last year, according to credit ratings agency Moody’s.
  • Australian wheat futures now trade on CME.
  • Trump picks new FBI chief in Christopher Wray. Hope he lasts longer than the Scaramucci.
  • Deutsche Bank has signed a 25-year commitment for a new London headquarter. Big vote of confidence. In London and that Deutsche will be around in 25 years.

And finally……

A few years ago robbers entered a bank in a small town.

One of them shouted: “Don’t move! The money belongs to the bank. Your lives belong to you.

Immediately all the people in the bank laid on the floor quietly and without panic.

This is an example of how the correct wording of a sentence can make everyone change their view of the world.

One woman lay on the floor in a provocative manner.

The robber approached her saying, “Ma’am, this is a robbery not a rape. Please behave accordingly.”

This is an example of how to behave professionally, and focus on the goal.

While running from the bank the youngest robber (who had a college degree) said to the oldest robber (who had barely finished elementary school): “Hey, maybe we should count how much we stole?”

The older man replied: “Don’t be stupid. It’s a lot of money, so let’s wait for the news on TV to find out how much money was taken from the bank.”

This is an example of how life experience is more important than a degree

After the robbery, the manager of the bank said to his accountant:

“Let’s call the cops and tell them how much has been stolen.”

“Wait”, said the Accountant, “before we do that, let’s add the $800,000 we took for ourselves a few months ago and just say that it was stolen as part of today’s robbery.”

This is an example of taking advantage of an opportunity.

The following day it was reported in the news that the bank was robbed of $ 3 million.

The robbers counted the money, but they found only $1 million so they started to grumble.

“We risked our lives for $1 million, while the bank’s management robbed two million dollars without blinking?  Maybe it’s better to learn how to work the system, instead of being a simple robber.”

This is an example of how knowledge can be more useful than power.

Moral:  Give a person a gun, and he can rob a bank. Give a person a bank, and he can rob everyone.

Clarence

XXX

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NT Markets

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