The Headlines

  • ASX 200 falls 9 points to 5735 on weaker miners.
  • High of 5745 Low 5706.
  • Results season continues. RIO disappoints.
  • SUN struggles despite higher dividend.
  • CBA sued over money laundering breaches.
  • Trade data: Exports fell 1%. Imports rose 2%. Misses expectations.
  • Amazon to open a fulfilment centre in Melbourne.
  • Chinese rebar steel futures close to their strongest level in more than four years
  • AUD slips slightly to 79.35c on trade data.
  • US Futures down 12.
  • Asian markets slip: Japan down 0.20% China down 0.52% Korea

 

STOCK STUFF

  • AOG -0.42% to be hit with a Federal Court class action next week.
  • CYB -0.21% stable after strong bounce yesterday.
  • API -13.07% on a profit downgrade.
  • MTR -7.12% on broker downgrade on stronger dollar.
  • SDF +8.53% broker upgrades.
  • FXJ -2.53% reportedly interested in TEN.
  • FLT +3.47% on acquisition.
  • YAL -16.00% continues to struggle on money raising.
  • AGL +1.62% recovering from recent sell off.
  • WEB – trading halt after buying UK wholesale travel business for $332m.
  • LYC -15.62% profit taking.
  • TPM -1.45% sell off continues.
  • Biggest risers – SDF, OCA, SGF, FLT, SXL and NCK
  • Biggest fallers – TME, EWC, BGA, SAR and MSB

TODAY

  • Suncorp (SUN) –6.41% Reported full year profit up 3.6% to 17,395m. The chairman noted the company has declared a final dividend of 40c, bringing the total dividend to 73c. This represents a payout ratio of 81.9% of cash earnings. Suncorp anticipates a cooling of house price growth nationally while QLD will continue to benefit from an affordability advantage. Top line misses estimates.
  • Northern Star (NST) +4.01% released their FY2017 reserve-resource update, re-confirming FY18 guidance at 525,000-575,000oz at $1,000-$1,050/oz. The company has also noted gold production is also on track to reach 600,000ozpa in CY2018.
  • Select Harvest (SHV) –13.62% The company updated the market after hours last night with a downgrade. The company now expects NPAT of between $7.5m – $8.5m. Higher energy costs and the high AUD to blame. SHV has also faced higher leasing costs to its orchards due to revaluations by Rural Funds Management (RFF).
  • Australian Pharmaceutical (API) -13.07% downgrade to a 5% rise in NPAT despite maintaining market share. Consumer sentiment is weakening for the retail business. Pharmacy side doing well though.
  • Kathmandu (KMD) -unchanged- Kathmandu expects to achieve a net profit between $NZ37.4m and $NZ38.0m, compared with $NZ33.5m in 2016, beating consensus forecasts around $NZ36.6m. Sales are expected to rise 4.6% to $NZ445.3m, ahead of market forecasts of $NZ442m

ECONOMIC NEWS

  • According to the ABS, the trade surplus fell to $856m in seasonally adjusted terms, missing expectations for a smaller decline to $1.8bn.
  • May’s trade surplus, previously reported at $2.471bn, was revised down to $2.024bn.
  • In volume terms, iron ore exports fell while those for coal and LNG increased.

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BOND MARKET UPDATE

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ASIAN NEWS

  • Noble Group has come under fresh attack from a research report into the company. “The company is walking toward bankruptcy and liquidation. Its cost of fund is prohibitive. Noble is losing the confidence of its counterparties and of its banks” according to the report. Last week, the company warned of a quarterly loss of as much as $1.8bn. Noble is down 77% this year.90% since 2015.
  • South Korean shares dropped by the most since November, leading the declines, after President Moon Jae-in announced plans to raise taxes on big corporations.

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  • The Nikkei India Composite PMI Output Index fell to 46 in July from 52.7 in June, the steepest drop since March 2009, lowest since 2013 on new GST introduced recently.

EUROPE AND US MORNING Headlines

  • Super Thursday for the Bank of England. More Hawkish commentary from Chief Carnie on rates and a former BOE head has urged the bank to raise rates sooner rather than later.
  • UniCredit reported net profit of €945m in the second quarter, beating analysts’ expectations.
  • Net profits beat estimates for Siemens in the third quarter, but revenues were below forecasts and the group said orders had fallen sharply for its renewable energy and its power and gas units.
  • Russia says US sanctions are a ‘Trade War’ on the country.
  • Chaos continues at European airports on a security clampdown.
  • Great chart of the US market v Trumps approval.

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  • Deutsche Bank to move up to 4000 jobs to Frankfurt after Brexit. The battle for European financial supremacy.

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And finally…………..

An elderly Canadian gentleman of 83 arrived in Paris by plane.

At the French customs desk, the man took a few minutes to locate his passport in his carry-on bag. “You have been to France before, monsieur?” the customs officer asked, sarcastically.

The elderly gentleman admitted he had been to France previously. “Then you should know enough to have your passport ready.”

The Canadian said, “The last time I was here, I didn’t have to show it.”

“Impossible, Canadians always have to show your passports on arrival in France!”

The Canadian senior gave the Frenchman a long hard look, then he quietly explained, “Well, when I came ashore at Juno Beach on D Day in 1944 to help liberate this country, I couldn’t find any Frenchmen to show it to.”

 

Clarence

XXX

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NT Markets

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