- ASX 200 falls 15 points to 5721 as CBA woes take toll.
- High of 5739 Low 5709.
- Weekly ASX gain of 18 points (0.031%)
- CBA drops on AUSTRAC allegations. 18 points of loss.
- Banks distance themselves from CBA.
- REITs rise. Insurers recover slightly.
- Miners show strength. Energy drains.
- Healthcare back in demand.
- RBA SOMP shows confidence in economy.
- AUD rises on data to 79.63c.
- US Futures up 21.
- Asian markets mixed with Japan down 0.35% China up 0.11%.
- WEB +10.40% returns after insto placement.
- FLT -1.20% on profit taking and switching to WEB.
- BHP +0.31% Olympic Dam trials going well to lift copper production.
- CBA -3.87% on reaction to AUSTRAC allegations.
- YAL -28.57% ex rights issue.
- ACX +2.65% MQG lodges substantial shareholding notice.
- MYX -8.15% woes continue.
- MSB -6.40% downtrend continues.
- TLS -0.49% drifts down.
- PTM -2.86% UK currency woes.
- AAC -2.15% meat export continues.
- BUB +6.25% rerates on A2M +3.55% confidence in China licensing.
- CLH +9.76% after CCP results.
- Biggest risers – WEB, GXY, PLS, NEC, SSM and GNC.
- Biggest fallers – MYX, MSB, CDD, OCA, CWN and FXL.
- Tabcorp (TAH) +1.40% The company has announced a FY loss of $20.8m versus a $169.7m last year. Revenue has risen 2% to $2.23bn but has been hit with a number of one off items. The proposed merger with TTS is weighing on the bottom line but the underlying numbers were at the top end of expectations. Final dividend of 12.5c a share. Significant items were $199.7m.
- Sims Metal (SGM) -12.47% announced its CEO succession strategy. The company also announced the departure of its CFO. Think there is an Oscar Wilde quote there somewhere about losing two on one day. The market has been spooked by the executive departures combined with a trading update, underlying EBIT between $180m- $185m and results due to be announced 25th August.
- Crown Resorts (CWN) +2.90% Results saw NPAT of $343m from revenue of $3.24bn down 15.65%. The VIP program saw revenue fall from $1bn to $605m. The reaction has been slightly positive mainly as a result of the $375m share buyback that it announced. Analysts like that but it has been a tough year for CWN. The company has pulled out of Macau just when it is turning around and the higher AUD will be hurting local revenue.
- Downer EDI (DOW) -0.15% now has 85.7% of SPO.
- A2Milk (A2M) +3.55% Updated the market on Chinese registration progress. The company is confident that its recent application with Synlait will be approved. Chinese exports comprise around 8% of A2M total infant formula sales.
- Oroton Group (ORL) -3.81% reported it would discontinue its relationship with Gap and expected to close its six Gap stores by the end of January next year.
- Lendlease (LLC) +1.09% Oops! LLC inadvertently released profit results due to mix up with annual report. Profit after tax $758.8m. Distribution of 66c.
- Retail spending rose 0.3% in June, beating market expectations of a 0.2% rise.
- Seasonally adjusted retail spending totalled $26.15bn in the month, according to the ABS.
RBA Statement of Monetary Policy.
- Lowered its forecast growth forecasts by 0.5% for this year to 2%-3%, and a quarter-point in the first half of next to 2.5%-3.5%.
- Highlighted the risks of further gains in the currency. It
said a 10% appreciation of the trade-weighted exchange rate would lower year-ended inflation by a little less than 0.5% in each of the ensuing two years.
- Unemployment will edge down to just under 5.5% at the end of 2019.
- The tone of the quarterly statement was upbeat.
- It sees an GDP at about 3%, above its natural level.
BOND MARKET UPDATE
- Monthly wages for Japanese workers took a turn for the worse in June, dropping at the fastest pace in 24 months thanks to a drop in bonus payments. Biggest fall in two years.
EUROPE AND US MORNING Headlines
- The oil trader known as ‘god’ is closing his hedge fund after substantial losses. Astenbeck Master Commodities Fund II, run by Andy Hall, lost almost 30% through June. He bet on much higher oil prices and lost. His main fund had around US$1.4bn at the end of 2016.
- Investors ploughed more cash into emerging market funds in the week since the asset class’ stock benchmark touched its highest level since 2014.
- Former French President Nicolas Sarkozy under scrutiny in prosecutors’ probe into Qatar World Cup vote-buying.
- US jobs number tonight. 183K is expected.
Vladimir Putin, wanting to get on the good side of voters, went to visit a school in Moscow to have a chat with the children.
He talked about how Russia is a powerful nation and how he wanted the best for the people. At the end of the talk, there was opportunity for questions.
Little Sasha raised her hand and asked “I have two questions .‘Go ahead’ said Putin.
“Why did the Russians take Crimea? And Why are we sending troops to the Ukraine?”
Ptin replied, “Good questions!” But just as he was about to answer, the bell rang, and the kids dispersed to Lunch.
When they returned from lunch, they sit back down and resumed for more questions.
Another girl, Misha, put her hand up and asked, “I have Four questions.” ‘Go ahead’ replied Putin.
“My Questions are – Why did the Russians invade Crimea? Why are we sending troops to the Ukraine? Why did the bell go 20 minutes early? And Where is Sasha?”