The Headlines

• ASX 200 finishes down 4.5 at 5709 as banks fall again.
• High 5742 Low 5680. Low volumes again.
• ANZ upgrades interest forecasts for FY18.
• TAH/TTS merger thrown into doubt.
• Miners slip on lower iron ore price.
• Consumer staples rise. Mining services ride Coates tail.
• CSL in demand. TLS sold down.
• AUD above 80c again at 80.18c
• US Futures up 2 ahead of FMOC meeting results.
• Asian markets slightly higher: China CSI up 0.37% and Nikkei up 0.04%.

STOCK STUFF

Ex-Dividend Today

• LNK -1.17%
• MQA -0.54%
• NCM -0.04%

Movers and Shakers

• TLS -1.37% investor day.
• FMG -1.84% continues on Power outage.
• SM1 -1.98% profit taking.
• GCS +5.19% continuing strength.
• LOV +3.41% despite CFO resignation recently.
• CTX +2.28% on refiner margin expansion.
• TPM -6.74% shorts covered and resumed selling. Brokers sceptical.
• CSL +2.14% broker upgrade.
• BXB +4.33% after a broker upgrade from Credit Suisse.
• TAH/TTS in a trading halt pending court outcome.
• MOC +3.17% Macquarie to claw back commissions.
• MYR -0.72% appoints Garry Hounsell as Chairman.
• BHP -0.42% CEO gets a US$4.55m pay for the year.
• SRX -1.71% chairman retiring.
• Speculative stocks of the day: Anson Resources (ASN) +100.00% after signing a Lithium MOU off take agreement with three leading Chinese Battery manufacturers. Anson has a project in Utah called Paradox Brine project. Nanocap at $10m cap.
• Biggest risers – SVW, BXB, LOV, HVN, CKF and AAD
• Biggest fallers – TPM, CLQ, PLS, GMA, NAN and LYC.

 

TODAY

• Sydney Airport (SYD) -1.1% Has released traffic numbers for August. International traffic lifted 8.3% on the previous period and domestic traffic was up 1.9%.

• Seven Group Holdings (SVW) +9.84% Announced the acquisition of the remaining 53.3% of Coates Hire. A positive move and the market is happy. It provides Seven Group with increased exposure to the Australian and East Coast infrastructure sector, with Coates well-positioned to benefit from the increased number of projects and the resultant demand for construction equipment and heavy machinery. Importantly the company reiterated guidance for the year of an uplift of between 5%-10%
• NIB Holdings (NHF) – Is in trading halt, the company announced this morning it will purchase specialist corporate private health insurer GU Health from Australian Unity for $155.5m. Nib intends to fund the deal through a combination of a fully underwritten institutional equity placement of $60m, a non-underwritten SPP of $15m and a new debt facility for the balance.

ECONOMIC NEWS

• ANZ has changed its interest rate forecasts and now expects the RBA to hike rates twice next year.
• Capital Economics suggests that Sydney and Melbourne property is 30% overvalued as the latest research house to grab attention to itself.
• RBA Luci Ellis predicts that the current surge in global growth is no flash in the pan. Yesterday the RBA called the end of the iron ore boom. Peak Iron has passed it said in board minutes.

BOND MARKET UPDATE

 

ASIAN NEWS

• Chinese iron ore futures are at their lowest level in almost two months. The most-traded iron ore contract on the Dalian Commodity Exchange was down 2.3 percent at 495.50 yuan ($US75) a tonne after touching a session low of 487.50 yuan earlier, its weakest level since July 25.
• Japanese export numbers were positive today. Exports rose 18.1% the biggest increase since 2013. Imports climbed 15.2%. GDP is growing at 2.5% this year. Inflation though a long way below the 2% target.

EUROPE AND US MORNING HEADLINES

• Fed the focus ahead of FOMC meeting.
• Thyssenkrupp and Tata Steel have reached a framework agreement to merge their European steel businesses in a bid to create the region’s second-largest producer.
• Big night for Theresa May (not) as she prepares an offer of EUR 20bn for the divorce settlement. Good luck with that.
• Depressing figures on the cost of housing in the UK. Britain’s families spend on housing has trebled over the last 50 years with millennials now spending 25% of their income on putting a roof over their heads.
• And finally forget money the key to happiness is sex and sleep. Usually in that order. This according to a survey by Sainsbury’s in the UK. Money not so.

And finally……………….heard Alexei Sayle on the ABC today being interviewed ..very funny…forgotten how funny…

“I’ve given up asking rhetorical questions. What’s the point?” – Alexei Sayle

 

“I wasn’t particularly close to my dad before he died… which was lucky, because he trod on a land mine.” – Olaf Falafel

 

Sorry if I have done this one before but its still good….

James asked the pro: “What do you think of my game?”

The pro replied: “You should shorten your clubs by one inch.”

James asked if the pro thought this would help his game.

To which the pro said, ” No! It will help them fit in the garbage bin!”

Clarence

XXXX