- ASX 200 finishes down 54 at 5655 as banks fall again.
- High 5708 Low 5640.
- Penny drops on Fed moves.
- Lowe talks economy and rates.
- SPI expiry weighs on sentiment.
- CBA sells life business.
- Banks hit hard. Telstra suffers disappointment.
- Dairy stocks froth on NZ export numbers.
- Energy only bright spot.
- AUD dips below 80c to 79.79c
- US Futures down 14.
- Asian markets slightly higher: China CSI up 0.29% and Nikkei up 0.28%.
- AHG -3.65%
- CAR -2.63%
- CWN -4.07%
Movers and Shakers
- TCL -2.08% slip on equity raising fears on WestConnex deal.
- GEM +4.51% growth by acquisition back on track.
- STO +1.79% rehab continues.
- BAL +2.84% IBF sector attracting buyers.
- SM1 +1.81% NZ export numbers providing strength
- A2M +1.29% NZ export numbers.
- APT +1.40% bargain hunters back.
- SYR -6.74% ex entitlement issue.
- SLC -5.51% capital raising.
- EDE +11.43% more US success.
- MOE -3.73% after a change in substantial holdings.
- CAT +4.82% on directors’ interest increase.
- TTT +125.00% new float doubles on listing.
- Speculative stocks of the day: MGM Wireless (MWR) +69.44% after announcing a huge deal with the WA government to roll out its MGM Outreach and School Star technology to replace SMS and provide a platform for secure Facebook style interaction.
- Biggest risers – GEM, SIQ, BAL, SSM, TGR and BPT.
- Biggest fallers – SYR, RSG, SLC, GXY, SBM and MYX.
- BWX Limited (BWX) -0.17% NAB ceases to be a substantial holder.
- IAG (IAG) -0.94% says it’s on the lookout for a new Chief Risk Officer.
- Washington H Soul Pattinson (SOL) -4.04% FY17 results. NPAT A$282m, up 59%. Final dividend 32c – up 3.2% on the pcp.
- G8 Education (GEM) +4.51% To buy 19 childcare centres for $27m, funded from cash and existing finance reserves. GEM says the deal with boost FY17 EBIT by around A$1m
- Brickworks (BKW) -1.65% FY17 results. NPAT $186.2m up 138.2%. Revenue $841.8m up 12.1%. Final dividend of 34c. CEO hits out at politicians. “If a company was run as badly as this country the board would resign”.
- Murray Goulburn (MGC) +14.19% Inner Mongolia Yili Industrial Group says it has offered a non-binding proposal on strategic development for the company
- Transurban (TCL) -2.08% RBC says TCL is pegged to buy the WestConnex Highway for sale by the NSW state government (amongst a host of rival bidders). Base case for WestConnex is A$1.2bn. TCL will have to raise A$1.8bn to fund the deal, but annual distributions my increase by around 9% to FY20.
- Commonwealth Bank (CBA) -0.29% Big news this morning as the bank has sold its life insurance business to AIA Group for $3.8bn. The sale also includes a 20- year partnership with AIA. The transaction is going to release $3bn of CET1 capital and result in a 70bps uplift to its capital ratios. a IPO or other options for its Colonial First State Funds Management business. CFSGAM has $219bn in Assets under management so it would be a behemoth.
- Tabcorp (TAH) -1.28% and Tatts Group (TTS) -1.35% are sticking to the script that they are both confident that the merger will go through.
- RBA head honcho Philip Lowe has given a speech to the American Chamber of Commerce in Australia Click here for full speech.
- Key Points:
- Don’t rely on low rates forever to lift growth.
- Success depends on boosting productivity engaging with Asia and managing the huge household debt burden. RBA is paying close attention to this.
- Rising global interest rates would have “no automatic implications” for Australia.
- He also said“If higher interest rates are the result of a surprise increase in inflation, financial markets could be in for a difficult adjustment.”
- He warned that warning that rising interest rates have historically exposed over-borrowing in the global system.
- NZ GDP rose 0.8% in the three months to June 30, up from a revised 0.6% expansion in the March quarter and was 2.5% higher on the year.
- Exports rose 5.2%, with exports of goods posting its biggest quarterly rise in nearly 20 years.
- Dairy export volumes were up 19%in the June quarter as dairy inventories were run down.
- NZ election on Saturday. May be close.
BOND MARKET UPDATE
- The Bank of Japan kept its monetary stimulus unchanged today. The BOJ left its target interest rates and asset purchase program unchanged as expected. The vote was 8-1, with Goushi Kataoka objecting. A lone Samurai.
- China International Capital Corp popped as much as 19% in Hong Kong on Thursday after Tencent announced a $370m investment and “strategic co-operation” with the brokerage.
EUROPE AND US MORNING HEADLINES
- Hola, it’s all happening in Spain as the government attempts to crackdown on the unofficial Catalan independence vote. Madrid has declared the October 1st referendum as illegal. Government has offered cash to stop the vote.
- Theresa May speaks in Florence tonight as the City of London steps up pressure on the government to bring in a Brexit transition deal quickly. So far not much progress on any front. May has a chance to define the negotiations tonight. Dead leader walking?
And finally….thanks as usual to Hans for teh great material..if you have any good gags send them to Clarence c/o firstname.lastname@example.org
The Cynical Philosopher…
I read that 4,153,237 people got married last year. Not to cause any trouble but shouldn’t that be an even number?
I find it ironic that the colors red, white, and blue stand for freedom until they’re flashing behind you.
When wearing a bikini, women reveal 90% of their body… men are so polite, they only look at the covered parts.
Relationships are a lot like algebra. Have you ever looked at your X and wondered Y?
America is a country which produces citizens, who will cross the ocean to fight for democracy, but won’t cross the street to vote.
You know that tingly little feeling you get when you like someone? That’s your common sense leaving your body.
Did you know that, dolphins are so smart that within a few weeks of captivity, they can train people to stand on the very edge of the pool and throw them fish?
My therapist says I have a preoccupation with vengeance. We’ll see about that!
I think my neighbor is stalking me. She’s been googling my name on her computer. I saw her do it, through my telescope last night.
Money talks, but all mine ever says is ….. good-bye.
You’re not fat, you’re just …… a lot easier to see.
If you think nobody cares whether you’re alive, try missing a couple of payments.
My therapist said, that my narcissism causes me to misread social situations. I’m pretty sure, she was hitting on me.
My 60 year kindergarten reunion is coming up soon and I’m worried about the 175 pounds I’ve gained since then.
The pharmacist asked me my birth date again today. I’m pretty sure she’s going to get me something.
The location of your mailbox, shows you how far away from your house you can be in a robe, before you start looking like a mental patient.
I think it’s pretty cool how Chinese people, made a language entirely out of tattoos.
Money can’t buy happiness, but it keeps the kids in touch!