Today’s Headlines

  • ASX 200 finally moves higher up 59 points to 5711.
  • High 5713 Low 5660. Light volumes again.
  • Looks like a 31-point gain for the week or 0.68%.
  • Blue chips lead the charge as banks push higher.
  • Big miners back in demand. Energy rises.
  • Healthcare in the pink. Even TLS up.
  • Utilities and infrastructure higher.
  • Staples under pressure and retail in doldrums.
  • AUD falls to 77.61 as economic worries mount
  • US Futures down 5.
  • Asian markets flatlining with Japan down 0.02% though HK up 0.73% China still closed.

STOCK STUFF

Movers and Shakers

  • ORG -0.98% under some pressure following sale to BPT.
  • HSO +1.12% on big volume.
  • GSW -4.44% profit taking.
  • SHV suspended. Takeover approach.
  • MYR -1.32% predictable really.
  • NCK -2.91% sinking on a retail feeling.
  • APT +3.39% popular again.
  • PLS +9.79% positive vibe on Great Wall deal.
  • XRO -0.71% some profit taking creeping in.
  • ORE +5.95% the gift that keeps on giving lithium.
  • WEB +3.84% following in QAN -% wake.
  • AU8 -17.02% reality bites.
  • BIG +10.58% keeps getting bigger.
  • EUC +18.18% on significant Co-Ni-Cu in trench.
  • HZR +14.29% Todays insider insight doing very well.
  • LYC +7.89% positive write up in leading financial newsletter.
  • Speculative stocks of the day: KZR +107.14% after acquiring three highly prospective gold projects in the Pilbara.
  • Biggest risers – LYC, PLS, ORE, WHC, BWX and APT.
  • Biggest fallers –CEN, NCK, CDD, CKF, XRO, SLC and SM1.

TODAY

  • Commonwealth Bank (CBA) +1.30% chief executive Ian Narev has called on policymakers to do something about housing affordability and stagnant wage growth. He has also said ‘sorry’ for the complete stuff up over money laundering. Finally. Sorry really was the hardest word.
  • SEEK (SEK) +2.13% advised that it had received the proceeds of the Zhaopin transaction of US$176m. US$64m relating to proceeds from the special dividend as part of transaction consideration; and US$112 million relating to a capital return.

 ECONOMIC NEWS

  • Senate Nick Xenophon has quit federal politics and will recontest a lower house seat at the South Australian federal election in March. A quarterly report by the government’s Department of Industry, Innovation and Science forecast a subdued outlook for oil and gas prices over the next two years is likely to limit growth in Australia’s LNG export earnings. The slack is likely to picked up by higher earnings from iron ore and metallurgical coal in the current financial year before earnings decline in 2018/19.
  • News today that although our debt is heading higher so is our wealth through asset price growth.

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And the RBA has been busy producing charts this week so might as well use them.

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BOND MARKET

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ASIAN MARKETS

  • In Japan, monthly cash earnings increased 0.9%from a year earlier, the largest amount in more than a year, and higher than the 0.5% estimated by economists.
  • With Japanese elections around the corner we now have ‘Yurinomics’ to rival Abenomics. He opposition party said it may impose taxes on large companies’ cash reserves and permanently rid Japan of nuclear power plus to protect also includes a range of things to be “reduced to zero,” including passive smoking, pollen allergies and waiting lists for children’s day-care services.
  • Galaxy Entertainment tumbled as much as 5% the most in three months, while Sands China Ltd. fell 4.4% as tourist visits to Macau during Golden Week fell 5.1% in the first four days of the holidays. Estimates were for a mid-high single digit growth.

EUROPE AND US MORNING HEADLINES

  • Netflix has announced prices rises for its US streaming service, hiking costs for two of its three main subscription plans as it spends heavily on its own original content. No change in local pricing. Netflix dominates the Australian market with a 55% share of subscriptions while Stan, 50-50 owned by Nine Entertainment and Fairfax Media, publisher of The Australian Financial Review, has 24%.
  • Trump suggested a gathering of generals for an event in Washington may be the ‘calm before the storm’. Trump also is expected to soon announce his decision on whether to “decertify” the Iran nuclear accord in the coming days.
  • There were 24 electric vehicle models on sale in the US in the third quarter this year. By the close of 2022, there will be 136. Not including hybrids.
  • Catalonia’s biggest banks are getting closer to leaving the politically volatile region. Banco Sabadell SA confirmed late Thursday it will move its headquarters to the Spanish city of Alicante, while CaixaBank SA’s board will meet Friday to consider transferring its registered office to the Balearic Islands.
  • One concern with Catalan independence is whether the region would be able to join the European Union, either straightaway or sometime later. One EU official had this to say, “who leaves Spain, leaves the European Union.” Catalexit?
  • Looks like Theresa May is a dead woman walking as the vultures circle. Wouldn’t want the job anyway. Boris? Hammond? You are next.
  • This is over the top but the Saudi King Salman bin Abdulaziz took 1500 people as his entourage to Russia this week. 800kg of food was flown in from Saudi and the tour had two hotels booked completely. For a four-day trip. Reckon they booked on Trivago?
  • Good luck to Winx20170619142047_140.jpg
  • And finally…

The secret to a long marriage is that we take time to go to a restaurant two times a week. A little candlelight, dinner, soft music and dancing. She goes on Tuesdays. I go on Fridays.

Q: What do you call a 3 legged donkey?
A: A wonkey.

 

I decided to make my password “incorrect” because if I type it in wrong, my computer will remind me, “Your password is incorrect.”

Have a great weekend

 

Clarence

XXX

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