Friday 10th November- Australian Market Rap!

Today’s Headlines

ASX 200 down 20 points to 6029 on weaker metals.
High 6038 Low 6021.
ASX 300 Mining index pulls back from 3-year high.
Positive week up 1.1%.
Banks mixed. Miners weigh.
REITs and defensives firm.
Healthcare wobbles on CSL.
TEN takeover approved media stocks better.
RBA statement of monetary policy.
AUD firmer at 76.82c.
US futures up 26.
Asian markets weaker with Japan down 1.38% and China CSI up 0.53% on the eve of Singles Day.

STOCK STUFF

Movers and Shakers

JHG +4.95% Positive results.
PLS +4.59% MOU with South Korean company.
APT +2.74% continued strength.
WFD +2.96% US speculation on corporate actions.
ANZ -0.03% NAB -0.46% settlements approved by court. Say sorry.
MIN -4.51% profit taking.
XRO -4.84% fall out from results and NZ delisting.
A2M -2.62% profit taking.
ELD -2.08% AGM announcement.
CSR -3.94% Ex dividend.
STO -3.44% suffer after investor day.
CLQ -4.82% profit taking as metals retreat.
ERA +11.90% Uranium mine closures.
BUD -12.50% Webinar.
Speculative stock of the day: Golden Mile Resources (G88) +150.00% Wide intercepts at new nickel discovery. Quicksilver Nickel showed 44m @1.24% nickel and 28m at 1.10% Nickel. Significant cobalt mineralisation too.
Biggest risers –HT1, JHG, NWS, WFD, MYR and ERA.
Biggest fallers – MIN, IRI, CLQ, XRO, GTN and STO.

TODAY

News Corp (NWS) +4.56% first quarter revenue increased 5% mainly as a result of changes to Google and the way it preferences genuine news rather than fake news. The result beat expectation sof US$1.97bn with total reported revenue of US$2.06bn. Growth was also boosted by the acquisitions of Australian Regional Media, UK talkback radio group Wireless and a $US26 million positive impact from foreign currency fluctuations. local newspapers maintained their digital growth momentum with subscriptions up 30%. In 2018, NWS plans to combine its Australian pay-TV businesses Foxtel and Fox Sports into a sports and entertainment Pay-TV player in partnership with Telstra (TLS), which owns half of Foxtel. NWS will own 65% of the new company.
REA Group (REA) +1.72% lifted September quarter earnings from core operations by 24% to $107m. total revenue for the three months to September 30 rose 21 per cent to $190m, driven by strong residential growth and the inclusion of financial services revenue from August 1.
Myer (MYR) +2.86% The war continues with chair Garry Hounsell out and about meeting shareholders here and overseas before the AGM on 24th November. Meanwhile Solly Lew has released his ‘dream team’ of board nominees, former Myer Grace Bros chief Terry McCartney, former UBS managing director Tim Antonie and former Federation Centres CEO Stephen Sewell.
Pilbara Minerals (PLS) +4.59% announced a MOU for a potential South Korean downstream processing facility. Under the proposed agreement PLS would supply up to 30,000 tonnes of lithium hydroxide to the South Korean battery industry. Janus Henderson Group (JHG) +4.95% 3Q results this morning with a diluted EPS of US49c. Net inflows of US0.7bn with positive flows into equities and alternatives and fixed income. Merger related synergies now at least US$125m up from US$110m with AUM up to US$360.5bn up 5%.

ECONOMIC NEWS

Statement of Monetary Policy RBA

Highlights:

The various measures of inflation are expected to reach 2–2¼ % by the end of the forecast period.
The outlook for the Australian economy is little changed from three months ago.
The outlook for business investment looks to be more positive than it has for some time.
Dwelling investment looks to have peaked earlier than previously expected
The global economy has strengthened further over the course of 2017. GDP growth was stronger than expected in the September quarter.
The stimulatory setting of monetary policy in Australia has supported the economy and helped generate a decline in unemployment. Over the period ahead, further progress on reducing spare capacity in the economy is expected, which in turn would support the forecast gradual increase in inflation.
The near-term outlook for growth in Australia’s major trading partners is a little stronger than at the time of the August Statement on Monetary Policy.

GDP growth in the major advanced economies is expected to be above potential growth over the next couple of years, partly because monetary policies are expected to remain largely accommodative.

For a full statement click here

An RBA Snapshot of the state of the local economy

Over the ditch the NZ Finance Minister Grant Robertson said he expects to discuss the central bank’s current focus on the 2% midpoint of its inflation target band once a new governor is appointed. The bank is being shaken up. Adding full employment would create a dual mandate dual and lead to looser policy in some situations.

BOND MARKET

ASIAN MARKETS

China will remove foreign ownership limits on its banks and asset-management companies, and allow overseas firms to take controlling stakes in local securities ventures. Foreign firms will be allowed to own up to 51% in securities ventures.
Toshiba fell 8% amid reports the troubled conglomerate was considering a share sale to bolster its capital position
Top of the market stuff? An IPO Razer was 291 times oversubscribed.

EUROPE AND US MORNING HEADLINES

The EU circulated a document that called for Northern Ireland to maintain the rules of the customs union and single market after Brexit. What the EU is demanding is all but impossible for Britain, unless the whole U.K. stays in the customs union. Something PM May has ruled out. Currently the EU asking for about EUR60bn ($90bn) and the U.K. so far offering around EUR20bn. No trade talks until divorce settlement sorted.
May is set to enshrine in law the leaving date.
The UK Government has offered the world’s largest oil company Saudi’s Aramco a US$2bn loan guarantee in an attempt to secure the listing for the LSE. The UK Export Finance (UKEF) group said the loan guarantee will be used to help to support Saudi Aramco in buying more from the UK to help deepen trade ties.
Despite better performance form fund managers in the USD US$150bn still left the building.
Uber looks set for a 2019 float according to new CEO.

And finally….