Today’s Headlines

• ASX 200 up 17 to 5995 in quiet thin trade.
• High 6012 Low 5980.
• Up 5 points for the week.
• Banks firm on WBC AGM.
• Miners weak on metal and iron ore prices.
• Energy in focus.
• TLS continues rally.
• AUD rallies to 75.1c
• US futures up 18. Bitcoin CME Futures start 18^th December.
• Bitcoin surging in volatile trading again to over US$16,400.
• Asian markets make headway China CSI 300 up 0.25%. HK up 0.86% and Nikkei up 1.16%

STOCK STUFF

• AGL +1.45% broker upgrade.
• ORG +1.33% upgraded by Goldman.
• APA -5.44% broker downgrade.
• AWE +10.61% Chinese launch all-cash takeover at 73c
• PLS +7.34% addition to index.
• GXY +2.97% ORE +2.89% lithium back in favour. Broker
• ALQ +4.42% on directors buying.
• CCL +2.05% beverage MD appointment.
• LOV +2.95% finding friends.
• YOJ +9.09% broker support.
• MYO -0.83% Bain sells large
• BIG -6.08% goes small on profit-taking.
• ASX -1.88% after blockchain CHESS announcement.
• SBM -4.13% $5m placement form CYL.
• EUR -10.20% as placement weighs.
• FSF -3.40% milk powder weakness.
• BPT +5.29% monthly drilling report.
• FXJ +5.67% short covering DHG +4.44% on substantial notice from FIL.
• GSW – Launches $100m issue.
• WGN +25.46% new IPO jumps on debut.
• Speculative stock of the day: Bioxyne (BXN) +39.53% after launching a NZ dairy formula product in SE Asia. 16k cans of BK18 ordered and weight loss and beauty products launched.
• Biggest risers – PLS, BPT, BIN, VOC, GXY and FXJ
• Biggest fallers – CLQ, APA, BIG, YAL, CGF and NST.

TODAY

• Westpac (WBC) +0.61% AGM Plenty of talk from Brian Hartzer on the impact of the bank levy and the Royal Commission. Nothing substantial although the FY18 cost of these measures is around $280m. Dividends could be affected, and the cost of the inquiry and the levy is 8c a share which the bank is looking to find ways to counter. Asset quality remained strong during the year, with the ratio of stressed assets to total committed exposures declining 15 basis points to 1.05%. Mortgage delinquencies have also been sound with little change over the year.
• Mesoblast (MSB) +1.13% Named global technology leader in Cell Therapy industry by Frost and Sullivan.
• IAG +0.28% improves its capital efficiency and reduces earnings volatility. From 1st January three reinsurers will receive 12.5% of IAG’s consolidated gross earnings premium and pay 12.5% of claims and expenses.
• AWE +10.61% Chinese CERCG back with a 73c cash bid.
• Senex (SXY) +5.880.83% The company has announced approvals milestones for the Surat Basin. The company has now got environmental approvals to develop up to 425 wells.
• MYOB (MYO) –% Looks like a block of stock has gone through the market this morning at 360c. Worth around $350 it appears to be part of Bain Capital’s $900m stake. JP Morgan has placed the stock with a range of institutional investors. Bain last sold shares in February when it sold 100m shares at 355c.
• NBN delay could result in $500m in lost revenue. Singaporean new kid MyRepublic stands to miss out on new HFC cable orders to the tune of 22%. Currently has 3% of the market. TLS cut earnings by $600m on the delay. MyRepublic is an IPO hopeful. Very hopeful.
• Index changes coming on December 18th. In are LYC, PLS, WTC and out are FXL, JHC, and REG.

ECONOMIC NEWS

• Australian Housing finance: Occupied housing finance -0.6%. Total Dwellings up 0.6%. Investment housing up 1.6%. AUD relatively unchanged at 75.03c
• In trend terms, the number of commitments for owner occupied housing finance rose 0.3% in October 2017.
• In trend terms, commitments for the purchase of new dwellings rose 1.0% and commitments for the purchase of established dwellings rose 0.3% while the commitments for the construction of dwellings fell 0.5%.

BOND MARKET

ASIAN NEWS

• Chinese exports jumped3% in November. Imports increased 15.6% Trade surplus of US$40bn.
• Asian LNG prices at a three year high as China battle pollution.
• Japanese 3Q GDP rose 2.5%. Estimates were for 1.5%.

• Galaxy Entertainment is planning to develop a resort in the Philippines as casino operators seek out new markets for growth. Will open a US$300m-US$500m on the island of Boracay. Melco Resorts is the only Macau-based operator that has a footprint in the Philippines.
• South Korean frenzy on Bitcoin buying continues.

EUROPE AND US MORNING HEADLINES

• EU is expecting UK PM May to sign an agreement on Friday. Irish issues sorted?
• US has averted a 8^th December shutdown with a two-week extension.
• Ladbrokes Coral is in play with a GBP3.9bn deal with GVC. Implications for our gaming stocks perhaps.
• Chemical giant BASF agreed to merge its oil and gas unit Wintershall with DEA, a vehicle of Russian billionaire Mikhail Fridman, to create one of the largest independent oil and gas firms in Europe. The new company will produce around 590,000 barrels per day and proven reserves of 2.1bn barrels of oil equivalent. BASF will control 67% of the new firm while Fridman’s LetterOne will own the remaining 33%.

And finally…….Been in Melbourne this week so reports a littlepatchy..Here is another little Apache.

Enough of that…

On the 17th green, a very careful player was studying the break of the surface. First, he got down on his hands and knees to check out the turf between his ball and the hole. Then, he flicked several pieces of grass out of the way, and getting up, he held up a wet finger to try out the direction of the wind.

Then, turning to his caddie he asked, “Was the green mowed this morning?”

“Yes sir,” came the reply.

“Right-to-left or left-to-right?” the player asked.

“Right-to-left, sir,” the caddie said.

The golfer stroked the putt and missed the hole completely.

He whirled on the caddie, “What time did they cut the green?”

 

A guy runs into the bar and says, “Quick, pour me five shots of your best scotch!” The bartender pours them and the man drinks them as fast as he can. “Wow, that’s the fastest I’ve seen anyone drink!” says the bartender. “Well, you’d drink that fast if you had what I had.” The bartender says, “What do you have?” The man replies, “50 cents.”

 

I have discovered the answer to a question that has been puzzling scientists for hundreds of years. What is the exact difference between a split second and a nanosecond? My girlfriend and I were getting ready to go to a movie when, right as we were about to leave home, my girlfriend asked me the question all guys dread. She asked, “Does this make my butt look big?” If I had said “no” in a nanosecond, we’d have been out the door. Since I took a split second, she had to go to the mall and buy new outfits with jewelry, shoes, and purses to match.

 

Have a great weekend 

Clarence

XXX