First off apologies to readers for no Tuesday report but Clarence has a regular TV gig on Sky at 4pm Tuesday afternoon..Tune in for a live Beeks report! Clarence also hits the TV waves at 12pm on Wednesdays too..So much exposure for one man!

Today’s Headlines

• ASX 200 down 33 to 6016
• High 6036 Low 6013.
• Consumer sentiment hits 4 year high.

• Miners see red on metal price falls.
• Quarterly production numbers strong sentiment weak.
• Gold miners under pressure too.
• Banks under pressure after Fitch warning yesterday.
• Consumer discretionary under pressure despite strong sentiment numbers.
• MQG bucks trend staying positive.
• AUD strength as USD weakens. AUD 79.64
• Bitcoin $11,076
• US futures up 44 as shutdown looms.
• Asian markets weaker with CSI 300 down 0.48% and Japan down 0.70%.

STOCK STUFF

Movers and Shakers

• MQG +1.03% broker update.
• BAL +5.85% afterglow from upgrade.
• TLS -1.37% broker downgrades in sector continue.
• VOC -3.17% downgraded.
• SM1 +3.88% following positive upgrades to BAL yesterday
• APT +2.36% rally continues on earnings guidance.
• PLS -5.33% KDR -3.77% lithium rally falters.
• LYC -4.05% metal prices weighing.
• MMJ +10.89% pot stocks drawing buyers after Victorian Gov deal with Canadian group.
• DCC -17.33% as Bitcoin bubble bursts.
• BYE +7.02% production cash flow imminent.
• WTC +3.55% rally resumes.
• TWE +0.13% turning point perhaps?
• APT +2.36% hits afterburners.
• RFG -2.22% sell off continues.
• SRX +13.93% on improving sales forecast by company.
• Speculative stock of the day: Sensen Networks (SNS) +32.35% Traders clearly like the last announcement on the contract win in Singapore. SNS analyses data to improve business efficiency using CCTV and software solutions. Minnow at $31m market cap. Big volume day.
• Biggest risers – SRX, BIN, BAL, KGN, SM1 and WTC
• Biggest fallers – LYC, PLS, GXY, AJM and CLQ.

TODAY

• Zip Co (Z1P) +3.66% Announced a first of its kind integration that will allow Macquarie Bank to add to their banking and credit card accounts to the Pocketbook personal financial management app. This is a positive and follows in the wake of the APT announcement yesterday.
• A2Milk (A2M) +2.43% The company is expanding its US footprint with an expansion into the north east. The norrth east is a significant opportunity and will take the number of outlets from 3600 to potentially 5000 from January.
• Wesfarmers (WES) – Coal production for the quarter was 2.973m tonnes in line with previous quarter. Met coal was 6.2% lower and steam coal 11.2% higher.
• Oz Minerals (OZL) +0.99% Copper production guidance achieved for third consecutive year. Gold guidance exceeded for 2017 up0 34%. Cash has lifted to $729mm Carapateena construction on schedule.2018 and 2019 copper production guidance lifted to a total of 15,000 tonnes over 2018 and 2019. Gold production for 2019 has been lowered.
• Sirtex (SRX) +13.93% EBITDA expected to be approx. $34m up 16% with dose sales of SIR-Spheres flat on half v pcp. The company is expecting higher sales in the second half as a result of strategic initiatives. EBITDA will be in the range of $75-$85m compared to $81.5m for 2017. Cash generation remains strong. First half results 21st Feb.
• South32 (S32) -1.51% Maintained FY18 guidance with the exception of SA Manganese where it was underpinned by a demand fuelling a 8% increase in estimates. Record ore production in Australian Manganese and record Mozul aluminium production. Appin colliery successfully restarted.
• Allianz and Suncorp (SUN) -0.37% will refund a combined $65.2m in premiums to more than 100,000 customers, after selling insurance via car dealers that was of little or no use according to ASIC.

ECONOMIC NEWS

• The proportion of first home buyers entering the property market has reached its highest level in five years rising to 18% according to the ABS.

• The value of new home loan approvals rose 2.3% to $33.5bn in November.
• The value in investor loans was up 1.5%, at $12.2bn.
• The Melbourne Institute and Westpac consumer sentiment index rose 1.8% in January, from December when it rose 3.6%.

ASIAN NEWS

• Japan’s core machine orders rose 5.7% from a month earlier, beating estimates of a 1.4% fall, according to figures released today.
• From a year earlier, orders rose 4.1%, beating estimates of a 1% decline.
• Orders from non-manufacturers drive gains, rising 9.8%.
• China’s banking regulator has vowed to take action against those who built large financial conglomerates through complex ownership structures and fraudulent capital injections. Looks like the crackdown from last year is not over yet.
• Bitcoin and other cryptocurrencies finding a base after savage sell off.

EUROPE AND US MORNING HEADLINES

• The Bank of Canada is poised to lift the target for its overnight rate by 25bps to 1.25% on Thursday morning AEDT, potentially the first of three hikes this year.
• Ford has forecast that its profits will fall in the current year as US car sales decline, becoming the second US automaker to warn on Tuesday of tougher conditions for 2018.
• Trump passes health test with flying colours.
• GE ponders dramatic break up after disclosing a US$6.2bn charge on long term care insurance. New CEO looking at all options including a plan in November to focus the company on jet engines, power-generation equipment and health-care machines. He also said the company would sell $20bn in other assets. Update to come in the US spring.
• Recent corporate failure Carilion points the finger at RBS as creditors likely to get only a cent in the dollar.
• BlackRock has warned companies to make a positive contribution to society or risk losing its support. In a letter to 1,000 global CEOs, the US$1.7 trillion fund has warned companies they must meet high standards in areas such as being a good employer of a diverse workforce as part of a long-term strategy.

And finally….the gags are back…

Have a great evening!!!

 

Clarence

XXX