Ides come late this year!!!
- ASX 200 loses 116.5 to 5821 in risk off on Trump tariffs.
- High 5913 Low 5808.
- For the week, the ASX 200 is down from 5949 to 5821 (-2.15%)
- Buyers step back as banks and miners lead rout.
- Asian market weakness contributes.
- Nowhere to run nowhere to hide.
- All sectors sold off.
- Iron ore down nearly 5% in Chinese futures.
- AUD steady at 77.10c
- Bitcoin slips to US$8400
- US futures slide again down 154 points
- Asian markets hit hard on trade war woes Japan down 3.85% and China CSI down 3.21%
Movers and Shakers
- RSG +3.25% gold miners in the spotlight.
- FPH +0.33% research shows efficacy of ‘Optiflow’ Nasal High Flow Therapy
- WGN -0.95% profit taking
- BSL -5.86% tariff woes.
- UPD -3.52% unwinding.
- APX -5.18% high PEs struggle. Broker downgrades.
- KDR -% profit taking after big run.
- RIO -4.35% sells Winchester South to WHC.
- KGN -4.86% platform and data stocks suffer with Facebook.
- MYR -10.13% heading towards oblivion.
- CRD -7.76% thin selling.
- COB +10.40% strategic partnership announced.
- SLR +6.94% Exploration update.
- BYE +2.56% hits target.
- BBG -2.65% suitor leaves possibility of higher bid.
- Speculative stock of the day: Innate Immune Therapeutics (IIL) +% entered into an agreement with Amplia Therapeutics to acquire the company which has a promising target in cancer therapy. The company has a cancer program called Focal Adhesion Kinase (FAK) cancer program. Things are really heating up in the bio tech space especially in the lucrative cancer area.
- Biggest risers – RSG, WBA, DCN, APE, INA and NCK.
- Biggest fallers – BSL, MIN, KDR, APX, S32 and WHC.
- Transurban (TCL) -1.07% Announced today it has acquired the Canadian A25 motorway for CAD$840m. The deal struck with Macquarie Infrastructure Partners aligns itself with the company’s strategy to focus on heavily congested, urban areas with strong demographics in secondary markets such as North America. The A25 is a 7.2km toll road and bridge connecting Northern Montreal across the Riviére des Prairies to commercial and residential areas. It opened in May 2011 and has a concession to September 2042. TCL will assume responsibility for the management and operations after financial close, targeted for 4Q FY18 and is dependent on Investment Canada Act approval. depreciation and amortisation (D&A) costs in its operations table in its 1H18 results.
- Webjet (WEB) -1.23% The company has announced an error in the depreciation and amortisation (D&A) costs in its operations table in its 1H18 results. Pro forma D&A was overstated as a result of a $3.1m charge for JacTravel. EBIT now up 10%, NPAT up 12% before AA and EPS, both basic and diluted up, 10%.
- Tabcorp (TAH) – 0.91% has priced a $US1.4bn ($1.8bn) issue of long-term notes to investors in the US private placement market. The notes will comprise four U.S.-dollar-denominated tranches, totalling $US1.25bn and two Australian-dollar-denominated tranches, totalling $195m. The funds will be used to repay $1.8bn of the bridge finance for the acquisition of TTS.
- The ACCC has re-authorised the Qantas Emirates alliance for another 5 years.
- Australia is the most exposed and ‘at risk’ economy sandwiched between the US and China.
- China buys 35 % of Australian exports, equivalent to about 8 % of gross domestic product, and dominates iron ore shipments and education.
- Education is a significant export, with exports to China were worth A$9bn in the year through June 2017, up 260% in a decade. As for tourism, almost 1.4m Chinese visited Australia in 2017 and spent a record A$10.4bn into the economy, up 14% from 2016.
ASIAN MARKETS NEWS
- China unveiled plans to impose tariffs on up to $3 billion of US imports in retaliation against the US tariffs on Chinese steel and aluminum products.
- Tencent fell sharply on Friday after one of its largest shareholders Naspers said it would sell down part of its stake for the first time in almost two decades worth US$9.8bn at a discount.. Bearish option trades in Tencent have surged a s much as 34,900% in HK as the stock has seen a big collapse in the last few days.
EUROPE AND US MORNING HEADLINES
- Trump changes national security adviser. Goes hard line ahead on Kim talks.
- Dropbox has priced shares in its IPO at US$21, above what was already an increased range in a sign of strong demand on the eve of its first day of trading. Not sure it has read the market quite right.
- Elliott Advisers (of BHP fame) has had a modicum of success in its campaign against Telecom Italia as board changes look to be on the cards.
- Steve Wynn is selling all his shares in his company Wynn Resorts for US$2.14bn to Galaxy.
- Toys R Us founder Charles Lazarus has died. Not expecting a return for the stores or the founder despite his previous history.
So the morning goes like this; For UK and US friends
8:00 I made a snowman.
8:10 A feminist passed by and asked me why I didn’t make a snow woman.
8:15 So, I made a snow woman.
8:17 The nanny of the neighbours complained about the snow woman’s voluptuous chest.
8:20 The gay couple living nearby grumbled that it could have been two snowmen instead.
8:25 The vegans at No. 12 complained about the carrot nose, as veggies are food and not to decorate snow figures with.
8:28 I am being called a racist because the snow couple is white.
8:31 The Muslim gent across the road wants the snow woman to wear a headscarf.
8:40 Someone calls the cops who show up to see what’s going on.
8:42 I am told that the broomstick of the snowman needs to be removed because it could be used as a deadly weapon. Things get worse after I mutter : “Yeah, if it’s up you’re a***”
8:45 Local TV news crew shows up. I am asked if I know the difference between snowmen and snow-women? I reply, “Snowballs” and am called a sexist.
8:52 My phone is seized and thoroughly checked while I am being blindfolded and flown to the police station in a helicopter.
9:00 I’m on the news as a suspected terrorist bent on stirring up trouble during this difficult weather.
9:10 I am asked if I have any accomplices.
9:29 A little known jihadist group has claimed it was their plot.