Today’s Headlines

• ASX 200 down 28 points to 5829.
• High 5864 Low 5825
• Narrow range modest volume.
• Banks hit the skids. NAB fraud not helping.
• Staples unwind too TLS back in dog house.
• Miners improve on metal prices. Energy stock enjoy crude gain.
• Iron ore futures at one week high to US$65.85 on restocking.
• AUD rises to 77.50c
• Bitcoin rallies to US$6860.
• US futures down 71 on realistic trade view.
• Asian markets mixed with Japan down 0.33% and China CSI up 0.66%

STOCK STUFF

Movers and Shakers

• RFG +8.51% shorts scrambling as bargain hunters strike.
• FNP +8.69% broker upgrade.
• MSB +5.07% positive support.
• WSA +3.43% nickel price rises.
• WBC -1.39% crack down on liar loans.
• COE +3.17% oil price rise.
• WPL +1.23% crude rise.
• GMA +3.93% broker upgrade.
• AGL -0.66% Vesey reiterates position on Liddell.
• NVT -4.10% remains under pressure.
• WTC -5.43% rally unwinds.
• PLS -4.17% profit taking.
• ERA -6.31% AGM address.
• NOX -4.27% low volume sell down.
• BBN +6.87% competitors in administration
• IVX +5.26% finding support again.
• Speculative stock of the day: Clancy Exploration (CLY) +66.67% the company has secured a key cobalt licence next to the famous Bou Azzer mine in Morocco. The mine has been in operation since the 1930’s. Bear in mind that the 32km2 project is adjacent to the Bou Azzer mine. ‘Nearolog’y works it seems.
• Biggest risers –FNP, NCZ, MSB, SXY, WOR and GMA.
• Biggest fallers –PPH, APT, WTC, NVT and ORE.

TODAY

• Afterpay (APT) -5.72% The company gave a sales and revenue update this morning showing revenue up 400% on pcp. While this is clearly very positive the devil was in the detail. Q3 FY18 underlying sales approximately 3.8% lower than Q2 FY18 sales (which includes Christmas peak season trading uplift) on an absolute basis but is less than 2% lower from an average daily underlying sales perspective (fewer days in Q3 versus Q2).
• Pushpay (PPH) -5.31% a revenue update this morning. The company has doubled revenue to US$70m in payments annually. It is now processing over US$3bn in volume annualised. It also announced margin improvements growing from 54% to over 60%.
• Blue Sky Alternative Investments (BLA) -5.35 Corrected media reports that its private equity investment in Wild Bread is struggling. BLA has appointed McGrathNicol to evaluate its growth strategy and capital structure. Not as suggested that it has appointed its insolvency arm and that Wild Bread continues to meet all its commitments.
• South 32 (S32) -2.30% To appeal Colombian court decision in relation to alleged health & environmental impacts on the community surrounding its Cerro Matoso operation.
• Qantas (QAN) +0.16% Has sold its catering business to an Emirates owned company for an undisclosed amount.
• QBE Insurance (QBE) +0.21% Announced changes to its management. Inder Singh appointed as group CFO.

ECONOMIC NEWS

• The Westpac Melbourne Institute Index of Consumer Sentiment declined 0.6% to 102.4 in April, down from 103.0 in March. Sentiment continues to remain optimistic with the index staying above the 100 level for a fifth consecutive month. While the number is an improvement on much of 2017, the index is still well below the strong 105–115 levels.
• RBA governor speaking in Perth this afternoon. “A serious escalation of trade tensions would put the health of the global economy at risk and damage the Australian economy.”
• A high level of household debt remains a source of vulnerability for Australia’s economy, though risks in this area are no longer building, following a recent tightening of bank lending standards, he said.
• The risks in the economy, and the prospect of only a slow return to higher inflation, and stronger growth, mean the RBA is under no pressure to raise interest rates near-term.

BOND MARKET UPDATE

ASIAN MARKETS NEWS

• Chinese CPI data out with March CPI up 2.1% in food and non-food. March PPI +3.1%. Both look a little below forecast.

• China’s securities regulator has said the daily quota for trading schemes linking Shanghai and Shenzhen with Hong Kong will be increased from May.
• Foreign ownership caps on securities companies, fund managers and life insurers will be fully scrapped in three years.
• PBoC Governor Yi Gang said the interest-rate differential with the U.S. is “in a comfortable range” and that deposit and lending rates will become more market determined. He reiterated that the central bank will continue with prudent monetary policy.
• Japanese core machine orders rose in February beating estimates on an improvement for the manufacturing sector.

EUROPE AND US MORNING HEADLINES

• Murdoch’s empire has been raided by European watchdogs over a sports rights cartel.
• Trump has cancelled his Peru trip to respond top Syria. Paddington misses out.
• Saudi Arabia raises US$11bn in the biggest emerging market bond sale of 2018.
• This could be big for FTSE. China is aiming to start a stock trading tie-up between Shanghai and London this year, according to a top official, creating a system that would give investors direct access to shares listed in the U.K.
• PM Theresa May looks like backing Trump in a strike against Syria.
• VW set to axe Mathias Mueller.

And finally fine words from my friend Hans….

In 1923, who was:

1. President of the largest steel company?
2. President of the largest gas company?
3. President of the New York Stock Exchange?
4. Greatest wheat speculator?
5. Great Bear of Wall Street?
6. The PGA Champion and winner of the most important golf tournament, the US Open?

Answers:

1. Charles Schwab
2. Edward Hopson
3. Richard Whitney
4. Arthur Cooger
5. Cosabee Livermore
6. Gene Sarazen

These men were considered some of the world’s most successful of their days. But 80 years later, we can look at the history books and see what became of them.

1. Charles Schwab died a pauper.
2. Edward Hopson went insane.
3. Richard Whitney was released from prison to die at home.
4. Arthur Cooger died abroad, penniless.
5. Cosabee Livermore committed suicide.
6. Gene Sarazen played golf until he was 92 and died in 1999 at the age of 95. Unlike these other men, he was financially secure at the time of his death.

The moral of the story: forget work, play golf.

Clarence

XXXX