Today’s Headlines

• ASX 200 rockets higher by 77 pts to 6094
• High 6096.5 Low 6021.Biggest rise this year.
• All systems go across the board as AUD falls.
• Index closes up 50 points for the week. Two in a row.
• Banks finally rebound.
• Miners enjoying the lower AUD.
• Consumer staples march higher.
• TLS two from two. CSL reverses.
• AUD falls to 74.65c
• Bitcoin steadies at US$6557
• AUD Gold mildly higher at $1301.
• US futures down 20.
• Asian markets mixed as Japan maintains policy Japan up 0.40% though China CSI 300 down 0.64%

STOCK STUFF

Movers and Shakers

• TLS +1.38% investor day looms
• SRX +4.59% chooses money over certainty.
• KGN +3.99% bounce starts.
• MND +5.18% mining services back in favour on BHP project.
• VOC +5.15% telcos winning some friends in Huawei uncertainty.
• YAL -unchanged- abandons dual listing.
• PRY -1.69% analyst downgrade sees more selling.
• GEM -1.65% broker downgrade.
• LYC +2.00% buyers returning.
• BOQ +3.53% broker upgrade.
• BAL +5.43% broker upgrade.
• BRN +12.00% life returning to small caps.
• EOS +6.79% defence order update.
• BLA +5.06% book squaring.
• RFG -5.22% down down prices are down.
• Speculative stock of the day: Adriatic Metals (ADT) +29.69% after the recent investor presentation and the initial drilling results for a high-grade extension at Rupice. 64m@4.6g/t Au
• Biggest risers – CIA, BAL, FAR, MND, SXY, VOC and SRX
• Biggest fallers – NWL, ASL, AOG, IFN, MP1,ORE and DOW.

TODAY

• Sirtex (SRX) +4.59% The company has terminated the scheme of arrangement with Varian and opted for the far higher bid from CDH Genetech and China Grand Pharma. The newly accepted bid is 3360c. Varian has declared they will not pay up. SRX will have to pay a $16m break fee. The deal is now backed by the board, and they are urging shareholders to accept.
• BHP Billiton (BHP) +0.54% has approved a $US2.9bn ($3.8bn) spend on a new iron ore mine in Western Australia’s Pilbara region.BHP will fund 85% of the South Flank project, with Japanese partners Itochu and Mitsui funding the balance of the project’s overall $US3.4bn ($4.49bn) price tag. Eliwana and South Flank will begin production in 2020 and 2021 respectively, meaning spending on construction of the two mines will happen concurrently. South Flank will produce 80m tonnes of iron ore per year, making it almost three times bigger than Eliwana and larger than Koodaideri, which was expected to produce 40m tonnes per year.
• CIMIC (CIM)+1.43% Awarded the $260m contract by BHP to deliver the construction for the South Flank project in the Pilbara.
• End of an Era – Sydney Bridge Climb to close.

ECONOMIC NEWS

• Moody’s has affirmed Australia’s Aaa long-term issuer and senior unsecured ratings, saying that the outlook remains stable. Moody’s says that robust and stable GDP growth and strong growth potential relative to peers, a moderate general government debt burden and strong institutions that preserve macroeconomic and financial stability, as key factors supporting the rating affirmation. Among comparable triple-A rated sovereigns, Australia was one of the fastest growing economies.
• The Bank of Japan (BOJ) has maintained its settings on monetary control but now sees inflation in the 0.5%-1.0% range. A downgrade to the outlook. Looks like the economy is losing momentum. Core inflation slowed for the second straight month to 0.70%. It maintained its key policy rate at -0.1% and will continueto buy enough Japanese government bonds (JGBs) to keep the  10-year yields steady at around 0%, this is known as yield curve control.

BOND MARKET 

ASIAN MARKETS NEWS

• Chinese ride-hailing group Didi Chuxing is expanding to Australia as part of its push into international markets.
• New home price growth in China remained unchanged from the previous month in May.
• Shanghai stocks lowest since 2016.Tariffs loom.

EUROPE AND US MORNING HEADLINES

• Trump to bring in US$50bn trade tariffs.
• IMF’s Christine Lagarde says US tax cut effects will fade soon.
• More problems for UK PM Theresa May as compromise plan is deemed unacceptable by rebels. 287 days to go. City not happy.
• Go Socceroos. Bit of a long shot. England players visited a russian orphanage yesterday ahead of the world cup…”It was heartbreaking to see their little faces with no hope” said Vladimir aged 6.

As England struggles continued, a pound coin was thrown onto the pitch. Police are trying to determine whether it was a missile or a takeover bid.