- ASX 200 drops on MAD trade talk. Down 42.5 to 6216.
- High 6256 Low 6210.
- Banks hit again as APRA chief talks turkey.
- Resources pummelled by China talk.
- TLS marches all the way down again.
- AGL hit by ACCC tough talk from Sims.
- AUD falls hard to 74.12c
- Bitcoin eases to US$6337
- Aussie Gold $1687.90.
- US futures whacked down 200
- Asian markets hit on MAD trade woes, Japan down 1.12% and China CSI 300 down 2.00%.
Movers and Shakers
- AGL -6.95% ACCC investigation hurts big time.
- COE +3.80% bucking the trend as buyers follow Sole 3 news.
- FLT +3.79% taking off.
- NEA +3.70% broker upgrades.
- PDL -4.71% identity crisis.
- SHV -4.68% sell off continues. Falling knife. Gone nuts.
- ISD +1.19% trundles higher.
- APX -4.37% high PE sell off. Morgan Stanley cuts recommendation.
- ALU -4.94% trouble in paradise.
- CTD – Loftus Travel Group acquisition. Guidance at upper end. May be a disappointment.
- LYC -4.98% rare earth price falls on trade wars. It’s on the list though.
- Speculative stock of the day: Vivid Technology (VIV) +% following an announcement with its technology partner Origin to deliver lighting-as-a-service to business customers. Big volume. At least for this one.
- Biggest risers – FAR, FLT, NEA, CLQ, FSF and SSM
- Biggest fallers – AGL, LYC, ALU, PDL SHV and APX.
- Resolute Mining (RSG) –1.82% Received all government approvals to allow the use of new technology, processing strategies and schedules at the Ravenswood Expansion Project. This has extended the mine life by 3 years to 2032, reduced capital expenditure for FY19 to only $33m and established the life of mine average production at approximately 115,000oz pa of gold. The company has said this solidifies the mine as a long life, low-risk, low cost project.
- The Hydroponics Company (THC) +2.65% Has appointed Ken Charteris, an experienced biotech and pharmaceuticals executive as Group CEO. The company has also formed a Medical Cannabis Leadership Team led by Andrew Beehag.
- Corporate Travel Management (CTD) – Has been placed in a trading halt pending an announcement.
- Village Roadshow (VRL) – Will remain in a trading halt pending an announcement. Directors and management taking a pay cut.
- Dacian Gold (DCN) – Has been placed in a trading announcing an equity raising of $37m with the possible oversubscription of up to $3m. Funds from the institutional placement will be used to extend the Westralia mine and increase exploration at Cameron Wall. The offer is for 13.7m shares at 270c, a 10% discount to the last close price.
- Viva Energy (VEA) – The IPO has been priced at 250c at the bottom end of the range. It has raised $2.65bn. Feeling underwhelmed.
- Scentre Group (SCG) -0.67% bought a 50% stake in Westfield Eastgardens in Sydney’s south?east from the Saunders family’s Terrace Tower Group for $720m.
- The Westpac Melbourne Institute Consumer Sentiment Index jumped 3.9% MoM to its highest reading since November 2013, hitting 106.1. This was driven by positive expectations of the economic outlook over the next 12 months (+3.9%) and 5 years (+9.8%).
- Australian home loans came in +1.1%, surpassing expectations of -0.2%. Investment lending slipped 0.1% whilst owner occupier loans were up 0.7%
- The ACCC has made 56 recommendations to fix Australia’s broken electricity market, pushing for measures that could slash households’ power bills by a quarter. “The National Electricity Market is largely broken and needs to be reset,” ACCC chairman Rod Sims said. Bad for AGL-% and ORG-%
To give you an idea of what is on the tariff list click here for the full announcement. 200pages. One for every billion.
ASIAN MARKET NEWS
- China retaliates talks of taking US to WTO and asks other trading partners to sign on to free trade. So much for an ‘Art of the Deal’ negotiating tactic. Looking forward to the next Treasury auction.
- Japan’s Producer Price Index (PPI) was in-line with consensus, managing a 2.8% increases year on year adding to the strong uptrend set by last month’s +2.7% increase.
EUROPEAN AND US HEADLINES
- The new list of goods to face 10% punitive duties includes frozen meats, live and fresh fish and seafood, butter, onions, garlic and other vegetables, fruits, nuts, metals, and a massive list of chemicals, as well as tyres, leather, fabrics and even rare earths. Good for LYC.
- Elliott Management plans to inject EUR50m of equity capital into AC Milan, one of Europe’s most successful football clubs, after the club’s former Chinese owners failed to repay its debt obligations to the New York-based hedge fund.
- Another win for Trump as Pfizer has delayed price rises after a discussion with the President. Viagra included.
- Tesla to move production to China. Easier for them to steal the technology there.
- From one Donald to another ‘Appreciate your allies’. Europe next to kick off. Will we have USEXit from NATO? A rocky few days in store.
- More Tories quit as. UK consumers buy 18% of their stuff online. Double their American friends.
- Things just got real in the trade war.
It’s coming home!!!