Today’s Headlines

• ASX 200 down 1 point to 6328.
• Big turnaround as US – China talks resume.
• ASX 200 the come back kid on jobs and China
• 3rd best performing market on the planet this year.
• High 6331 Low 6282.
• Results cheer as TLS beats estimates.
• Miners sag on commodity prices.
• Banks mixed but industrials and healthcare save blushes.
• AUD firms on jobs news to 72.67c
• Bitcoin steady to US$6298
• Aussie Gold slips to $1614.
• US futures up 77 on talks resuming.
• Asian markets try to steady with China down 0.60% and Japan down 0.16%%.

STOCK STUFF

Movers and Shakers

• KGN +9.06% big rally as JBH shows the way.
• BRG +12.54% great results.
• AOG +2.53% positive broker comments.
• DMP +7.71% brokers warm to results.
• BAL +6.70% substantial shareholder notices.
• TNE +5.39% broker upgrades.
• QBE +6.76% a positive surprise for a change.
• NUF +2.42% roundup debate eases.
• UPD -8.68% shareholders not happy with proposal.
• WSA -3.00% nickel price falls.
• PNV -9.09% results underwhelm.
• SEK +3.19% broker upgrades.
• MLX -5.31% copper bear market hurts.
• IVC -8.75% death does not become them.
• AC8 +32.52% Canadian Caopy deal cheers in cannabis sector.
• WHA +12.21% Chinese approvals for product range.
• RAP +19.44% deal with Lockheed cheers.
• Speculative stock of the day: Energy Action (EAX) +26.47% NPAT up 46% to $2.59m although volume low. Results drive bulls. Operating margin extended to 18.3%.
• Biggest risers – BRG, KGN, NEA, DMP, QBE, BAL, TLS and IPH
• Biggest fallers – SEA, IVC, UPD, ILU, MIN, ORG and EHL.

TODAY

• Treasury Wine Estates (TWE) +4.47% FY18 result. Net profit up 34% to $360.3m and EPS 36% higher to 49.7c. EBITS up 17% to $530.2m, TWE previously mentioned that it was “aligned” with EBITS consensus of $524m for the recently concluded fiscal year. A final dividend of 17c was declared. Guidance reiterated for FY19, EBIT growth of 25% expected.
• Telstra (TLS) +5.88% FY18 results in line with recent guidance. A special dividend of 7c announced, bringing the total dividend for the year to 22c per share.
• Iluka Resources (ILU) –7.67% First half result. Net profit came in at $126.1m swinging from a $81.5m loss in the previous year. Underlying EBITDA was 80% higher to $279m. ILU updated 2018 physicals guidance, Zircon production is expected to be approximately 30kt higher due to the supply of additional tonnes of zircon in concentrate (ZIC) in an attempt to alleviate supply constraints.
• Sonic Healthcare (SHL) – 1.79%Full-year net profit rose 11.2% to $475.61m. Revenue in the year ended June 30 climbed 8.2% to $5.542bn SHL said it would pay a 49c final dividend, up 6.5% from last year’s payout of 46c.
• ASX +0.52% Full-year net profit rose 2.5% to $445.1m. Revenue in the year ended June 30 climbed 8.7% for the stock exchange operator to $1.013bn. ASX said it was paying a 109c dividend.
• Oz Minerals (OZL) +0.45% Profit after tax rose 58.6% to $127.8m. Revenue rose to $530.3m from $445.9m the previous year. Underlying EBITDA rose 334% to $290m. It will pay a final dividend of 8c a share, fully franked, on September 17.
• QBE +6.76%Half year profit up 4% to US$370m from US$355m last year. Revenue down 6% to US$7.35bn. Dividend of 22c. The combined ratio came in at 95.8%. That was close to the midpoint of guidance for a combined ratio of 95% to 97.5%. Outlook: Combined operating ratio 95.0% – 97.0%: Investment return 2.25% – 2.75%.
• Origin Energy (ORG) – 6.39% Reported a year ago. profit of $218m for the full year, from a loss of $2.2bn last year.Net profit from continuing operations, was a profit of $280m from a loss of $2.05bn the previous year. Total revenue rose 6% to $14.9bn. Underlying EBITDA from continuing operations rose 36% to $2.9bn and underlying profit from continuing operations surged 110% to $838m
• Downer EDI (DOW) – Annual net profit dropped 61% to $71.4m from the year-earlier $181.5m Underlying net profit after tax and before amortisation of acquired intangible assets (NPATA) in the year ended June 30 totalled $296.5m, slightly ahead of the $295m DOW had forecast. Final dividend of 14c per share, up from the 12c last year.
• IPH +5.42% After-tax profit fell 5.2% from a year ago to $40.7m. Revenue for the period climbed 21% to $221.96m. EBITDA rose by $1.4m to $70.1m. Underlying EBITDA was up 3.3% to $74m. Final dividend of 11c a share, of which 5.5c is franked. The total payout for the year is 22.5c a share, up from 22c a year ago.
• Catapult Group (CAT) –4.55% FY18 result. Revenue up 26% to $76.8m, underlying EBIT of $0.95m, down 68% and a net loss after tax of $17.4m up from a $13.6m loss the previous year. FY19 outlook is in line with the long-term guidance posted in March, with CAT on track to generate positive cash flow at the group level by FY21.
• Invocare (IVC) -8.75% net profit for the June half fell to $20.9m from $41.7m a year ago. Operating revenue inched 0.4% higher to $225.7m. Operating EBITDA dipped 0.3% to $53.7m. The company will pay an interim dividend of 17.5c.

ECONOMIC NEWS

ABS Unemployment Rate– Mixed Bag with a fall in the seasonal headline rate to 5.3%. Some rotational impact on the way the ABS calculates the unemployment rate making it look better. Pretty much in line though with expectations.

TREND ESTIMATES (MONTHLY CHANGE)

• Employment increased 26,900 to 12,581,600.
• Unemployment decreased 1,300 to 713,000.
• Unemployment rate remained steady at 5.4%.
• Participation rate remained steady at 65.5%.
• Monthly hours worked in all jobs increased 3.1 million hours (0.2%) to 1,748.0 million hours.

SEASONALLY ADJUSTED ESTIMATES (MONTHLY CHANGE)

• Employment decreased 3,900 to 12,575,200. Full-time employment increased 19,300 to 8,587,500 and part-time employment decreased 23,200 to 3,987,700.
• Unemployment decreased 5,700 to 706,000. The number of unemployed persons looking for full-time work increased 2,300 to 504,100 and the number of unemployed persons only looking for part-time work decreased 8,000 to 201,900.
• Unemployment rate decreased by less than 0.1 pts to 5.3%.
• Participation rate decreased by 0.1 pts to 65.5%.
• Monthly hours worked in all jobs increased 4.0 million hours (0.2%) to 1,749.6 million hours.

The average weekly ordinary time earnings for full-time adults in Australia in May 2018 was $1,585.30

Mining sector still the best paid. Food/retail services the worst.

ASIAN MARKET NEWS

• Hong Kong’s ‘central bank has been forced to intervene to prop up the local currency for a second consecutive day after it slumped to HK$7.85 against the dollar.
• China’s Commerce Ministry will send a delegation led by vice minister Wang Shouwen to the US for trade talks at the end of August.
• Iron ore futures in China near an 18-month low.

• Japanese exports grew at a slower rate than forecast as shipments to the US fell.

EUROPEAN AND US HEADLINES

• Tesla in trouble with the SEC on the tweeting of funding for a private takeover.
• Plenty of toll road operators will be checking infrastructure following the Italian tragedy. Possibility the operator may lose its concession.
• House prices in London fell 0.7% in the 12 months to June – the largest annual fall in the city’s house prices since September 2009.Three of London’s central boroughs had double-digit drops in prices as the reversal in the capital’s fortunes continued.

• Lotto has $100m jackpot tonight. Did win the other day but only $30. Good for Jumbo (JIN).

And finally……………….

Why did I get divorced?

Well, last week was my birthday. My wife didn’t wish me a happy birthday. My parents forgot and so did my kids. I went to work and even my colleagues didn’t wish me a happy birthday. As I entered my office, my secretary said, “Happy birthday, boss!”

I felt so special. She asked me out for lunch. After lunch, she invited me to her apartment. We went there and she said, “Do you mind if I go into the bedroom for a minute?”

“Okay,” I said. She came out 5 minutes later with a birthday cake, my wife, my parents, my kids, my friends, & my colleagues all yelling, “SURPRISE!!!” while I was waiting on the sofa… naked.

Clarence

XXXX