ASX 200 falls 69 points to 6126 as global growth fears gain ground. Small late rally helps gain some ground back. US futures drop 115 points. Asian markets ease on the back of recession fears. Banks felt the wrath of the sellers today as WBC fell 1.5% on remediation costs whilst NAB dropped 0.9% after changing its incentive program. Miners too fell as cyclone Veronica hit the Pilbara and sellers hit commodity prices. BHP down 1.3% and RIO down 1.1% as hatches were battened down. Oil stocks hit as crude fell on global concerns. WPL down 2.8% and ORG down 4.5% as LNG prices continue to fall. Healthcare too was sold off led by CSL down 1%. Some defensives tried to buck the trend with REITs holding up as did TLS up 0.6%. Bond proxies too did well with TCL up 0.2%. Asian markets fell after good runs with Japan down 3.2% and China down 1.7%. AUD

Todays Highlights

• ASX 200 down 69 to 6126. Off lows on late rally.
• High 6179 Low 6113. Modest Monday volumes.
• 88 companies go ex this week.
• Banks bear the brunt as NAB changes tack and WBC takes a hit.
• Energy stocks hit hard on oil drops. Growth fear weigh.
• Miners in the dog house on economic weakness.
• Defensives hold steady. TLS firms.
• Gold producers do well.
• AUD slips a little to 70.78c
• Aussie Gold pushes slightly higher to $1859
• US futures down 115.
• Asian markets weaker with Japan down 0.14% and China down 0.99%

STOCKS

• FNP +4.67% not interested in Lion Drinks.
• NCM +3.19% big is beautiful.
• WOR -5.59% oil price weakness.
• APX -5.63% director’s interest
• DCN -7.35% production downgrade.
• IMF -8.27% US Fund 1 – Case completion. One dismissed 36 still going.
• ECX -12.75% the sell-off continues.
• EXL +6.11% broker upgrade.
• MYR +5.88% rally continues.
• BIN -1.34% completion of Dial-a-Dump.
• YOW -unchanged – Geoff Wilson takes stake.
• PPS -7.55% under pressure again.
• WGN -8.22% cementing its loser status.
• Speculative Stock of the Day: No stand outs today.
• Biggest Rises: PRU, FNP, RMS, NCM, OGC and GOR.
• Biggest Falls: ALU, IMF, DCN, NHC, WSA and NWH.

TODAY

• Regis Healthcare (REG) – 3.43% Update on one-off Federal Government funding increase, FY19 guidance reaffirmed. NPAT anticipated to be between $47and $51m, EBITDA expected to be broadly in line with the first half.
• Altura Mining (AJM) –3.70% Pilbara operations are not expected to be damaged by tropical cyclone Veronica. Production of lithium stopped on Saturday, a 23-person skeleton crew remains on site.
• Freedom Foods Group (FNP) +4.67% Has denied it is pursuing a bid for Lion Dairy and Drinks following recent market speculation.
• Westpac (WBC) – 1.47% sets aside another $260m for customer remediation.

ECONOMIC NEWS

• Nothing today

BOND MARKETS

NZ and Australian yields are plunging to record lows. Money markets are pricing around a 90% chance that the Federal Reserve will cut rates by 25bps by December, followed by another reduction in September 2020.The local yield curve flattened further, with the difference between three and 10-years narrowing by 2 bps to 38bps.

In Japan, the benchmark fell 1.5bps to minus 0.095%.

• 2-Year bond yields down 3bps to yield 1.46%
• 5-Year yields down 5bps to yield 1.44%
• 10-Year yields down 6bps to yield 1.77%

ASIAN NEWS

• Jacinda Ardern is set to meet President Xi Jinping this week in Beijing.

EUROPEAN AND US NEWS

• Mueller finds no collusion with Trump and Russia.
• Big week for Theresa May. Could be joining the unemployed by Friday. Boris sticks the knife in. Calls her Chicken. Where’s Biff?
• Uber is set to make a US$3bn takeover of a Middle East rival Careem.
• Branson calls for a second referendum. 5,326,640 signatures say revoke Article 50 and remain.And counting.

And finally………….Thanks Al….

His Lordship was in the study when the butler approached and coughed discreetly. “May I ask you a question, My Lord?”  “Go ahead, Carson ,” said His Lordship.  In The Times I found a word the exact meaning of which I am not too certain.”  “What word is that?” asked His Lordship.  “Aplomb,” My Lord.  “Now that’s a difficult one to explain. I would say it is self-assurance or complete composure.”  “Thank you, My Lord, but I’m still a little confused about it.”  “Let me give you an example to make it clearer. Do you remember a few months ago when the Duke and Duchess of Cambridge arrived to spend a weekend with us?”  “I remember the occasion very well, My Lord. It gave the staff and myself much pleasure to look after them.”  “Also,” continued the Earl of Grantham, “do you remember when Wills plucked a rose for Kate in the rose garden?”  “I was present on that occasion, My Lord, ministering to their needs.  “While Will was plucking the rose, a thorn embedded itself in his thumb very deeply.”  “I witnessed the incident, My Lord, and saw the Duchess herself remove the thorn and bandage his thumb with her own dainty handkerchief.”  “That evening the hole the rose made in his thumb was very sore. Kate had to cut his venison for him, even though it was extremely tender.”  “Yes, My Lord, I did see everything that transpired that evening.”  “And do you remember the next morning while you were pouring coffee for Her Ladyship, Kate inquired of Will in a loud voice, ‘Darling, does your prick still throb?’ And you, Carson, did not spill one drop of coffee ? That, Carson, is complete composure, or aplomb.”

 

and this from Hans thanks ,mate…

A woman takes her 16-year-old daughter to the doctor.

The doctor says “Okay, Mrs. Jones, what’s the problem?”

The mother says, “It’s my daughter, Debbie. She keeps getting these cravings. She’s putting on weight, and is sick most mornings.

“The doctor gives Debbie a good examination, then turns to the mother and says, – “Well, I don’t know how to tell you this, but your daughter is pregnant – about 4 months, would be my guess.”

The mother says, “Pregnant?! She can’t be. She has never ever been with a man! Have you Debbie?”

Debbie says, “No mother! I’ve never even kissed a man, I’m still a virgin!”

The doctor walked over to the window and just stood there staring out of it.

About 5 minutes pass and finally the mother says, “Is there something wrong out there doctor?”

The doctor replies, “No, not really, it’s just that the last time anything like this happened, a star appeared in the east and 3 wise men came over the hill. And there’s no way I’m going to miss it this time!!!!”

Clarence

XXXX