ASX 200 up 44 to 6284 after a slow unconvincing start. Chinese data and Asian markets kicked in as the AUD fell and growth plays back in focus. US Futures up 38 on hopes that Trump is looking to solve the ‘little squabble’. Banks still dragging the chain slightly with CBA down 0.04% on a broker downgrade. Miners are where the action is following the FMG special dividend with the stock up another 0.6%. BHP kicked too up 1.9% and S32 up 1.8%. Energy stocks in demand as tensions simmer in Middle east, WPL up 1.5% and STO +2.4%. Defensive bond yield proxies fell a little but still hovering near to all-time highs. TCL down 0.1% and SYD down 1%. Healthcare better led by CSL up 1.5%. In corporate news DLX announced a special dividend and APE up 0.2% after a profit downgrade but the merger appears to still be on. TLS up 0.3% on news it could sell its data centres. SBM announced it was buying a Canadian miner and raising $490m to fund it. Asian market firm and AUD slips a little on weaker Chinese data and lack of local wage growth.

Todays Highlights

• ASX 200 up 44 to 6284 in nervous trade.
• High 6291 Low 6241. Kicks after Chinese data on stimulus hopes.
• Trump comments ease concerns on ‘squabble’.
• Miners solid with FMG in demand again.
• Banks turn positive after cautious start.
• Energy stocks higher.
• Tech stocks back in demand too.
• REITs and Bond proxies see some sellers.
• AUD slightly weaker at 69.29c
• Aussie Gold steady at $1869.
• Bitcoin up again to $8036. Holding the gains.
• US futures up 89. Trump confident of winning.
• Asian markets slightly higher with Japan up 0.36% and China up 1.52%

STOCKS

• DDR +5.57% keeps pushing higher. Recommended recently.
• ALU +4.51% broker upgrade.
• FXL +5.83% BNPL optimism.
• MFG +2.78% bounces hard.
• KGN -0.65% profit taking.
• SLR -3.61% NST -1.38% EVN +0.28% and SBM in a halt buying Canadian miner.
• SIG +2.83% chair to step down.
• WBA -0.66% buying Australian Honey co for $8.2m.
• GNC +1.24% looks like we will need to import wheat from Canada.
• FMG +0.62% conference presentation.
• ECX +% big run after gloom.
• CUV +% change of director’s interest.
• ISX +% BNPL ID provider gaining broker interest.
• CCL +1.70% goes face to face to sell no sugar products.
• AZJ +1.01% Court waves through freight deal.
• Prospa books close with listing expected on June 11^th. Second time lucky.
• Speculative stock of the Day: Yojee (YOJ) +66.67% announced a 3 -year SaaS agreement signed with a global leader, Geodis, a top ten forwarder. Good volume too.
• Biggest Risers: AVH, AMI, PNV, FXL, DDR and SPO
• Biggest Falls: SLR, MSB, VAH, MGX, RRL, COE and RDC

TODAY

• Dulux (DLX) +0.10% First half results; net profit after tax came in at $68.2m, missing estimates of $68.8m. Revenue missed expectations by 2.3% at $892m, EBIT beat forecasts at $109.1m. An interim dividend was declared at 15c per share, a special dividend was also announced at 28c per share. Full-year guidance unchanged, NPAT expected to be higher than FY18’s $150.7m. Revenue and profit growth expected to be skewed to the second half.
• St Barbara (SBM) – To acquire Atlantic Gold (Canadian listed gold producer) for 290c per share, the bid implies an enterprise value of $854m. SBM will undertake a $490m entitlement offer to help fund the transaction, the balance will be funded via St Barbara’s existing cash reserves.
• A.P. Eagers (APE) +0.23% Has provided a trading update at its AGM; now expects first-half operating profit before tax to be between 7% -10% lower than the previous half year period. APE notes trading conditions in the national automotive retail sector remain challenging.
• Sigma Healthcare (SIG) +2.83% Trading update at its AGM; first three months of the year have been in line with expectations. Remains on track to achieve underlying EBITDA between $55 and 60m in FY20. Net debt expected to return below $100m by year end.
• Coca-Cola (CCL) +1.70% Has said it is tracking along with expectations at its AGM, positioned for growth in Aussie Beverages in FY19 and FY20. CCL is targeting mid-single digit earnings per share growth from 2020.

ECONOMIC NEWS

• Futures markets are now pricing in two cuts and maybe more.
• Westpac-Melbourne Institute Australia Consumer Confidence Index for May +0.6% to 101.3 points.
• The seasonally adjusted Wage Price Index (WPI) rose 0.5% in the March quarter 2019 and 2.3% through the year.
• In original terms, annual wages growth to the March quarter 2019 by industry ranged from 1.8% for Construction and the Information, media and telecommunication services industries to 3.0% for Health care and social assistance.

BOND MARKETS

• 2-Year bond yields down 1bps to yield 1.27%
• 5-Year yields unchanged to yield 1.30%
• 10-Year yields down 1bps to 1.69%

ASIAN NEWS

Chinese data:

• Investment +6.1% (6.4% exp)
• Industrial Output 5.4% (6.5% exp)
• Retail sales 7.2% (8.6% exp and below all Reuters poll responses)
• Jan-April property investment up 11.9% YoY

Looks a little weaker than consensus forecasts. Stimulus hopes.

• Indonesia recorded its biggest ever monthly trade deficit in April.
• South Korea’s unemployment rate unexpectedly rose again in April.
• Nissan has warned that operating profits would fall to their lowest levels in more than ten years.

EUROPEAN AND US NEWS

• Trump is set to sign an order laying the ground for a Huawei ban in the US as companies would be prohibited from using equipment from the Chinese company.
• San Francisco has become the first US city to ban facial recognition technology.
• Vodafone has cut its dividend in the UK by 40%.
• UK Labour party leader Jeremy Corbyn has drawn up plans to take control of UK energy companies with a broad ranging nationalisation program.

And finally…………….thanks to Hans

 

Why is it so?

Why do supermarkets make the sick walk all the way to the back of the store to get their prescriptions while healthy people can buy cigarettes at the front?

Why do people order double cheeseburgers, large fries, and a diet coke?

Why do banks leave vault doors open and then chain the pens to the counters?

Why do we leave cars worth thousands of dollars in our driveways and put our useless junk in the garage?

Why does the sun lighten our hair, but darken our skin?

Why can’t women put on mascara with their mouth closed?

Why don’t you ever see the headline ‘Psychic Wins Lottery’?

Why is ‘abbreviated’ such a long word?

Why is it that doctors and attorneys call what they do ‘practice’?

Why is lemon juice made with artificial flavoring, and dish washing liquid made with real lemons?

Why is the man who invests all your money called a broker?

Why is the time of day with the slowest traffic called rush hour? 

 Why isn’t there mouse-flavored cat food?  

 Why didn’t Noah swat those two mosquitoes?  

 You know that indestructible black box that is used on airplanes? 

 Why don’t  they make the whole plane out of that stuff? 

 Why don’t sheep shrink when it rains?

 If flying is so safe, why do they call the airport the terminal? 

 

 

I called an old school friend and asked what was he doing.

He replied that he was working on “Aqua-thermal treatment of ceramics, glass, aluminium, and steel, all under a constrained environment.”

I was impressed.

On further inquiring, I learned that he was washing dishes with hot water … under his wife’s supervision.

Clarence

 

XXX

Clarence is on his final Yourmoney show tomorrow at 12 . Last one ever…ever ever…such a shame.