ASX 200 fell 43.5 points to 6653 after small recovery fades on the close. US futures rose by 34 as earning season dawns. Broad based losses from the open although trade was thin due to school holidays. Early losses were tempered slightly as Chinese GDP numbers came in weak as expected and traders took that as a sign of the stimulus to come. Banks struggled with CBA down 0.52% and ANZ down 1.1%. The big news in the finance sector was AMP abandoning its Life sale and interim dividend and investors abandoning all hope of some sort of share in the sale spoils. The stock fell 15.35%. Miners did better after the Chinese GDP number came in expectedly low and BHP steady down 0.1% and FMG up 1.1%. Energy stocks were mixed with ORG down 0.9% and STO firmer up 1.9%. Tech stocks under pressure today, hardly a surprise given the recent highs. WTC fell 3% and APT dropped 2.5%. Corporate news was dominated by AMP, with MQG no longer a substantial shareholder in ALX down 1%. Asian markets were firmer with China up 0.25% and HK up 0.04% Japan closed. The AUD was steady at 70.20c and bond yields rose slightly with 10-years up 2bps to 1.46%

Todays Highlights

• ASX 200 fell 43.5 to 6653
• High 6690 Low 6638
• Low holiday volumes.
• Banks under pressure as bond yields rise.
• Miners steady on stimulus hopes.
• Gold producers shine.
• REITs and utilities slip.
• Tech under pressure.
• 10-year bond yields rally 2bps to 1.46%
• AUD firms to 70.20c
• Aussie gold steady at 2016.
• Bitcoin falls to $10,651
• US futures up 34
• Asian markets slightly higher with China up 0.25%. Japan closed today.

STOCKS

• AMP -15.81% deal off. No div.
• GOR +6.28% gold back in favour.
• SBM +5.11% doing well as buyers and confidence returns.
• IRI -15.65% profit update.
• JMS +4.29% metal prices.
• DMP +1.41% short covering.
• OMH +2.50% Manganese exploration success at Black Beauty.
• JIN +2.99% big jackpot.
• CVN -5.38% resource update and drill disappointment.
• ORE -1.09% two-year low.
• MSB -3.33% Interview with GvHD key opinion leader.
• BOT +14.29% good press release.
• PNV -5.46% profit taking.
• PPS +11.25% June FUM update.
• ALX -1.03% Macquarie is no longer a substantial holder. Momentous.
• KAR +5.02% $1bn Brazilian acquisition possibility.
• Speculative stock of the Day: Clearvue Technology (CPV) +36.36% after signing an MOU with BeyondPV of Taiwan.
• Biggest Risers: GOR, SBM, LOV, JMS, WSA, IFM and JIN.
• Biggest Falls: AMP, IRI, PET, PNV, CVN, RMS and PPT.

TODAY

• AMP -15.35% Advises that the sale of AMP Life to Resolution Life is highly unlikely to proceed due to the challenges in meeting requirements set by the Reserve Bank of New Zealand. AMP also said it doesn’t expect to pay an interim dividend.
• Dexus (DXS) –1.26% Has acquired a building site in Sydney from Brookfield for $190m. There is speculation the site could be developed into a multi-billion-dollar super tower rising 300m with up to 120,000sqm of space.
• Dacian Gold (DCN) +4.13% Preliminary Q4 gold production within guidance at 36,658oz. The company’s AISC for the June quarter was $1,519 per ounce, achieving the lower end of the updated AISC guidance of $1,500-$1,600 per ounce.
• Praemium (PPS) +11.25% Funds under administration (FUA) at the end of June totalled $9.53bn, after $405m in net inflows and market movements of $244m.
• Elders (ELD) – To acquire AIRR at 1085c. 50% cash 50% Scrip. Elders is funding the acquisition through a $137m equity raising and issue of $79m of new Elders shares to AIRR shareholders as scrip consideration. ELD expects the purchase to deliver “low single-digit earnings per share accretion on a 2018-19 pro forma basis”, and over 10% EPS accretion once synergies are realised. FY19 guidance reaffirmed.

ECONOMIC NEWS

• Amazon Prime Day today and tomorrow.

BOND MARKETS

• 2-Year bond yields up 1bps to 1.00%
• 5-Year yields up 2bps to 1.07%
• 10-Year yields up 2bps to 1.46%

ASIAN NEWS

• Japan closed today
• AB Inbev cancels Budweiser IPO in HK. Was it too expensive?
• More protests in HK.

Chinese Data

• Industrial production grew by 6.3% from a year earlier.
• Retail sales lifted 9.8% year on year in June, up from an 8.6% rise in May and beating market expectations of 8.5%.
• GDP grows 6.2% weakest in 27 years.

• In the last five years, Chinese credit card debt has risen by 6 times. Debt to income has risen from 29 in 2012 to 53% now.

EUROPEAN AND US NEWS

• Euro markets are expected to open mildly higher when they open.
• Fitch downgraded Turkey’s sovereign debt by one notch.
• IMF meeting in Dubrovnik today. Lagarde nominated as ECB head. She is not the only candidate though. Convention has a Euro IMF chief and a US World Bank head. Looks like competition is emerging.
• US Banks results this week.
• UK’s biggest companies have issued profit warnings at a level not seen since the depths of the financial crisis in 2008. New figures released by EY have shown a 19% year-on-year increase in the number of quoted companies telling investors that their profits will fail to meet expectations.
• England win the World Cup.

Let’s enjoy this a while

 

And finally……………

A vicar visits an elderly woman from his congregation. As he sits on the couch, he notices a large bowl of peanuts on the coffee table. “Mind if I have a few?” he asks.

“No, not at all!” the woman replied. They chat for an hour and, as the preacher stands to leave, he realises that instead of eating just a few peanuts, he emptied most of the bowl.

“I’m terribly sorry for eating all your peanuts. I really just meant to eat a few.” “Oh, that’s all right,” the woman says. “Ever since I lost my teeth, all I can do is suck the chocolate off them.”

 

A 90-year-old man goes for a physical and all of his tests come back normal.
The doctor says, “Larry, everything looks great. How are you doing mentally and emotionally? Are you at peace with God?”
Larry replies, “God and I are tight. He knows I have poor eyesight, so He’s fixed it so when I get up in the middle of the night to go to the bathroom, poof! The light goes on. When I’m done, poof! The light goes off.”
“Wow, that’s incredible,” the doctor says.
A little later in the day, the doctor calls Larry’s wife.
“Bonnie,” he says, “Larry is doing fine! But I had to call you because I’m in awe of his relationship with God. Is it true that he gets up during the night, and poof, the light goes on in the bathroom, and when he’s done, poof, the light goes off?”
“Oh sweet Jesus”, exclaims Bonnie. “He’s peeing in the refrigerator again!”

Clarence

XXX