ASX 200 tumbled 103 points to 6640 as the US dive takes its toll. Sold off into the close too and closed at lows. US futures modestly higher up 44 points. Banks saw heavy losses as NAB wrote off yet another $1.2bn for remediation and new IT costs. The stock dropped 2.3% dragging other banks with it with CBA down 2.1%. The banks seemed to have passed on limited benefits of the rate cut earning the ire of Phil Lowe and his boss, Josh. Big miners were also hit led by BHP down 1.9% and RIO down 1.6%, gold miners tried to rally but their hearts were not really in it, NCM flatlined and NST the best of the leaders up 2.5%. Nowhere else though was safe from the sell-off although it was more a market down that a sell off. The market opened down and just stayed down. Tried to rally a little but to no avail. Energy stocks lost out as WTI fell, plus more commentary about the Norwegian wealth fund as sellers didn’t help. In corporate news, ISX was a massive shock as the ASX/ASIC asked for its suspension. Clearly regulators were unimpressed with governance and its announcement yesterday. In other corporate news MYX had a rare day in the sun lifting 18.9% after doing a deal for an oral contraceptive. Not much else to get excited about and no economic data. 10-year yields continue to fall as rate cuts still on the horizon. Why not go big early? May have had more impact. Asian markets were muted with China suffered post parade partum and violence in Hong Kong overnight. Japan was down 0.5%.
- ASX 200 down 103 to 6640
- High 6730 Low 6640. Strangely quiet though. Too quiet.
- Closed on lows.
- Broad based losses with banks the worst on NAB woes.
- Big miners slumped. Gold miners rose slightly.
- AUD lower at 67.16c
- 10-year yields 0.93%
- Aussie gold higher at $2201
- Bitcoin rallies hard to US$8195
- US futures up.
- China closed and Japan down 0.5%. More protests in HK after a live shooting last night.
- MYX +18.87% oral contraceptive deal.
- CUV +3.31% clarifies data.
- NST +2.54% gold price rises help.
- HUB -7.09% ceasing to be a substantial shareholder.
- PLS -4.84% the slide continues.
- ISX – Shock suspension. Big trouble in ISX. Again.
- RAP +11.11% TGA approvals.
- EXL +4.00% broker upgrade.
- NAB -2.29% more costs of remediation and new CEO hasn’t even started yet.
- COL -2.12% setting up in house independent food halls.
- CIM -2.14% Sunbury train line contract
- BGA -5.01% change in director’s interest.
- BAP -4.61% annual report confirms forecasts.
- Speculative stock of the day: Yet another Biotech stock as we wrote today in HT. Immuron (IMC) +66.67% after the US Defense department is funding the company to produce a new gastro weapon. There is one already, Beef Vindaloo.
- Biggest Risers: MYX, CUV, HT1, NST, VRL and WGX.
- Biggest Falls: HUB, BGA, FBU, PLS, WSA and GEM
- Westgold Resources (WGX) +1.72% Board and management changes; Chairman Peter Newton to retire following AGM. MD Peter Cook will become executive chairman until June 30, then intends to transition to non-executive chairman role. Anthony Buckingham to be appointed CEO of the company’s gold operations.
- ResApp Health (RAP) +11.11% Receives approval from the Australian Therapeutics Goods Administration for smartphone-based diagnostic test for paediatric respiratory disease. ResAppDx-EU is a mobile software that can be used by clinicians for the diagnosis of lower respiratory tract disease, croup, pneumonia, asthma/reactive airway disease and bronchiolitis in infants and children.
- Decmil Group (DCG) +3.53% JV with McConnell Dowell awarded a contract for the Mordialloc Freeway project valued at $417m. Decmil has a 40% share in the joint venture.
- NAB (NAB) -2.29% Announces $1.18bn in costs regarding customer-related remediation and software capitalisation. The new costs are expected to reduce 2H19 cash earnings by an estimated $1.12bn. In the second half the bank will set aside $832m for additional customer-related remediation.
- Mayne Pharma (MYX) +18.87% Has signed a 20-year supply and license agreement with US company Mithra Pharmaceuticals and will pay up to US$295m to commercialise a new oral contraceptive drug once it passes testing procedures stateside.
- CIMIC Group (CIM) –2.14% CIM’s CPB Contractors has been selected by the Victorian government to deliver the next stage of works on the Sunbury line. The works will generate revenue of approximately $158 million and be completed in 2023.
- Morgan Stanley believes the Reserve Bank of Australia could cut the cash rate once more before the year is out, saying a cut in November now “looks likely”. Why didn’t they fire the bazooka? 50bps. Stop tinkering. We have just had one rate cut and now talking about the next one. Not sure what the point of it is. Incremental gains from these cuts are marginal. Banks not passing on the whole cut anyway. RBA has really stuffed this up.
- 2 – year bond yields fall 3bps to 0.64%
- 3 – year bond yields fall 3bps to 0.65%
- 10 – year bond yields fall 3bps to 0.96%
- North Korea didn’t want to be out done by its primary backer in China so fired its own missiles to celebrate the party. These ones seem to have been fired from a submarine.
EUROPEAN AND US NEWS
- After WeWork has been pulled, the ratings agencies are now downgrading the outlook.
- Donald Trump has called his persecution over the Ukraine as a coup. Is this Trump ‘tax’ moment like Al Capone.
- The analyst that got into hot water over his comments on pig numbers in China is back at work after a long summer in the sin bin. Usually called Tuscany.
- The Boris roadshow is heading to another EU showdown as he issues an ultimatum to his friends in Europe. Increasingly likely the UK will just crash out, then spend the next five years renegotiating trade deals with the EU.
- Wells Fargo has forecast that technology will take 200k US jobs in the next decade and this is just in the banking sector alone. US banks and other financial spend US$150bn a year on technology to do away with people.
An elderly gentleman was on his deathbed as his wife and three children and nurse stood close by.
Then he spoke:
“Bill, you take the Beverly Hills houses.
“Mary, you take the offices in the Center Center.
“Debra, the apartments over the L.A. Plaza are yours.
“To my dear wife, take all the residential buildings near downtown.”
The nurse was really impressed. She said, “Your husband must have been quite a man, amassing so much property to leave to all of you.”
And the wife responded, “What property? … the schmuck had a paper route! !”
This is an actual job application that a 17 year old boy submitted to McDonald’s in Florida… and they hired him because he was so honest and funny!
NAME: Greg Bulmash.
SEX: Not yet. Still waiting for the right person.
DESIRED POSITION: Company’s President or Vice President. But seriously, whatever’s available. If I was in a position to be picky, I wouldn’t be applying here in the first place.
DESIRED SALARY: $185,000 a year plus stock options and a Michael Ovitz style severance package. If that’s not possible, make an offer and we can haggle.
LAST POSITION HELD: Target for middle management hostility.
SALARY: Less than I’m worth.
MOST NOTABLE ACHIEVEMENT: My incredible collection of stolen pens and post-it notes.
REASON FOR LEAVING: It sucked.
HOURS AVAILABLE TO WORK: Any. PREFERRED HOURS: 1:30-3:30 p.m., Monday, Tuesday, and Thursday.
DO YOU HAVE ANY SPECIAL SKILLS?: Yes, but they’re better suited to a more intimate environment.
MAY WE CONTACT YOUR CURRENT EMPLOYER?: If I had one, would I be here?
DO YOU HAVE ANY PHYSICAL CONDITIONS THAT WOULD PROHIBIT YOU FROM LIFTING UP TO 50 LBS?: Of what?
DO YOU HAVE A CAR?: I think the more appropriate question here would be “Do you have a car that runs?”
HAVE YOU RECEIVED ANY SPECIAL AWARDS OR RECOGNITION?: I may already be a winner of the Publishers Clearing house Sweepstakes.
DO YOU SMOKE?: On the job no, on my breaks yes.
WHAT WOULD YOU LIKE TO BE DOING IN FIVE YEARS?: Living in the Bahamas with a fabulously wealthy dumb sexy blonde super model who thinks I’m the greatest thing since sliced bread. Actually, I’d like to be doing that now.
DO YOU CERTIFY THAT THE ABOVE IS TRUE AND COMPLETE TO THE BEST OF YOUR KNOWLEDGE?: Yes. Absolutely.
SIGN HERE: Aries.