ASX 200 up 18 to 6687 as rally resumes after lunch fade. Banks the culprit on dividend cuts, franking cuts and capital raising. US futures up 61 points. The early rally faded as the capital raising from WBC took its toll. NAB down 2.5% ahead of its numbers with ANZ still in the dog house down 0.9%. A late push helped. WBC yet to trade following dividned cut. Miners fared better with BHP up 2.2% in iron ore rise and WPL doing well up 0.8% on oil price rise.  Healthcare again in focus with CSL up 0.35% and FPH up 1.7%. Consumer stocks mixed as retail sales failed to launch, JBH down 2.2% on the number. In corporate news, WBC clearly the biggest story cutting dividend and CEOs bonus, on the economic front retail sales underwhelmed as tax cuts fail to lift animal spirits. Meanwhile the AUD still above 69c and 10-year yields rising to 1.17%. Asian markets mixed with Japan down 0.3% and China up 0.8%

Todays Highlights

• ASX 200 up 18 points to 6687 despite bank falls.
• High 6713 Low 6671. Rally fades.
• Banks get whacked as WBC raises money.
• Minres rise with energy stocks as commodities increase.\Healthcare in the pink.
• Industrials mixed.
• 10-year bond yields creeping higher at 1.17%
• AUD 69.05c
• Aussie gold steady at $2187
• Bitcoin steady at US$9091
• US futures up 61 points.
• Asian markets mixed with Japan down 0.3% and China up 0.8%.

STOCKS

• SDV +19.66%  Newsletter write up.
• NWH +13.33% media speculation on BGC acquisition.
• PLS +10.14% lithium rally continues
• PET +4.69% back on track.
• ASB +5.58% CEO presentation.
• AVH +3.10% technical buying.
• CSR +9.47% takeover speculation.
• NAB -2.53% next cab off a pessimistic rank.
• CGC -2.59% rain fails to lift spirits.
• Z1P -3.95% BNPL continue sto unwind.
• SYR +8.54 first production of spherical graphite.
• TTT +43.46% business update.
• JBH -2.18% retail sales number dents enthusiasm.
• ORI -0.42% UBS upgrade.
• CCP +3.19% business update.
• CDD +1.94% CEO resigns.
• AGL -0.20%% opens first new power station in 7 years in South Australia.
• WHA -JV with Chinese company.
• PAN +26.87% takeover from IGO 1:13.
• WBC – $2bn placement covered.
• PPS +7.26% rally continues.
• Speculative stock of the day: Altura Mining (AJM) +21.05% after achieving record concentrate production in October of 17,951 wet metric tonnes of lithium concentrate.
• Biggest Risers: NWH, PLS, SIG, CSR, CEN, SWM and ASB
• Biggest Falls: Z1P, IFM, ARF, EHL, MP1, CVN and EBO

TODAY

• CSR Limited (CSR) +9.47% The Australian newspaper announced that CSR could be an acquisition target. The stock is up close to 5% in the news. The speculation is based upon the expectation that building materials will be an attractive sector for acquisitions in the coming 12 months. The paper notes Lone Star Funds’ previous interest in Boral as well as Adelaide Brighton’s expected merger with Barro Group as recent movement in the sector.
• Pro Medicus (PME) +1.66% signs $9m, 5-year contract with the Ohio State University Wexler Medical Centre. The contract is founded on a transaction-based licensing model and will see PME’s Visage 7 technology implemented across all of OSUWMC’s radiology departments spanning seven hospitals and outpatient clinics, as well as integrated to OSUWMC’s electronic health record. The implementation will begin in Q2 FY20, and complete in mid-2020.
• SpeedCast International (SDA) +2.58% COO Sebastien Lehnherr to leave the company, Jennifer Grigel to step into the role. Peter Myers appointed CFO, he will succeed Clive Cuthell.
• Qantas (QAN) +3.10% Has completed its 79.7m-share off-market buy-back for $443m. Due to the demand for the offering, a 79% scale back was required.
• Macmahon Holdings (MAH) –2.33% Has announced a new deal with Newcrest regarding work at NCM’s Tefler mine. Macmahon now expects the Telfer contract to be cash flow positive over its remaining term. FY20 guidance reiterated, expects revenue between $1.2bn and 1.3bn, EBIT is forecast in the range of $80-90m.
• Syrah Resources (SYR) +8.54% Reports first production of purified spherical graphite from BAM facility.
• Wattle Health Australia (WHA) – Has entered into a joint venture with Chinese dairy products company, Nouriz to sell and export certified Australian organic powder products into China.

ECONOMIC NEWS

• Melbourne Institute Inflation gauge for October: +0.1% on the month, +1.5% on year.
• Retail trade for September: 0.2% on the month vs consensus 0.4%; -0.1% on the quarter vs consensus: 0.3%

• In seasonally adjusted terms, there were rises in New South Wales (0.3  %), Western Australia (0.7  %), Tasmania (1.0  %), South Australia (0.2  %), the Australian Capital Territory (0.1  %), and the Northern Territory (0.1  %). Victoria (0.0  % ) was relatively unchanged. Queensland (-0.1  %) fell in seasonally adjusted terms in September 2019.

BOND MARKET

• 2 – year bond yields up 2bps to 0.83%.
• 3 – year bond yields up 1bps to 0.86%.
• 10 – year bond yields up 3bps to 1.17%.

ASIAN NEWS

• Japan sees progress on an end to US car tariffs.
• 22 weeks of protests are taking their toll in HK. Retail sales by value fell 18.3% in the month, compared with a decline of a revised 22.9% in August. Retail sales by volume declined 20.4%.

EUROPEAN AND US NEWS

• Ronald Mc Donald has had to step in following the CEO being sacked over an inappropriate relationship.
• Saudi Aramco launches IPO finally. US$100bn to be listed in Saudi Arabia.
• Warren Buffet has increased his cash stash to US$128bn.
• Looks like Iowa is firming as the host destination for President Trump and Xi to sign the new trade deal part 1.
• New issues and IPOs have hiot a decade low on the London Stock Exchange (LSE). The LSE has hosted 41 new issues (including 21 IPOs), raising £3.3bn. Meanwhile, 48 companies de-listed.

And finally…………..

I was a very happy man.  My wonderful Italian girlfriend and I had been dating for over a year, and so we decided to get married. There was only one little  thing bothering me.  It was her beautiful younger sister.

 

My prospective sister-in-law was twenty-two, wore very tight mini skirts, and generally was bra-less. She would regularly bend down when she was near  me, and I always got more than a nice view.  It had to be deliberate because she never did it when she was near anyone else.

 

One day her ‘little’ sister called and asked me to come over to check the wedding invitations.  She was alone when I arrived, and she whispered to  me that she had feelings and desires for me that she couldn’t overcome. She told me that she wanted me just once before I got married and committed my life to her sister.

 

Well, I was in total shock, and couldn’t say a word.

 

She said, “I’m going upstairs to my bedroom, and if you want one last wild fling, just come up and get me.” I was stunned and frozen in shock as I  watched her go up the stairs.  I stood there for a moment, then turned and made a beeline straight to the front door.  I opened the door and headed straight towards my car.

 

Lo and behold, my entire future family was standing outside, all clapping! With tears in his eyes, my father-in-law to be put down his shotgun,  and  hugged me and said, “We are very happy that you have passed our little test.  We couldn’t ask for a better man for our daughter.  Welcome to the family.”

 

The moral of this story: Always keep your condoms in your car!

 

Congratulations to South Africa for their win….England played rubbish…lucky cashed in early and backed RSA..emotional hedge….

Clarence

XXX