ASX 200 drops 27 to 6769 as trade optimism fades a little. Closing rally helped. US futures down points. Banks once again weighing as NAB fell 1.2% after a bond raising. The other four hit the skids too with CBA down 0.4 and WBC down 0.7%. Few bright spots as UBS conference kicks off, CSL drooped 1% and bond proxies and consumer stocks found profit takers. BHP and RIO held up by 0.2% and 0.9% respectively. Energy stocks weakened though WPL rose 0.8%. In Corporate news, PGL didn’t and fell 27.5%, APX did well upping guidance and the stock rose 13.4% with more to come. ALL got a broker upgrade up 1.9% and NCM fell 0.9% after a presentation. SAR in a trading halt as it raises money to buy Barricks super pit stake. 10-year bond yields fell to 1.17 and with no economic news the AUD was hovering around 68c. In Asian markets, both China and Japan rise slightly with Japan up % and China up %.

• ASX 200 down 27 to 6769
• High 6799 Low 6749. Quiet trade.
• Banks flop with bond proxies and healthcare.
• Miners mixed as gold miners sink.
• Consumer stocks weaken.
• 10-year bond yields weaker at 1.18%
• AUD higher at 68.10c
• Aussie gold steady at $2152
• Bitcoin falls to US$8450
• US futures down 35 points.
• Asian markets better with China up % and Japan up %.

STOCKS                                               

• BWX +8.03% rally resumes. Broker upgrade.
• APX +13.38% profit upgrade.
• PPK +5.79% rally continues.
• PAR +7.01% looks interesting
• EML +3.46% investor presentation.
• APE -2.14% Bell Potter rates a buy.
• JBH +0.19% Citi upgrades
• NAB -1.19% raising another $1.4bn from floating and fixed rate notes.
• SAR – Goldman launches capital raising.
• OML -1.74% no management buy out.
• VGI -3.46% commits to fully franked dividends.
• HT1 +0.60% profit warning.
• SIQ -13.65% CEO retires.
• CRN -7.89% profit downgrade.
• AKP -4.06% digital speaker update.
• GXY -2.31% Next year decision for Sal de Vida project
• MLX -22.22% broker downgrade.
• TNY -6.42% profit taking.
• IMU +17.78% acquisition complete.
• AFP +8.65% new agreements.
• Speculative stock of the day: Heramed (HMD) +25.58% a stock from Ask the Analyst on Friday. Good call. Clearance for HeraBEAT from FDA.
• Biggest Risers: APX, BWX, DTL, PAR, KGN and PPK
• Biggest Falls: PGL, SIQ, CRN, SWM, NUF, ECX and WGX.

TODAY

• Appen (APX) +13.38% Increases guidance for FY19 underlying EBITDA to $96-99m vs prior $85-90m. This forecast translates November and December performance at A$1=US$0.74, whereas translation at current levels is estimated to add a further $1.0-1.5M to underlying EBITDA.
• oOh!media (OML) –1.74% There are reports this morning OML is looking for a private equity partner to fund a buyout. OML later rebutted the claim saying it hadn’t received any proposal regarding a Management buyout nor was it in discussions regarding a potential management buyout.
• Smartgroup (SIQ) -13.65% CEO Deven Billimoria to retire at the end of February 2020, CFO Tim Looi to take over the CEO role. SIQ also said it expects NPATA in FY19 of around $81m.
• Suncorp Group (SUN) +1.06% Total lending contracted 0.6% over the September quarter. Growth in commercial lending was offset by a contraction in the retail and agribusiness portfolios. Business lending growth contracted 0.4%. The Bank’s capital position remains strong with a CET1 ratio of 9.31% above the target operating range of 8.75% – 9.25%. The Group expects to increase the Bank’s capital targets by 25 bps in HY20 to meet APRA’s “unquestionably strong” benchmarks.
• Coronado Global Resources (CRN) –7.89% Guidance downgrade; expects FY EBITDA to fall below the bottom end of guidance between $687-737m. A deterioration in the price for metallurgical coal, stalling industrial growth in Europe and Brazil and trade tensions have all weighed.
• Monash IVF Group (MVF) -1.38% Trading update; guides H1 NPAT before significant items between $8.5-9.0m. Since the exit of five Victorian fertility specialists from September, MVF is seeing downward pressure on its stimulated cycle volumes in Q2FY20 vs pcp. Full-year NPAT ex-items is expected to be in the range of $18-19 vs consensus of $21.0.
• Cochlear (COH) -0.29% Has received FDA approval for its Osia 2 System for use with adults & children with conductive hearing loss, mixed hearing loss and single-sided sensorineural deafness.
• Avita Medical (AVH) – 0.85%Appoints David McIntyre as CFO, current Chief Administrative Officer Tim Rooney will step in as an interim CFO.
• Prospa Group (PGL) – 27.46% Earnings downgrade amid higher costs and soft revenue. Despite upgrading forecasts for originations (new completed loans), in FY19 EBITDA is expected to fall 62.3% to $4m with revenue guidance also downgraded from $156.3m to $143.8m.

ECONOMIC NEWS

• Morgan Stanley sees a global economic recovery in early 2020, Emerging markets will drive the recovery, given the late-cycle stage that U.S. growth is in. Risks remain skewed to the downside, including the potential for more tariffs and late-cycle challenges in the U.S., including corporate credit risk and uncertainty around the elections.

BOND MARKET

• 2 – year bond yields unchanged at 0.76%
• 3 – year bond yields unchanged at 0.80%
• 10 – year bond yields down 2bps to 1.15%

ASIAN NEWS

• Trade talks continue with some progress.
• Groups of protesters block roads in Hong Kong. Police have stormed the HK University.
• Home sales in Hong Kong plunged over the weekend.

Thai GDP rose 2.4% from a year ago, the National Economic and Social Development Council announced below the median estimate of 2.7% in a Bloomberg survey of economists.

EUROPEAN AND US NEWS

• US is reported to have extended Huawei licences for two weeks.
• Aramco has pared back its IPO on weaker demand.
• If you ever think you are having a bad day, just think of Prince Andrew’s interview with the BBC over the weekend. A real bad heir day.
• HP rejects Xerox offer. Copy that.
• Ford has unveiled an electric Mustang SUV.
• Bank of America Merrill Lynch will now be known as just Bank of America.

And finally…..

3 old blokes at a pub lamenting their ageing bodies.

1st one complains “ I try to have a piss every morning and a lame trickle comes out, takes forever!”

2nd one says, “ Every morning I go for a shit and the constipation makes it take forever, very uncomfortable!”

3rd one says, “geez every morning at 6.30 I have a piss, very strong stream, no worries, and then at 7.00 I have a shit, no constipation ever!….

….. trouble is… I don’t wake up till 8.00!”

 

Once again Clarence is growing a Mo from his bros. You can donate here if you feel the need…if not give to the RFS instead.

Here is the link to Movember…https://mobro.co/13830386?mc=1

Clarence

XXX