The ASX gave up early gains to close down 11 points to 6156 as the index remains in pause. Dow Futures weaker from the open down 180 points. Banks slipped slightly showing small losses, CBA down 0.3% and NAB down 1.0%. The Big Bank Basket slipped to $127.42. Other financials flat, Miners slipped on lower ore prices, BHP down 0.75% and FMG off 0.7%. Energy held steady with WPL up 0.8%, CSL did ok up 0.4% and industrials mixed with profit taking in some online digital superstars. TPW dropped 7.3%, ABY down 16.2% after an underwhelming start, RBL down 10.5% and Z1P and KGN off 5.6% and 6.2% respectively. The All Tech Index fell 1.01% with some of the sizzle leaving the sector. MMM had a shocker following a well-supported capital raise at 322c nearly 100c higher than share price, fell 32.4%. In other corporate news, LNK up 0.8% after revised 540c offer from Pacific Equity Partners, Carlyle Group Consortium. ADH down 5.7% on its trading update for the first 17-weeks of FY21. BOQ to raise $200m through a capital notes offer. Z1P down 5.6%, acquires Urge Holdings for $3m in scrip and a further $5.5m subject to performance milestones. CSR up 2.8% on a broker upgrade. WBC off 0.4%, 2H20 earnings in to be reduced by $1.2bn post-tax. New BNPL entrant ZBT started life today with a poor start trading well below its 158c issue price, at 104c. 10-year bond yield falls to 0.80%. AUD steady at 71.13c. No economic news today. Asian markets ease with Japan down 0.1% and China down 0.5%.

Today’s Highlights

• ASX 200 falls 11 to 6156.
• High 6206 Low 6155. Average volume.
• Iron ore falls weigh.
• Big Bank Basket falls to $127.42
• All Tech Index down 1.01%
• 6 trading days until the US election.
• Dow Futures down 180.
• Gold slips to AUD$2667
• 10-year bond yield falls to 0.80%
• AUD steady at 71.13c
• Bitcoin pushes to US$13104
• Asian markets ease with Japan down 0.1% and China down 0.5%

STOCKS

• FUN +138.46% pulls of placement and turnaround plan.
• NCK -5.92% upgrades guidance.
• WOW +0.05% David Walker takes on Chief Risk officer after Big W success.
• CUV – trading halt awaiting decision on SCENESSE.
• ORE +0.75% CV19 case in Argentina.
• LNK +0.82% Private equity bids 540c.
• BOQ -0.89% convertible note offering.
• ADH -5.70% sales update.
• WBT +25.00% another strong day. Going crazy.
• KLL +8.11% coming back to life.
• PLS +5.00% lithium revival.
• GEM +3.26% Melbourne heading into opening up.
• MMM –32.38% placement at 322c.
• ABY -16.18% selling continues.
• TPW -7.32% valuation concerns.
• DRR -6.52% iron ore price falls.
• POS -15.48% letter to shareholders.
• ESH +38.10% catches the eSports gaming bug. Huge volume.
• LBY -6.82% BNPL sell off.
• Speculative Stock of the Day: ZBT -% flops on debut. Icandy Interactive (ICI) +15.38% gaming and eSports continues to attract attention.
• Biggest Winners: CCL, PLS, IEL, PBH, API, ILU, RFF and CTD.
• Biggest Losers: MMM, ABY, RBL, SZL, NTO, TPW, ASB and DRR.

TODAY

• Coca-Cola Amatil (CCL) +16.28% Receives non-binding indicative proposal from CCEP of 1275c, cash. Implies an enterprise value of $10.87bn. Q3 group trading revenue down 4.2% to $1.11bn vs year ago. Q3 volume down 5.4% vs year ago. On track to deliver $140m of savings this financial year. Management comments, “it is pleasing to see the improvement in Revenue momentum in 3Q20 despite the reinstatement of lockdown restrictions in Victoria and Auckland for a significant part of the quarter. This momentum has continued in the first three weeks of October with our Australia and New Zealand businesses both delivering Volume growth (up +1.5% and +1.8% respectively).” Well placed to capitalise on the all-important 4Q20 Christmas trading period.
• Woodside Energy (WPL) +0.76% Believed to have partnered with Brookfield to bid for Chevron’s $5.8bn stake in the North West Shelf project. Newswires add that GIP is also understood to have been looking at the asset, along with Canada Pension Plan Investment board and IFM. First round bids expected in the next two weeks.
• Westpac (WBC) -0.43% Second half statutory earnings expected to be reduced by $1.22bn, arising from notable items.$816m (after-tax), combined with the previously announced additional $404m provision (after-tax) for AUSTRAC matters. The items are estimated to reduce CET1 capital ratio by 24 basis points.
• Seven West Media (SWM) -2.86% Reportedly held talks with ViacomCBS about a merger with Network Ten. The article notes talks fell over because they decided it was an impossible task, with one of the main obstacles to a merger of any free-to-air networks in Australia coming in the form of current regulations.
• Karoon Energy (KAR) +0.56% Appoints Julian Fowles as CEO and MD effective November 27.
• Adairs (ADH) -5.70% Trading update for the first 17 weeks of FY21, total sales up 22% vs pcp. Online sales represented 41% of total sales (comprising Adairs online 32% and Mocka 9%) versus 17% for the same period last year. Gross margins are well above prior-year levels and remain an area of focus for management, with the continuation of pricing and sourcing initiatives outlined with the FY20 results. Inventory levels are now coming into line with last year and will be in a good position to support stores through the key Nov-Dec trading period. Board cautions investors against projecting this sales and margin growth across the balance of FY21. Anticipates opening 2-4 new stores and upsizing a further 5-7 stores through FY21. Appoints Trent Peterson as interim chairman.
• Senex Energy (SXY) – unchanged – Enters two-year domestic gas sales agreement with Alinta Energy for four petajoules of natural gas. Gas will be supplied at the Wallumbilla Gas Hub in Queensland at a fixed price in line with current term contract market levels.
• Beston Global Food (BFC) +1.19% Q1 revenue $23.4m vs year-ago $23.2m. Gearing 15% vs year-ago 59%. Milk Supply 31.6ML vs year-ago 25.8ML. Mozzarella production 2.69KT vs year-ago 2.25KT. Lactoferrin Production 0.51T vs year-ago 0.26T. Remains on track to deliver FY21 outcomes consistent with the guidance previously released. Gearing will increase to ~30% in the short term as it completes the lactoferrin expansion project. Gearing is expected to reduce after the project is online as operating cash flows will then exceed the more routine levels of capital expenditure.
• Bank of Queensland (BOQ) -0.89% Launches $200m capital notes program. The proceeds will be used for BOQ’s general corporate and funding purposes.
• Zip Co. (Z1P) -5.64% Acquires Urge Holdings for $3m in scrip and a further $5.5m subject to performance milestones.
• Link Group (LNK) +0.82% Receives an increased offer from Pacific Equity Partners, Carlyle Group Consortium at 540c/share in cash. On Friday, LNK said the consortium’s 520c offer materially undervalued the group.

ECONOMIC NEWS

• The State of the Nation

COVID – 19 NEWS

• Free testing is being rolled out for nearly 4.75 million people in Kashgar, in the far west of China. As of 2 p.m. Sunday, 2.83 million people had undergone testing, while results for 334,800 people have already come out negative. This after a teenager tested positive at a factory where another 136 cases were found.
• China has now tested nearly 3m people in Xinjiang province to tackle a cluster of coronavirus cases.
• Israel will start human trials for a Covid-19 vaccine candidate developed by the Israel Institute for Biological Research on Nov. 1.
• Johnson & Johnson’s first batches of its Covid-19 vaccine could be available for emergency use as soon as January, the company said.
• French cases top 50,000. Deaths rose by 116 to 34,761.

BONDS

ASIAN NEWS

• ANA will cut about 3,500 jobs by the fiscal year ending 2022 and will seek to temporarily transfer employees to Toyota, ANA will also sell about 30 wide-body aircraft because of their low fuel-efficiency and high maintenance costs.
• Lee Kun-hee has died. He was 78. He transformed Samsung into the global powerhouse it is today.
• Chinese Plenum kicks off to day to plan for next five years.

EUROPEAN AND US HEADLINES

• Italy and Spain heading towards new draconian lockdown measures.
• British Special Forces storm a tanker off the coast suspected on being hijacked.
• Amy Barrett expected to be confirmed today as new member of SCOTUS.

And finally….

Because one liners are so short, accurate spelling is vital. There’s very little margarine for error.

A Tramp goes into a bar and orders a beer. The barman is a little concerned and asks if he can pay. The Tramp replies “If I show you the most amazing thing you’ve ever seen, will you let me have a pint for free?”

The barman says, “Show me and I’ll consider it.”

So the Tramp reaches into his bag and pulls a hamster. The hamster run down the bar, hops onto a bar stool, then the floor and over to the piano. The hamster opens the lid and starts playing. The hamster plays Chopin, ragtime, and Gilbert and Sullivan.

The barman says, “I am impressed” and brings the Tramp a pint of best bitter.

After a while the Tramp asks for another beer. The barman says “We agreed to one beer”

So the Tramp replies “If I show you something more amazing, will you give me another beer?”

The barman says, “Okay, but you be will hard to beat the hamster”. Meanwhile the hamster continues to play.

The Tramp reaches into his bag again and pulls out a frog. The frog hops down to join the hamster. The frog grabs the microphone and begins to sing along with the hamster who is still playing the piano.

The Tramp is given his second pint.

A customer at the end of the bar has been watching the performance. He walks over to the Tramp and says, “I work in the theater and I’d like to buy that frog. Will you sell the frog for £50?” The Tramp says no so the man raises it to £100. The Tramp agrees and hands over the frog.

As the man is leaving, the barman says to the Tramp “Why did you sell the frog, it must be worth more than £100!”

The Tramp replies, “Not at all, the hamster is also a ventriloquist.”

If 4 out of 5 people SUFFER from diarrhea…
does that mean that one out of five enjoys it?

Why do croutons come in airtight packages? Aren’t they just stale bread to begin with?

If people from Poland are called Poles,then why aren’t people from Holland called Holes?

If a pig loses its voice, is it disgruntled?

Why is a person who plays the piano called a pianist but a person who drives a race car is not called a racist?

If it’s true that we are here to help others,then what exactly are the others here for?

If lawyers are disbarred and clergymen defrocked, then doesn’t it follow that electricians can be delighted, musicians denoted, cowboys deranged,
models deposed, tree surgeons debarked, and dry cleaners depressed?

Do Lipton Tea employees take ‘coffee breaks?’I thought about how mothers feed their babies with tiny little spoons and forks so I wonderedwhat do Chinese mothers use, toothpicks?

Why do they put pictures of criminals up in the Post Office?
What are we supposed to do, write to them?

Why don’t they just put their pictures on the postage stamps, so the mailmen can look for them while they deliver the mail?

Clarence

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