The ASX fell 105 points to 6051 (1.7%). Dow futures up 71 points. Nowhere to run to, nowhere to hide. A weak opening and selling accelerated especially in miners and tech stocks. The Big Bank Basket fell to $125.90 with WBC down 0.7% and CBA off 1.4%. MQG dropped 0.9% with QBE down 3.9% out of favour. Big miners were on the nose with commodity falls, BHP dropped 2.2%, FMG down 2.4% and RIO falling 2.5%. Gold miners too were not spared despite a rise in AUD bullion, NCM dropped 0.6% and NST off 1.9%. Energy companies out of sorts too, WPL down 3.3% and STO down 3.6%. CSL dropped 1.4% leading healthcare easier, Industrials too off with ALL down 4.7%, WES off 0.9% and WOW down 1.2%. Tech though felt the sword with APT down 4.7%, XRO down 1.4%, WTC off 2.7% and the All Tech Index falling 2.79%. In corporate news, BLD up 0.2% to sell its 50% interest in USG Boral to Knauf for US$1.015bn. BKL up 0.7% sells Global Therapeutics to McPherson’s for a total enterprise value of $27m. NST down 1.9%, despite gold production at the upper end of its quarterly guidance range. PBH down 5.1%, Q1 turnover of $691.9m vs year-ago $235.8m. Clients 164.5K vs year-ago 87.4K. BEN lifting 2.2%, customer account deferrals fall, year to date lending up 11%. BVS down 5.1%, signs 7-year contract with Aware Super. No change to FY21 outlook. On the economic front, ANZ Roy Morgan Weekly Consumer Confidence Index rose 1.6% to 99.7. 10 year yields steady at 0.79% and AUD slightly firmer at 71.31c. Asian markets eased with Japan down 0.4% and China off 0.3%.

Today’s Highlights

• ASX 200 falls 105 to 6051.
• High 6142 Low 6034. Below average volume.
• CV and stimulus weighs.
• Big Bank Basket falls to $125.90
• All Tech Index down 2.79%
• 5 trading days until the US election.
• Dow Futures up 71.
• Gold rises to AUD$2674
• 10-year bond yield falls to 0.79%
• AUD rises slightly to 71.33c
• Bitcoin steady at US$13104
• Asian markets ease with Japan down 0.4% and China off 0.3%

STOCKS

• NCK +3.92% AGM address.
• AT1 +12.90% receives TGA approval.
• MYQ +8.95% change in substantial holding.
• CGS +24.74% AGM address.
• BLD +0.21% strategic review and asset sale.
• SM1 +3.87% AGM.
• TPG -2.23% launch 5G fixed wireless network.
• TLS -1.81% executive departure.
• BEN +2.25% AGM address.
• AGL -2.43% hits multiple year low on lower energy prices.
• BTH -8.54% tech sell off.
• CUV -1.55% SCENESSE gets nod.
• CTD -7.33% chairman’s address.
• PLS -7.14% profit taking.
• AVH -4.73% downturn resumes.
• RCE -7.84% sell off gathers pace.
• RHC -2.06% becoming a substantial shareholder.
• APT -4.74% appendix 2A. Will enter top 50.
• WPL -3.33% oil sell off.
• TYR -2.62% transaction values up 5% to $6.8bn.
• MMM +5.93% bargain hunters.
• Speculative Stock of the Day: Strategic Elements (SOR) +130.77% developing flexible self-charging batteries for IoT applications.
• Biggest Winners: NCK, SM1, WAF, VIK, BEN, JIN and KMD.
• Biggest Losers: PLL, BTH, LOV, CTD, PLS, NIC, DEG and SHV.

 TODAY

• Blackmores (BKL) +0.68% To divest Global Therapeutics to McPherson’s for a total enterprise value of $27m. The decision is in line with BLK’s new strategic focus. CEO projects H1 net sales growth of mid-single digits vs year ago.Notes Asian regions will be primary drivers of growth
• Boral (BLD) +0.21% To sell its 50% interest in USG Boral to Knauf for US$1.015bn.Following its portfolio review, confirms the integrated construction materials business in Boral Australia has strong underpinnings with outstanding assets and positions. Plans to explore third party interest in the North American building products businesses. Remains focused on the Fly Ash business in North America.
• PointsBet Holdings (PBH) -5.10% Reports Q1 turnover of $691.9m vs year-ago $235.8m.Clients 164.5K vs year-ago 87.4K. Net win margin 5.5% vs year-ago 5%.
• Ramelius Resources (RMS) -2.54% Q1 gold production 71,344oz at an AISC of $1,241/oz vs guidance $1,250-1,350/oz. In Q2 sees gold production between 67-72Koz at an AISC $1,200-1,300/oz.
• Northern Star Resources (NST) -1.92% Q1 unaudited NPAT $100m. Gold sold 227,532oz vs guidance 207-233Koz. The group’s all-in cost of production reached $1,752 an ounce. Annual production forecast to grow at 40% to 1.25Moz over the next three years, with low capital intensity. Costs expected to fall by 10%. Management comments, “our combined production is growing to 2Moz a year by FY27 while most of our peers have a falling production profile. Our costs will continue to reduce and our combined scope for further organic growth in tier-1 locations is exceptional.”
• Bendigo & Adelaide Bank (BEN) +2.25% Year to date total lending growth at 11% and residential lending at 16.1%, both well above system. Net interest margin increases 1bp to 2.30% in the first quarter of FY21. As of 16 October, 6,797 customer accounts remain on deferral, down 69% from the peak in May. The value of the accounts where repayments have been deferred is ~$2.5bn, down from a peak of $6.9bn which occurred in June. Residential and consumer support packages total 4,408, down 74% since the peak in May. Commercial support packages total 2,389, down 49% since the peak in July.
• Marley Spoon (MMM) +5.93% Announces new CFO Jennifer Bernstein. After a transition period, Bernstein will succeed Julian Lange.
• Evolution Mining (EVN) -1.07% Q1 Gold production of 170.0Koz vs quarter-ago 218.1Koz. Tracking ahead of FY21 plan. September quarter AISC of $1,198 per ounce.
• Bravura Solutions (BVS) -5.15% Signs long-term contract with Aware Super.The contract is for an initial term of 7 years. No change to FY21 outlook following the deal, however, the second wave, UK lockdowns and stalling Brexit negotiations have increased uncertainty and are slowing the progress of pipeline opportunities in the UK. As a result, Bravura expects FY21 NPAT to be significantly weighted to H2 of FY21.
• Link Group (LNK) -2.02% Q1 revenue $297m and operating profit of $22.6m. NotesPEXA has continued its strong momentum with revenue for 1Q of $47m, contributing $7.4m to LNK’s operating profit. The regulatory approval process for the PES acquisition is ongoing, with completion expected in early 2021. LNK has received regulatory approval for the sale of its South African registry business, with completion expected in early November 2020.

ECONOMIC NEWS

• ANZ Roy Morgan Weekly Consumer Confidence Index lifts 1.6% to 99.7. ANZ economist David Plank had this to say, “amidst falling active COVID-19 case numbers and hopes of a further easing of restrictions, confidence gained for the eighth straight week. Overall sentiment is just below the neutral level and at a six-month high. It remains well below the long-run average, however. Sydney and Melbourne are now close to neutral. People remain cautious about the current economic outlook and, consistent with this, are also cautious about their current financial circumstances. This may constrain spending in the near-term. Confidence in future economic and financial conditions is much more positive, however, holding out the prospect of a recovery in spending if the labour market holds up.”

COVID – 19 NEWS

• Antibody responses to the coronavirus may diminish over time, according to a study that showed the natural defences waning in Brits who’d previously been exposed.
• Argentina reported 11,712 new Covid-19 cases as the nation’s total rose to more than 1.1m.
• The trial of an Eli Lilly & Co. experimental antibody therapy won’t resume after federal researchers concluded the drug likely wouldn’t help hospitalised Covid-19 patients with advanced cases.
• France reported the number of people hospitalized because of Covid-19 jumped by 1,307 to 17,784 on Monday.
• California cases topped 900,000.

BONDS

ASIAN NEWS

• South Korean GDP rose 1.9% in 3Q.
• Ant Group will be the world’s largest IPO at US$35bn. Valuation $315bn.

• Shanghai ticker code 688688. The shares were priced in Shanghai at 68.8 yuan.

• Alibaba has done pretty well since debut

EUROPEAN AND US HEADLINES

• Amy Barrett confirmed to SCOTUS.
• Facebook to move into cloud-based gaming.
• AIG to separate its life insurance arm
• The monthly value of U.S. goods that China bought under the trade agreement reached a monthly record high of $9.9bn in September as oil, soybean and car imports surged.

• HSBC adjusted pretax profit down 21% to US$4.3bn. HSBC said it expects credit losses to be at the lower end of a previously announced US$8bnto US$13bn range. Board will consider paying conservative dividend  in 2021.

And finally….

Do you know what succeeds?

A toothless budgie.

A third off books at Waterstones today ; I got “ The Lion , The Witch”. 12,666 Leagues under the Sea should be good too.

A proper Yorkshire joke …

Daley Thompson, Tessa Sanderson and Steve Cram are all round at Seb Coe’s house for tea.
Steve brought the fish, Tessa brought the chips, Daley brought the mushy peas and Seb provided the salt and vinegar. Suddenly there is a knock at the door so Seb gets up to answer. “Who is it?”, asks everyone in unison,

“It’s Fatima wi t’bread.”

Clarence

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