The ASX fell 33 today to 5928 (%). Late nerves trigger selloff. Thin volume and no conviction ahead of elections. Lacklustre bounce with M&A in focus and quarterlies. Dow futures down 300 points. AMP was the talk of the haunted house today as PE looks to be playing trick or treat. The stock rallied 19.5%, CSL saw a little blood on the floor down 1.3% and FPH fell 5.0% on RMD results which beat estimates.  expectations. Banks were mostly positive on a flight to safety perhaps, ghosts of the past with the Big Bank Basket up to $124.34. Miners were spooked in places with BHP falling 0.7% with golds off too NCM fell 0.6% and NST down 0.9%. FMG though rose at dawn and up 4.5% on production numbers. WSA though buried on its numbers, the shorts taking full advantage and driving the stake into their heart down 17.7%. Industrials slipped with defensives struggling to find garlic, WOW down 1.6% and COL down 1.2%. In tech stocks, APT fell 2.9%. SEK remains in a trading halt as it answers the Blue Orca Freddie attack. The All Tech Index fell 2.2% with more blood on the street. In corporate news, RMD up 9.4%, Q1 EPS US127c ex-items vs consensus US101c. JHG down 1.3%, Q3 adjusted EPS US70c vs consensus US63c. WBC down 0.2%, extended CEO Peter King’s contract & removed the 2-year term. CAR down 4.1%, on its AGM update. ANN down 0.3%, lifts guidance, EPS to be in the range of US135c-US145c, vs previous US126c-138c. SPT down 4.5%, despite reporting a strong start to Q4. Nothing substantial on economic front with 10-year yields stable at 0.81%. AUD steady too. Asian markets weaken with Japan off 0.6% and China down 0.3%

Today’s Highlights

• ASX 200 down 33 to 5928.
• High 5987 Low 5928. Average volume.
• Index down 3.8% for the week, up 1.9% for the month.
• Big Bank Basket rises slightly to 124.34
• All Tech Index down 2.2%
• 2 trading days until the US election. Trump revels in rallies.
• Dow Futures down 290.
• Gold steady at AUD$2661
• 10-year bond yield rises to 0.81%
• AUD falls to 70.51c.
• Bitcoin rises to US$13457
• Asian markets weaken with Japan off 0.6% and China down 0.3%

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STOCKS

From one our lovely fans- Halloween after all.

• Banks, having a mild sugar boost –individually-wrapped packs though.
• SHV +7.56% almonds the better Treat this year.
• IEL -5.07% school out? Off on a monster’s holiday.
• CSL -1.35% Vampire raided the plasma, again.
• FMG +4.51% Saw the Jack-o’-lantern light, again
• AMP +19.53% Bone-rattles – rising from the dead?
• RMD +9.45% breathing a sigh of relief – few sleepless, haunted nights.
• WSA -17.74% shaking in fear of the dark with flat (nickel) batteries in the torch
• BTH -9.43% Can was carrying more tricks than treats today
• JIN -6.04% Spooked by the ghoulish shadow
• IMR +9.02% X-Ray vision saw the ghosts off, preventing heart attack.
• URW +4.69% ISS recommends yes vote.
• CGF +3.22% another barking dog.
• EML -5.64% EML Con fails to stir bulls.
• FPH -5.04% RMD results cheer on ventilators.
• WBT -12.79% profit taking continues.
• 4DS -1.70% profit taking.
• AGD -7.84% Quarterly activities report.
• ICQ +31.82% potential bid.
• CCR +10.59% recent IPO draws buyer in still.
• TUA +14.29% Appendix 4D.
• EMV +7.97% quarterly.
• Speculative Stock of the Day: NGS (NGS) +52.50% New float. Shakes rattles and rolls.
• Biggest Winners: AMP, RMD, SHV, URW, GMA, FMG and ILU.
• Biggest Losers: WSA, BTH, NTO, ERA, JIN, EML and NIC.

TODAY

• Janus Henderson Group (JHG) -2.92% Q3 adjusted EPS US70c vs consensus US63c.Revenue US$568.5m vs consensus US$543.1m. Adjusted operating income US$162.1m vs consensus US$145.6m.
• ResMed (RMD) +9.45% Q1 EPS US127c ex-items vs consensus US101c. Revenue US$751.9m vs consensus US$710.1m. non-GAAP gross margin expanded 30 bps to 59.9%.Management Comments, “our Q1 results reflect solid performance and positive trends across our business,” said Mick Farrell, ResMed’s CEO. “During the quarter, we continued to support the global COVID-19 pandemic response, providing ventilators, masks, and circuits to countries in need around the world. In our core markets of sleep apnea, COPD and asthma, we are encouraged by the sequential improvement in new patient volume, as well as the ongoing strong adoption of our mask and accessories resupply programs. We have accelerated the launch of digital health solutions to help clinicians remotely diagnose, treat, and manage patients during the pandemic and beyond. Our global team is effectively managing SG&A expenses, while investing in broad-based R&D programs to help accelerate our ResMed 2025 growth strategy: improving 250m lives in out-of-hospital healthcare in 2025.”
• AMP (AMP) +19.53% Confirms that it has received an acquisition proposal from Ares Management Corp. Discussions on the proposal are at a very preliminary stage and there is no certainty that a transaction will eventuate. AMP continues to progress its portfolio review. Adds it has received significant interest in its assets and businesses and is assessing a range of options in a considered and holistic manner, including continuing to pursue its three-year transformation strategy, with a focus on maximising shareholder value.
• Sandfire Resources (SFR) +3.51% To acquire 85% joint venture interest in the Red Bore Copper Project, approximately 1km east of the DeGrussa Copper-Gold Mine. The tenement was previously part of a joint venture between Ora Gold (90% interest) and William Richmond (10% interest). Sandfire will make a cash payment of $1.25m to Richmond and grant him a 1.25% net smelter royalty over minerals produced from Red Bore. Upon Sandfire reaching a decision to mine, Ora Gold has a put option to sell its retained 15% interest.
• iCar Asia (ICQ) +31.82% Received an acquisition proposal from Autohome Inc. of 50c/share. iCar also announced its first drawdown of $1.0m on a $5m loan agreement between iCar Asia and Catcha Group. The funds will be used to continue the growth and development of the business. In Q3, operations in Malaysia and Thailand were EBITDA positive. Management comments, “the company has witnessed a strong recovery in Q3 2020 in all 3 operating countries.”
• Splitit Payments (SPT)+4.47%Started Q4 strongly signing a number of new merchants including leading sports & lifestyle company, Boardriders. Merchant Sales Volume (MSV) grew strongly to US$70.9m, up 214% vs year ago. Gross Revenue (Non GAAP) of US$2.4m, up 318% vs year ago. Over $3bn in addressable online merchant sales added in Q3 via new major brands. Visa pilot launching for holiday shopping season before larger expansion of program in 2021. Confident of a strong growth trajectory throughout the remainder of the year and FY21.
• Origin Energy (ORG) -0.50% Integrated gas: September quarter production was stable, with higher operated production offset by reduced non-operated production due to planned maintenance. Energy markets electricity sales volumes were in line with the corresponding quarter in 2019. Recorded a 5% increase in retail volumes largely driven by higher residential demand, with a 6% reduction in business volumes largely due to COVID-19. Gas volumes declined 7% on September 2019 quarter.
• Bubs Australia (BUB) -2.82% Q1 infant formula sales to Australian major grocery and pharmacy retailers up 29% vs year ago. Up 9% across all channels vs year ago. Management comments, “bubs Infant Formula sales remained strong and continued to grow in all key markets, with material sales uplifts of 29% across major Australian retailers, and direct export sales of our Goat Formula products to China increasing 76%, compared to the same period prior year.
• Ansell (ANN) -0.32% Performance in the first four months of FY21 has been strong for the company despite the continued uncertainties arising from COVID-19. Achieved better than anticipated production volumes and sales across all five business units. Upgrades guidance, now expects organic growth in the double digits. EPS to be in the range of US135c-US145c, vs previous US126c-138c.
• Westpac (WBC) -0.22% Has extended CEO Peter King’s contract & removed the 2-year term as he looks to lead a multi-year turnaround for the bank.

ECONOMIC NEWS

• The Australian economy fell 0.3% in chain volume terms in 2019-20
• Labour productivity rose 0.5%
• The household saving ratio rose to 10.3%
• National net worth rose $828bn to $12.9 trillion

New Zealanders have voted against legalizing the recreational use of cannabis. 53% said no and 46% voted in favour. Euthanasia got a yes vote.

CV19 NEWS

• U.S. new cases topped 86,000, setting a new daily record.
• Mexico reported 5,948 new cases, bringing the total to 912,811.
• South Korea reported 114 new coronavirus cases in the past 24 hours, down from 125 a day earlier.
• Even with an effective vaccine, it could take until the end of 2021 at least for social life in the U.S. to return to normal, Dr Fauci said in an interview.

BONDS

ASIAN NEWS

The Five-Year plan is out from China. Self Sufficiency is the way forward.

• “Medium-to-high growth” in order to build a “moderately prosperous society,” this plenum had been expected to focus on the quality rather than the pace of growth. In Thursday’s statement, officials pledged to stick to a strategy of boosting domestic demand and opening up the economy over the next five years.
• “Complicated international situation.” “Dual circulation” is a thing although no one is sure what it is.
• Officials pledged to “basically form a new system of open economy at a higher level” in the next five years.
• China will aim to peak and then gradually lower its total emissions.
• The “peaceful development” of ties across the Taiwan Strait, the party vowed to maintain “long-term prosperity and stability” in Hong Kong and Macau.

EUROPEAN AND US HEADLINES

• Trump pushes economy. Biden pushes virus response.
• Amazon says it may struggle to keep up with demand.
• Walmart removes firearms and ammunition from US stores.
• Scientists warn of new CV19 variant spreading across Europe.

And finally

Where do you find a cow with no legs? Right where you left it.

A bear walks into a restaurant. He tells his waiter, “I want a grilled …. cheese.” The waiter says, “What’s with the pause?” “Whaddya mean?” the bear replies. “I’m a bear!”

What’s E.T. short for? Because he’s only got little legs.

What do you call a Frenchman wearing sandals? Phillipe Phillope.

What’s the difference between a hippo and a zippo? One is really heavy, and the other is a little lighter.

Clarence

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