ASX 200 celebrated a Biden Presidency with the index rising 109 points to 6299(1.75%) to an eight month high.  Dow futures up 400 helping things along. Green across the screen, Banks a little left out with the Big Bank Basket flatlining at $127.05. Insurers did well, QBE up 5.2% and SUN up 3.2%. MQG also piled on the points, up 0.7%. Big miners in demand too, BHP up 3.5% after competing its Shenzi deal, and RIO up 2.9% with FMG shooting the lights out up 6.4%. Gold miners were mildly positive in the bigs, but good action in the smalls with BGL leading the pack higher, up 10.0%, GOR up 2.4% and even PDI up 9.5%.  Despite big falls in crude, STO rallied 2.7% and WPL were 0.8% to the good. In the industrials, WOW up 1.2%, TLS rose 2.1% and TCL up 2.0% on hopes for a WestConnex deal. Tech stocks did well, APT up 4.0% setting new records, WTC up 5.1% and REA doing very well up 9.1% on a broker PT upgrade.. In corporate news, VRL up 2.62%, BGH offer up 12c, the revised offer triggered by the reopening of Village Roadshow theme parks. NEC up 2.2% to acquire Rugby Union rights for ~$100m.  CWN up 3.6% to restart operations in Victoria on Thursday. AMC up 0.4%.  In economic news, building approvals for total dwellings rose 15.4% in September. 10-year bond yields fell to 0.78% and the AUD at 72.96c. Asian markets rallying hard with Japan up 2.6% and China up 2.15%

Today’s Highlights

  • ASX 200 up 109 to 6299
  • High 6303 Low 6198.
  • Big Bank Basket rises to $127.05 ANZ XD 35c.
  • All Tech Index up 3.58%
  • Dow Futures up 380 points.
  • Gold rallies to AUD$2692
  • 10-year bond yield rallies to 0.78%.
  • AUD rises to 72.65c
  • Bitcoin consolidates at $15,436
  • Asian markets rallying hard with Japan up 2.6% and China up 2.15%

STOCKS

  • PLS +11.36% punters pushing it higher.
  • ORE +10.07% GXY +10.00% green is the theme.
  • BGL +9.96% breaking higher on bullion rise.
  • FMG +6.40% back in demand.
  • ALK -9.75% expansion at Boda.
  • JMS -1.85% ex dividend and slipping.
  • TAH -2.93% system outage takes toll.
  • JIN +7.97%first earn out achieved for Gatherwell.
  • 3PL – unchanged- starting to look interesting.
  • HLS -2.22% block trade rumoured around.
  • ALC +44.00% promising NHS Trust contract.
  • TLG +20.74% punters special.
  • VMT +11.49% boardroom introduction.
  • CAT +12.25% business update
  • TSO +10.15% bouncing back.
  • BHP +3.49% completes Shenzi transaction.
  • TLS +2.14% every dog…
  • TCL +2.05% box seat for WestConnex deal.
  • Speculative Stock of the Day: Special mention to Papyrus Australia (PPY) +43.14% still kicking goals after highlighted last week on positive banana tree announcement.
  • Biggest Winners: PLS, ORE, GXY, RBL, BGL, REA and SM1.
  • Biggest Losers: ALK, ERA, SGF, TAH, SPL, GMA and HLS

TODAY

  • Transurban (TCL) +2.05% NSW government to sell its remaining stake in WestConnex. ATransurban-led consortium, which owns the majority share, is thought to be the front runner to acquire the remaining stake and has a “right of first offer” on the interest.
  • Vocus Group (VOC) +2.27% Reportedly considering asset sales. Newswires notethe retail business is likely to be put on the block, adds there has been discussions in the past about selling or listing the New Zealand business.
  • CBA (CBA) +0.75% Looking to merge Aussie Home Loans with Lendi.CBA is in discussions with Lendi about combining the mortgage-broker operations. Lendi is likely to be the bigger party, it was valued at $500m in a 2019 funding round vs the $300m that analysts think CBA values Aussie Home Loans at.
  • Tabcorp (TAH)– 2.93%Notes services have now largely been restored with a focus on ensuring the systems return to optimal service levels in coming days. Lost wagering turnover over the weekend is estimated to have impacted EBITDA by less than $10m.
  • Village Roadshow (VRL) +2.62% VRL and BGH agree on consideration of 232c per VRL Share under the Structure A Scheme and 222c per VRL Share under the Structure B Scheme. Warner Bros. Movie World and Sea World theme parks have been open to the public for some time and while this would most likely result in the Theme Park Uplift Event being triggered on 13 November, VRL and BGH have agreed to lock in the uplift of 12c per share today.
  • Nine Entertainment (NEC) +2.18% To acquire Rugby Union rights. The three-year deal, based around both live free-to-air and subscription coverage, is worth approximately $100m and includes a two-year option for Nine to extend. On the back of this deal, Nine is announcing the launch of Stan Sports, a live and on-demand premium sports package to be offered as a bundle to Stan’s streaming customers from 2021.
  • Catapult Group (CAT) -12.25% Cash balance is $33m as of 9 November (excluding drawn loans), an increase of $10.1m from June 30. As previously advised, a number of new business opportunities were delayed from late FY20 into FY21, and many of these remain open as professional and US college level sports continue to manage the significant impacts and restrictions posed by the pandemic. Going forward CAT expects a significant shift from capital to subscription for Performance & Health sales.

ECONOMIC NEWS

Building Approvals

  • The seasonally adjusted estimate for total dwellings approved rose 15.4% in September.
  • Private sector dwellings excluding houses rose 23.4%, while private sector houses rose 9.7%, in seasonally adjusted terms.
  • The seasonally adjusted estimate for the value of non-residential building approved fell 36.7%.

COVID – 19 NEWS

  • Confirmed cases worldwide surpassed 50m.
  • The director-general of the World Health Organization, Tedros Adhanom Ghebreyesus, congratulated Joe Biden and Kamala Harris on their U.S. election victory.
  • New York reported 3,428 cases Sunday. 10m Americans have been diagnosed with Covid-19 in the past 10 months.
  • France reported 38,619 new Covid-19 cases Sunday.

BONDS

ASIAN NEWS

  • Japanese drugmaker Eisai fell hard today after its Alzheimer therapy failed to gain support.
  • China’s coal imports for October plunged by 47% compared with a year earlier and fell by over a quarter on September levels. The authorities are targeting imports of around 270m tonnes which will mean a near 30% fall will be required in November and December. China has restricted coal imports back to 2017 levels according to Wood Mackenzie.
  • China’s iron ore imports rose by 15% in October on the prior year and gas imports up 15% on the prior year.

EUROPEAN AND US HEADLINES

  • Still no concession speech from Trump, Biden launched CV19 task force.
  • Season Two of the hit Fox TV show, ‘Trump: The President’ has been cancelled.
  • Biden set to move fast to undo many of Trump’s polices.

And finally….

I have heard colleagues referring to people with Guts, or with Balls. 
Do they, however, know the difference between them?

 Here’s the official distinction; straight from the British Medical Journal: Volume 323; page 295.

GUTS  – Is arriving home late, after a night out with the lads, being met by your wife with a broom,   and having the Guts to ask: “Are you still cleaning, or are you flying somewhere ? ”

BALLS – Is coming home late after a night out with the lads, smelling of perfume and beer, lipstick on your collar, slapping your wife on the bum and having the Balls to say: “You’re next, Chubby!”

I trust this clears up any confusion.  Medically speaking, there is no difference in outcome; both are fatal.

Clarence

XXXXX

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