The ASX 200 gave up some of the early gains as US futures turned down. The index rose only 14 points to 6498 (0.2%) with Dow futures own 100. It was good to be back after a lost day. Still some glitches in the ASX systems but overall, back to 90%. After an early catch up surge, the index lost ground with healthcare under pressure, CSL down 1.1% and RHC off 2.3%. Miners did ok with BHP up 2.5% and FMG up 1.9% but the gold miners were back in a sell off with NCM down 3.1% and NST down 4.9%. Energy stocks were better and clearly pricing in further gains, STO up 3.4% and WPL to the good by 3.4%. The Big Bank Basket rose yet again with the headline at $137.97 and CBA up 1.2% and WBC doing well up 2.3%. Industrials generally weaker and tech stocks suffering slightly. The All Tech Index down 2%. In corporate news, APT down 5.4%, record sales in October not enough to excite the market at its AGM. Molnar to resume CEO role. CIP to acquire three cold storage industrial facilities for $171.1m. Launches $125m placement at 306c/share. Upgrades funds from operations guidance. APE up 0.2% after reporting a lift in underlying profit to $96.6m. The big four banks are having another good day up between 1.1% and 2.8%. NWL down 5.4% with little reason. Consumer confidence up 3.4% last week. Marking eleven consecutive weeks of gains. RBA minutes highlight the risk of rising case numbers. Commented on the relatively strong September quarter. Added it was an appropriate time to launch QE. In more economic news, the total number of payroll jobs rose 0.5% in the last week of October after a reduction in restrictions boosted the Victorian labour market. The NSW budget was handed down and a brave decision to make stamp duty optional grabbed the headlines. 10-year bond yields had a big day back up to 0.94% on RBA comments and the AUD better at 73.22c. Asian markets mixed again with Japan up 0.14% and China down 0.3%.

Today’s Highlights

• ASX 200 up 14 to 6498 (0.2%). Big volume for two days!
• High 6530 Low 6490.
• AGMs and investor presentations continue to dominate.
• Big Bank Basket rallies to $137.97
• All Tech down 2%
• Dow Futures down 92
• Gold slips to AUD$2579
• 10-year yields bounce back to 0.94%
• AUD rises to 73.22c
• Bitcoin kicks to $16,647
• Asian markets mixed again with Japan up 0.14% and China down 0.3%.

STOCKS

• 4DS +26.09% catches the chip bug.
• VUL +20.10% Investor presentation.
• CWN +1.57% cuts junkets.
• NHC +2.60% production drops 36.5%.
• ORG +2.52% in talks for hot air from Tasmania.
• CHC +5.95% acquires 6 Bunnings assets for $533m on a 4.63% yield.
• UNI +18.42% good debut.
• NMR – unchanged- not such a standout beginning.
• PAN -6.90% AGM presentation.
• TSO -8.22% presentation.
• PLL +14.86% expands drill program.
• CIA +6.53% acquisition.
• TLG +4.74% change of director’s interest.
• LCK +9.38% hydrogen in fashion.
• APT -5.39% joint chiefs and AGM comments.
• SAR -5.63% SBM -4.40% RRL -5.38% gold miners heading lower.
• Speculative Stock of the Day: Alterity Therapeutics (ATH) +24.24% good volume after it announced approval of its US patent for next generation compounds to treat neurodegenerative diseases.
• Biggest Winners: PLS, URW, PLL, WHC, ABY and VEA
• Biggest Losers: CHC, NXT, SAR, RMS, RED and SLR.

TODAY

• Afterpay (APT) -5.39% October was a record month for underlying sales globally and APT is performing ahead of this in November. Instore sales in ANZ continue to increase as a percentage of total sales reaching 23% in recent weeks. Online sales growth continues to track strongly. The growth of new customers is accelerating since the end of Q1 in both the US and UK as the pipeline of new merchants go live on the platform. On key financial and performance metrics, there is no change to the comments made around gross losses, net transaction losses and Net transaction Margins in Q1 business update. APT pleased with how the business is tracking in the first 6 weeks of Q2 FY20. Appoints Nick Molnar as co-CEO and Managing Director.
• PointsBet Holdings (PBH) -3.64% Launches in Colorado and has taken the first bet. The move represents the company’s fifth online sportsbook operation in the United States. The next launch is planned for Michigan in Q3 FY21. Michigan will also see the inaugural launch of PointsBet’s iGaming product. Prior to launching in Colorado, PointsBet inked a multi-year partnership with Kroenke Sports & Entertainment, LLC making them the official and exclusive partner of the Denver Nuggets of the National Basketball Association, Colorado Avalanche of the National Hockey League, Colorado Mammoth of the National Lacrosse League, and their home venue, The Ball Arena.
• Abacus Property Group (ABP) +0.63% Expects FY21 distribution to reflect a payout ratio between 85-95% of funds from operations (FFO), with the higher payout ratio to be supported by the increased contribution from more consistent annuity-style earnings. Management comments: “Acknowledging the uncertainty caused by the COVID-19 pandemic, we remain positive on Abacus’ differentiated AREIT positioning in the Office and Self Storage sectors.”
• Panoramic Resources (PAN) -6.90% Savannah expected to be ready for restart in 2021.
• Chorus (CNU) -4.82% Repeats FY21 EBTIDA guidance NZ$640-660m vs consensus NZ$649.8m. Sees gross capex between NZ$630-670m, dividend of 25c.
• Centuria Industrial REIT (CIP) – To acquire three cold storage industrial facilities for $171.1m. Launches $125m placement at 306c/share. Following the transaction, CIP’s portfolio will increase to 59 high-quality assets worth $2.3bn with occupancy of 96.8% and a 9.7-year weighted average lease expiry (WALE). Acquisitions and Placement anticipated to be accretive to CIP’s FY21 FFO per unit. Upgrades FFO guidance to be no less than 17.5 cents per unit. Reaffirms distribution of 17.0 cents per unit.

• 3P Learning (3PL) -4.78% Provides data room access to BYJU’S to undertake due diligence and progress the indicative proposal.
• Eagers Automotive (APE) +0.25% Year to date (YTD) (Jan-Sep) underlying operating profit $96.6m vs year-ago $66.5m. easyauto123 & Carlins Automotive Auctioneers partnering with national network to deliver growth and drive investment: easyauto123 profitable last 5 months. Carlins profit up 192% vs year ago (9 months YTD).
• Auswide Bank +1.21% Four-month profit $7.4m vs year-ago $5.6m.Total loan book $3.43bn vs year-ago $3.18bn. Net interest margin 1.99% vs year-ago 1.97%. Net interest revenue +11.7%. Customer deposits up 15.2%. Value of loans receiving COVID assistance $50.4m or 92% of customers have recommenced payments.
• Openpay Group (OPY) +1.83% November trading update; Major partnerships secured with Kogan and SaaS group BigCommerce, building Openpay’s portfolio of high-margin Merchant businesses at scale. Observed strong customer demand and UK growth, which drove a solid uplift in October leading indicators: Active Plans up 233% vs pcp. Active Customers up 143% vs pcp. Total transaction value (TTV) up 101% vs pcp to $25.8m.

ECONOMIC NEWS

RBA Minutes

• The RBA’s minutes of its November meeting showed the central bank thought it was the “appropriate time” to launch its $100bn quantitative easing program as it become clearer that unemployment would remain high and inflation subdued for an extended period.
• The RBA considered that there was “little to be gained” from short-term interest rates moving into negative territory
• Consumer confidence up 3.4% last week. Marks eleven consecutive weeks of gains. ANZ economist David Plank had this to say, “The rise comes on the back of gains across the major subindices and takes overall confidence to its highest level since February. The news about the successful vaccine trial no doubt played a major role. The strong result points to a potentially strong Christmas season ahead for retailers.”

• NSW plans to make stamp duty optional. A land tax instead.
• The total number of payroll jobs rose 0.5% in the last week of October after a reduction in restrictions boosted the Victorian labour market. Payroll jobs in Victoria rose 0.9% in the week to October 31.
• Nationally, the number of payroll jobs remains 3 per cent down since mid-March.

BONDS

COVID – 19 NEWS

• President-elect Joe Biden said containing the coronavirus pandemic is key to the U.S. economic recovery.
• France reported new confirmed Covid cases rose by 9,406 to 1.99m, the smallest increase since Oct. 12.

• Sweden is bringing in its toughest restrictions yet to fight the coronavirus pandemic, from Nov. 24, public gatherings of more than eight people will be banned.
• Sobering thought: The world may be able to vaccinate enough people to get the coronavirus pandemic under control by mid-2022, said Ugur Sahin, chief executive officer of BioNTech.
• Forget NZ, travel bubble proposal burst by SA.
• Tens of thousands have volunteered to take cruise test trips as cruise operators are seeking ways to satisfy the CDC in standards for distancing and eating protocols.
• Toilet rolls are now rationed in SA.

ASIAN NEWS

• The People’s Bank of China has fixed the midpoint at 6.5762 against the US dollar compared to 6.6048 on Monday, its strongest level since June 2018.
• Samsung is investing US$116bn into its next generation chip business as it tries to close the gap with Taiwan Semiconductor Manufacturing.
• Baidu will buy YY for US$3.6bn to get into live video in China.
• Chinese Vice President Wang Qishan called for global solidarity and a shift away from protectionism as the new Biden era in focus.

EUROPEAN AND US HEADLINES

• Kissinger (97) warns Biden of catastrophe on the scale of WW1 if US and China fail to engage.
• Tesla to join the S&P 500 finally. Largest new entrant ever.
• Airbnb has filed its long-awaited IPO plan. Airbnb had a net loss of $US697m on revenue of $US2.5bn for that nine-month period, compared with a net loss of $US323m on revenue of $US3.7bn for the same period last year, according to the filing.
• Taylor Swift’s catalogue sells for US$300m to private equity.
• Buffet is switching from banks to drugs putting US$5.7bn into four pharma stocks in Q3.

And finally…Thanks Keith, thanks Stephen as always…

A balding, white haired man walked into a jewellery store one Friday evening with a beautiful much younger gal at his side. He told the jeweller he was looking for a special ring for his girlfriend. The jeweller looked through his stock and brought out a $15,000 ring.           

The man said, ‘No, I’d like to see something more special. Price is immaterial.   

At that statement, the jeweller went to his special stock and brought another ring over. ‘Here’s a stunning ring at only $140,000’ the jeweller  said. “It’s the famous Azure Blue which belonged to a Maharajah.”           

The lady’s eyes sparkled and her whole body trembled with excitement. Seeing this, the old man said, ‘We’ll take it.’            

The jeweller asked how payment would be made and the man stated, ‘By cheque. I know you need to make sure my cheque is good, so I’ll write it  now and you can call the bank Monday to verify the funds; I’ll pick the ring up Monday afternoon.’  
On Monday morning, the jeweller angrily phoned the old man and said ‘Sir..There’s no money in that account!’  
‘I know,’ said the old man…‘But let me tell you about my weekend.’

My wife reckons I’m paranoid.

Well, she didn’t say it, but I know she’s thinking it.

I’ve enrolled in university, with a combined degree in taxidermy and bomb making. I hope to make an otter you can’t defuse.

At university my room mate used to say I was schizophrenic. Well, the joke was on him, I didn’t even have a room mate.

Crime update: A ventriloquist has been arrested after his doll was found at the scene of a murder. The police believe he may have had a hand in it.

Clarence

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