The ASX 200 races 41 points to the good at 6729 (0.7%) on vaccine hopes and stimulus. Seven days straight. Dow futures up 89 points. Once again iron ore miners in demand as the ore hits US$150 and US markets break records. BHP up 1.1% and RIO up 0.4% ahead of report on Heritage site destruction. FMG up 1.6%. CSL continues to push higher as patient A gets the shot in the arm, the stock rose 2.2%, followed by gains in SHL up 2.0% and RHC rising 2.6%. The Big Bank Basket rose on CBA news closing at $149.99. Industrials were mixed, WES up 1.6% and APT bid up by 2.9% with XRO up 0.5% giving the tech index a 1.3% boost. Pot stocks and battery material stocks in focus today on news from US on cannabis law changes seeing CPH rise another 27.7% and VUL doing well up 9.6%. In corporate news, IGO in a trading halt, to acquire a 49% noncontrolling interest in Tianqi Lithium Energy Australia for $1.9bn. Will fund the deal through a mix of debt and $766m equity raising. IFT up 1.47% on a bid by AustralianSuper at NZ640c in a cash and share combo. IFT says no. CBA up 1.7% will book an $840m increase in unaudited post-tax statutory earnings from the sale of its BoComm Life interest. Westpac-Melbourne Institute Consumer Confidence index for December: +4.1% to 112. Now 48% above the low in April and has reached its highest level since October 2010 – marking a ten-year high. Economist Bill Evans in his analysis talked about the likelihood of the RBA lowering its unemployment forecasts and raising its growth forecasts when the board meets next in February. 10-year yields steady at 1.02% and the AUD slightly higher at 74.38c. Asian markets mixed with Japan up 1.2% and China easing slightly by 0.12%.
- ASX 200 up 41 to 6729.
- High 6745 Low 6697. Narrow range. Again.
- Big Bank Basket up to $149.99
- Iron ore hits $200 in AUD. FMG still bullish.
- All Tech up 1.3%
- Dow Futures up 89 points.
- Gold lower at AUD$2498
- 10-year yields steady at 1.02%
- AUD better at 74.38c
- Bitcoin steady at $18,228
- Asian markets mixed with Japan up 1.2% and China easing slightly by 0.12%.
- TLT +8.78% IFT bid implications.
- RBL +11.70% LOV +7.55% retail love fest.
- HLS +7.44% business update.
- MSB +4.90% buyers still pushing.
- MGF -7.54% NTA November disappoints.
- GXY -5.09% profit taking as capital raise continues.
- TLX -5.33% new drug application.
- CPH +27.66% pot stocks on a high.
- FMS +26.63% broker upgrade.
- DOC +17.65% substantial shareholder notice
- YFZ +10.00% delivers on second day.
- ABY +5.86% looks more attractive.
- GEM +2.07% UBS says buy despite underpaying staff.
- MYQ +18.59% broker upgrades on new deal.
- WES +1.58% change of director’s interest.
- MQG -0.89% notes APORA framework discussions.
- PLL -unchanged- taking its bat and ball and moving to US
- PAR -4.58% welcomes new non-executive.
- NXL -6.08% reality bites.
- APA +2.05% COE deal.
- E25 +23.36% Stage 2 offtake agreement.
- IPO Update: Cluey (CLU) +2.92%. Well off early highs.
- Speculative Stock of the Day: Resonance Health (RNT) +% HepaFat-AI gains FDA clearance. HepaFat is a medical device that uses AI to measure liver fat.
- Biggest Winners: RBL, TLT, LOV, HLS, CDA, API, ASM and MSB
- Biggest Losers: MGF, TLG, NXL, TLX, GXY, JIN and PAR.
- New Hope (NHC) -3.40%shareholder Washington H. Soul Pattinson & Co. (SOL) sells 50m shares– SOL disclosed a holding of 365.7m shares or 43.94% down from 415.7m or 50.01%.
- Link Administration Holdings (LNK) -1.42% In 1H21 sees revenue of $594m vs consensus $593m. Operating EBIT of $77m vs consensus $59m and operating profit of $57m vs consensus $47m. Observes a positive start to FY21, revenues continue to be resilient – 84% recurring revenue. Top 5 retirement & superannuation solutions (RSS) clients renewed or on track to be renewed with continued strong member growth. Global Transformation Program on track. Notes strong financial performance from PEXA. Target debt leverage range now 2-3x Net Debt/EBITDA. Yesterday LNK jumped 13.71% after an offer of 565c from SS&C.
- Magellan Financial Group (MFG) -0.10% Funds under management at the end of November $103bn vs month-ago $103.48bn.In November, Magellan experienced net inflows of $26m. Magellan funds paid distributions (net of reinvestment) of $258m.
- Charter Hall Long WALE REIT (CLW) – To acquire 3 properties for $319m. Announces $250m placement at 465c/security. Reaffirms FY21 guidance of operating EPS of no less than 29.1c/security.
- Healius (HLS) -7.44% Pathology: continued strong growth in revenues in Oct and Nov. Imaging: Sustained growth in revenues in all states in Oct and Nov, driven by both volumes and average fee, other than VIC and SA. Day hospitals: Revenues for the division materially ahead of year-ago in Oct and Nov. Capital management: On-market buyback of up to $200m, to run for 12 months from December 29. Dividend policy: payout target revised to 50-70% of reported NPAT. Debt facilities to be reduced to $800m (from $1.10bn). $58m in annualised benefits delivered to-date in continuing operations vs $44m at the end of June. To deliver >300bps in EBIT margin improvement by FY23.
- CBA (CBA)+1.67%The China Banking and Insurance Regulatory Commission has approved the divestment of CBA’s 37.5% interest in BoCommLife to MS&AD Insurance Group Holdings. Sale proceeds expected are $886m. An $840m increase in unaudited post-tax statutory earnings will be recognised its 1H21 result. The sale will lift its Common Equity Tier 1 ratio by 29 basis points.
- Macmahon Holdings (MAH) -unchanged- Awarded contract at the Foxleigh mine in QLD, expected to generate $250m of revenue over five years. Also awarded a 2-year contract extension with Pantoro worth $20m.
- Macquarie Group (MQG) -0.89% Responds to APRA consultation regarding the capital framework for authorised deposit-taking institutions (ADIs). Notes while these proposals are subject to consultation through 1-April-21 and finalisation by APRA, MQG’s expects it will have sufficient capital to accommodate likely additional CET 1 requirements as a result of the proposed changes.
- Abacus Property Group (ABP) -unchanged- Completes institutional entitlement offer priced at 290c/share. Take-up rate of 97%.
- Fortescue Metals (FMG) +1.58% Celebrates first ore through the ore processing facility at the Eliwana mine and rail project in the Western Hub. CEO Elizabeth Gaines had this to say, “Eliwana will see us maintain our low-cost status and provide us with greater flexibility across our product mix.”
- IGO limited (IGO) – To acquire 49% noncontrolling interest in Tianqi Lithium Energy Australia for total consideration of $1.9bn. Transaction is Net Asset Value accretive and expected to be EPS accretive from FY23. To fund the deal through a mix of $1.1 billion of new debt facilities, an equity raising of up to $766m, and existing cash reserves.
- Westpac-Melbourne Institute Consumer Confidence index for December: +4.1% to 112. Now 48% above the low in April and has reached its highest level since October 2010 – marking a ten year high. Economist Bill Evans in his analysis talked about the likelihood of the RBA lowering its unemployment forecasts and raising its growth forecasts when the board meets next in February.
- Earlier this week Westpac lifted its growth forecasts for 2020 and 2021 and lowered its forecasts for the unemployment rate. It now expects growth of –2% in 2020 and 4% in 2021. Forecasts unemployment to be 6% by end 2021 and 5.2% by the end of 2022. That compares with the RBA’s current unemployment forecasts of 6.5% and 6% respectively.
COVID – 19 NEWS
- Patient A has been jabbed in the UK.
- A positive test has ensured a Royal Caribbean Cruise out of Singapore has to turn back.
- For just the second time since the pandemic emerged, Texas logged more than 15,000 new cases in a 24-hour period.
- Coronavirus hospitalizations are nearing 5,000 in New York State, Governor Andrew Cuomo said.
- France is looking at more lockdown options as the planned deadline of December 15th looms.
- Softbank is in discussions about going private in slow-burn buyback.
- Chinese CPI falls for the first time since 2009. The consumer price index fell 0.5% in November from a year earlier. Food prices fell 2% in November from a year ago, while pork prices plunged 12.5%.
- Factory deflation also eased, with the producer price index declining 1.5% on year, compared with a 2.1% decrease in October. The median estimate in a survey of economists was -1.8%.
- JD health to be fast tracked into Hang Seng.
EUROPEAN AND US HEADLINES
- Brexit talks continue. Not looking good.
- 14 US states now have hospital capacity at over 80%. The health services are rapidly getting overrun. New Mexico in ‘Crisis Mode’ over 103% capacity.
- Apple announces new headphones fir $849 but good luck getting them anytime soon. 12-14 week delays to shipments. Prices soaring on eBay for resellers charging double for delivery for Xmas. They are just headphones people.
- Pennsylvania’s Supreme Court says no to Trump challenge.
- DoorDash and Airbnb on the cusp of listing.
- Tesla raising another US$5bn.
- Shell loses executives over a push to green.
- Chuck Yeager. Vale, you had the Right Stuff. First man to fly faster than sound in 1947. Did it again 50 years later.
“There are a number of mechanical devices which increase sexual arousal, particularly in women. Chief among these is the Mercedes-Benz SL500.”
“It isn’t premarital sex if you have no intention of getting married.”
“My mother never saw the irony in calling me a son-of-a-bitch.”
“Clinton lied. A man might forget where he parks or where he lives, but he never forgets oral sex, no matter how bad it is.”
Barbara Bush (Former US First Lady)
“Ah, yes, divorce, from the Latin word meaning to rip out a man’s genitals through his wallet.”
“According to a new survey, women say they feel more comfortable undressing in front of men than they do undressing in front of other women. They say that women are too judgmental, where, of course, men are just grateful.”
Robert De Niro
“There’s a new medical crisis. Doctors are reporting that many men are having allergic reactions to latex condoms. They say they cause severe swelling. So what’s the problem?”
“There’s very little advice in men’s magazines, because men think, ‘I know what I’m doing. Just show me somebody naked!”
“See, the problem is that God gives men a brain and a penis and only enough blood to run one at a time.”
“It’s been so long since I’ve had sex, I’ve forgotten who ties up whom. ”
“Sex is one of the most wholesome, beautiful and natural experiences money can buy.”
“You don’t appreciate a lot of stuff in school until you get older. Little things like being spanked every day by a middle-aged woman. Stuff you pay good money for later in life. “
“Bigamy is having one wife too many. Monogamy is the same.”