The ASX 200 rose 43 points to 6642 (0.65%) on optimism on European lockdowns and no escalation of NSW CV19 cases. A minor wobble mid-morning after Gladys announced further restrictions but eased Xmas for some. Donald Trump though made some waves as he appears to be now blocking stimulus package as he wants more money for people. The Banks led the market higher with the Big Bank Basket up to $148.82 led by CBA up 0.9%.  Industrials rose as buyers stepped back in after three days of losses as the trading pre-Xmas draws to a close. WES up 0.7%, ALL up 2.0% GMG up 2.6% and REA up 2.4% a selection of the best movers. Miners though missed the mistletoe and fell on lower commodity prices with BHP off 1.0% and RIO down 0.5%. FMG unchanged though on iron ore falls and gold miners slid on bullion falls. NCM down 2.1% and the minor miners faring worse with RSG down 3.8% and WAF off 3.4%. In corporate news, IAG up 1.0%, completes upsized SPP, raising $125.9m at 497c/share. TCL up 0.4% to pay 15c distribution. SIQ up 7.6% on an earnings upgrade. CGF up 1.6%, to acquire MyLifeMyFinance from MyLifeMyMoney Superannuation Fund for $35m. Confirms FY guidance. On the economic front, Private sector credit for November: +0.1% over the month, in line with consensus, up 1.7% over the year. The 10-year bond yield slipped to 0.92%. Asian markets rally with Japan up 0.3% and China up 1% at lunch. Dow Futures down 21 points.

Today’s Highlights

  • ASX 200 up 43 to 6643, Half day tomorrow.
  • High 6661 Low 6609. Jittery but holds gains.
  • Big Bank Basket down to $148.82
  • All Tech up 1.2%
  • Dow Futures down 50 points.
  • Gold falls to AUD$2471
  • 10-year yield drifts to 0.92%
  • AUD steady at 75.54c
  • Bitcoin rallies back to US$23,651
  • Asian markets rally with Japan up 0.3% and China up 1% at lunch.

STOCKS

  • SIQ +7.62% business update
  • MSB +9.22% bulls back.
  • TNK +0.90% counter-proposal from Alceon Group.
  • GEM +3.50% TNK spill over.
  • WAF -3.45% DEG -3.30% RSG -3.77% gold miners hit.
  • LCY -15.56% change of director’s interest.
  • WBT +15.42% chips back on the menu.
  • CCX +7.26% hits record on UK buy.
  • REX +5.51% asks shareholders to vote on hedge fund package.
  • GSS +19.41% supply agreement with major US customer.
  • GNX +12.82% works starts on Kidman hydro project.
  • RDC +0.53% business update.
  • PYR -13.33% IPO flops.
  • JIN +1.03% SaaS agreement signed with St Helena Hospice UK.
  • WPL +1.12% buys Cairn’s interest in the Senegal offshore oil venture.
  • Speculative Stock of the Day: Avecho Biotech (AVE) +127.78% begins human trials on CBD product. Solid volume no other winners on volume today.
  • Biggest Winners: MSB, SIQ, CCX, ERA, GUD, ADN, URW and AMA.
  • Biggest Losers: RED, COE, RSG, BGL, WAF, RMS, DEG, HT1 and WGX.

TODAY

  • AMP (AMP) –1.56% Speculation Ares offer may not eventuate given recent selling and lack of updates from AMP. Newswires report that AMP has received a number of offers for business units. It’s understood Bank of Queensland and Bendigo Bank have considered an acquisition, but price may be an issue.
  • Qantas (QAN) +2.29% Trade unions to appeal Qantas worker sick leave decision. Maurice Blackburn will represent a number of unions and bring the appeal to the High Court. This follows a Full Federal Court ruling in November that stated Qantas workers are not entitled to sick, compassionate or carer’s leave while stood down.
  • Transurban Group (TCL) +0.43% A distribution of 15c per stapled security will be paid for the six months ending 31 December 2020 from the Transurban Holding Trust and its controlled entities. Continues to anticipate that the FY21 distribution will be in line with Free Cash, excluding Capital Releases.
  • Phoslock Environmental Technologies (PET) – Notes progress on the restructuring of operations in China. In Europe, new orders have been received for work in the Netherlands. New orders have also recently been received for treatments that are ongoing in Brazil. In North America, the trial works previously reported for projects including Utah Lake, Kitsap Lake in Washington State, and Morrison Lake (Michigan), have all been completed, with pleasing results. Financial position remains sound, with strong cash reserves and no debt. Continues to work with its auditors in an effort to finalise the review of relevant accounts as quickly as possible.
  • Challenger (CGF) +4.13% To acquire MyLifeMyFinance from MyLifeMyMoney Superannuation Fund for $35m. Confirms FY guidance for normalised profit between $390-440m. The acquisition is expected to reduce Challenger’s FY21 normalised net profit before tax by ~$3m and the bank is expected to break even during the 2022 financial year. One-off transaction and integration costs of between $5-8m (pre-tax) will be incurred in FY21 and expected to be reported as a significant item. The acquisition is highly strategic and provides Challenger the opportunity to significantly expand its secure retirement income offering. Following the acquisition, Challenger will hold an APRA authorised deposit-taking institution licence.
  • Insurance Australia Group (IAG) +1.05% Completes SPP, raising $125.9m at 497c/share. The SPP originally targeted $100m, however, IAG has exercised its discretion to increase the size of the SPP to $125.9m. This increase will allow IAG to accept all valid applications in full and with no scale back.

ECONOMIC NEWS

  • Sure this is really useful, but the RBA has invented a new ‘News Sentiment’ index which will track what journalists and the media are saying about the economy.
  • Private sector credit for November: +0.1% over the month, in line with consensus, up 1.7% over the year.
  • Preliminary international trade for November: Exports of goods +1% to $30,510m. Imports of goods +11% to $28,552m. Goods trade surplus of $1,958m.

BONDS

COVID – 19 NEWS

  • French is reopening truck routs into the UK.
  • Travel from the U.K. will resume for European Union citizens and residents able to demonstrate negative Covid-19 tests.
  • Arizona on Tuesday reported 153 new Covid-19 deaths, the most since late July.
  • Dr Fauci gets the jab.

ASIAN NEWS

  • The World Bank says that China should maintain accommodative monetary policy and avoid any “significant contraction”. It predicts the world’s second-largest economy will grow 2% this year and 7.9% in 2021, and said the biggest risk to the outlook remains a resurgence of coronavirus. Genius.

EUROPEAN AND US HEADLINES

  • President Trump threw a spaner into the works demanding changes to the bipartisan legislation approved by Congress less than 24 hours earlier. He said that $600 was pathetic and wants cheques for $2000 sent. Maybe he will chip in the balance as its Xmas
  • Nancy Pelosi responded to Trump’s video message by saying she welcomed his call for $2,000 cheques for most Americans.
  • The EU has come under mounting pressure to slow down its push for a major investment deal with China.
  • Musk said in a tweet that he reached out to Apple during the “darkest days” of development of his company’s Model 3 to talk about a possible deal and buying Tesla for 10% of its current value. Apple did not want a meeting. Dick Rowe doesn’t feel so bad now.
  • Trump’s personal banker from Deutsche Bank has resigned.
  • For the ultimate Xmas gift, why not ask and get a pardon from the President. Trump pardoned former campaign aide George Papadopoulos, convicted of lying to the FBI, and Alex van der Zwaan, a lawyer who was also convicted of making false statements during the Russia probe.
  • US sues Walmart alleging role in country’s opioid crisis.
  • Boris Johnson and European Commission president strive for agreement by Wednesday night. Again.

And finally….

What does Santa suffer from if he gets stuck in a chimney? Claus-trophobia

What do they sing at a snowman’s birthday party? Freeze a jolly good fellow!

What did Santa do when he went speed dating? He pulled a cracker!

Why was the turkey in the pop group? Because he was the only one with drumsticks!

What do you get if you cross Santa with a duck? A Christmas Quacker!

What goes “Oh, Oh, Oh”? Santa walking backwards!

Why was the snowman looking through the carrots? He was picking his nose!

Why does Santa have three gardens? So he can ‘ho ho ho’!

How did Mary and Joseph know Jesus’ weight when he was born? They had a weigh in a manger!

“What is Santa’s favourite pizza? “One that’s deep-pan, crisp and even.

“How many donkeys does it take to change a light bulb? Donkeys don’t know what a light bulb is, and they’ve got hooves anyway. If you’re going to do one thing this Christmas, for God’s sake keep donkeys away from light bulbs.”

“Why won’t Donald Trump be attending midnight mass this year?
Fake pews.”

Thanks for all your support this year. You’ve been a great audience!

Clarence

XXX

Happy Xmas. Stay Safe. Stay Distant and remember double demerit points. Back in 2021.