The ASX 200 finishes down 18 points to 7434 as a promising start came unstuck. Banks again in focus as NAB reported and although a beat on a number of metrics, NIM and costs were of concern. The Big Bank Basket fell to $188.13 (1.2%) with NAB down 0.8%. Other financials followed suit with MQG slipping 0.5% and QBE off 2.3%. Elsewhere, industrials were sloppy with WOW down 0.7%, WES off 0.3% and TLS falling 1.3%. REITS weakened and healthcare staged a partial recovery from Monday’s losses, CSL up 0.9% and FPH rising 2.0%. Mining stocks were in vogue with BHP up 1.0% and FMG rallying 1.8%. Gold miners too having a good day with NCM one of the few down on its latest Canadian acquisition. SBM look to be on the road to recovery up 3.0%. Energy stocks slid on the reports that LNG was dead, and hydrogen was the future. Could be a lot of venting from some customers. Tech stocks flat lined with APT up 2.4% and the All –Tech Index up 0.9%. In corporate news, CHN was the stand-out superstar stock with its Tier 1 maiden resource rising 28.51%. Recent high-flyer CAE cratered 42.1% after a drilling update and KMD rose 0.7% on a business update. 10-year yields steady at 1.77%.

MAJOR MOVERS:

• Winners: CHN, AVZ, BOE, NMT, BRN, NVX, SDR, LYC, ABR.
• Losers: MYX, ASB, IAP, FDV, ING, GNE, PL8, JIN
• Positive sectors: Battery tech. Miners. Gold miners. Lithium. Uranium.
• Negative sectors: Banks. Financials. Telcos. REITs.
• Hi 7469  Lo 7434.
• Big Bank Basket: Down to $188.13 (1.2%).
• All-Tech index: Up 0.9% APT up 2.4%
• Gold: Steady at AUD2460
• Bitcoin: Higher at US$68303
• Aussie Dollar:  Steady at 74.09c. 10-YEAR YIELD: Back up to 1.77%
• Asian Markets: Japan down 0.6% Hong Kong down 0.1% and China down 0.3%.
• US Futures: Dow futures down 91 NASDAQ futures down 19.

STOCKS ON THE MOVE

• CHN +28.51% Maiden Resource.
• AVZ +15.38% back in winners enclosure.
• NMT +11.06% battery recycling play.
• NVX +8.31% battery tech.
• PDN +7.03% BOE +11.67% uranium exposure.
• SDR +7.70% no second day blues.
• TLG +7.32% anode3 technology.
• PH2 +32.73% establishment of 3 east coast hydrogen plants.
• BRN +8.51% Akida production version testing.
• 360 +6.89% powering ahead.
• LMG +23.81% magnesium shortages fires up sector
• DCC +27.27% bitcoin and crypto play.
• AVH -9.80% results.
• CAE -42.11% market disappointment with drill results.
• TNG -12.50% back after placement to raise $12.5m at 9c.
• CSR -4.11% ex dividend and some.
• ING -4.51% ceasing to be a substantial shareholder.
• Speculative stock of the Day: Rectifier Technology (RFT) +44.44% written up this morning in the newsletter as a buy on US charging station expansion under infrastructure bill.

IN THE NEWS

• National Australia Bank (NAB) Full-year cash earnings of $6.56bn beat consensus of $6.51bn. Final divided of 67c was better than the 65c expected. Net interest margin of 1.71% missed consensus by 2bps and fell 6bps vs FY20. NAB said excluding a 6bp reduction from Market’s and Treasury (M&T), NIM was flat reflecting lower funding and deposit costs and home loan repricing, partly offset by low-interest rates, competitive pressures and a shift to fixed-rate lending. ROE 10.7% vs consensus 10.7%.
• Seven West Media (SWM) confident it will exceed FY22 EBITDA forecast by 7-10%. Added it is well-positioned to hit the target of a 40% share of the metropolitan TV advertising market in the current six-month period. FY22 $15-20m in new cost savings is also on track.
• PointsBet (PBH) recommended for Platform Provider licence to operate mobile sports wagering in New York.
• Vicinity Centres (VCX) to sell 50% interest in Runaway Bay Centre for $132m. Acquisition of Harbour Town now unconditional.
• Bendigo & Adelaide Bank (BEN) September 30 CET1 ratio 9.69% vs 9.57% at the end of June.
• James Hardie Industries (JHX) Q2 adjusted net income US$154.9m vs consensus US$148.5m. Full-year adjusted net income guidance upgraded to US$580-600m vs prior US$550-590m.
• Vulcan Energy Resources (VUL) initiates a lawsuit against short seller J Capital.
• Newcrest Mining (NCM) – Acquisition of Canada’s Pretivm for a consideration of C$1850c which values the company at C$3.5bn ($3.8bn). The board have agreed to the takeover. Pretivm owns the Brucejack operation in the highly prospective Golden Triangle region of British Columbia, Canada. The mine is close to its own Canadian operations. The Offer Consideration comprises cash and Newcrest shares, and Pretivm shareholders will be able to elect either C$18.50 in cash or 0.80847 Newcrest shares per Pretivm share, subject to proration and an aggregate cap of 50% cash and 50% Newcrest shares. Pretivm shareholders who do not elect cash or Newcrest shares (subject to proration) will receive default consideration of C$9.25 per Pretivm share in cash and 0.40427 Newcrest shares per Pretivm share. The market seems to be warming to this deal given its long mine life and production profile and close to Red Chris, a recent acquisition. Looks positive despite initial reactions.
• Chalice Mining (CHN) announced a Tier-1 scale mineral resource for Gonneville of 10Moz Pd+Pt+Au (3E), 530kt Ni, 330kt Cu and 53kt Co. 330Mt @ 0.94g/t 3E1, 0.16% Ni, 0.10% Cu, 0.016% Co (~0.58% NiEq2 or ~1.6g/t PdEq). Gonneville is the largest nickel sulphide discovery in the world since 2000.
• The BetaShares Crypto Innovators ETF (CRYP) had amassed $110m in traded value this morning. CRYP’s funds under management is now expected to exceed $100m

ECONOMIC NEWS/ BOND MARKETS

• Weekly consumer confidence rose 0.6% last week, its eighth gain in nine weeks. Weekly inflation expectations remained elevated at 4.9% and its four-week moving average edged slightly higher to 4.9%.

• NAB business conditions and confidence both improved in October largely due to the easing of lockdown restrictions in VIC and NSW. The survey also highlighted a build-up of price pressures with supply chain pressure and elevated demand pushing input cost inflation to the highest level in a decade. The RBA last week said we didn’t ’t have an inflation problem in Australia, rates will inevitably rise in time, but early rate rises are not happening and that it is unlikely they will have/need a yield curve target again now the economy is improving.

CV19 NEWS

• New wave of CV19 cases hitting Europe. Germany’s infection rate soared to the highest since the start of the pandemic.

• Denmark, which has one of Europe’s highest vaccination rates, plans to reintroduce some restrictions to halt a recent spike in cases. Greece reported a new high of daily cases with 7,335 infections.

ASIAN MARKETS

• Chinese October inflation data will be released tomorrow. PPI forecast to rise 12.3%; consumer price rises at 1.4%.

• Chinese regulators banned brokerages from hiring social media influencers to attract new customers.
• HK will not be open to the world until mid-2022 according to Lam aide.
• A floating solar farm that’s equivalent to about 70 soccer fields in size has begun generating power in Thailand. It is the world’s largest hydro-floating solar hybrid system. 145,000 solar panels. 3 turbines to convert flowing water when its dark.

US AND EUROPEAN NEWS

• Virgin Galactic planning three space flights a month in 2023.
• Fed warns a troubled Chinese property sector does pose risks to US economy.
• A COP(out)26 deal to end car emissions by 2040 falls by the wayside as holdouts from US, China and Germany.

And finally…..

A woman was at her hairdresser’s getting her hair styled for a trip to Rome with her husband. She mentioned the trip to the hairdresser, who responded:

“Rome? Why would anyone want to go there? It’s crowded and dirty. You’re crazy to go to Rome. So, how are you getting there?”

“We’re taking United,” was the reply. “We got a great rate!

“United?” exclaimed the hairdresser. “That’s a terrible airline. Their planes are old, their flight attendants are ugly, and they’re always late. So, where are you staying in Rome?”

“We’ll be at this exclusive little place over on Rome’s Tiber River called Teste.”

“Don’t go any further. I know that place. Everybody thinks it’s gonna be something special and exclusive, but it’s really a dump.”

“We’re going to go to see the Vatican and maybe get to see the Pope.”

“That’s rich,” laughed the hairdresser, You and a million other people trying to see him. He’ll look the size of an ant.

Boy, good luck on this lousy trip of yours. You’re going to need it.”

A month later, the woman again came in for a hairdo. The hairdresser asked her about her trip to Rome.

“It was wonderful,” explained the woman, “not only were we on time in one of United’s brand new planes, but it was overbooked, and they bumped us up to first class. The food and wine were wonderful, and I had a handsome 28-year-old steward who waited on me hand and foot.

And the hotel was great! They’d just finished a $5 million remodeling job, and now it’s a jewel, the finest hotel in the city. They, too, were overbooked, so they apologized and gave us their owner’s suite at no extra charge!”

“Well,” muttered the hairdresser, “that’s all well and good, but I know you didn’t get to see the Pope.”

“Actually, we were quite lucky, because as we toured the Vatican, a Swiss Guard tapped me on the shoulder, and explained that the Pope likes to meet some of the visitors, and if I’d be so kind as to step into his private room and wait, the Pope would personally greet me.

Sure enough, five minutes later, the Pope walked through the door and shook my hand! I knelt down and he spoke a few words to me”.

“Oh, really! What’d he say ?”

He said: “Who f—ed up your hair”.

Clarence

XXX