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Markets Live: ANZ sparks bank rally

Date

Patrick Commins, Jens Meyer

Shares finished higher for the fourth straight trading day, as an ANZ earnings update sparked a rally in the banks, outweighing a shocker from Cochlear, and positive economic data pushed the Australian dollar above US 90 cents.

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That’s it for Markets Live today.

You can read a wrap-up of the action on the markets here.

Thanks for reading and your comments.

See you all again tomorrow morning from 9.

A solid profit update from ANZ Bank fuelled a rally among the big banks, leading the Australian sharemarket higher.

The benchmark S&P/ASX 200 Index rose 32.4 points, or 0.6 per cent, to 5254.5 points as investors shifted their gaze to the performance of domestic companies.

The gains came as business conditions soared to a three-year high, led by an improving manufacturing sector. This helped push the Australian dollar above US90¢ for the first time in a month, following the release of National Australia Bank’s business survey.

Not even a technical glitch, which shut down the ASX for about 30 minutes, soured the mood of investors.

The top four banks were among the best performers, after ANZ’s profit update lifted expectations for earnings in the sector.

ANZ’s cash profit rose to $1.73 billion, or 13 per cent, for the three months to December 31. Although the result was broadly in line with expectations, analysts said they were surprised by the low level of bad debts.

That generated the rally among the big banks, Patersons securities economist Tony Farnham said.

‘‘You could say that ‘yes [ANZ’s] profit number was assisted by a further wind back of bad debt expense’. But if it’s happening with them, there’s a fair chance that it’s happening with the others,’’ Mr Farnham said.

Read more.

 

Wrapping up the best and worst performers among the top 200 stocks, Energy World Corp popped 7.6 per cent today, with gold miner Northern Star Resources the second best with a return of 4.5 per cent.

Childcare centre operator G8 Education continued its strong run, up 4.3 per cent.

Bank of Queensland jumped 3.8 per cent, while QBE surged 3.6 per cent.

Investors dumped Bradken stock after the company provided a grim earnings update - the shares fell 9.4 per cent.

Cochlear plunged 8.9 per cent and Macquarie 3.8 per cent, once again on poor earnings updates.

Acrux faced another wave of selling - it was down 4.9 per cent.

But the biggest loser today was Forge Group, which entered a trading halt pre-open, from whence it looks unlikely to return.

The best and worst performers in the ASX 200 today.

The best and worst performers in the ASX 200 today.

As mentioned, for the first time ever, Janet Yellen will overnight be making the trip up Capitol Hill to testify on the economy and monetary policy.

"While market participants will be waiting with bated breath to hear what the new Fed chair has to say, one of her primary goals will be to minimise the market's reaction to her comments," says BBK Asset Management's Kathy Lien. "Maintaining low volatility is a top priority for a central banker especially when it is her first time on the podium and this is why we expect Yellen to say as much as possible tomorrow, but reveal very little."

Members of Congress will have a long list of questions for her but investors are only concerned with three, Lien says:

  1. Is she worried about muted job growth?
  2. What will she do with forward guidance?
  3. Is taper on a preset course?

"Given Yellen's support for the tapering in December and January, we don't believe that she will be overly concerned with 2 months worth of weak job growth especially given the recent improvement in the unemployment rate, participation and average hourly earnings."

Waiting for Janet Yellen.

Waiting for Janet Yellen. Photo: Getty Images

The benchmark ASX 200 index has shrugged off some early disappointing results from the likes of Cochlear and Macquarie to push 32 points higher to 5254.5.

The broader All Ords was also up 0.6 per cent to 5267.3.

Consumer discretionary was the only sector to close down, and then only marginally.

Gold stocks continued to surge, up 3.4 per cent as Newcrest Mining extended its rally. The miner's shares now trade at $11.45.

Metals and mining stocks climbed 0.4 per cent. BHP edged slightly higher to $36.55, while Rio edged the other way to $66.64.

The share prices of the big four banks surged, led by ANZ which added 2.2 per cent to close at $30.56 on an encouraging quarterly update, while CBA, Westpac and NAB were all up around 1.4 per cent as investor optimism on bank earnings grew.

CBA reports interim results tomorrow.

QBE added 3.6 per cent to $11.39 after a UBS analyst upgraded the stock to "buy".

Investors dumped Cochlear after its half-yearly profits came in well below market expectations - the stock plunged 8.9 per cent to $53.68.

Macquarie's update also underwhelmed, and 3.8 per cent was shaved off the investment bank's market cap.

 

 

Internationally, the focus tonight (2am, local time) is on the new Fed Chair, Janet Yellen’s inaugural testimony to the House economics committee, write the team at NAB.

Most expect her to be a touch on the dovish side (as most see is her natural bias) but continue the theme of steady tapering.

This event has been remarkably market moving in the past, as the Fed has used this forum in particular to adjust market expectations if it feels that is necessary.

Analysis of activity on social media sites such as Twitter and Facebook is the next frontier for the world’s leading stock market surveillance company as it builds new systems to catch insider traders and market manipulators, the AFR writes.

Software developers in the Sydney office of SMARTS Technology are developing products for exchanges, regulators and brokers that will match suspicious trading in securities and derivatives with activities on social media.

In his first interview since becoming global head of SMARTS, Robert Lang, told the AFR that as part of the natural evolution of the company’s core surveillance products its systems needed to go beyond red flag alerts.

“What we are doing is adding information to the information we have already got,” he said. “We are looking to give our clients more ammunition by adding analysis of social media platforms such as Facebook chat.”

Clients of SMARTS, which is a subsidiary of global exchange company NASDAQ OMX, include about 40 exchanges and regulators including the Financial Conduct Authority in the United Kingdom and the Invesment Industry Regulatory Organisation of Canada.

Read more ($)

After giving a bit of space in this blog to bears like Harry Dent or Vimal Gor recently, here's a slightly more optimistic take: US stocks have too much momentum to make betting against the Standard & Poor’s 500 Index a winning strategy and the gauge will probably reach 1900 next quarter, according to money manager Laszlo Birinyi.

Birinyi, the founder of Birinyi Associates and one of the first analysts to advise clients to buy when stocks were bottoming after the 2008 financial crisis, told Bloomberg he expects the benchmark gauge for US equities to increase almost 6 per cent by July. It fell 5.8 per cent in the three weeks starting January 15, losses he said signalled healthy skepticism that set the stage for more gains:

  • I don’t like when the market just shrugs these things off. It’s OK to just stop and take a deep breath. The market should have some sort of a negative reaction when you have problems in Turkey and Argentina. That didn’t make me uncomfortable.
  • Short sellers have probably learned their lesson after a year when 460 of 500 companies in the benchmark index climbed, the most since at least 1990.
  • At the same time, there’s nothing that you can say is a bargain or a real value if you’re a bull. You have situations on a day-to-day basis that will give you opportunities, and that’s what we’re trying to take advantage of.

Time for a quick tour of the region's sharemarkets...

  • Japan's stockmarkets are closed for National Foundation Day
  • Korea's KOSPI is up 0.5 per cent
  • The Hang Seng in Hong Kong has gained 1.6 per cent
  • Mainland China's Shanghai Composite index is up 0.4 per cent
  • Singapore's benchmark Straits Times index is up 0.7 per cent
  • Jakarta Composite index is 0.4 per cent higher
  • Kiwi shares have gained 0.4 per cent

Virgin Australia founder Richard Branson claims Qantas boss Alan Joyce is in ‘‘deep shit’’ for sticking to his strategy of maintaining a 65 per cent share of the domestic air travel market.

Renewing his attacks on Virgin’s main rival, Sir Richard has told journalists in Dubai that it would be unfair for the federal government to provide financial assistance to Qantas.

‘‘It would be incredulous if the government can hand over money to him [Joyce] and they don’t hand over money to Virgin Australia,’’ he said. ‘‘Every company in Australia will come begging to the government if the government allowed that to happen.’’

Australia’s two largest airlines have been embroiled in a bitter public spat since November when Qantas demanded the federal government step in to stop Virgin’s big-three airline shareholders – Etihad, Air New Zealand and Singapore Airlines – from tightening their grip on the carrier.

Sir Richard has also told journalists in Dubai that he does not have plans to sell his remaining 10 per cent stake in Virgin Australia.

Colourful ... Richard Branson.

Colourful ... Richard Branson.

Looks like trade on the ASX is back, after halting for about 30 minutes. The stoppage was blamed on problems with market data.

“ASX is aware that some participant and vendor applications are not displaying accurate market data in a limited number of securities,” the ASX said in a notice to traders. “ASX Trade and the matching of orders are functioning normally.

“While this issue does not affect all participants, ASX believes it is in the interest of the whole market to provide all participants the opportunity to refresh their market data view at the same time.”

The ASX has had problems with its technology in the past, including a major meltdown that shut down the market for almost four hours in October 2011.

Has QBE – a perennial disappointment to shareholders in recent years – finally turned the corner?

UBS’s highly regarded healthcare analyst, James Coghill, says it has.

Coghill sparked a mini-rally in the stock today after he upgraded the insurer from “neutral” to “buy”, increasing his 12-month share price target from $12.50 to $13.

In a note titled “Don’t wait for the last train” the analyst explains that the company is two-thirds of the way through a three-year turnaround, and while there may be “many bumps to navigate around in 2014” (cue groans) there is now a “sufficient buffer” in the heavily de-rated share price to “absorb possible further disappointments”.

“We would argue that the upheaval phase of QBE's transformation has largely run its course,” Coghill writes, pointing out that over $1.5 billion has been added to QBE’s reserves.

“Our greatest aversion to QBE over the past two years has been significant management disruption,” the analyst writes. “As night follows day, downgrades have followed the arrival of each new business head. The new CFO starts in June and we still see the ensuing period as a key risk, albeit less so after multiple earnings hits already.”

 

Some reactions to the ASX outage as trade slowly restarts:

Insolvency firm Ferrier Hodgson has been appointed as voluntary administrator by the board of bankrupt contractor Forge, sources close to the situation have told AFR StreetTalk.

The next step is that lender ANZ will take control by appointing KordaMentha as receiver.

ANZ extended Forge an additional $11 million line of credit in the past fortnight, which was being used to pay Forge employees and for other working capital expenses.

The support was conditional on Forge finding an equity backer, and the company had adviser Euroz on the search for a white-knight investor. Potential buyers had been told ANZ have been “working with Forge management”.

StreetTalk adds it’s understood Forge came to the conclusion over the weekend it would not be able to find the equity piece. So ANZ withdrew its support.

Looks like trading has stopped on the ASX. The bourse just sent out a notice saying "ASX trade markets have been placed into enquire mode".

Could be a glitch of sorts after a technical upgrade over the weekend.

But trade is supposed to fully continue at 2.57pm.

 

Graincorp is investing $125 million into its edible oils and spreads manufacturing operations to create a strategic hub in Victoria, the company said in a statement.

Graincorp Foods' operations in Queensland will be relocated to the new, larger locations from early 2016, which will affect 130 jobs, the company said.

The project forms part of a program of strategic initiatives aimed at delivering an additional A$110m per annum of underlying EBITDA by the end of FY16.

Capital commitment will be funded with existing cash and debt facilities. The associated restructuring cost of $20 million will be reported as a significant item in GrainCorp’s earnings, principally in FY14.

The stock is up 1 cent to $7.72.

Residential property prices, quarterly change

Residential property prices, quarterly change

Another look at today's ABS housing data shows that the total value of residential dwellings in Australia has broken through the $5 trillion level for the first time:

  • The total value of residential dwellings in Australia was $5,017,041.4 m at the end of December quarter 2013, rising $184,304.7 m over the quarter.
  • The mean price of residential dwellings rose $17,700 and the number of residential dwellings rose by 37,300 in the December quarter 2013.
  • The capital city residential property price indexes rose in Sydney (+4.7%), Melbourne (+2.6%), Perth (+3.3%), Brisbane (+2.8%), Adelaide (+2.5%), Hobart (+2.0%), Darwin (+1.7%) and Canberra (+0.3%).
  • Annually, residential property prices rose in Sydney (+13.8%), Perth (+8.7%), Melbourne (+7.9%), Brisbane (+5.7%), Darwin (+5.0%), Hobart (+4.9%), Adelaide (+3.4%) and fell in Canberra (-0.3

 

 

Gold is on a bit of a run, on track for a fifth straight session of gains, taking the price to its highest level in three months.

The spot price has just broken through $US1280 an ounce, after a small surge.

Fed chair Janet Yellen gives her first testimony before the House Financial Services Committee overnight, and will likely face questions on the state of the labour market and the future pace of tapering.

Recent weak economic data, including Friday's US non-farm payrolls report, has many in the market hoping that the wind down of the bond-buying stimulus would be slowed, which is regarded as a positive for gold.

Also buoying the price, workers at AngloGold Ashanti's Sadiola and Yatela gold mines in Mali started a five-day strike on Monday, demanding better redundancy payouts.

‘‘Chinese buyers have been quite active but the longer-term picture for gold remains bearish against the backdrop of continued stimulus reduction in the US,’’ says Yang Xi, a Hangzhou-based analyst at Yongan Futures. ‘‘Gold’s support may come in the form of haven demand if further tapering results in more capital outflows from emerging markets.’’

Gold over the past week.

Gold over the past week.

A tiny Australian-based watch design company with a Swiss heart is about to step into the big time with a new product line and a swag of high-profile sporting endorsements.

And big is the right word for it, with Bausele announcing its latest release will be worn on the wrists of giant Australian basketballer Andrew Bogut – Australia's highest-profile player in the US-based NBA – and Jenna O'Hea, a star of the WNBA.

“It's a pretty big thing that [Bogut] decided to support my little brand,” Christophe Hoppe, a Swiss-raised Frenchman who now calls Sydney home, says.

The company puts a small piece of Australia – sand, red dust or coal – into the transparent crown of each of its watches, creating a strong selling point to both tourists and Aussie expats.

The company has also formed a licensee arrangement with the ICC World Cup of cricket to be played in Australia next year, and will produce a special commemorative model for the tournament.

The high-profile moves come as Bausele prepares to launch its second model line, a sporty design offered with the company's first automatic movements.

Read more.

 

Bausele's new Sport Automatic model puts the brand on par with other luxury watchmakers.

Bausele's new Sport Automatic model puts the brand on par with other luxury watchmakers.

The bushfire threat to Victoria's power supplies has eased, with the resumption of power generation at the Hazelwood power station.

"The fires are not currently affecting the operational areas of large power plants in the Latrobe Valley," the Australian Energy Markets Operator said.

"Even with the loss of some power plant, reserves are adequate to meet supply in the coming days."

Even with no threat to power generation, the distribution network may see some localised disruptions due to the fires, it warned.

 

Gor's comments (see post below) come amid concerns about the stability of China’s smallest lenders and a possible default within China’s bond market.

Bloomberg reports that China’s banking regulator has also ordered some of the nation’s smallest lenders to set aside more funds to avoid a cash shortfall, three people with knowledge of the matter said in a news report.

At the same time, borrowing costs for China’s riskiest companies are at their highest level in 20 months. The yield gap on five-year AA- notes - equivalent to non-investment grade globally - over AAA debt jumped 27 basis points last month to 224, the most since June 2012, Chinabond indexes show.

Following a swift correction in bank stocks, investors will be closely examining CBA’s interim results tomorrow for signs that the country’s big four banks have been oversold.

But if recent buying activity by fund manager John Sevior of Airlie Funds Management is any guide, they may be looking in the wrong place.

Smart Investor has learned that the respected stock picker has been quietly building a position in Queensland based lender Suncorp Group.

Airlie’s Concentrated Equity Fund began buying its stake in December, as Australia’s sixth largest bank eased from a November high of $13.75 to current levels of around $12.

The fund, which was closed to new money in 2013, holds a maximum of 15 stocks at any time with a maximum allocation to cash of 50 per cent and a minimum of 5 per cent.

With such a small number of holdings, the fund can’t afford to put a foot wrong - which begs the question, why Suncorp?

Read more.

 

Volatility in markets is set to return with a vengeance as the Fed unwinds its massive stimulus program, BT Investment Management’s head of fixed income Vimal Gor predicts.

Gor in a note is also warning investors about a 1997-type Asian crisis unfolding amid rising concerns offshorwe about the impact of rising global interest rates and risks within China’s banking and bond market.

  • There has to be a [Asian] crisis; the question is how big it gets and how long it lasts.
  • With slow world growth and a shifting focus from [Asia] exports to domestic consumption, the markets are applying pressure on countries to reduce imports by weakening currencies and forcing central banks to rate hikes.
  • These hikes will weigh on the domestic economies which are already fragile.
  • The impact of this on world growth and the current rapidly falling global inflation rate cannot be overstated. Hopefully the liquidity injections from central banks will stop the EM situation moving from idiosyncratic to a systemic crisis but that remains to be seen.

 

As we've mentioned, one of the big movers today has been QBE.

The catalyst for this morning's rally looks to be an upgrade to "buy" from UBS's influential analyst James Coghill, who has put a 12-month price target of $13 on the stock - the shares last traded at $11.36 and are now up 3.2 per cent for the day.

The consensus among the analyst community remains cautious, with a aggregate rating of around a "hold", according to Bloomberg.

 

Turning to the best and worst performers in the top 200 in what has already been an eventful day, QBE is leading the charge, up 3.4 per cent, followed by a couple of winners from yesterday, gold miner Evolution Mining and childcare centre owner G8 Education.

Resmed is up 2.9 per cent, perhaps as investors look to find a new home for the cash that was until very recently in fellow healthcare name Cochlear.

Bank of Queensland is up 2.6 per cent, enjoying a strong run in bank shares todays that has pushed the Big Four up strongly as well.

Bradken and Cochlear have suffered the sharpest sell-offs after disappointing with earnings updates. Macquarie is down heavily and for similar reasons.

McMillan Shakespeare and Acrux have also had a tough morning.

Today's best and worst performers in the ASX 200 at midday.

Today's best and worst performers in the ASX 200 at midday.

The Australian dollar has finally broken through 90 US cents, after several failed attempts over the past days.

The dollar rose as high as 90.13 US cents on the back of today's robust data.

It's the first time since mid-January that the dollar has traded above 90 US cents.

The dollar over the past three days.

The dollar over the past three days.

So what can we make of the surprise fall in home loans?

Moody's Analytics associate economist Katrina Ell says the disappointing data looks like a monthly anomaly, rather than a sign the housing market is running out of steam:

"Nationwide prices are still rising and auction clearance rates indicate ongoing buoyancy in demand," she says.

Some more reactions to the data:

Rex’s hyperbole aside, Australia's airlines are genuinely hurting, writes BusinessDay columnist Matt O’Sullivan:

Regional Express has a history of resorting to hyperbole. Issuing a profit warning late on Friday, the country's largest independent regional airline declared ''the entire aviation industry is financially haemorrhaging right now and approaching collapse''.

Rex demanded the Abbott government step in and live up to its promise to reinstate a form of subsidy on some regional routes. The Gillard government removed the en route rebate scheme in 2012 when it established the carbon tax.

Highlighting the challenges the aviation industry faces is not unique. Qantas has left some punters thinking the sky is about to fall in as it pressured the government for help.

Hyperbole to one side, it is an inescapable truth that airlines of all sizes are hurting in Australia. Between them, Qantas and Virgin Australia are staring at combined losses just shy of $400 million in the first half, a period when they make the bulk of their earnings.

The simple reason for their financial woes is that airlines have been growing at a rate far outpacing demand. A boon for travellers in the form of cheaper fares equals pain for airlines and their shareholders.

The collapse late last year of Brindabella Airlines, which had monopoly rights to fly a number of routes in NSW, gives weight to Rex's claims about the challenges.

But the final verdict on Brindabella's demise has yet to be handed down. It was placed in receivership just before Christmas after the air-safety regulator grounded eight of its 10 planes.

Read more.

Will Rex Airlines go the way of the dinosaur of the same name?

Will Rex Airlines go the way of the dinosaur of the same name? Photo: James Morgan

The Australian dollar has jumped more than a third of a cent to the day's high of 89.71 US cents on the back of the robust business confidence survey.

In other economic data also out at 11.30am:

  • Home loans surprisingly fell 1.9 per cent in December, instead of the predicted 0.7 per cent rise; coming after 1.4 per cent growth in November.
  • And the ABS house price index posted a year-on-year rise of 9.3 per cent, and quarterly gain of 3.4 per cent in the fourth quarter. Both figures came in slightly ahead of expectations.

Business conditions have soared to their highest levels in almost three years as confidence lifted above its long-run averages, as a weakening Australian dollar and record-low interest rates support the non-mining sectors of the economy.

Business confidence, which dipped after a post-election boost last year, rebounded into positive territory, although two sectors that are key to the economy - wholesale and mining - remained negative, the National Australia Bank's business survey finds.

"The improvements over recent months have established a clear upward trend in business activity, suggesting some upside potential to our current growth outlook, although indicators of employment continue to point to a soft labour market," NAB said.

The survey, which was conducted before Toyota's announcement that it would pull out of car making in Australia, found that conditions in the manufacturing sector recorded a "surprisingly strong turnaround". The construction and retail sectors almost reported improvements in conditions, NAB said.

"It is probably still too soon to call the end of sub-trend economic growth in Australia based on these outcomes, but a rise in forward orders and capacity utilisation certainly provides some comfort," NAB added.

Read more.

If you are just joining us, there are serious concerns about the future of contractor Forge Group, after lender ANZ pulled its support for the company, reports the AFR's Street Talk column.

It’s understood ANZ extended Forge an additional $11 million line of credit in the past fortnight, which was being used to pay Forge employees and for other working capital expenses.

The support was conditional on Forge finding an equity backer, and the company had adviser Euroz on the search for a white-knight investor. Potential buyers had been told ANZ have been “working with Forge management”.

It’s understood Forge came to the conclusion over the weekend it would not be able to find the equity piece. So ANZ withdrew its support.

Forge on Tuesday went into a trading halt after it was advised by financiers they would no longer support the company.

Read more ($).

 

Some more detail on Cochlear, whose share price has taken one of its biggest intraday price falls since a profit warning last year, after the medical device maker announced a 73 per cent fall in interim net profit and implied it will miss its full year profit guidance as well.

Interim net profit slumped to $21.0 million due to cash put aside for a patent dispute, customers delaying purchases until new products are launched and foreign exchange contract losses.

Excluding the provision for the patent dispute, net profit fell 53 per cent to $36.8 million, the company said today.

The company reported a 5 per cent fall in revenue to $371.1 million and a 54 per cent fall in earnings before interest and tax to $49.4 million, in the six months ended December 31.

The result fell far below expectations with consensus estimates of net profit of $59.3 million, EBIT of $81 million and sales of $387.9 million, according to FactSet Consensus reported in a Citi note.

Shares in the hearing implant manufacturer opened at $52.54, 10.8 per cent down on Monday’s closing price. They're currently down 9.8 per cent at $53.10.

Read more.

 

<p>

Charlie Aitken is comfortable ... with three 'high conviction ideas'.

Charlie Aitken is comfortable ... with three 'high conviction ideas'.

Go Charlie, gone. Investors have lost another colourful read. First it was Coppo’s afternoon report, which abruptly ended when Goldman Sachs’s trader and author Richard Coppleson pulled the pin in January.

And now Bell Potter’s Charlie Aitken has decided to stop writing the widely read Ringing the Bell morning not, the AFR's StreetTalk notes:

It’s understood Aitken grew sick of his note being widely spread around the market.

The note was widely known for its bullish views on the market and particularly bellwether stocks including Fortescue, Qantas and QBE.

Another result judged a shocker by the market this morning has been Bradken's half-year results, despite interim net profit beating expectations.

The stock has plunged 10.2 per cent to $4.68, reversing strong gains in the two previous trading days, suggesting investors were caught by surprise.

Interim net profits were down 18.5 per cent on the previous corresponding period to $38.1 million, against the consensus estimate of $32.1 million.

But the mining products business forecast full-year EBITDA of around $180 million, where the market had been looking for a figure more like $206 million, on Bloomberg data.

The company said it was continuing discussions with Austin Engineering about a potential tie-up.

 

Here's a quick graph we've put together on the top five employing industries in Australia, amid strong focus on job losses in the manufacturing sector after Toyota decided to exit local production.

As economists have pointed out, the manufacturing sector in this country has declined over the past few decades as Australia loses out to low-cost competitors in Asia and other countries. Meanwhile, employment in other industries has grown strongly.

"The larger part of the story is not to do with the currency, but rather to do with globalisation, and Australia not competing in terms of low-cost manufacturing," said HSBC’s chief economist for Australia Paul Bloxham on Toyota's decision to exit manufacturing in Australia by 2017.

"Had the Aussie dollar been lower, it would have taken the pressure off some of the manufacturers, but they still have to face a range of different challenges to do with the lack of productivity and competitiveness in many parts of the Australian economy."

While the resources sector was central to Australia, the viability of the auto sector has remained questionable, RBS senior currency strategist Greg Gibbs said.

"The economies of scale are very apparent in the auto sector, and it’s a very competitive marketplace for manufacturing globally," he said.

 

Tigerair Australia has averted the possibility of damaging industrial action by its pilots after reaching an in-principle agreement with them on a new labour agreement.

The two sides reached a deal over the new terms and conditions, including changes to the rostering of pilots, at a meeting which concluded late on Monday.

Tigerair said it was confident the proposed agreement would provide a ‘‘reasonable outcome that ensures fair pay and conditions for pilots and addresses their concerns in regard to roster stability’’. The airline emphasised that the new agreement allowed the airline to ‘‘maintain its competitiveness in the domestic market’’.

Virgin Australia has a majority stake in Tigerair, which continues to rack up large losses.

Macquarie Group chief executive Nicholas Moore has been questioned about the bank’s underbidding for acquisitions.

Late last year, Macquarie was in the mix for Llyods Banking Group’s Australian assets, but was ultimately beaten out by Westpac, who secured the assets for $1.45 billion.

At the third quarter operational briefing, Mr Moore tells investors and analysts Macquarie is open to mergers and acquisitions, but won’t make a move just for the sake of it.

“Most of the growth historically, from a group point, comes organically.”

Shares have lost ground early after shareholders sold Macquarie and Cochlear in response to underwhelming earnings updates.

The ASX 200 is down 17 points, or 0.33 per cent, to 5204.8.

The market has punished Cochlear for reporting a 73 per cent drop in net profit for the first half of the financial year, to $21 million - the stock is 9.2 per cent down after opening even lower.

Macquarie is the biggest individual drag on the market, dropping 3 per cent after it reaffirmed guidance for the full year, but continued to report falling profits in its key capital markets business.

No surprise that health care was the worst performing sector, down 0.9 per cent. 

Gold stocks have continued their recent rally - perhaps ahead of more dovish statements from new US Fed Chair Janet Yellen tonight - with the sector up 2.4 per cent.

IT and telcos have also gained ground this morning.

 

Financiers to troubled engineer Forge Group have withdrawn their support, signalling a deepening of the financial difficulties confronting the group.

As a result, it has sought a suspension of trading in its shares on the sharemarket.

The company has run into financial difficulties completing two power station projects - one in western Queensland and the other in Western Australia - which has forced successive earnings downgrades.

It has also forced the group to seek support from its lenders, in particular ANZ Banking Group.

The AFR's StreetTalk earlier this week wrote three listed contractors are among a group of about 10 parties taking a look at Forge’s books, as part of a sale process being run by Perth-broker Euroz.

Forge shares last traded at 91.5 cents, after rallying over the past sessions.

 

"Cochlear reported this morning with a below market result - expect share price weakness this morning," says Morgans senior analyst Scott Power.

UPDATE: The stock is down by more than 10 per cent at open.

Amid the bloodbath in the David Jones boardroom, the retailer’s search for a new chief executive has uncovered a surprising frontrunner, Adele Ferguson writes:

Speculation is rife that the board will abandon its search for a new chief executive and Paul Zahra will be reappointed boss of David Jones as part of a plan to restore stability amid a share trading scandal that has seen director Steve Vamos fall on his sword and chairman Peter Mason and Leigh Clapham agree to go in three months.

Come three months, David Jones will have a new board and a chief executive with a new lease of life who just might want to think about merging with Myer and running a much bigger department store empire.

It follows a week of meetings and teleconference calls with the company's key shareholders, Zahra and Mason, and meetings with advisers, in an attempt to strike a deal to restore the company's battered credibility.

Despite attempts by advisers to preserve Mason, the drums were beating too loud for his resignation after he gave the two directors permission to buy shares a few days before the company released better than expected quarterly sales results and the day after Myer lobbed a $3 billion merger proposal.

Read more

Illustration: John Spooner.

Illustration: John Spooner.

Automotive Holdings Group in a statement this morning said Toyota's decision to exit Australia in 2017 is "not expected to have any material impact" on the automotive logistics and dealership owner.

Managing director Bronte Howson said in the release top the ASX that he was confident the Toyota range would remain an important part of the Australian market.

"Toyota, Ford and General Motors remain leading global manufacturers... and we are confident they will continue to be an important part of AHG's broad product range," Mr Howson said.

Another stock to watch this morning is dealership owner AP Eagers.

A highlight of ANZ's trading update today has been the very low provision charge for bad and doubtful debts - which dropped to $191 million from $322 million in the previous quarter.

Falling bad and doubtful debts were a key factor behind the Australian banks' profit growth throughout 2013, and it seems the trend has continued during the latest December quarter.

With the Commonwealth Bank set to hand down its half-year results tomorrow, analysts say the further improvement in credit quality bodes well for the sector.

ANZ also reported tighter margins - but Shaw Stockbroking analyst David Spotswood points out this had been a weak spot for the bank because of its focus on institutional lending:

  • Bad and doubtful debts are low, margins are in slightly for ANZ, which has had the most pressure.
  • So I would think that tomorrow CBA will have a cracker of a result.

Macquarie Group, Australia's biggest investment bank, retained its forecast for an increase in full-year earnings from the previous year as market conditions improve.

Net profit from its fixed-income, currencies and commodities unit for the 12 months to March 31 has potential to be in line with the year earlier, which compares with Macquarie's previous forecast for a fall, the bank said in a statement today without providing amounts.

Macquarie is estimated to report a rise in net profit to $1.19 billion for the full year, from $851 million a year earlier, according to the mean survey of 11 analysts by Bloomberg. The bank's profit last year was the first gain in three years.

Macquarie Chief Executive Officer Nicholas Moore is reaping the benefits of a cost-cutting program undertaken in the past three years. The bank is also gaining from a revival in investor appetite for riskier assets and its shift to less volatile businesses such as lending and fund management.

''Market activity levels are up and that is always positive for Macquarie and its earnings,'' said Angus Gluskie, chief investment officer at White Funds Management, which manages $550 million including Macquarie shares.

''While all factors point to a buoyant revenue generation, Macquarie is usually cautious in its outlook.''

 

Digital currency Bitcoin experienced more than usual volatility overnight, tumbling as much as 21 per cent to $US535.55 before recovering to around $US660, according to the CoinDesk Bitcoin Price Index, which averages prices from exchanges.

The Bitcoin Foundation blamed the Mt Gox Bitcoin exchange, one of the most popular exchanges for Bitcoin, for technical faults that prevented customer withdrawals of the virtual currency.

‘‘The issues that Mt Gox has been experiencing are due to an unfortunate interaction between Mt Gox’s implementation of their highly customised wallet software, their customer support procedures and their unpreparedness,’’ said Gavin Andresen, chief scientist for the foundation, which promotes and sets technical standards for the currency.

Earlier, Mt Gox cited ‘‘a bug in the Bitcoin software’’ that is ‘‘not limited to Mt Gox.’’ The quirk enables a user to cover up a transfer to another wallet - a software protocol for storing the virtual currency - and re-send the same money.

The exchange said it was working with the core team of software developers associated with the Bitcoin Foundation to resolve the problem.

Flash crash ... Bitcoin plunged more than 20% before recovering.

Flash crash ... Bitcoin plunged more than 20% before recovering.

ANZ's cash profits rose to $1.73 billion in the first quarter, as bad debts continued to fall and the bank said economic conditions were becoming more predictable.

In a trading update for the three months to December, the bank today said unaudited earnings were up 13 per cent on a year earlier, a result it described as a "good start to 2014".

The lender said business conditions were in line with previous guidance it had provided in late 2013. It reaffirmed expectations for revenue growth of 4 to 5 per cent for this year.

After falling bad debts last year helped drive profit growth across the Australian banking industry, the bank said its total provision charge for impaired loans this year would be 10 per cent lower than 2013.

Chief executive Mike Smith said the bank's strategy of pursuing expansion in Asia was delivering ''consistent improvement in business growth and financial performance.''

''There remain a number of challenging issues in the global economic environment however these are now largely more predictable. Our performance in the first quarter means we are on track to deliver a solid 2014," Mr Smith said.

In a sign that credit quality has continued to improve in recent months, the total value of its impaired assets continued to fall, to $4.01 billion.

The unaudited result comes before the Commonwealth Bank hands down its first half earnings on Wednesday, with analysts expecting a record interim profit of about $4.1 billion.

Read more.

 

Stocks in focus this morning:

  • ANZ first quarter earnings update
  • Bradken first-half earnings
  • Cochlear first-half earnings
  • David Jones: chairman and two board members to resign
  • Macquarie: Operational briefing
  • Tabcorp goes ex-dividend
  • Westfield: AFR's Street Talk says may sell two Sydney malls after split
  • Reckon full-year results

 

What you need2know:

• SPI futures up 1 point at 5170 at 9am AEST

• AUD at 89.48 US cents at 9am AEST

• On Wall St, S&P500 +0.16%, Dow Jones +0.05%, Nasdaq +0.54%

• In Europe, FTSE100 +0.3%, CAC +0.21%, DAX -0.13%

• Spot gold $US 1275.19 an ounce, up 0.625 per cent

• Brent oil $US 108.82 per barrel, down 0.68 per cent

• Iron ore $US 120.800 per tonne, down 0.083 per cent

Read more.

 

Good morning and welcome to the Markets Live blog for Tuesday.

Your editors today are Jens Meyer and Patrick Commins.

This blog is not intended as investment advice.

BusinessDay with wires.

 

Quotes Search

Sort comments by:
  • whatever you think of allan, you have to admit his 2013 100% success of gifts was ultra impressive...move over soros.

    Commenter
    numpty
    Location
    prahran
    Date and time
    February 11, 2014, 5:07PM
  • Alan Greenspan, Ben Bernanke and Janet Yellen are a shorter's best friend. You need near zero "emergency level" interest rates to create debt fueled asset bubbles for the shorters to attack when they go "pop". Enjoy!

    Commenter
    Heartless Shorter
    Location
    Date and time
    February 11, 2014, 4:46PM
  • Worse than 1929 right now. Expect a huge crash, economic depression and a war for governments to blame this on..
    BTW, if things are so great, why do so many indebted countries still need record low interest rates and money printing.

    Commenter
    Josh
    Location
    Sydney
    Date and time
    February 11, 2014, 4:18PM
  • "The drum beats at David Jones just grew too loud."

    Love it!

    Commenter
    Shareholder Activist
    Location
    A fair go for all
    Date and time
    February 11, 2014, 4:13PM
  • party time close now...shorters/gamblers, thanks for nuttin!!!

    Commenter
    no banks .. no party!
    Location
    bears weak as p..s
    Date and time
    February 11, 2014, 4:00PM
  • Any particular reason for the ACR fall today that anyone is awareof?

    Commenter
    Grinch
    Location
    Date and time
    February 11, 2014, 3:49PM
    • UBS playing silly-buggers. You will prob see them become a substantial holder and drop off. They will hover + and - 5% a couple more times.

      I'm waiting for my March div. Don't care about UBS games.

      Commenter
      GS
      Location
      Date and time
      February 11, 2014, 3:56PM
    • I'm no chartist but a brief look at its 12 month chart I think fits the term "downtrend".

      Commenter
      Visually Alarmed
      Location
      Date and time
      February 11, 2014, 3:58PM
  • Q: What will be the straw that breaks the camel's back in Australia?

    A) Mass unemployment around 10% like our last two recessions.

    B) Baby boomers defaulting on their mega mug mortgages on loss making investment property.

    C) The lower Australian dollar causing $2 a litre petrol and $200 Ralph Lauren business shirts the tryhards like to wear.

    D) mitch posting some trades and the market moving big either way hanging off his every key stroke.

    Commenter
    Pollster
    Location
    Date and time
    February 11, 2014, 3:30PM
    • The camel will eat the straw. Does the camel have a name?

      Commenter
      Gringo
      Location
      Date and time
      February 11, 2014, 3:38PM
    • Haven't you heard of the "Mitch effect".

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 3:41PM
    • For example I posted the other day that I had topped up my holding in ACR. That happened to be minutes before the posting in editorial comments that the FDA was looking at ACR's testosterone product. The share price of ACR dived and I dumped the lot, fortunately for more than they are trading at now.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 3:44PM
    • stop the BS. Australia works well.
      Only thing that worries me is the idiotic ALP.
      see super, first home buyers grant...etc.

      party not to far way btw.

      Commenter
      no banks .. no party!
      Location
      Date and time
      February 11, 2014, 4:04PM
  • Tripped over a cord? Nope. Sequence numbers getting reused by the ASX which causes intelligent clients to (correctly) ignore messages. Seems to be caused by sweep orders, which are now disabled.

    Commenter
    Greg
    Location
    Date and time
    February 11, 2014, 3:03PM
  • Following my 10:35 post re UBS BUY on QBE: I had some last year but sold out (at a loss) when they tanked to $11.20. I am back in now (as of 2 weeks ago). I certainly hope UBS are correct....

    Commenter
    ExJayOh
    Location
    Earth
    Date and time
    February 11, 2014, 3:01PM
    • What happens with QBE depends on how much stock UBS has an interest in.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 3:13PM
  • What grade was UBS's analyst before?

    Commenter
    Chumlee
    Location
    Date and time
    February 11, 2014, 3:00PM
    • Upgrade to Buy from Neutral. See http://www.fnarena.com/dsp_recommendations.cfm?searchsymbol=QBE

      Commenter
      ExJayOh
      Location
      Earth
      Date and time
      February 11, 2014, 4:31PM
  • "But trade is supposed to continue soon"

    Just not in Forge Group though...

    Commenter
    Knocker of all
    Location
    Mermaid Waters
    Date and time
    February 11, 2014, 2:49PM
  • Now don't forget pollyannas when the ASX eventually gets back to 6800 it will be with fresh money and more capital raisings. Forge Group will be long gone and so will all the money that was invested in it. Enjoy!

    Commenter
    Real
    Location
    World
    Date and time
    February 11, 2014, 2:48PM
  • Al did you cause the asx stuff up at 2.15 with all your longs and shorts? Ho HO.
    When do you really trade? You are always tapping away on this blogggg there couldn't be any time for you to get the job done unless it's all in your mind.

    Commenter
    The PEST
    Location
    s LOWOOD
    Date and time
    February 11, 2014, 2:45PM
    • He has a full time job just trying to keep track of all his different identities and passwords and thinking up new ones.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 2:57PM
    • It's growing rapidly!!!!!!!!!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 3:01PM
    • What's the bottom for WBC again Chumlee?

      Commenter
      Bottom Feeder
      Location
      Date and time
      February 11, 2014, 3:03PM
    • 6000 to 9000 in one year. That's rapid growth.
      Try to get your head around it.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 3:11PM
    • WBC good value now,,,time to buy...
      How's your short going Al? You must be making a fortune. ROFLMAO.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 3:17PM
    • Aww... poor thing you missed the 40% on NCM, 21% on SBM.

      It's growing rapidly!!!!!!!!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 3:32PM
    • I don't touch gold stocks. I am an investor,,not a big time trader like you Al.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 3:47PM
    • @Fair enough Chumlee. After witnessing you call the bottom of WBC I would be scared if you tried to pick the bottom of a gold miner lol

      Commenter
      Good Call
      Location
      Date and time
      February 11, 2014, 3:59PM
    • The gold price is erratic,hence gold miner's profitability or lack thereof is also erratic.
      Not investment grade companies for this reason.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 4:15PM
  • https://www.asxonline.com/intradoc-cgi/groups/trading_and_market_information/documents/communications/asx_039659.pdf

    Commenter
    Greg
    Location
    Date and time
    February 11, 2014, 2:42PM
  • Which Gov Dept asks the ASX to explain? Will we ,the mugs, get a prompt answer? Don't hold yor breath.

    Commenter
    The PEST
    Location
    s LOWOOD
    Date and time
    February 11, 2014, 2:40PM
  • "Looks like trading has stopped on the ASX."

    I heard Forge Group shareholders pulled the plug?

    Commenter
    Howard Stern
    Location
    Date and time
    February 11, 2014, 2:37PM
  • The market only needs to go up:

    ((6873 * 1.17 * 1.2)-5260)/5260

    = 83%

    and it's a new bull market!

    Hurrah!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 2:36PM
  • What has happened to the IG Markets website - few online trades (call only).

    Commenter
    BTFD
    Location
    Date and time
    February 11, 2014, 2:32PM
    • Problem is with the ASX - trade stopped for a data feed issue.

      Commenter
      BTFD
      Location
      Date and time
      February 11, 2014, 2:49PM
  • Yep I've been getting "frontend error" on some of my stocks all morning! Good it's not just me :)

    Commenter
    GS
    Location
    Date and time
    February 11, 2014, 2:31PM
  • Australian Stock Report: Share tips, News, Analysis & Hot Stocks

    Published on 19th Mar 2013

    "Share To Buy: Forge Group Limited (FGE)"

    "FGE services some of Australia’s and the world’s most reputable mining and energy companies such as BHP Billiton, Rio Tinto, Fortescue Metals Group, Woodside, Chevron, MCC and AngloGold Ashanti."

    Oh dear.

    Commenter
    Knocker of all
    Location
    Mermaid Waters
    Date and time
    February 11, 2014, 2:24PM
  • They go up, they go down. They go down they go up. Bought BOQ at 11.55 a couple of weeks ago and watch them fall. Now they're back where I started. Bought ACR at 1.92 and watched them go up to 2.10, now they're back where they started also.

    Commenter
    Grinch
    Location
    Date and time
    February 11, 2014, 2:24PM
    • Remember when BOQ was $17.80 in 2007?

      Commenter
      Chartist
      Location
      Double Pay
      Date and time
      February 11, 2014, 2:40PM
    • Yep. and WBC was about $24 at the same time. They go up, they go down.

      Commenter
      Grinch
      Location
      Date and time
      February 11, 2014, 3:48PM
    • "prices don't go up forever..money can only be made shorting"

      lol.

      Commenter
      numpty
      Location
      prahran
      Date and time
      February 11, 2014, 4:51PM
  • Tony has promised better jobs for the auto-workers. Sounds like the promise in Tassie of better green jobs. Its just pollie hot air. Tony's main concern is to put women back in their rightful place and let the real Libs worry about the economy.

    Commenter
    Gringo
    Location
    Date and time
    February 11, 2014, 2:14PM
    • Tony believes in the fairy tales of economists. He's a thin skinned bully that lacks the imagination to be a true leader but then there are none in today's parliament. Anybody who showed the slightest imagination would be excluded. Australia is heading for a bath like it has not seen since the depression. That you can count on.

      Commenter
      Catch 22
      Location
      Date and time
      February 11, 2014, 2:49PM
  • KCN just hit $1.30

    singing yi yi yippee yippee yi
    singing yi yi yippee yippee yi
    singing yi yi yippee singing yi yi yippee
    singing yi yi yippee yippee yi

    Hoorah!

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    February 11, 2014, 2:06PM
    • pity it is only fantasy, you don't have any money left to trade lol...

      Commenter
      Virtual Trader
      Location
      Kookaburra Creek Rd, Broadbeach
      Date and time
      February 11, 2014, 2:23PM
    • Gee up hates it when people make money.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 2:54PM
    • How's your CCL at $13 doing
      Ouch !!!!

      Commenter
      Pepsi
      Location
      Date and time
      February 11, 2014, 3:51PM
  • "UBS AG has suspended two executives, including its top IPO banker in Asia, in an internal probe into the hiring of an employee related to the head of a Chinese listing hopeful."

    Commenter
    Nepotism and Corruption
    Location
    Everywhere
    Date and time
    February 11, 2014, 2:01PM
  • Newsflash:

    "Increased business confidence because of lower dollar pushes up dollar."

    Commenter
    Catch 22
    Location
    Date and time
    February 11, 2014, 1:53PM
  • Any Forge Group shareholders on the boards today?

    Commenter
    Doctor
    Location
    Burns Unit
    Date and time
    February 11, 2014, 1:53PM
    • Yes. There are still some of us idiots out here. Why are you asking?

      Commenter
      confused
      Location
      syd
      Date and time
      February 11, 2014, 2:30PM
    • Unfortunately I am still holding some from yesterday. Sold most but will still hurt if they go down. Hoping for w white knight.

      Commenter
      GeoPerth
      Location
      Date and time
      February 11, 2014, 2:35PM
    • Yep. Been trading Forge for the past few months, has been very profitable. All good things must come to an end I guess. Fortunately I significantly reduced my position yesterday at 93c. Still have 8.5k shares however, the losses on those will not be fun. Guessing the stock will open at around 45-50c come Thursday.

      Commenter
      Bollinger
      Location
      Date and time
      February 11, 2014, 2:41PM
    • Hold out your hands. Now rub them together gently and work this lotion in.

      Commenter
      Doctor
      Location
      Burns Unit
      Date and time
      February 11, 2014, 2:45PM
  • Get ready for the next commodity and housing super cycle.
    Coming to a city close to you in 2015
    Get on the gravy train or settle for a lifetime of regret

    Commenter
    Tally Ho
    Location
    Mosman
    Date and time
    February 11, 2014, 1:49PM
    • Depends on sentiment and legislation re: immigration. You know the future of these do you?

      Commenter
      Ryan
      Location
      Date and time
      February 11, 2014, 2:22PM
    • Yes and more, my son. Cant share it with you here though.
      Get on the gravy train !!!

      Commenter
      Tally Ho
      Location
      Mossman
      Date and time
      February 11, 2014, 2:39PM
  • If i am not mistaken that looks a little like a bull chart over there on the left....short, short, short he he

    Commenter
    Bashar
    Location
    Broadbeach
    Date and time
    February 11, 2014, 1:48PM
  • "the total value of residential dwellings in Australia has broken through the $5 trillion level for the first time"

    That's tiny. Remember how big Japan's property bubble was? You know.. the one that ruined their economy for 25 years after?

    Commenter
    Noriyuki "Pat" Morita
    Location
    Date and time
    February 11, 2014, 1:42PM
  • In a move of not listening to myself or commonsense I have just purchased another 2100 ORL

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    February 11, 2014, 1:27PM
  • "Gold is on a bit of a run, on track for a fifth straight session of gains, taking the price to its highest level in three months."

    Maybe KCN was worth that 88 cent December low after all he he

    Enjoy!

    Commenter
    Happy Trader
    Location
    Date and time
    February 11, 2014, 1:23PM
  • Gold just keeps climbing off that US$1180 low. Love making big money when all the numpties are stuck on the slow boat to nowhere! LOL

    Commenter
    Big Kev
    Location
    Date and time
    February 11, 2014, 1:18PM
  • "Dollar passes US90¢ as business conditions hit three year high." Absolute rubbish. I WANT AN ELECTION NOW! WAH

    Commenter
    Mitch
    Location
    ALP office
    Date and time
    February 11, 2014, 1:18PM
    • Another convert to the cause.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 1:40PM
    • good work comrade mitch

      Commenter
      Wood & Trees
      Location
      ACT
      Date and time
      February 11, 2014, 1:50PM
    • Mitch, in the Griffith by-election last weekend, the LNP achieved the first swing to a government in a by-election for nearly 20 years. I recognise there are a handful of minor factors as to why Labor didn't get the usual percentage swing against the incumbents (Rudd was popular in that seat; it's only been 6 months), but the point it makes is that your loathing of our current government does not seem to be universally shared by the electorate.

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 2:23PM
    • The minute swing to the Lib was easily explained by the profile of Rudd and Glasson. Rudd had a large personal following so the swing should have been a lot larger.

      Commenter
      Gringo
      Location
      Date and time
      February 11, 2014, 2:46PM
    • @Gareth, that electorate is in QLD. Queenslanders take a pride in being different to the rest of the country. They don't fluoridate their water for example, they voted for the Federal Libs even when common sense after experiencing Campbell Newman should have warned them off Tony Abbott. But they had to be different and that explains the Glasson result.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 3:05PM
  • Hey Mitch, I love your political comments. I too hate Abbott and blindly vote ALP/Greens. Everything is the government's fault and the world is going to end under Abbott. The car industry was thriving before September (it was Abbott's fault Ford left). Just be careful not to mention business confidence is at 3 year highs. It doesn't help our cause Mitch.

    Commenter
    Raging
    Location
    Lefty
    Date and time
    February 11, 2014, 1:13PM
    • Yet another convert. That Abbott guy & his mob are really good for recruitment.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 2:01PM
    • need someone to sort out the welfare state mentality champ

      Commenter
      Little Christopher Pine
      Location
      Play School
      Date and time
      February 11, 2014, 2:16PM
  • Free market extremism is destroying Australia. No other country believes in 'free' trade the way we do. Now our manufacturing is the lowest out of any OECD country. Every other country protects their strategic industries.

    Does anyone seriously think this bodes well for our future?

    Commenter
    Fred
    Location
    Date and time
    February 11, 2014, 1:11PM
    • 'yes we have no bananas....'

      Q; A banana republic that has to import its bananas is called what??

      A; Australia

      Commenter
      mushy
      Location
      Date and time
      February 11, 2014, 1:50PM
    • Well if there is any strategic threat we will have an army of long-term unemployed to spring to our defence. But they will have to bring their own gear because nothing more sophisticated than broom-handles will be made here anymore.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 2:05PM
  • ORG sold 300 @ 14.62
    TRY sold 4000 @ 1.43
    MNW sold 8000 @ 0.34

    Commenter
    BearShapedBull
    Location
    MugPunters Lounge
    Date and time
    February 11, 2014, 1:08PM
  • "IRON ore prices have slumped to seven-month lows, refuelling the debate about how long prices for the steelmaking raw material can continue to defy the wall of new production set to hit the global seaborne market this year."

    But I was told the boom times last forever!

    Waaaaaaahhhhh!!!!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:58PM
  • Could one of your clever bloggers tell me if BHP report this afternoon with their results,
    .

    Commenter
    Pest from the West
    Location
    Lowood QLD
    Date and time
    February 11, 2014, 12:51PM
    • They report on 18 Feb (I looked it up on their website). Every reasonable stock provides that sort of information on their websites. Always easier to look there than ask here.

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 1:11PM
    • Google BHP Jimblebar, sheeding workers

      Commenter
      Can't say
      Location
      St Georges Terrace
      Date and time
      February 11, 2014, 1:46PM
  • QBE invested in too many businesses too quickly for management to cope with. Instead of taking one big hit when the truth was discovered,the company obviously decided to absorb its losses at a much slower rate ie over some years. It becomes a buy just before the writedowns cease.No way of knowing that thus the continuing early buy calls

    Commenter
    BigKev
    Location
    Caringbah,NSW
    Date and time
    February 11, 2014, 12:45PM
  • "short the BOQ at $11"
    guess who?

    Commenter
    BOQMAN
    Location
    guess who?
    Date and time
    February 11, 2014, 12:44PM
    • Poor thing. I'm short at 12.25. He he...

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 1:15PM
    • the short was at $11.20 (October) and evidence posted several times...don't be embarrassed ...its happens to the best of us.

      Commenter
      BOQMAN
      Location
      Date and time
      February 11, 2014, 1:53PM
    • "the short" which one? Newbie mistake.

      Still waiting for the post where I denied that was the opening position.

      "coming soon...." LOL

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 2:38PM
    • which one? the one at $11.20...how hard is it?!!
      don't be embarrassed .. it happens.
      virtual anyway

      Commenter
      BOQMAN
      Location
      Date and time
      February 11, 2014, 3:16PM
    • Still waiting for the post where I denied that was the opening position.

      "coming soon...." LOL

      Short in the money by 6% too easy.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 3:33PM
    • "coming soon...." LOL

      Crickets.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 3:39PM
    • "Still waiting for the post where I denied that was the opening position."

      you serious? how many times do you need it (11 buck denial) posted.

      ill post again 2moro...sometimes the truth hurts...get over it

      Commenter
      BOQMAN
      Location
      Date and time
      February 11, 2014, 4:13PM
    • Sure, sure always tomorrow, soon...

      Pathetic.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 4:44PM
    • he he...someone upset!
      you'll get over it..it happens.

      Commenter
      BOQMAN
      Location
      Date and time
      February 11, 2014, 5:05PM
  • "Gor in a note is also warning investors about a 1997-type Asian crisis unfolding"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:36PM
  • "shareholders sold Macquarie and Cochlear in response to underwhelming earnings updates"

    What!? The millionaire's factory can't convince any more companies to destroy shareholder value by making stupid acquisitions?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:33PM
  • I'm surprised the Toyota decision hasn't effected the ASX200. Whatever you think inevitable or otherwise, either way lots of economic pain coming to the Aust economy.

    Commenter
    Yin or yang
    Location
    Date and time
    February 11, 2014, 12:30PM
    • it is actually good for the economy, no more propping up. Love him or loathe him at least Abbott has got the nurries to make tough decisions. at least we stand a chance with him at the helm, 3 more years of the last lot and we would have been totally wrecked.

      ps - i am sorry to the workers and families that have lost their employment but I believe opportunities will arise in the near future

      Commenter
      Aussie Al
      Location
      Adelaide
      Date and time
      February 11, 2014, 12:44PM
    • I forget to add that it has already been factored in!

      Commenter
      Aussie Al
      Location
      Adelaide
      Date and time
      February 11, 2014, 12:46PM
  • "Business confidence, which dipped after a post-election boost last year, rebounded into positive territory, although two sectors that are key to the economy - wholesale and mining - remained negative, the National Australia Bank's business survey finds."

    The NAB survey is broken. If it wasn't for high immigration Australia would be flat lining or in recession.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:30PM
  • Last add to CBA short at $79. When's the booming economy going to push it above $79 so I can add to short again?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:27PM
    • Is this your biased way of telling us that you were too pessimistic to close out your short last week when they were below $73? Thought they were going even lower did we?
      Poor thing. Better luck next time Al.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 1:33PM
    • Nope because I don't call the absolute top or bottom. Only an idiot would do that.

      Better luck next time.

      It's growing rapidly!!!!!!! LOL

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 1:48PM
    • A.D.D again Al. I didn't ask you if knew the absolute top or bottom. Clearly you would have been better off closing your short last week. You have missed out again,that's if it was a real trade with real money.HA HA.

      Commenter
      Chumlee
      Location
      Date and time
      February 11, 2014, 2:50PM
    • It's growing rapidly!!!!!!!!!

      Commenter
      Jo Nova
      Location
      Chumlee's bedsit
      Date and time
      February 11, 2014, 3:04PM
  • Iron Ore still above US 120

    Should be $80.

    Why - coz I said so

    Waaahhh Waaahhh !!!

    Life is so unfair.

    Commenter
    Napolean
    Location
    Date and time
    February 11, 2014, 12:27PM
    • I'm surprised the iron ore stocks are holding their prices given the drift downwards with the iron ore price. Even though some of it would have been factored in, I'd still expect a move lower.

      Commenter
      Yin or yang
      Location
      Date and time
      February 11, 2014, 2:15PM
    • AUD price $135

      Waahhh Waaahhh !!!!

      Commenter
      Tosser
      Location
      Toorak
      Date and time
      February 11, 2014, 2:23PM
  • What the hell is going on with Santos? lol It has been spruiked relentlessly by many Australian financial advisers for 7 years and what has it done? I remember it being spruiked in 2007 when it was $14. Now 7 years later in 2014 it's $13 lmao!

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    February 11, 2014, 12:27PM
  • Back to the future. Banks making the ASX look good...i like it!

    Commenter
    Virtual Trader
    Location
    Prahran
    Date and time
    February 11, 2014, 12:24PM
  • Sold SBM for 21%.

    Having a great run. Love it!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:21PM
    • Nice, seeing that you bought them at $0.52

      Commenter
      Abraham Lincoln
      Location
      Prahran
      Date and time
      February 11, 2014, 12:49PM
    • Try to pay attention. He he...

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 1:17PM
    • You laugh like a girl HA HA now that's a decent guffaw.

      Commenter
      The Pest From etc
      Location
      Lowood
      Date and time
      February 11, 2014, 1:43PM
    • Typical Lowood comment. No class.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 1:53PM
    • nice work pest, i yikes it HA HA

      Commenter
      Forensik Frank
      Location
      Kookaburra Creek Rd, Broadbeach
      Date and time
      February 11, 2014, 2:20PM
    • you never!

      Commenter
      Grren eyed monster
      Location
      Pest's bedsit
      Date and time
      February 11, 2014, 3:35PM
  • BearShapedBull, or whoever it was talking about Bradken a while back, what's your opinion of them now? Further to fall in the days ahead so a cheaper dividend, going to bounce back up tomorrow, or is it going to continue its long term down trend and end up reporting even less next time?

    Commenter
    Basic
    Location
    Date and time
    February 11, 2014, 12:21PM
    • I took a chance and bought BKN for 4.59 this morning. Their results were within what they said they'd achieve so no real surprise in my view. Yield is good although the lack of franking offsets the benefit a bit. They are quite a diversified company so I think there's upside to it but time will tell.

      Commenter
      Grinch
      Location
      Date and time
      February 11, 2014, 12:52PM
    • i have grabbed them around 4.80's/4.90's...should have sold out yesterday [5.22]..hmmm,but im down 6% today with that coming in a dividend im not to concerned. Seems every company with any type of shortfall gets hammered no matter, i've got them as 1 of my midcap holds for yield,have been consistent but reavaluate.They did already let us know that dec earnings were going to be lower but on the bright side profit after tax actually not bad.Possible increase in exploration this year would see alot more demand for ground tools etc from them, i think fair value.DRP reactivated with 2.5% disount for SMSF accum.could be oversold....now

      Commenter
      BearShapedBull
      Location
      MugPunters Lounge
      Date and time
      February 11, 2014, 12:57PM
  • "So what can we make of the surprise fall in home loans?"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:20PM
    • Abbott has turned the boats around and nobody left to buy my investment houses :(

      Commenter
      Sullys Foot is Down
      Location
      South Freo
      Date and time
      February 11, 2014, 4:00PM
  • Gold short squeeze is on, get out while you can shorters, that includes too bro!

    Commenter
    Wayne Akman
    Location
    Broadbeach
    Date and time
    February 11, 2014, 12:19PM
    • "that includes too bro!"

      What?

      Commenter
      Meds
      Location
      Nurse
      Date and time
      February 11, 2014, 12:44PM
    • poor old Al is desperte now, looking fore all gramer mistooks..i lykes it!

      Commenter
      Wayne Akman
      Location
      Broadbeach
      Date and time
      February 11, 2014, 1:52PM
    • The blog has damaged you. Now take your meds and have a rest. Good boy.

      Commenter
      Meds
      Location
      Nurse
      Date and time
      February 11, 2014, 2:57PM
  • Unemployment up, loans falling. Banking boom! Housing boom!

    LOL pollyannas never learn. he he...

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:18PM
  • MQG slapped. You ok gee up?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:15PM
  • Bank shorts in the money by 6%. Haters gonna hate. Long way down from here.

    Love it! He he...

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 12:13PM
    • How is your mqg short in the money??? Hehe
      And yes down 3% how will I live ??????
      Thanks for the dividends al

      Commenter
      Gee up
      Location
      Date and time
      February 11, 2014, 4:13PM
  • Good for you Mike
    Holding ANZ and WBC back in the green after being red for awhile
    Put a sell in ANZ early before open, 30.45, pulled it
    QBE? dumped mine aeons back, never again

    Commenter
    stu
    Location
    Date and time
    February 11, 2014, 12:13PM
  • ANZ +1.81, BEN +1.27, CBA +1.11. Nice.
    Goods news ANZ has reduced is bad loans.

    Commenter
    It's All About Making Money
    Location
    Lennox Hd
    Date and time
    February 11, 2014, 12:08PM
    • The reversals on the daily ANZ, NAB, WBC, BEN and CBA charts look like island cluster reversals. http://www.incrediblecharts.com/technical/island_reversal.php
      The longer tail is a little negative but overall a very bullish pattern in my opinion. Any disagreements from tech. traders?

      Commenter
      It's All About Making Money
      Location
      Lennox Hd
      Date and time
      February 11, 2014, 12:20PM
    • that's all right for some of you, but i am short, not really sure how to get out of this mess.

      Commenter
      Billy Shorten
      Location
      Prahran
      Date and time
      February 11, 2014, 12:22PM
  • "So I would think that tomorrow CBA will have a cracker of a result."

    ...where's the bloke that short the CBA..oh dear allan

    Commenter
    CBAMAN
    Location
    why
    Date and time
    February 11, 2014, 12:07PM
    • They were $79. What happened?

      Commenter
      A wounded bull
      Location
      Is an angr bull
      Date and time
      February 11, 2014, 1:26PM
    • they were $5 too....wounded gomer, what's your point??

      Commenter
      no banks .. no party!
      Location
      Date and time
      February 11, 2014, 4:09PM
  • ASX200 5240 ca ching. just plonked on the mother off all shorts!

    Commenter
    Mister5100
    Location
    Date and time
    February 11, 2014, 12:06PM
    • Too early? THink it is heading a bit higher before reversing. FTSE to 6700, S&P to 1815, DOW to 16050 or thereabouts -- then reversing. THink ASX might make 5280 or 5300 but couldbe good for some intraday shorts.

      Commenter
      jezza
      Location
      Date and time
      February 11, 2014, 12:50PM
  • 2012 article from washington times.
    "Those wild and crazy Mayans put down their marker that the end of the world would occur on Dec. 21, 2012 — about two months from now. There is, of course, some small chance that they might be right. On the other hand, there is a very large probability that the real end of the world will occur around March 4, 2014.

    The doomsday clock will ring then because the U.S. economy may fully crash around that date, which will, in turn, bring down all world economies and all hope of any recovery for the foreseeable future — certainly over the course of most of our lifetimes.

    Read more: http://www.washingtontimes.com/news/2012/oct/25/us-economy-on-schedule-to-crash-march-2014/#ixzz2syGuATzY
    Follow us: @washtimes on Twitter"

    Commenter
    Ryan
    Location
    Date and time
    February 11, 2014, 12:04PM
  • Gold just cracked US$1280. Can't wait for it to hit US$1300 and hold above US$1300 at the close of New York trade one day soon. When it does that gold miners will get re-rated. Which for me will = profit. Enjoy!

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    February 11, 2014, 12:04PM
    • But you don't buy stock, you only short them al pal!

      Commenter
      Liberace
      Location
      Prahran
      Date and time
      February 11, 2014, 12:14PM
    • I love it how a regular citizen like me in a free society like Australia who reads and comments on a business blog using my real name upsets bad character people so much. Observing the turmoil bad character people who troll me on here are in makes me laugh for real.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      February 11, 2014, 12:21PM
    • Trend does seem strongly upwards... There have been times in the last few months that it's hurt holding gold stocks. Time for some good gains!

      Commenter
      Yin or yang
      Location
      Date and time
      February 11, 2014, 12:23PM
    • If you cant stand infront of it with your assault rifle (or equivilent) and defend it, you dont own it, you might have a hard time profiting from it.

      Commenter
      Ryan
      Location
      Date and time
      February 11, 2014, 12:28PM
    • I agree Gordon, I have never seen you use a pseudonym...lol

      Commenter
      Forensic Frank
      Location
      Kookaburra Creek Rd, Broadbeach
      Date and time
      February 11, 2014, 1:38PM
    • @Frank have a seat and enjoy the show over some damper and tea :)))

      Commenter
      Platypus
      Location
      Kookaburra Creek Rd
      Date and time
      February 11, 2014, 1:49PM
  • I keep telling ya, buy gold!

    Commenter
    Gold Balls
    Location
    ACT
    Date and time
    February 11, 2014, 12:01PM
  • PNA the next takeover target??? nah they're just shuffling the paper amongst themselves....

    Commenter
    BearShapedBull
    Location
    MugPunters Lounge
    Date and time
    February 11, 2014, 11:58AM
  • Don't be haters! Mitch is most welcome here, along with all the other 'political' commentators. Business is, after all, closely entwined with politics. I find Mitch's posts to be highly relevant to the world of business, highlighting regulatory issues, scientific issues and a broader array of debates which impact the business community. So keep up the good work, Mitch. Some things are more important than whether the S&P went up .16% or down 1.3% last night for whatever reason commentators decide to ascribe.

    Commenter
    Dave
    Location
    Brisvegas
    Date and time
    February 11, 2014, 11:56AM
    • +1

      Commenter
      BTFD
      Location
      Date and time
      February 11, 2014, 1:25PM
  • ACR undermined share price got nabbed by UBS and The Group both becoming more substantial on the books around dive time last week ...pure coincidence.

    Commenter
    BearShapedBull
    Location
    MugPunters Lounge
    Date and time
    February 11, 2014, 11:53AM
    • I posted last week that I was interested as to who showed up in the substantial holder notices. It all seemed to be an engineered play. Well the share price is diving now so let's hope those behind the price drop wondered why they bothered.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 12:23PM
    • Director doubled holding

      Commenter
      Mulga Mick
      Location
      Bedridden
      Date and time
      February 11, 2014, 12:38PM
  • hands up if you are shorting the banks like me, I got CBA at $60, beat that one!

    Commenter
    Ellen
    Location
    Prahran
    Date and time
    February 11, 2014, 11:49AM
    • Ellen you're beating something buy I just can't put my finger on it.

      Commenter
      The PEST
      Location
      s LOWOOD
      Date and time
      February 11, 2014, 2:28PM
  • "Home loans surprisingly fell 1.9 per cent in December"

    why dont gen y want to buy my investment properties?

    Commenter
    alfa
    Location
    Date and time
    February 11, 2014, 11:46AM
    • probably b/c they're foolishly paying me a fortune in rent...

      Commenter
      Allan Landlord
      Location
      Date and time
      February 11, 2014, 12:04PM
    • Doubt it. Rents have dropped 6% over the last 2 years.

      Commenter
      FHB
      Location
      I can wait until you need the money for your retirement home.
      Date and time
      February 11, 2014, 12:16PM
  • "We can to a certain degree say that China with its 1.3 billion people is carrying mankind’s fate on its shoulders. If the country proves capable of developing a social market economy with full civil rights, this will have a huge favourable impact on the world. If not, there is a danger of social and economic crises arising in the country, with negative consequences for us all."

    The Nobel Peace Prize 2010, Liu Xiaobo, Award Ceremony speech.

    http://www.youtube.com/watch?v=9NJbhEpIZGs

    Social and economic crisis.... don't say you weren't warned.

    Commenter
    weiwei
    Location
    Date and time
    February 11, 2014, 11:42AM
    • Pollution is already a limiting factor. Their plans are doomed because they forgot the most basic element. Humans individually are so smart but as a group are so dumbthat's why we need great leaders. See the problem?

      Commenter
      JohnBB
      Location
      Date and time
      February 11, 2014, 11:59AM
    • Ai? Is that you?

      Commenter
      Patrick & Loretta
      Location
      Melbourne
      Date and time
      February 11, 2014, 12:48PM
  • You have to admit these "confidence" surveys are a joke. How many deals have you ever done because some clown said "I'm feeling confident. I'll call back in and buy something next week." lol I personally find REALITY much firmer ground to base business decisions on.

    There's a lot of "confident" people in Australia and around the world but many of them don't have two pennies to rub together lol

    Commenter
    Gordon Akman
    Location
    Broadbeach
    Date and time
    February 11, 2014, 11:41AM
  • AUD up up and away with Manufacturing.

    Commenter
    Sullys Foot is Down
    Location
    South Freo
    Date and time
    February 11, 2014, 11:40AM
  • @giggling, try $5.65 for FMG yesterday, not $7.65

    Commenter
    sick of mitch
    Location
    mudgee
    Date and time
    February 11, 2014, 11:38AM
    • He was quoting from a 2008 article.

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 11:54AM
  • CCL finally starting an upward trajectory...quick MQG pull the rug out.

    Commenter
    BearShapedBull
    Location
    MugPunters Lounge
    Date and time
    February 11, 2014, 11:35AM
  • "It’s understood Aitken grew sick of his note being widely spread around the market"

    Everyone is still killing themselves laughing over his FMG $10 buy.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 11:34AM
    • Likewise your bbg short. Allan calling mqg to halve in value, must be time to add to my longs hehe

      Commenter
      Gee up
      Location
      Date and time
      February 11, 2014, 4:19PM
  • Just wondering when either Abbott or Big Australia Shorten will link Toyota to massive mortgages, massive wages and population growth. The worst; Shorten, wants to fix the symptoms of his parties failure. Australia bankrupt within a decade. @confused. Have you ever seen in any economics model running out of assets to sell. OR. When maximum population deems no further GDP "growth" or debt growth? Australia's whole model is deluded and that has always been the basis of my negativity. What's yours for being so positive?

    Commenter
    JohnBB
    Location
    Date and time
    February 11, 2014, 11:33AM
    • Australia is the "safe heaven" for all world's immigrants, boat people, refugees etc.

      Europe on the other hand is where finds quality in all its forms, education, manufacturing, properties, businesses.

      Enjoy...the lucky country...LOL.

      Commenter
      Mack
      Location
      Sydney
      Date and time
      February 11, 2014, 11:48AM
    • Keep banging the drum John.
      Good work.

      Commenter
      mushy
      Location
      Date and time
      February 11, 2014, 11:49AM
    • Saudi Arabia, a country that could fit in WA and is also a desert has more people that Australia...umm your we cant support more people argument looks pretty weak JohnBB. We could double national population in WA alone with the correct infrasturture and your precious eastern cities would not feel a thing.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      February 11, 2014, 11:56AM
    • That's a bit naive, isn't it? Apart from a handful of mega-rich oil barons, what's the general standard of living in Saudi Arabia? India also fits into the eastern states of Australia and has over 50 times the number of people in that space, at a very low standard of living. Where exactly is the money meant to come from for WA to build the massive infrastructure required to sustain a significant population increase at the same standard of living as they currently have? Our infrastructure only barely supports the number of people we have...if only it was that simple to upgrade!

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 1:04PM
    • Population has grown too fast in a short time. It is already hurting us and in near future it is going to hit us too hard and we will not be able to do anything about it. We will become like some of the countries around us. Pollies and businesses to blame for this because they want chaep labour at the cost of local jobs.

      Commenter
      xyz
      Location
      Date and time
      February 11, 2014, 1:36PM
    • Wwwish lion. So you're gping To restrict where immigrants can settle? No. Back to the same problem. We are over populated. Saudi is horrifically unsustainably stupidly insanely over populated. Unfortunately all this will impact after its too late. Ecologies crash, and not gently decline. If smart people were running Australia with the future as a focus we'd be reducing population not increasing.

      Commenter
      JohnBB
      Location
      Date and time
      February 11, 2014, 2:47PM
    • JohnBB, you make me laugh.

      You all carry on about global issues like polution and climate yet think we should be a little closed island all on our own. You cant have it both ways, and your way is long and truely dead.
      But I do agree I know a few labor fans that could reduce our population.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      February 11, 2014, 3:15PM
  • Geez mitch you're on fire today mate. Speaking of elections, why don't you do us all a favor and stand at the next election. You can then spruke your anti Liberal views to the poor schmucks that would bother to listen to you. Maybe then you could give us a break from your misguided political views on this BUSINESS blog!

    Commenter
    sick of mitch
    Location
    mudgee
    Date and time
    February 11, 2014, 11:32AM
    • poor old mitch, says he worked in the govt. reckon i saw him one day, doorman in the old parliament house...

      Commenter
      Gerry Attrick
      Location
      ACT
      Date and time
      February 11, 2014, 11:40AM
    • @Gerry the way things are going that doorman may be the only one left with a job.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 11:50AM
    • @sick of Mitch, my views aren't so much anti-Liberal as anti bad economic policy. It's just that the Libs at the moment are trying to impose a particular brand of dry economic policy on the Australian economy that is unsuited to the times. We are still in the grips of the after-effects of the GFC and expansionary policies are required. This gov' is intent on contraction. As for standing for politics, my ethical standards do not permit me to do so. Be thankful for that. If you think I am unbearable now what would I be like with a stage in politics.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 11:57AM
    • don't worry mitch you can always rely on your comrades to keep the doormen and tea ladies in a job, heck, what will happen when they discover coffee machines and automatic doors.though? keep them on and give them 5.5% pa?

      Commenter
      Gerry Attrick
      Location
      ACT
      Date and time
      February 11, 2014, 11:58AM
    • Only mugs go into Politics - @Mitch is no mug.
      Listen and learn

      Commenter
      Mulga Mick
      Location
      in the TAB
      Date and time
      February 11, 2014, 12:50PM
    • Well said sick of mitch. Surely Mitch is just a paid ALP plant.

      Commenter
      Kane
      Location
      Date and time
      February 11, 2014, 1:14PM
    • @Kane, I'm always looking for a bit of extra cash. Would you be prepared to write me a reference so I can apply. I hear they are looking for more people to combat the legions of plants recruited by the other side. I won't get paid as much a a Lib plant because they have all of that cash coming from the tobacco companies, but anything for the cause.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 1:54PM
  • Charlies stopped ringing the "bell"
    couldnt hear it as my cochlear implants playing up...or down.
    I'd say no great loss as his bullish view on everything always ended up as fish n chip wrapper on the day it was printed,never took any of hia advice and here i am today floundering along still.

    Commenter
    BearShapedBull
    Location
    MugPunters Lounge
    Date and time
    February 11, 2014, 11:30AM
  • Once upon a time Cochlear was the best of all the healthcare sector.

    Now it's just another technology stock and the Chinese have caught up on this technology. And money talks!

    Commenter
    GS
    Location
    Date and time
    February 11, 2014, 11:28AM
    • Money shifting out of COH into RMD as the next healthcare haven...baaaaa

      Commenter
      BearShapedBull
      Location
      MugPunters Lounge
      Date and time
      February 11, 2014, 11:48AM
  • Meanwhile, Billabong is branching out into manufacturing boogie boards

    Commenter
    Schapelle
    Location
    Date and time
    February 11, 2014, 11:23AM
    • Thanks Schapelle. I used to think I had a reasonable financial head, working away in an office job and saving money and investing sensibly. I also used to think that transporting drugs to SE Asia was just about the stupidest thing you could ever do. But here we are 9 years later, and so far you and your family have made $5m from your ventures and I have made nowhere near $5m in 9 years. So let me know when you start manufacturing boogies boards...although I don't want the board, just the empty bag will do.

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 12:00PM
    • My family's buying $3m BBG at 71 cents

      Gift !!!

      Commenter
      Mercedes
      Location
      Date and time
      February 11, 2014, 12:04PM
  • RE Charlie Aitken:

    From March 2008 - "Aitken made the front page of The Australian’s business section on Wednesday accusing various brokers of shorting Fortescue Metals Group whilst predicting the stock could hit $15 within 12 months. It rose 26c to $7.65 yesterday and was steady in morning trade." - Stephen Mayne

    he he

    Commenter
    Giggling
    Location
    Gerty
    Date and time
    February 11, 2014, 11:20AM
    • I catch up with www.beeksdownunder.com every morning..especially now that Charlie has gone!

      Commenter
      Sydney Trader
      Location
      Date and time
      February 11, 2014, 2:00PM
  • Looks like my decision to go with ANZ is going to pay off.

    A pity I didn't wait a day or two so I could have picked it even cheaper off whatever idiots sold the stock for less last week on Wednesday than it was on Monday because they believed it was worth less based solely upon a market wide sell off because of an arbitrary number reported on the basis of how well the US stock exchange did on a single day.

    Nevermind, it's already well back into the green!

    Commenter
    Basic
    Location
    Date and time
    February 11, 2014, 11:16AM
    • It's lower than it was in April 2013 and you are worried about some trading in it last week?

      Commenter
      Reality
      Location
      Date and time
      February 11, 2014, 11:27AM
    • aw but No Banks No Alfa told us to wait.... why you lie to us No Banks? :(

      Commenter
      GS
      Location
      Date and time
      February 11, 2014, 11:29AM
    • The banks are stronger than ever, of that I have no doubt!

      Commenter
      Alopurinol
      Location
      Prahran
      Date and time
      February 11, 2014, 11:45AM
  • From what I have been told, the star of this blog is a famous shorter named Allan, really! Hardly seems to make a comment these days!

    Commenter
    Alfie Longneck
    Location
    Prahran
    Date and time
    February 11, 2014, 11:13AM
    • Allans taken some quiet time to re invent himself.

      Commenter
      Sullys Foot is Down
      Location
      South Freo
      Date and time
      February 11, 2014, 11:28AM
    • Too much of it will make you blind like these two.

      Commenter
      Nurse
      Location
      Taylors Lakes Primary
      Date and time
      February 11, 2014, 11:36AM
  • QBE? Up 2.36% this morning!
    US insurers are doing great...maybe QBE is finally going to get some good news...well overdue.

    Commenter
    adam
    Location
    moss vale
    Date and time
    February 11, 2014, 11:11AM
    • Making money going long on QBE would be extraordinary...

      Commenter
      Warwick Moss
      Location
      Date and time
      February 11, 2014, 11:14AM
  • "The larger part of the story is not to do with the currency, but rather to do with globalisation, and Australia not competing in terms of low-cost manufacturing," said HSBC’s chief economist for Australia Paul Bloxham. Yes, agree Germany the most successful country in manufacturing good cars is a "low cost" country.

    Commenter
    Viking
    Location
    Sydney
    Date and time
    February 11, 2014, 11:10AM
    • You're right, but it's a combination of factors. What's not often mentioned is how we have all convinced each other that it's uncool or bogan to drive a Ford or Holden, and Toyota is just slightly above them in status. It's still cool to drive BMWs, Mercs and Audis, so we are prepared to pay a premium for those names, even though they are not better than Ford, Holden or Toyota by the same factor as their price premium. Secondly, Germany operates more efficiently so while their car industry workers get paid as well as ours, they can sack bad ones without penalty and they don't have extreme versions of employment terms and conditions like we do to drive up their underlying costs (leave loading, superannuation loading, payroll tax, penalty rates, extreme OH&S requirements, etc).

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 11:44AM
    • It's not that BMW's, Audi's and Merc's are cool (they are and have been for almost always), it is that the local manufacturers are making cars people do not want to buy.

      OK UTEs are still popular, but have limited market and Hilux's and the Chinese equivalents are simply irresistable from a workman's point of view. Your flashy $60K Ford or Holden UTE is a throwback.

      So, smaller 4 cylinder cars or God forbid hybrids, are the way to go.

      Which of our local manufacturers (soon to be ex-manufacturers) have done this?

      OK, so they may not be internationally competitive, but, the management have done a p#ss poor job of adapting to a changing market. I know at $1.60 per litre of unleaded fuel, a smaller footprint and lower consumption is a BIG driver of market.

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      February 11, 2014, 12:21PM
    • Yeah Joe, also wasn't helped by some pretty ordinary marketing. The Ford Mondeo is (was?) an excellent robust mid-sized car that should outsell the Mazda 3, but still probably suffered from the Ford moniker. I miss the discontinued Mondeo XR5 with the 162kw turbo 2.5L which was limited due to only being available in manual. If they could find an engine of that calibre to put in the current Mondeo, and offer auto, it would be a spectacular car.

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 3:08PM
  • "Borrowing costs for Chinese companies are rising strongly, a shift that could herald weaker corporate profits, slower economic growth and even the first defaults by increasingly indebted corporations." - Wall Street Journal

    Enjoy!

    Commenter
    Mercedes Corby
    Location
    Date and time
    February 11, 2014, 11:08AM
  • FGE trading halt after 11 million trades yesterday - as if they didn't know there financiers were going to pull the pin?
    Come on ASIC get your wet lettuce out and whip the directors!

    Commenter
    Pete the Pom
    Location
    Melbourne
    Date and time
    February 11, 2014, 11:08AM
  • When Cochlear announced halfway through last year that growth would be subdued I decided to stay as far away from it as I could.

    Sad for anybody who bought into it since then. It's had it's day.

    Commenter
    Basic
    Location
    Date and time
    February 11, 2014, 11:07AM
    • Yes, agree COH is becoming uncompetitive largely because of incompetent management no investing in R&D and innovation. I suspect that we will see a takeover soon.

      Commenter
      Viking
      Location
      Sydney
      Date and time
      February 11, 2014, 11:13AM
  • Another 30,000 manufacturing jobs lost.

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 11:04AM
  • So what happens to my money now?

    Commenter
    Forge Group
    Location
    Shareholder
    Date and time
    February 11, 2014, 11:02AM
  • Manufacturing Sector...ha, that's for amateurs. Quality exports...ha, that's for beginners. All these highly skilled (car) manufacturing employees must take up high frequency trading. Forget about the rest...Speculate and Prosper.

    Commenter
    Algorithm Trader
    Location
    Sydney
    Date and time
    February 11, 2014, 10:59AM
  • Biggest employment sectors?
    Mining not to be seen....
    Just sayin..

    ED: Mining is a GDP giant but an employment minnow. We've updated the chart to underline that.

    Commenter
    mushroom
    Location
    Date and time
    February 11, 2014, 10:56AM
    • I have read figures stating that mining only employs 3% of the workforce (3 year old figures).
      BHP apparently only employs about 100,000 people worldwide!
      During the mining boom the high interest rates, relative to the rest of the world, and high dollar killed manufacturing and construction in Australia which are far bigger employers than mining. This went on for years.

      Commenter
      It's All About Making Money
      Location
      Lennox Head
      Date and time
      February 11, 2014, 11:15AM
    • BHPB Jimblebar. Mine in the Pilbra. will be shedding jobs.

      Commenter
      Can't say
      Location
      St Georges Terrace
      Date and time
      February 11, 2014, 11:37AM
  • Market chart where are you ?

    Commenter
    Oracle
    Location
    Oberon
    Date and time
    February 11, 2014, 10:51AM
  • Good to see lower bad debts from Australian banks. Looks like their decision to stop lending to developers on the Gold Coast is starting to pay dividends lmao!

    Commenter
    Nasty
    Location
    Boy
    Date and time
    February 11, 2014, 10:50AM
  • "bloodbath in the David Jones boardroom"

    Same board that tried to ignore McInnes' sexual assault on an employee. Wilful blindness.

    See ya. Good luck getting another job.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 10:49AM
    • Solomon Lew will probably give them a job like he did for Mark...

      Commenter
      HR
      Location
      Consultant
      Date and time
      February 11, 2014, 10:54AM
    • Peter Mason, Chairman of David Jones is also Chairman of AMP.
      AMP has not been not particularly doing well during the last few years, with their CEO leaving last year. What is not good for DJ cannot be good for AMP.

      Wonder if Big boys club will protect Pete's job.

      Commenter
      Ronn
      Location
      Sydney
      Date and time
      February 11, 2014, 10:55AM
  • MQG worth @ $25-30. Don't say you weren't warned.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 10:47AM
    • Dream on - $53.97 is what it is wort!h

      Commenter
      Virtual trader
      Location
      Prahran
      Date and time
      February 11, 2014, 10:54AM
    • I agree. I'm also getting creamed on my shorts.

      Commenter
      Bleeding
      Location
      Money
      Date and time
      February 11, 2014, 11:05AM
    • Sure hope you are right! Shorted MQG yesterday off 55.75 -- came late to the market today and thought it had gone ex-div and was thinking what an idiot I was! What a great update! LOL

      Short RIO as well at 66.76.

      Patient gold longs finally starting to bare fruit ....

      Commenter
      jezza
      Location
      Date and time
      February 11, 2014, 12:30PM
    • Told you what it's worth 5 months ago Allan. If it drops below $52 then I'll sell my holdings. It's also one of the best asx trading stocks.
      How's your short Allan ? Oh yeah you would have had to pay my dividends too.
      Thanks for that
      Hehe

      Commenter
      Gee up
      Location
      Date and time
      February 11, 2014, 3:28PM
    • I didn't borrow stock from you. Newbie

      Keep biting pacman.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      February 11, 2014, 3:40PM
    • Haha so much anger... Bbg still hurts does it????

      Commenter
      Gee up
      Location
      Date and time
      February 11, 2014, 4:15PM
  • When's the next election. Late 2016. By then Ford, Holden & Toyota plus a large number of other related employers will have shut down. Ford originally planned to go by 2016 but they will be gone well before and Holden & Toyota will bring their effective departure dates forward. There will be a substantial increase in unemployment as this gov't has shown it has no plans, intentions or ideas as to how boost jobs, except for innumerable enquiries and commissions. The aim appears to create a huge pool of unemployed, sacrificed on the altar of economic rationalism, to hang like a dead weight over the economy to drive down wages and conditions and boost business profits. Altho how you can increase profits while cutting consumer spending power is beyond me. Something to do with Hockeynomics. Anyway the net effect will be an upsurge in bitterness in the electorate from the legions of newly unemployed and their families who will be looking to resoundingly punish those they see as being responsible for their plight. In the meantime the prospects of a recession are increasing. That means interest rates are likely to drop by at least 1%.

    Commenter
    mitch of ACT
    Location
    Date and time
    February 11, 2014, 10:47AM
    • They know all that.
      Makes interesting watching

      Commenter
      mushroom
      Location
      Date and time
      February 11, 2014, 10:53AM
    • Thats right mitch the Libs should hand over more money and buy some votes...oh thats labor tactic they cant copy huh

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      February 11, 2014, 10:56AM
    • Being in opposition hurts, I hear you!

      Commenter
      Julia Abbott
      Location
      Prahran
      Date and time
      February 11, 2014, 10:57AM
    • MItch, not sure if you totally get it, but I will have a go, the local gossip says wages are too highly uncompetitive, thus profits non existent. Relocate business where wages are more competitive and return to profit. I am not sure how an Government election is going to fix anything.

      Commenter
      linux
      Location
      Date and time
      February 11, 2014, 10:59AM
    • But but but, Mitch they're going to axe the carbon tax!

      That'll fix all of our problems, according to the Rhodes Scholar Tony Abbott.

      Commenter
      Basic
      Location
      Date and time
      February 11, 2014, 11:11AM
    • Good one Mitch. You've clearly got no idea how business decisions are made and the fact that you are even bringing Ford into this who announced they were leaving well before the election shows your blatant political bias. How about giving everybody a rest from your ALP propaganda for a day? Maybe go and have a read of Ben Potter's article to get a clearer view of reality.

      Commenter
      Sticks
      Location
      Date and time
      February 11, 2014, 11:13AM
    • Mitch, we also once had a thriving horse and cart industry. Sometimes we just have to move with the times, and we just aren't competitive anymore in some industries.

      We've continued to elevate our wages and conditions under some misguided belief that it has made us wealthier. However, the organisations we work for would either have had to raise the cost of their goods accordingly to maintain their profit margins, or lower their costs by sourcing labour and materials from overseas. Given that inflation has remained reasonably in check for a couple of decades, it's pretty obvious that they have chosen the latter path. So as long as it wasn't our job that was outsourced, we are indeed now wealthier.

      Unfortunately this starts to increase the gap between the poor and wealthy as unemployment starts to grow. Sure you can keep unemployment artificially in check by supporting all sorts of inefficient industries, as we have been doing, but that's just band-aids on top of band-aids. It's time to wince and pull the band-aids off.

      So whilst I do agree with some parts of your message, where I don't agree is that you have assumed that the current intention is to "drive down wages and conditions and boost business profits". I'm going to be a little more optimistic (call it naive if you must) and assume that the intention is to "drive down wages and conditions" but "maintain" business profits? Wouldn't employment increase, local costs come down accordingly and our competitiveness in overseas markets increase?

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      February 11, 2014, 11:24AM
    • @Wwwish "buying votes" the tactic employed by John Howard, the most wasteful PM of modern times.
      @Linux an election would get rid of Tony Abbott & his ilk and replace them with a gov't intent on growing the economy That's the only fix I see necessary. In the 5 months they have been there the Libs have done absolutely nothing to grow the economy, instead it is contracting. The contraction will accelerate after the May Budget when Hockey takes $30bn out of circulation.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 11:25AM
    • There's one country where car manufacturing is booming and it will surprise some - Spain.

      Wages have not increased since the GFC, there's no slacking off, workers are much, much more dedicated and unions are no longer bull headed..

      Amazing what 25 % unemployment does to attitudes.

      Commenter
      Catch 22
      Location
      Date and time
      February 11, 2014, 11:34AM
    • For those of you who are saying that the gov't should not support local manufacturing because the cost is too high should remember that each and every one of those soon-to-be unemployed workers and their families will have their hand out for the dole and related benefits. Plus they will no longer be paying tax on their wages and their employers will no longer be paying tax on their profits. The amount the gov't saves in industry subsidies will lose several times over in higher benefit payments and lost taxes. The gov't is only subsidising the car makers. The presence of the car makers keeps tens of thousands of unsubsidised component makers in jobs. Let the car makers' jobs go and ALL of the jobs go, whether subsidised or not.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 11:37AM
    • @Gareth how can profits increase if Australian workers, those that still have jobs, are earning less money. Yes business costs are lower from reduced wages but so is turnover from reduced spending power. Lower wages may make us more competitive but in what. Once you lose an industry it's gone. I give credit to Liberal Sharman Stone for making that clear.

      Commenter
      mitch of ACT
      Location
      Date and time
      February 11, 2014, 11:43AM
    • Evertything is not just economics. There is social cost associated with this and which is far greater than economics. Supporting car industry would have been a cheaper option. Even Europe and US provide subsidy to their farmers to sustain. Australia needs to do the same for it's manufacturing industry. At the same time unions are also to be blamed for their stubborn behaviour.

      Commenter
      xyz
      Location
      Date and time
      February 11, 2014, 1:44PM
    • @linus. Yes the wages are high that increases the cost of production. We cannot consider wages in isolation. Wages have to match the cost of living and housing. Housing is one the most expensive in the world, rising food prices, education, medical expenses,and denist rip offs etc. The wages and bonuses of CEO's, exectuives and pollies must come down as well. We have world's most expensive pollies. Australia Post CEO gets 4.8 million as compared to US post CEO who gets just $500000. The situation is same in all other organisations. Start cutting wages from top to change things.

      Commenter
      xyz
      Location
      Date and time
      February 11, 2014, 1:55PM
  • Car industry finished thanks to Dutch Disease. Glenn said there was no Dutch Disease. What have you got to say Glenn?

    Oh and Cadbury is getting a bailout and their workers have better entitlements than SPC-A. Explain that one Phoney Tony.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 10:44AM
    • Being in opposition has got you rattled Lib, I like it!

      Commenter
      Liberace
      Location
      Broadbeach
      Date and time
      February 11, 2014, 10:51AM
    • Apparently it is a tourist destination

      Commenter
      linux
      Location
      Date and time
      February 11, 2014, 10:53AM
    • Housing boom!

      Commenter
      Glen
      Location
      lookng for a pot at the end of the rainbow
      Date and time
      February 11, 2014, 11:02AM
    • Get it straight. its Australian disease
      A more virulent form

      Commenter
      mushy
      Location
      Date and time
      February 11, 2014, 1:55PM
  • EDs: Sorry all, the chart isn't updating. We're working on getting it going again.

    Commenter
    Eds
    Location
    Date and time
    February 11, 2014, 10:35AM
  • Oh I though Janet Yellen was speaking on Thurs night. TONIGHT is even better, she can reverse the downtrend with a few simple words and we move up from.

    She will no doubt hint at less/slower tapering from here.

    Commenter
    GS
    Location
    Date and time
    February 11, 2014, 10:34AM
  • Not sure why MMS are copping it this morning, surely people don't use Novated Leasing to buy a second rate car. I drive a BMW

    Commenter
    Big Allan
    Location
    Prahran
    Date and time
    February 11, 2014, 10:25AM
  • BKN profit -18% dividend -25%. Slightly better than their guidance figures. they have made a proposal to buy all Austin Engineering scrip. No binding agreement as yet. (Commsec).

    Commenter
    It's All About Making Money
    Location
    Lennox Hd
    Date and time
    February 11, 2014, 10:24AM
    • I almost made the mistake last week of buying BKN as a dividend play. Luckily I had a feeling their earnings weren't sustainable. MIght be a better investment after the 10% SP fall.

      Commenter
      Yin or yang
      Location
      Date and time
      February 11, 2014, 12:06PM
    • @Yin and Yang - Even with a 15c div this gives a 6 month yield of 3.2% (about 6% for the year) at $4.65 share price.
      Keep in mind it is unfranked this time but still a better return than many other shares.
      If it broke through its last mid year low of about $4.52 it may go lower.
      One has to question the long term profit from a mining services company. Balanced thinking, i would suggest, would say it will be a good share as mining, despite its downturn, is still very strong.

      Commenter
      It's All About Making Money
      Location
      Lennox Head
      Date and time
      February 11, 2014, 12:44PM
  • The big 4 are back in town!

    Commenter
    Liberace
    Location
    Prahran
    Date and time
    February 11, 2014, 10:22AM
  • Car industry in Australia finished thanks to the Unions, well played boys!

    Commenter
    Aussie Al
    Location
    Adelaide
    Date and time
    February 11, 2014, 10:20AM
    • Yes plenty of Union leaders in the Board room.

      Commenter
      Greven
      Location
      Sydney
      Date and time
      February 11, 2014, 10:56AM
  • Feels like a Jonaze effect day to me

    Commenter
    Aloysius
    Location
    Prahran
    Date and time
    February 11, 2014, 10:14AM
    • wrong lib, will be flat all day, waiting on Yellen tonight

      Commenter
      Goran Adzic
      Location
      Broadbeach
      Date and time
      February 11, 2014, 10:31AM
  • Been thinking about buying QBE, price looks attractive, any comments?

    Commenter
    "P" Plater
    Location
    Tassie
    Date and time
    February 11, 2014, 10:11AM
    • UBS agrees with you (and so do I). They raised QBE to a buy today...

      http://www.fnarena.com/dsp_recommendations.cfm?searchsymbol=QBE

      Commenter
      ExJayOh
      Location
      Earth
      Date and time
      February 11, 2014, 10:35AM
    • Morningstar also has QBE as Outright Buy.

      Commenter
      Ronn
      Location
      Sydney
      Date and time
      February 11, 2014, 10:43AM
    • They've been calling QBE a buy for years and for years it comes out of the blue with something and it tanks! Literally for the last 6-7 years, something happens & it just drops. 2 big ones so recently.

      Why does it keep getting called a buy? It needs to prove itself first.. which it hasn't for 6+ years.

      Commenter
      GS
      Location
      Date and time
      February 11, 2014, 10:50AM
    • Cheers for the feedback guys!

      Commenter
      "P" Plater
      Location
      Tassie
      Date and time
      February 11, 2014, 10:59AM
    • OK....bought some QBE. Giving them another chance.
      Last time I had them I sold them at $31.50 in 2007...what a difference a few years makes.
      The UBS upgrade helps explain the jump in price today.

      Commenter
      adam
      Location
      moss vale
      Date and time
      February 11, 2014, 11:20AM
    • I don't rate it. What many people don't realize is insurance companies are rarely a good investment. The reason Warren Buffet does well is because he takes the premiums and invests them effectively and makes his profits that way. Most insurance companies don't invest their funds as well. That's my opinion anyway. Good luck.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      February 11, 2014, 11:50AM
    • I used to have, tried several times, made big money from 9--14 then gave up, just look at their charts for the past 2 years and run em alongside the asx 200 or the banks
      They have a history of disappointing in their earnings

      Commenter
      stu
      Location
      Date and time
      February 11, 2014, 2:10PM
  • David Jones directors and chairman resigns. Paul Zahra reappointed as CEO.

    Rearranging decks chairs of Titanic..

    Commenter
    Ronn
    Location
    Sydney
    Date and time
    February 11, 2014, 10:00AM
  • Very very weak half for COH. Only saving grace was strong growth in Q2 which should feed into a decent 2nd half. Still need the AUD to depreciate against the USD and EURO by another 10-20% over the next year or two.

    Commenter
    willo
    Location
    syd
    Date and time
    February 11, 2014, 9:51AM
    • When house price increases are reported, is some allowance or estimate made for the capital spent on renovations, extensions, etc by many home owners?

      If not, surely all the 'increases' are overstated?

      Commenter
      Cosmonaut
      Location
      Spaceship Earth
      Date and time
      February 11, 2014, 2:27PM
  • Banks will continue to hold while the property market is propped up by foreign investment. Apart from wealth on paper we dig a few holes to sell out raw materials. What else do we offer???

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    February 11, 2014, 9:50AM
    • too early for this al pal

      Commenter
      gee up
      Location
      Date and time
      February 11, 2014, 10:09AM
    • Hearing Aids?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      February 11, 2014, 10:17AM
    • Wrong @Liberator, they will not only hold they will soar back to record levels.

      Commenter
      Liberace
      Location
      Prahran
      Date and time
      February 11, 2014, 10:35AM
    • We offer increasing unemployment, thats what.

      Commenter
      mushroom
      Location
      Date and time
      February 11, 2014, 10:54AM
    • No doubt they will push prices higher! Why else would I be focusing on property the last 8 months. Greed will give me a nice return this FY also!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      February 11, 2014, 11:40AM
    • I don't understand this thing..."we".

      Who are the "we"?...

      All belongs to China. All will be taken by China. China will never pay for its natural resources needs again because it has it's free supply down under. All mining companies currently trading with China will have to reimburse China for all the years of charging for the raw materials exported.

      Commenter
      Financial Judge
      Location
      Sydney
      Date and time
      February 11, 2014, 2:47PM
  • Ed, you appear to be reporting the S&P500 incorrectly. It was +0.16 at close.

    EDS: Thanks for the heads up, should be fixed now.

    Commenter
    Panhadler
    Location
    Date and time
    February 11, 2014, 9:33AM
Comments are now closed