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Markets Live: First monthly loss since June

Date

Australian shares record their first monthly loss since June, weighed down by major banks going ex-dividend and a number of profit downgrades coming out of AGM season.

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That's it for this week and month - have a great weekend.

Here's the evening wrap of today's session.

The dollar has clawed its way back to just under 91 US cents, nearly half a cent above the day's lows.

The currency has still lost nearly six cents over the past six weeks, facing combined pressures of a nearing cut to the US central bank's stimulus and jawboning by top RBA officials.

However, the dollar's plight might be relieved next week, when the Reserve Bank decides on interest rate policy (Tuesday) and GDP growth data is released (Thursday).

"We expect data next week to be fairly positive and the Reserve Bank won't signal a rate cut so we don't see any impetus for the Aussie dollar to go below 90 cents," said Annette Beacher, head of Asia Pacific research at TD Securities in Singapore, who sees the Aussie at 92.00 US cents by the end of the year.

Economists widely expect the RBA will keep rates unchanged at a record low of 2.5 per cent. Financial markets see a very slim 8 per cent change of a cut on Tuesday. Swap market pricing implies 5 basis points of tightening over the next 12 months.

And finally, for the month:

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For the week:

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Here are the biggest winners and losers from the ASX200 today:

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We mentioned Saputo lifting its stake in Warrnambool, so we should also note that Fonterra has increased its holding in Bega Cheese to 9.1 per cent, buying an additional 3 million shares. Stephen Mayne uses that to take a swipe at today's developments in Canberra:

For the week, the ASX200 fell 15.91 points, or 0.3 per.

For the month, it lost 105.5 points, or 1.9 per cent.

The market has finished lower, with the benchmark S&P/ASX200 falling 14.3 points, or 0.3 per cent, to 5320. The broader All Ords slipped 12.3 points, or 0.2 per cent, to 5314.3.

Virgin Australia chief executive John Borghetti has demanded the government offer it the same level of support as it plans to give Qantas in light of suggestions it will guarantee the national carrier’s debt.

Borghetti issued an open letter the federal government this afternoon in which he hit back at Qantas’s attempts to gain financial support from Canberra.‘‘If Australia truly wants a level playing field then any measures to support Qantas should be offered to Virgin Australia,’’ he said today. ‘‘This country needs at least two strong airlines’’.

Lashing out at recent comments from its rival, Borghetti said Virgin had ‘‘succeeded against the odds’’ against a ‘‘very dominant competitor’’ which was three times its size.

Borghetti also said any suggestion that Virgin’s major shareholders were ‘‘deliberately running our activities at a loss is absurd’’.

He also described suggestions that Virgin had access to cheaper levels of debt because of its shareholder register were also ‘‘false’’.

Read more

With the ASX lagging in November due to major banks going ex-dividend, a number of IPOs and earnings downgrades, investors will be hoping for a ‘Santa Clause’ rally.

“A lot of bank shareholders will get a nice Christmas present with some big dividend cheques hitting their doormats just before Christmas, so that will help, as people put that money back into the market,” says BBY private client advisor Henry Jennings:

  • Banks will play their part, but they are unlikely to push much higher.
  • The banks, although they’re not massively expensive, they’re not in bubble territory, they’re certainly not cheap, they’re pushing the boundaries of where they really should be on fundamentals.
  • With iron ore holding at highly profitable levels, big miners like BHP, Rio and Fortescue are the obvious sources of growth.
  • BHP, Rio and Fortescue have been throwing up a lot of cash, paying down debt. I suspect, the next leg, if it happens, will have to come from those stocks.
  • I think by the time we work through December we should get some more confidence. Hopefully we’ll get that Santa Clause rally which should take us up to that 5600 level.

So what's going to happen with GrainCorp after the federal Treasurer blocked a full takeover by ADM?

PAC Partners agribusiness analyst Paul Jensz says while GrainCorp is in a good position, it's not in a strong position

  • With the backing of ADM and the large amount of capital that they were putting into their storage and handling systems, they would have been able to invest through the cycle.
  • The problem with a standalone business is that are they are really going to be able to do ... a $50 million investment program when there are lower volumes and lower cash flow and they are up against very large companies that can invest in those tough times. So it takes it to another level of risks."

ADM has to hold its 19.85 per cent stake in GrainCorp until the end of this year, and so will have some time to think about the next step. It has a provision where it could increase its shareholdings by 3 per cent every six months.

Joe Hockey said he's inclined to approve any proposals from ADM to increase its GrainCorp shareholding up to 24.9 per cent.

"If they want to get up to 24.9 per cent quickly, they have to have an extraordinary general meeting to do that in one swoop, so it's a complexity you don't need," Jensz says.

"It comes down to how fast ADM wants to grow in this region. If they think it's an imperative to grow fast in this region, then ADM can do it by themselves, or they can do it with Wilmar, where they have a 16 per cent stake in Singapore, and they have a 20 per cent stake here in Australia [in GrainCorp]."

The federal government has appointed key advisers to prepare for the sale of health insurer Medibank Private, increasing the prospects it might be announced in next year’s budget.

Finance Minister Mathias Cormann announced a scoping study panel that would report back in February so its findings could be considered ahead of the 2014-15 budget.

Lazard is the business adviser, Herbert Smith Freehills the legal adviser, Ernst and Young the accounting adviser while the Australian Government Solicitor is advising on probity matters.

The study will provide recommendations to government on all aspects of the proposed sale including method, timing, costs, regulatory issues and estimated proceeds.

The entity has previously been valued at $4.5 billion.

Here's the daily Warrnambool bulletin: Canadian dairy giant Saputo’s takeover of Warrnambool Cheese and Butter is moving ahead, with the overseas company now owning more than 9.6 per cent of its target.

Saputo is offering $9 for each Warrnambool share, and $9.20 if more than half of Warrnambool’s shareholders take up the offer.

The Canadian company now holds 9.65 per cent of Warrnambool shares, up from 4.8 per cent earlier this week.

Warrnambool shares are down six cents at $9.26.

Highlighting the Australian share market's poor performance this month, no major sector has posted gains.

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The Australian market is heading for its first monthly loss since June, while many of its international counterparts are posting strong gains.

Major banks going ex-dividend, plus an array of IPOs taking cash out of the market are a contributing factor, says BBY private client advisor Henry Jennings.

“We’ve also had a lot of AGMs that have been less than stunningly impressive, especially from mining services. That hasn’t really helped sentiment.”

With financials being the major engine of growth on the ASX this year, a soft month for them was likely going to result in a loss for the wider market.

“We haven’t really seen resources stocks really pick up that slack in terms of the big ones like BHP and Rio, who have sort of been flapping around a bit this month.”

With just over an hour of trade left for the month, the ASX200 is down 1.9 per cent in November.

This is how it is stacking up against its global peers:

  • Nikkei: +9.7%
  • Hang Seng: +2.8%
  • Shanghai: +3.9%
  • South Korea: +0.6%
  • Singapore: -1.1%
  • FTSE100: -1.1%
  • EuroStoxx50: +0.8%
  • Dow Jones: +3.6%
  • S&P500: +2.9%

The Business Council of Australia has called on the federal government to take steps to show the world that it does in fact welcome foreign investment, following Treasurer Joe Hockey's rejection of ADM's bid for GrainCorp.

"On the face of it, the Treasurer’s decision to reject ADM’s proposed acquisition of GrainCorp risks undermining the federal government’s statement that Australia is open for business," the chief executive of the BCA, Jennifer Westacott, said.

"It's crucial that, where possible, the government further details the competitive issues that it was concerned about and how this relates to the national interest test so it is clear to global investors what the unique circumstances of this case are.

"It is important this decision does not increase uncertainty in the global community about the rules of the game on competition and Australia’s policy settings on foreign investment generally."

 

Still controversial ... Lynas' Malaysian plant drew protesters to the AGM.

Still controversial ... Lynas' Malaysian plant drew protesters to the AGM.

Rare earths miner Lynas Corp avoided a ''first strike'' by the skin of its teeth at today's AGM, with 24.6 per cent of votes against its remuneration report based on a poll.

Slightly more than 25 per cent of votes were against the report based on proxies voted before the meeting but votes from the floor got the company over the line.

The report included a $953,000 payment to Nick Curtis for resigning as CEO but remaining with the company as chairman, which proved as controversial as the company's recently operational processing plant in Malaysia which attracted vocal protests outside, and inside, the meeting.

Mining giant Rio Tinto owes a moral debt to the people of Gove, Prime Minister Tony Abbott says.

Abbott said the company’s decision to suspend alumina production at its Gove refinery in the Northern Territory was bad news for the 1500 workers, but that he understood the company hoped to offer them other jobs within the Rio group.

‘‘The people who I feel very sorry for are those who have bought homes and businesses in Gove on the expectation of a very vibrant, ongoing, continuing economy and who are now in a very difficult position,’’ the Prime Minister told reporters in Adelaide. ‘‘I think these are the people Rio does have a moral debt to, if not necessarily a legal debt.’’

BankSA has named the head of its small business and commercial banking divisions, Nick Reade, as its new chief executive.

The South Australian lender made the appointment after managing director Jane Kittel was named general manager of customer experience in Westpac’s financial services division.

Prime Minister Tony Abbott says he has not seen a specific proposal on the future of Qantas, but wants the airline to be ‘‘strong and continuing’’.

Treasurer Joe Hockey has called for a national debate on whether to loosen the airline’s foreign ownership rules after Qantas called for urgent changes to remain competitive.

Abbott said no specific proposal had come forward, but there were some basic principles that should be upheld.

‘‘Qantas is a great Australian icon and the government wants to see a strong and continuing Qantas,’’ he said. ‘‘And what we want to see is a strong and competitive aviation sector here in Australia.’’

Now isn’t a time for blame, rather for trying to save East Arnhem Land following Rio Tinto’s decision to suspend operations at its Gove alumina refinery, federal MP Warren Snowdon says.

Mr Snowdon on Friday said the NT and federal governments could have done nothing further to change Rio’s decision, noting the company’s $1 billion Gove refinery loss since 2007 and its $700 million capital spend.

‘‘They’ve made some pretty poor decisions over time,’’ Mr Snowdon said.

‘‘But there’s not much point blaming people. We need to try to get the best possible outcome for the region.’’

He said it was important to understand what the closure will mean for the provision of services such as health, education, transport, infrastructure, freight and retail - because that would have flow-on effects from Nhulunbuy to the whole region.

‘‘You’re pulling the guts out of the community and we need to be contemplating how to provide jobs now and into the future,’’ Mr Snowdon said.

He said there was a danger of a mass exodus from the town if people couldn’t find job security.

The planned launch of a series of gas export projects in Queensland means NSW is facing gas shortages within five years, as is Queensland.

The forecast, by the Australian Energy Markets Operator, the body which manages the energy market, comes as gas prices are set to skyrocket due to the start of the east coast exports.

The forecast shortages also comes amid concerns over allowing coal seam gas mining in NSW and Victoria, which could ease shortfalls.

The export  projects will consume up to 250 terajoules a day of gas in Queensland and approximately 50-100 terajoules of gas redirected from NSW by 2019.

The looming shortages in NSW could be addressed by upgrades to pipelines which would enable more gas to travel from the Bass Strait to NSW or by tapping gas locked in coal seams, the report said.

Foreign companies will have to factor in some level of political risk when they consider investing in Australia following the blocking of the ADM bid, PAC Partners agribusiness analyst Paul Jensz says.

The GrainCorp case adds another level of complexity for overseas investors "that no matter how economic rational a decision might be and how they appease the stakeholders, there is a political layer that is a little bit tough to predict":

  • [It] places a bit of a discount and a bit of uncertainty around the investment in agriculture in Australia.
  • Companies try and deal with external risks as well as they can. Australia has been seen as a political stable, sensible place to put capital. You've got to pay a lot of money for assets here.
  • You go to the Black Sea and the capital costs are a third of what they are here but there are a lot of political risks. Whereas here, you pay a premium for capital, a premium for assets and part of that premium is that you are quite sure about what's going on.
  • That surety has not totally been dismissed, but it's been challenged.

Joe Hockey’s decision to block Archer Daniels Midland’s $3.4 billion takeover of GrainCorp is nakedly political, writes BusinessDay's Malcolm Maiden:

International investors now know that while Treasurer Joe Hockey and Prime Minister Tony Abbott have declared that Australia is open for business, it is not open for business if the business proposal worries cliques within the Coalition: Nationals leader Warren Truss and  deputy leader Barnaby Joyce led the campaign against the deal.

Hockey said the Foreign Investment Review Board was divided about the national interest implications of the takeover, and ADM certainly was a late mover, bidding after two other foreign takeovers in the industry for a business that would have roughly doubled foreign ownership of grain handling to about 70 per cent.

Hockey still had the final call on the bid, however, and in his announcement he didn't serve up compelling reasons for coming down against it.

The grain industry needed more time to transform itself after being deregulated in 2008, he said, and industry participants and growers in eastern Australia where GrainCorp stores, transports and exports grain in particular had ‘‘expressed concern that the proposed acquisition could reduce competition and impede growers’ ability to access the grain storage, logistics and distribution network’’.

Read more

The dollar has just plumbed the day's low of 90.56 US cents, its lowest in nearly three months.

The currency has been under pressure since governor Glenn Stevens raised the possibility of intervention last week, but today's sell-off has been linked to the Treasurer's rejection of ADM's bid for GrainCorp.

‘‘’The ADM decision added some pressure to a weakened Aussie after Stevens recently referred to intervention,’’ says Westpac forex strategist Robert Rennie. ’’It’s a concern when you consider the importance of foreign direct investment flows.’’

The currency has fallen steadily over the past six weeks, losing six US cents since October 25.

The dollar over the past three days.

The dollar over the past three days.

Chris Corrigan, a key figure in the 1998 waterfront dispute, has resigned from the board of James Packer’s Crown Resorts.

Mr Corrigan has been a member of the casino operator’s board since 2007.

No reason was given by Crown for the resignation.

Mr Corrigan was in charge of Patrick Corp during the 1998 waterfront dispute in which Patrick tried to sack thousands of unionised workers, but was overruled by the High Court.

Crown shares are down 0.5 per cent at $16.90.

The Australian government has sold $800 million of March 15, 2019 Treasury bonds.

The Australian Office of Financial Management (AOFM), which conducts bond auctions on behalf of the government, said the bonds were sold for a weighted average yield of 3.5060 per cent.

The sale attracted bids totalling $3.323 billion, giving a coverage ratio of 4.15.

The Graincorp decision by the federal government "raises questions about the extent to which Australia is really 'open for business' in the way that the Prime Minister said on election night", chief Australian economist for Bank of America Merrill Lynch, Saul Eslake, says.

Eslake says that the decision has been a litmus test for how the new federal Coalition government would respond.

"The impact is fairly clear - that this is a government in which the National Party's influence is greater than its numbers would suggest," Eslake says.

"It underscores the concerns I expressed in our public research before and immediately after the election about the likely malign influence of the National Party on economic decisions under this government, and the possibility that this government could turn out to be less like the Howard government in its first two terms and more like the Fraser government, another government in which the Country Party as it was then called exercised a malign influence than would be good for Australia.

"The risk as I've identified for a long time with this government is that while there are some genuine economic liberals in it, like Hockey, Turnbull, Robb and Sinodinos, that the risk always was that they would be outweigh when it came to key decisions by the National Party and Tony Abbott and other economic conservatives in the present government."

Almost half the investment returns made by Australian savers over the past five years has gone on management fees.

This extraordinary finding, from funds manager Chris Brycki, is based on a study of 497 managed funds; and it mirrors what is going on in superannuation.

Over the past five years, the pace of this gravy train has only been quickened by industry lobbying and government favours.

The Australian Securities and Investments Commission provided the big retail funds with exemptions from having to disclose their fees in their marketing materials.

That was five years ago, after lobbying from the peak super fund body - then called IFSA (Investment and Financial Services Association) and now FSC (Financial Services Council).

The Brycki research of the actual fees charged by the wrap platforms showed the average management cost of a balanced fund at 1.91 per cent. The basic management fee that is: before any establishment fees, contribution fees, exit fees, switching fees, performance fees, financial planner fees and buy/sell spreads.

In dollar terms, the fee-take from the funds managers is more jarring. Jordan Eliseo, chief economist at ABC Bullion, calculates - assuming $150,000 as a starting salary for a couple earning the average salary of $70,000 each - and rounding up the $140,000 to $150,000 - super contribution over life would be $830,000 and fees $338,000.

Read more

"Industry funds are in bed with the big investment managers": Chris Brycki.

"Industry funds are in bed with the big investment managers": Chris Brycki. Photo: AFR

Graincorp shares have plunged 26.3 per cent to $8.30 upon their resumption of trade.

Prior to the rejection of the ADM bid by the Federal Treasurer, GrainCorp last traded at $11.20.

Before the ADM bid was lodged in late October last year, GrainCorp was trading at around $8.70 a share.

ADM has a 20 per cent stake in GrainCorp and the Federal government has said it will allow the US grains group to raise its stake to 25 per cent.

 

The Graincorp decision by federal Treasurer is a unique one and can't be used as a precedent for future acquisitions, Morningstar senior analyst Peter Rae says.

"There was probably a greater chance that it would have gone through, but there has been a lot of pressure brought to bear on the Treasurer from his Coalition partners and so on balance they've decided not to approve it. 

"They've actually approved the Saputo takeover of Warrnambool Cheese & Butter so I think you just to look at each on a case-by-case basis and given that Graincorp holds some pretty strategic assets and pretty strong share of the east coast grain-handling infrastructure, there was a lot of pressure brought to bear too from the growers and other interested stakeholders.

"I don't think it means it's going to affect future takeovers. As the Treasurer pointed out in his release, this is only one they've knocked back since they've been in. I think in this case you can't extrapolate into any future acquisitions. You have to look on it on a case-by-case basis."

We here at Markets Live are proud to say BusinessDay journalists Chris Vedelago and Adele Ferguson were amongst the winners at last night's Walkley Awards for excellence in journalism.

The pair exposed systemic wrong doing at the Commonwealth Bank's financial planning arm, which put hundreds of retirees' savings into high-risk products, without permission, and ASIC's inability to protect consumers.

Here's a quick snippet of the original article:

When a group of Commonwealth Bank employees agreed to meet in October 2008, they settled on the Buena Vista Hotel in Sydney's Mosman, a place they could huddle incognito to hatch a plan that would change their lives forever.

By the end of the lunch, the men had agreed to become whistleblowers, using the pseudonym the "ferrets" to tip off the corporate regulator about the goings-on at CBA's financial planning arm, specifically one of the bank's top financial planners, Don Nguyen, who had worked for the bank since 1999.

Five years on, one of the whistleblowers is dead after passing away in his sleep at 35. The second, the ringleader, has agreed to go public to warn of the perils of being a whistleblower after leaving the bank earlier this year. The others still work in the industry but want to remain anonymous to avoid the backlash of being a "dobber".

Read more

And here is the special index for the series: Planners go rogue

Savings house: the 'money box' headquarters of CBA in Sydney.

Savings house: the 'money box' headquarters of CBA in Sydney. Photo: Sahlan Hayes

Qantas is privately pushing the government to give it the financial support the national carrier needs to ensure it has access to debt from global markets at cheaper rates.

As it faces a pre-tax loss this year reaching into the hundreds of millions of dollars, Qantas has been canvassing the possibility of the government guaranteeing its debt, and thereby securing its prized investment-grade credit rating. The latter is vital to the airline gaining debt at cheaper rates than its rivals.

During the global financial crisis, the government guaranteed Australian banks' borrowings to global investors.

Qantas was tight-lipped yesterday about what it wanted from the government after chief executive Alan Joyce conceded it was "not realistically achievable in the current Parliament" to change laws which limit foreign ownership in the airline at 49 per cent.

Qantas shares are up 0.6 per cent at $1.232.

Read more

Graincorp will start trading again at 11.40am.

Pre-market orders indicate there will be a slump of around 30 per cent.

As the drums roll for National Australia Bank's annual meeting on December 19, the spotlight will turn to the issue of board renewal, including the bank's chairman Michael Chaney, Adele Ferguson writes:

The talk in investment circles is that Chaney is carefully considering his future at NAB, which would not be a surprise given he is the longest-serving chairman in the banking sector - he has sat on the board for nine years and served as chairman for eight of those.

Chaney has been discussing tenure with investors in the lead-up to next month's annual meeting. The talks come as each of the other big four banks have all seen a change at the very top in the past few years.

However, Chaney has been telling investors he expects to see through a full 10 year term. This will take him through to 2015.

Read more

NAB chairman Michael Chaney.

NAB chairman Michael Chaney. Photo: David Mariuz

The Treasurer's decision to reject ADM's bid for GrainCorp likely came down more to a sense of national pride surrounding Australian assets among voters than it did economic or food security concerns, says AMP chief economist Shane Oliver:

  • At the end of the day, a lot of these things come back to the politics of perception, that we’ve got to keep it Australian owned. That is politics. It’s not economics and it’s not military security either.
  • The government would still have had the power to act, if necessary, on security issues relating to the port or grain stocks regardless of whether the assets were foreign or locally owned. That grain is still being produced in Australia and, ultimately, if there is a war, the federal government can intervene to make sure it stays in Australia.
  • The decision is unlikely to discourage foreign investment in Australia. History tells us these decisions are few and far between. I doubt that it’s going to stop foreign investors from looking at other Australian companies in the future.

Here's how the sectors have opened:

  • Consumer discretionary: -0.2%
  • Energy: -1%
  • Financials: -0.2%
  • Telecommunications: -0.1%
  • IT: -0.4%
  • Materials: +0.5%

The GrainCorp news is going to be bad news for shareholders, says Shannon Rivkin, a director at Rickin Securities.

"The problem now of course is the recent numbers from GrainCorp look pretty scary, so my feeling is a downside on GrainCorp is a lot lower than what it was trading at before this was announced."

The benchmark S&P/ASX200 index is up 3.2 points, or 0.06 per cent, at 5,337.5, while the broader All Ordinaries index is up 3.1 points, or also 0.06 per cent, at 5,329.7.

In a shock to absolutely no one, reactions are, well, mixed, from both sides of politics on the news of the GrainCorp sale being blocked.

Shadow Treasurer Chris Bowen was not as enthusiastic, saying that Mr Hockey's decision showed that "the greatest obstacle to foreign investment in Australia is the Cabinet". 

 "This was the first big test for Mr Hockey and his claim that Australia is open for business – and he has failed," Mr Bowen said. "The pre and post-election bravado about free markets and Australia being open for business has given way to the reality of an openly divided and dysfunctional government."

The rejection of the ADM bid for GrainCorp now puts the spotlight on two other foreign takeovers before the Foreign Investment Review Board, both from China.

One is the bid by the parent company of Yancoal to buy out minority investor interests.

The other is the bid by the Chinese government arm State Grid to acquire a large part of the Singapore Power equity held in its Australian electricity and gas businesses.

The deadline for concluding this transaction was recently extended to December 31.

The Australian dollar slipped slightly but has remained trading around 91 US cents this morning following the federal Treasurer Joe Hockey's rejection of Archer Daniels Midland's bid for Graincorp.

Overnight, the local currency shed most of its gains following the better-than-expected capital expenditure intentions, which pointed to early tentative signs that the non-mining sectors of the economy could start to fill the gap left by a peak in resources investment.

The currency rose as high as 91.49 US cents last night but fell to 90.83 US cents early this morning.

With one day left of trading in November, the Australian dollar has shed more than 4 per cent of its value this month, the biggest monthly loss since June.

Mining giant Rio Tinto will suspend alumina production at its Gove refinery in the Northern Territory where 1,500 people are employed.

Rio Tinto said it would focus on its bauxite operations after determining the refinery was no longer a viable business in the current market environment. Rio Tinto will now work on the scope and phased timing of THE suspension, it said in a statement.

The battle for GrainCorp looks to be over, with Treasurer Joe Hockey blocking the sale of the grain handler to US company Archer Dennis Midlands.

The Treasurer called an early morning press conference in Sydney on Friday, at a time when both markets in the US and Australia were closed.

Mr Hockey said the bid was one of the "most complex" cases to come before the Foreign Investment Review Board.

‘‘For me to reject this proposal, I had to determine that the acquisition of GrainCorp by ADM is contrary to the national interest,’’ he said.

‘‘Based on all the available information, I have now made that decision.’’

This comes after ADM enhanced its takeover offer of GrainCorp earlier this week, promising an extra $200 million investment in GrainCorp's grain storage and handling network.

Read more

I made a call in the national interest": Joe Hockey explains his decision to block the GrainCorp.

I made a call in the national interest": Joe Hockey explains his decision to block the GrainCorp. Photo: Rob Homer

What you need2know today:

  • SPI futures up 2 points to 5,354.
  • AUD fetching 91.09 US cents, 93.12 yen, 66.96 euro cents, 55.75 penceWall St (closed for Thanksgiving); Wednesday's close: S&P500 +0.3%, Dow Jones +0.2%, Nasdaq +0.7%
  • In Europe, Eurostoxx +0.3%, FTSE100 +0.1%, CAC +0.2%, DAX +0.4%
  • Spot gold rises 0.5% to $US1243.84 an ounceBrent oil slips 0.4% to $US110.86 per barrel
  • Iron ore gains 0.3% to $US136.40 per tonne

Read more

Good morning. Welcome to the Markets Live blog for Friday.

Contributors: Jens Meyer, Max Mason, Luke Higgs

This blog is not intended as investment advice

BusinessDay with agencies

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  • ORG needs an organ transplant. Short. $$$$

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 5:16PM
  • $A has a black eye. I like it!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 5:14PM
  • Good month for the shorters. No coincidence that most bank shorts have gone on in the last month.

    BOQ dropping and in the money.

    Enjoy!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 5:09PM
  • Oh dead. There must be a better way to spell 'their' when one's job is journalism.

    Commenter
    Davidvk
    Location
    Sydney
    Date and time
    November 29, 2013, 4:46PM
  • So are we going to see a last minute surge as fund managers rush to window-dress the month's results so as to charge their clients fees based on artificial values and show a false level of performance.

    Commenter
    mitch of ACT
    Location
    Date and time
    November 29, 2013, 3:58PM
    • Not too sure you have a grasp of this. Name an instance and a mainstream manager. Regurgitating someones conspiracy theory perhaps.

      Commenter
      Scotty
      Location
      Kew
      Date and time
      November 29, 2013, 4:14PM
    • "Not to sure you have a grasp of this."

      lmao!

      Commenter
      Laurel & Hardy
      Location
      Markets Live
      Date and time
      November 29, 2013, 4:48PM
    • No, we are not.

      Commenter
      Irish Phil
      Location
      Date and time
      November 29, 2013, 4:58PM
  • Interesting late push by the big 4, NAB again the standout. Look for the stampede on Monday

    Commenter
    Fan 0f Allan
    Location
    Shortland Street
    Date and time
    November 29, 2013, 3:47PM
    • a buy entry is close.
      NAB the pick, too soon to buy IMHO.

      Commenter
      no banks .. no party!
      Location
      Date and time
      November 29, 2013, 4:55PM
  • We might get a little bit of window dressing late today to make the portfolio look good. I think the Xmas bounce will start on December 2, the anniversary date that I met my beautiful wife.

    Commenter
    Happy wife, happy life!
    Location
    Date and time
    November 29, 2013, 3:33PM
    • How boring, it is about the market, not your love life

      Commenter
      maui
      Location
      Date and time
      November 29, 2013, 4:43PM
  • The people who I feel very sorry for are those who have bought homes and businesses in Gove on the expectation of a very vibrant, ongoing, continuing economy and who are now in a very difficult position,’

    Read more: http://www.smh.com.au/business/markets-live/markets-live-stocks-take-a-thanksgiving-break-20131129-2yfab.html#ixzz2m0C8raDw

    I also feel sorry for them, but what the hell do people think they are doing when they lock their own lives and savings in the strength of the Australian economy with regard to mining. Has'nt anyone learnt anything from Broken Hill etc.?

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 29, 2013, 2:37PM
    • There's lots of bubble priced properties bought with borrowed money reliant on boom/bust industries like mining in Australia. There's a lot of tragedy out there.

      Commenter
      Gordon Akman
      Location
      Broadbeach
      Date and time
      November 29, 2013, 3:30PM
  • In a moment of weakness I managed to get convinced there were great things possible for ESI. My mistake. Dud stock IMO and somewhat insipid AGM today. Sold most of my small parcel for a smallish loss. There were some claims on this blog of very large holdings. Good luck but I can only see a drift lower..

    Commenter
    Yin or yang
    Location
    Date and time
    November 29, 2013, 2:30PM
  • hey remember when the asx was 5300 in october? october 2006 that is!

    Commenter
    5300
    Location
    5300
    Date and time
    November 29, 2013, 2:30PM
  • The fall in the GNC price to $8.77 a moment ago makes the fully franked dividend a little more attractive. 5.13% fully franked based on their last two dividends. And if it goes a little lower ----,

    Commenter
    Optimist
    Location
    Hi
    Date and time
    November 29, 2013, 2:10PM
    • False argument, your maths is wrong.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 29, 2013, 2:26PM
    • $0.45 in Dividends divide by $8.77 as a percentage = as above. 100% Franked and if you have an SMSF and get the imputation credits of 100% Franking good for you. Cheers

      Commenter
      Opto
      Location
      Hi !
      Date and time
      November 29, 2013, 3:30PM
  • So I have some KCN shares that have halved in value - ouch. Should I hang on for gold to bounce back and any thoughts on whether I should sell out of KCN and into another gold share??

    Commenter
    thoughts??
    Location
    Date and time
    November 29, 2013, 2:06PM
    • My theory is once you sell KCN that money it is gone forever, whereas if you can afford to hold them then they have a 50/50 chance of coming back. I recommend you hold if you own them outright. I don't hold this share but if you believed in it previously then there is a reasonable chance it will come good because gold is extremely volatile

      Commenter
      Golden Oldie
      Location
      Date and time
      November 29, 2013, 2:29PM
    • I'm in too, along with MCN and SLR.

      I expect them (long term) to return to value. I also expect that the lower AU$ will bolster their trading position making their refined ore more valuable and their operational costs decline.

      Let's be real here, GOLD OZ $1,200 US is $1,500 AU$ at 80c per $. If they taper QE the dollar->ozzie will rise. A return to 70c per dollar makes gold $1,700AU an ounce.

      I believe they must be at or near lows.

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      November 29, 2013, 2:33PM
    • If you think it's going much lower again - sell. Buy KCN again at a cheaper price (wouldn't be my pick) or something else. Whilst very hard to be confident re gold stocks in medium term - if you were going to pick one - I'd go with a low cost producer - that will still have earnings at say US$1100 per ounce . KCN - US$1223 per ounce. I like BDR but I have no idea re timing. There will be a bottom that will seem, with hindsight in x months time, very cheap indeed.

      Commenter
      Yin or yang
      Location
      Date and time
      November 29, 2013, 2:48PM
    • I really think that gold is not going to bounce and would not re-invest in it in the short term, myself. Shares may bounce a little but go down again. If you are looking for very very long term holding it may be okay. Al lthe above means nothing if gold goes above $1350 and holds.

      Commenter
      GeoPerth
      Location
      Date and time
      November 29, 2013, 2:59PM
    • Longer term investors are down to an eighth of the $9 they paid! Something is going very badly there. It's not just gold price fall. Get out of gold altogether. It's a con.

      Commenter
      bruiser
      Location
      Date and time
      November 29, 2013, 3:03PM
    • Gold is just unloved at the moment. It looks like you possibly bought the bounce in August. Down 6% for the month - the most in 5 months and off more than 25% for the year to date. The choice is yours but some of the gold stocks are starting to look cheap now and it takes investors time well on the downside to wake up. Personally when I saw a swag of PRU directors buying last week in the announcements I waited some more expecting some more downside and then got in below most of them. The point at which most of us have well and truly had enough is often the buy signal but all the best with your choices.

      Commenter
      PDJ
      Location
      Date and time
      November 29, 2013, 3:03PM
    • nobody,s game to comment, I bought back into BDR this morning at days low hoping it has turned, looks ok today so far

      Commenter
      Jock
      Location
      queensland
      Date and time
      November 29, 2013, 3:04PM
    • Thank you all for your comments - I will digest all and make a decision over the weekend. Stay tuned!!

      Commenter
      thoughts??
      Location
      Date and time
      November 29, 2013, 3:56PM
    • As most say low cost producers will be left if the prices goes sub $1150 oz, KCN wont be one of them [are they hedged at a higher $ for future production?].Wether this means closing mines etc, would depend on the timeframes involved. Research the stocks fully to reassure yourself, there were some short hold opportunities only last month,but those days appear distant now. SLR = 0.58c @ 1100 per once, BDR producing at sub $500, NST and TRY probably stay in the money till sub $1150, i hold all these at present but have bought in/sold out SLR for profits since May 2013,other holdings are more long term. Bounce.....dont know when unless someone kicks off something big and fear plays its role again in the risk factor.

      Commenter
      BearShapedBull
      Location
      Pamplona
      Date and time
      November 29, 2013, 4:00PM
  • Its funny the people one never meets at social gatherings, transport police, parking inspectors, school curriculum advisers, self confessed paedophiles, defrocked clergy, friends of Jon Fain, and US derriere licking traders. Perhaps only associate with normal people.

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 29, 2013, 2:03PM
    • Tend to agree. I've never met anyone game enough to admit they voted LNP.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 2:21PM
    • Mitch, if you go outside the ACT you'll find the opposite. You a paid up ALP member? Be honest.

      Commenter
      Contrarian
      Location
      Date and time
      November 29, 2013, 4:08PM
    • They were out having smoke breaks Mitch lol

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      November 29, 2013, 4:12PM
  • Comm Sec data for NCM.
    7.660 7.670 7.820 7.650 6,195,827 3,115 70,077,452 7.690 7.690
    I must be missing something, the highest price is 7.82 the volume is 6.2M, that's about $48M, not $70M. Am i having hallucinations.

    Commenter
    Peter
    Location
    Sunbury
    Date and time
    November 29, 2013, 1:28PM
    • If you look at at the beginning of trading for today you will see a lot of shares traded between $9 - 40.00 per share. These were EP trades. Same yesterday. I think these are where the lost money is.

      Commenter
      GeoPerth
      Location
      Date and time
      November 29, 2013, 3:32PM
  • Most resource stocks are reeling and continue to head south Surely the Aussie below $.90 for a sustained period will see some buying opportunities. Me, I cannot see the light at the end of the tunnel!

    Commenter
    Busted Boom
    Location
    Date and time
    November 29, 2013, 1:01PM
  • GNC debate - poor old debts and deficit Bowen - out of his depth I'm afraid!

    Commenter
    Captor
    Location
    Date and time
    November 29, 2013, 12:55PM
  • HSN ticking away nicely, at least some stocks show stability, steady...might be the kiss of death.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 29, 2013, 12:51PM
    • HSN are benefiting from the falling $A. They sell software with o/seas clients a key part of their income.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 1:13PM
  • Australian bond selling now 4.1 times oversubscribed but of course all the political garbage comments says that nobody wants to invest in Australia.

    How do you censure stupidity?

    Commenter
    Harry rogers
    Location
    Date and time
    November 29, 2013, 12:36PM
  • Chris Vedelago and Adele Ferguson could follow up with a story on the NAB's so called complete IT hardware and systems refresh. Its an open drain direct to their vaults and is sucking them dry. How they are keeping it quiet beggars belief. This may well be NAB's 'shoot ones self in foot' start to 2014.

    Commenter
    Peter
    Location
    3rd world economy with a 1st world lifestyle
    Date and time
    November 29, 2013, 12:31PM
    • I did here Pete, that the new system originally intended to replace their legacy core banking systems, will now not actually replace their legacy core banking systems.

      It appears CAMS and CASB will be remaining.

      Number 1 requirement of NextGen at the outset ... replace the core banking systems with bespoke and agile off the shelf system.

      Commenter
      Ex-NAB
      Location
      Melbourne
      Date and time
      November 29, 2013, 2:36PM
  • 12:02pm: Almost half the investment returns made by Australian savers over the past five years has gone on management fees........ OMG could this be the reason that the Libs want to attack the low fee industry funds. How soon before they go after our SMSF's.

    Commenter
    bearly gruntled
    Location
    land of hot air
    Date and time
    November 29, 2013, 12:31PM
  • "This extraordinary finding, from funds manager Chris Brycki, is based on a study of 497 managed funds; and it mirrors what is going on in superannuation. Over the past five years, the pace of this gravy train has only been quickened by industry lobbying and government favours."

    Favours for superannuation funds include automatic so-called "opt-out" life insurance and disability insurance on all default superannuation plans. If you go with the employer's default superannuation plan, you will be surprised to find that you have automatically been given a life insurance and disability insurance policy on top! You can opt-out... if you find out and after the first few months' deductions have already been taken out! Too bad if you already have life insurance or don't need or want it. Blatant. And because they have access to your account, they can get away with it and hide it in the piles of paperwork you get when you start a new job. And they call it a "benefit". LOL.

    Commenter
    MG
    Location
    Date and time
    November 29, 2013, 12:15PM
    • Simple solution. Do as I do. Due diligence and PDS. I don't and have never paid these fees. Simple

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 12:35PM
    • Michael West wrote an expose recently on cosy deals between fund managers & the regulators;
      http://www.canberratimes.com.au/business/cosy-deal-calculated-to-aid-fund-managers-20131122-2y1m4.html
      Someone had the naivety yesterday to suggest that I use a fund manager to get a better return on my funds. No thanks.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 1:10PM
    • Even simpler would be for the government to do its job and protect consumers from teams of lawyers, lobbyists, and marketers. It could start by enforcing straightforward language in PDS's and other communications. The PDS I read didn't even mention the possibility of opting out and made everything as confusing and obscure as possible while loudly pointing out ways of increasing your life insurance. BTW, half of the people in the previous government's recent superannuation review were industry insiders and of course it was swamped with submissions from superannuation companies. The review board's arguments in favour of default life insurance inclusion were laughable and even contradictory, e.g. they said Australia is under-insured because America is more insured (but more insured doesn't mean optimally insured), and insurance is complex so details should be left up to insurance companies (but it's obvious that it's meant to be complex so as to confuse customers).

      Commenter
      MG
      Location
      Date and time
      November 29, 2013, 1:25PM
    • And I suppose Pierre, being a jack of all trades, that you fix your own teeth as well. Fund managers, dentists, doctors, mechanics, are a necessary part of life having the skills and the time that the rest of us don't. It's when they engage in gouging that we wish we could do without them.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 1:54PM
    • Mitch, fund managers are not a necessary party of life,far from it in fact. Some parasites are good and provide a form of protection for the host, a parasite that kills its host, no matter how slowly, is useless. My argument is supported by the number of people walking away from managers, it is not a growing business.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 29, 2013, 2:24PM
  • Next weeks bargains are now available for the astute punter

    Commenter
    Support@4900
    Location
    ASX200
    Date and time
    November 29, 2013, 12:14PM
  • Waded in and bought few GNC as it started trading today. It is nicely going up since then. Will offload in the next hour for a tidy profit. Love the feeling!

    Commenter
    Ronn
    Location
    Sydney
    Date and time
    November 29, 2013, 12:12PM
    • Nice work Ronn, hope you made a bundle but I'd be out now after it confirmed that resistance at $9.05 from Oct2012.

      Commenter
      JiMb0
      Location
      Sydney
      Date and time
      November 29, 2013, 12:50PM
  • GNC was all about win-win in politics, usually everyone loses in these situations!

    Commenter
    Captor
    Location
    Date and time
    November 29, 2013, 11:50AM
    • Bought in at $8.52. It is now a nice yield stock.

      Commenter
      bearly gruntled
      Location
      land of hot air
      Date and time
      November 29, 2013, 12:16PM
  • Gonski is GONSKI, sanity prevails!

    Commenter
    Captor
    Location
    Date and time
    November 29, 2013, 11:48AM
    • So you think that the Libs were insane to support Gonski before the election, unless of course they were lying and won the election on a fraud. In which case any mandate they profess on anything else is invalid.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 12:09PM
    • Aus cannot afford Gonski.

      Commenter
      Liberator
      Location
      Sydney
      Date and time
      November 29, 2013, 12:20PM
    • Australia can't afford to let another generation of kids suffer through an underfunded public system.

      Its an investment that will be repaid handsomely over coming decades.

      Commenter
      Jimmy
      Location
      Date and time
      November 29, 2013, 12:33PM
    • Australia cannot afford not to Gonski.
      If there is anything we should spend money on, it is always education as it pays dividends for life.

      Commenter
      Chris
      Location
      Manly
      Date and time
      November 29, 2013, 12:42PM
    • "Aust cannot afford Gonski"??. We cannot afford to educate our kids to a better standard but we can afford protracted wars in Iraq & Afghanistan, on someone else's behalf, and offshore processing of refugees that must be costing many more times what onshore processing would cost. I thought the Libs were saying that they were good money managers. Surely they could have managed our money better by avoiding those rash expenditures so that we could afford Gonski.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 12:47PM
    • We can also afford VERY generous paid maternity schemes....that just keep on getting more generous.

      Commenter
      Oracle
      Location
      2233
      Date and time
      November 29, 2013, 1:22PM
    • If you want Gonski, implement all of the other sensible and sustainable taxation reforms before committing to higher spending.

      Even the coffee shop owner on here said he is making a motza - well take some of the and allocate it to Gonski....

      Commenter
      Opinion Only
      Location
      Melbourne
      Date and time
      November 29, 2013, 1:30PM
    • The issue is larger than are there dollars to educate our children, the issue is do we want to educate our children.

      Commenter
      Wwwish Lion
      Location
      Moes Bar - its Friday
      Date and time
      November 29, 2013, 1:36PM
    • Gonski is a smoke screen for a grossly undereducated bunch of teachers. Kids of 12 leaving primary unable to do simple mathematics, understanding English is a bridge too far (and under further attack from schools that will not support it as the primary language), history and geography you might as well ask them to plait spaghetti. Many of the teachers are illiterate and mathematically challenged to say the least, and in Victoria this was all aided, abetted and approved by that haradin Joan Kirner - without doubt the most harmful person in the history of teaching in Victoria. Gonski is another Labor smokescreen to hide the inadequacies of one of their major funding groups and of course a 5th column that can brainwash the kids from an early age. Make teaching apolitical, make teachers have to sit exams regularly to ensure they are capable, make salaries dependent on ability, .i.e. get the political apparatchiks out of our classrooms. And get rid of this bloody Kirner idea where the speed of the learning is dictated by the slowest in the class. The damage done by this particular Kirner initiative was criminal and has doomed many could be bright students who with an appropriate level of attention would have flourished.
      Kill Gonski - resuscitate learning.

      Commenter
      Peter
      Location
      Sunbury
      Date and time
      November 29, 2013, 1:55PM
    • Private education should be exactly that, a private choice and private expense. This would free up big dollars to educate the 98% who can't or won't afford the private school system. It is really that simple.

      Commenter
      Lean Too
      Location
      Sydney
      Date and time
      November 29, 2013, 1:58PM
    • A lack of funding is not the reason the standard of children's education has declined over the last 15 years. It has much more to do with teaching methods and teacher quality than anything else.

      Commenter
      Chumlee
      Location
      Date and time
      November 29, 2013, 2:18PM
    • ...and government schemes destroying schooling.
      I don't know why we don't leave it all to the market, it will sort it out. People vote with the wallets, but without all the bureaucrats and other penny pinchers in the middle. It would make education more affordable, and more than likely, a lot more effective/useful.

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      November 29, 2013, 3:42PM
    • Add to that the lack of involvement of today's parents in the education of their children because the are too busy and tired from earning a living and/or a victim of a poor education system themselves so that have no idea how to help their child. Cut more resources from education and you end up with another generation even less capable of earning a decent living and helping the next one with its education.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 3:55PM
  • Congrats to Chris Vedelago and Adele Ferguson. Professionalism and integrity are the intrinsic value of being a good human.

    Admire you

    Commenter
    Humble
    Location
    Date and time
    November 29, 2013, 11:48AM
  • Eds
    You said graincorp will start trading at 11.40. Is there anywhere someone like me could find out news like that (if you didn't tell us)?

    Commenter
    Long Buffett
    Location
    Date and time
    November 29, 2013, 11:38AM
    • Long, this info is found in the news / announcements section of Iress.

      In this case for GNC it was released at the same time as the announcement 10:39:47 -

      PRE_NR: 11:30, Resumes: 11:40

      Commenter
      JiMb0
      Location
      Sydney
      Date and time
      November 29, 2013, 12:22PM
    • Thanks JiMb0

      Should be using Iress I guess!

      Commenter
      Long Buffett
      Location
      Date and time
      November 29, 2013, 12:51PM
  • Iron Ore stocks seem to be charging back from their little lull. Am a holder in FMG, AGO and MGX since yesterday. Love these pullbacks.

    Commenter
    GeoPerth
    Location
    Date and time
    November 29, 2013, 11:33AM
  • Major support here at around 5310, but also nearing resistance in a minor short term down channel.

    This suggests a break out in the next few days, most likely to the upside.

    Commenter
    Life Is Good
    Location
    The Real World
    Date and time
    November 29, 2013, 11:21AM
    • No one would be buying ow would they?
      end of the week, end of the month!
      dropping like a stone.

      Commenter
      J.
      Location
      Syd.
      Date and time
      November 29, 2013, 12:43PM
  • No Santa rally? Xmas cancelled. I like it!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 11:10AM
    • keep the champagne corks handy!

      Commenter
      Pinocchio
      Location
      Date and time
      November 29, 2013, 11:23AM
    • It's November! Santa's still checking his list twice and keeping the elves on a tight leash!

      Check back in 2 weeks....... Around the time you'll be fretting by your mailbox, hoping those OS gifts you ordered will arrive for Xmas day!! :-)

      Commenter
      Life Is Good
      Location
      The Real World
      Date and time
      November 29, 2013, 11:25AM
    • Ease up turbo! It's not even December yet!

      Commenter
      Andrew137
      Location
      Date and time
      November 29, 2013, 11:27AM
    • Ho, Ho, Ho, buy on the low!

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 29, 2013, 11:38AM
    • OH Allan, you should audition for part of Scrooge in the Xmas play. Santa comes every year, and I have just cleaned my chimney in preparation for 5520

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 12:09PM
  • "Almost half the investment returns made by Australian savers over the past five years has gone on management fees."

    Managed funds are a con.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 11:08AM
    • Agree there. Fund managers and some financial advisers nothing more than thieves.

      Commenter
      Kingly
      Location
      Oz
      Date and time
      November 29, 2013, 11:20AM
    • amen

      Commenter
      green sheep
      Location
      zzzzz...
      Date and time
      November 29, 2013, 11:24AM
    • You are gifted Allan.

      Commenter
      Fan of Allan
      Location
      Date and time
      November 29, 2013, 11:36AM
    • Allan, the past 5 years is not representative due the GFC wipe out. So with for example yearly fees of 2%,over 5 years that becomes just over 10%, so means fund is up 20% (+cumulative). On the other hand if you look at the last year or so, and also the years prior to GFC, returns from "GOOD" managed funds made the fees well worthwhile. Apart from my own self managed investment portfolios I also use Managed Funds and track them closely. If an investor is diligent in choosing a reputable fund with good track record it cane ber VERY rewarding

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 12:17PM
    • 27%, 30%, 43% net of fees out of mainstream large cap MFs both Aust and OS over 12 months. 12-15% over 5 years. You don't know what your missing and don't know where to look. Mixed with some good direct stuff it has been a great time. Sorry if you missed it. Generalisations and ignorance aplenty.

      Commenter
      Scotty
      Location
      Kew
      Date and time
      November 29, 2013, 4:59PM
  • buy TRY @ 1.005
    sell !VX @ 0.105
    sell BNO @ 0.80
    watch on some more goldies...[mug]drifting down maybe 12 oclock kick if any bargains around. floor at 5250...ceiling 5350.

    Commenter
    BearShapedBull
    Location
    Pamplona
    Date and time
    November 29, 2013, 11:03AM
  • I was optimistic for our market leading up to Xmas, but lets face it..........it's a write off.

    Commenter
    Oracle
    Location
    2233
    Date and time
    November 29, 2013, 10:56AM
    • no banks .. no asx .. no party!
      more pain on the way for bulls.

      Commenter
      no banks .. no party!
      Location
      Date and time
      November 29, 2013, 11:14AM
  • "Close XRO short on open for 16%."

    http://www.smh.com.au/business/markets-live/markets-live-week-ends-on-a-down-20131108-2x54h.html#ixzz2lFbmt5fy

    You ok gee up?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 10:55AM
    • are you ok?
      http://www.theage.com.au/business/markets-live/markets-live-best-day-in-three-months-20131011-2vc5g.html

      BOQ gift @11.20?

      Commenter
      friend of Gee up
      Location
      friend of Gee up
      Date and time
      November 29, 2013, 11:03AM
    • A little redundant to post the exact same thing two days in a row isn't it Allan? We get it, you closed a short on XRO, nicely done - do you want an award or something?

      Commenter
      JiMb0
      Location
      Sydney
      Date and time
      November 29, 2013, 11:09AM
    • jimbo...did you get his CRZ gift??

      Commenter
      shorter stalker
      Location
      Date and time
      November 29, 2013, 11:29AM
  • It would seem that a large holder of MIN is offloading their holding. Price is being held below $11.00. Hope it goes up when they have finished as I hold this one now. It could be a part reaction to FGE.

    Commenter
    GeoPerth
    Location
    Date and time
    November 29, 2013, 10:48AM
  • I'm surprised Mitch hasn't posted a blast for Hockey over Graincorp yet :-)

    Commenter
    Kingly
    Location
    Oz
    Date and time
    November 29, 2013, 10:41AM
    • Why, totally approve. I lived in the bush in my early working life and can identify with how hard our farmers are doing, even if most of them vote LNP The last thing they need is to be at the mercy of yet another large multinational; monopoly. When the Libs come up with a good policy I will applaud it even if as I type this Chris Bowen is criticising it on ch24 as being in the political interest of the LNP rather than the national interest.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 11:10AM
    • We love free markets - Malcolm Turnbull today show this morning circa 7:20am.

      Which is why Qantas wants government subsidy even though it is already heavily subsidised via its premium pricing.

      50% of its international flights are typically 50% above its other international flights because those originating in Australia are over-priced via a managed market.

      And now they want more help from Government ... The little leprachan should be sent home with his cliperty clop magic boots.

      If you believe in free markets Malcolm, prove it, and let Qantas compete freely owned by a 100% open share registry without restriction. Then instruct the ACCC to sort out the price irregularities faced by Australian international travellers. Do this, and let Qantas sink or swim under its own merit.

      Go on Malcolm, show us your true Capitalist colours.

      Commenter
      Joe the POM
      Location
      Geelong
      Date and time
      November 29, 2013, 11:10AM
  • Not the end-of-month day I expected. There should be a lot more window-dressing going on so that fund managers can charge their victims higher fees on artificial values. Perhaps that will happen at the close.

    Commenter
    mitch of ACT
    Location
    Date and time
    November 29, 2013, 10:38AM
  • @10.34 from Shane Oliver I believe is an accurate and unbiased summary

    Commenter
    Pierre
    Location
    Date and time
    November 29, 2013, 10:37AM
    • Discretion is oft the better part of valour...

      Commenter
      Captor
      Location
      Date and time
      November 29, 2013, 11:14AM
  • A 25% drop on GNC today just proves the buyer wanted it for other than its current earning potential. They wanted a strategic advantage which would not be good for Australia.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    November 29, 2013, 10:37AM
    • I'll leave it to others to point out the obvious re takeover premiums. Personally, I think Hockey has made a mistake. More harm done to business confidence than the 'benefits' of pandering to the Nationals. It's not as if local capital didn't have the opportunity to invest in GNC.

      Commenter
      Yin or yang
      Location
      Date and time
      November 29, 2013, 11:11AM
  • buy MAD

    MAD buy

    Commenter
    Smarty Pants
    Location
    Date and time
    November 29, 2013, 10:31AM
  • B LEI 16.16. Average price of 16.32 now.

    Commenter
    Andrew137
    Location
    Date and time
    November 29, 2013, 10:27AM
  • Do you think the tensions between the US and China over the air-defense fly zone will lead to something bigger? Perhaps, China might make a mistake?

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    November 29, 2013, 10:27AM
  • More than 10% of the issued shares in Forge (FGE) have changed hands in barely 16 minutes -"Terrifying" - any guesses where it will finish today ??
    My guess 72 cents currently trading at 81.5 at 10.22am

    Commenter
    PDJ
    Location
    Down Under
    Date and time
    November 29, 2013, 10:23AM
    • For those that got in cheap yesterday, doesn't really matter whether its 70 or 80 cents. And yes, I got in cheap y'day morning.

      Commenter
      Kingly
      Location
      Oz
      Date and time
      November 29, 2013, 10:39AM
    • FGE has become a day-traders' plaything. Pump the share during the day then dump at the end for the intra-day profits.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 10:45AM
    • IMHO....Forge will finish up near 90c...

      Commenter
      mirage
      Location
      Date and time
      November 29, 2013, 10:50AM
    • IMO, oversold but I agree it's become a traders plaything. Prediction $0.65.

      Commenter
      Yin or yang
      Location
      Date and time
      November 29, 2013, 11:32AM
    • (3 cents bummer) Missed it by that much chief !

      Commenter
      PDJ
      Location
      Hi
      Date and time
      November 29, 2013, 4:12PM
  • On the topic of the GST on imported goods. How could lower limits actually be enforced?

    Case in point - I bought a suit from Hong Kong with no consideration of the GST. The purchase price was well over the $1000 GST free limit.

    The packaging the suit arrived in was marked with a Hong Kong export value of $58.

    How are Customs supposed to know the real purchase price?

    It's all well and good for Gerry Harvey to get his knickers in a knot about the threshold. But if it's easily evaded what is the point?

    Commenter
    Jimmy
    Location
    Date and time
    November 29, 2013, 10:21AM
    • Now here’s an angle on the proposal to impose GST on items bought from o/seas for less than $1,000. I recently bought a high-tech item from a local online retailer for less than $1,000 including GST, who shipped the item to me from Hong Kong. The item proved to be defective so I got an RMA and returned it to a local address. The replacement is being sent from o/seas. If this happens after March ’14 will I have to pay GST on the replacement as well plus handling charge. Altho the item was for private use I have an ABN & GST registration and claim back GST on items purchased for business. I could reasonably argue that the item is related to business use and claim the GST in the next BAS. The point is that the new GST charge on items priced at less than $1,000 won’t necessarily help local retailers but won’t collect as much GST as they think. A further point is that when an item purchased from a local retailer is shipped in from o/seas how will the authorities know that GST has already been paid or will they decide that GST will not be paid at time of purchase but on receipt of the item plus handling charge. Or will the GST paid at time of purchase have to be claimed back when the item is delivered and GST plus handling charge must be paid. This is starting to look unworkable.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 10:24AM
    • Customs do random audits on such posted items, and penalties exist for false declarations. Every items is scanned. Additionally, they are not stupid, and have a data base of true value for ALL items. A once off may be successful, however those who breach the set rules of declaration WILL be caught and penalised

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 10:29AM
    • @Jimmy, You might pay more than $1000 for the suit, but are you sure it worth more than $58.00. If the HK company trying to help you avoid GST, they could have label it as $900.I think you bought a dud.

      Commenter
      Bank Bank
      Location
      Date and time
      November 29, 2013, 10:54AM
    • @Mitch. I agree. Seems unworkable.

      @Pierre. So what is the "true" value (whatever that means) of a tailored suit? It might be $50 or it might be $20,000 depending on a huge number of variations. How are they supposed to know?

      @Bank Bank. I was recommended to this tailor by a friend and was measured up in Australia. I have worn the suit a number of times and am extremely happy with the quality of materials and the fit. It is exactly as ordered.

      Commenter
      Jimmy
      Location
      Date and time
      November 29, 2013, 11:07AM
    • What are the rules if item is marked as gift ?

      Commenter
      xyz
      Location
      Date and time
      November 29, 2013, 11:32AM
    • @jimmy, its much better to buy a suit made by the same tailor but purchased from david jones at a much higher price. After all we are xenophobic here ;-)

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 29, 2013, 11:45AM
    • @Jimmy, thye have a data base which gives them "true" value. I can't exactly say how this is derived, but believe it is based on cost in the country from which item is purchased. So if you are using a UK company for purchase then it would be based on UK value regardless of where the item may have originated. So on this basis, would mean if the suit was purchaed in Hong Kong for example it would be based on HKG value, which may be significantly less than Australia. It is wise not to scam on that value as penalties are significant fr false declarations. I agree, a suit would maybe be more difficult, however manufactured items are pretty well set in stone as data base values. Custums are well aware of the best deals!

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 11:49AM
    • @Jimmy; just an extra here. FYI due my profession etc, what I have conveyed is correct. Also lived over 20 years in Hong Kong, Singapore, Thailand, China, UAE, Canada, Germany. With IT and data bases, it is niave to think for anyone to think they are smarter than the system.

      Commenter
      Pierre
      Location
      Date and time
      November 29, 2013, 11:56AM
    • Oh I am not trying to outsmart anybody.

      I had not even considered the GST implications until the parcel landed on my front door. I gave no instructions for the printed export value. If GST was levied on it I would have paid.

      It just seems to me that people are getting all worked up about this $1000 GST threshold when it is small beer. It wont raise that much money, will create a large amount of administrative work and seems to be easily avoided.

      Can't the state treasurers find something better to do with their time?

      Like fixing stamp duty.

      Commenter
      Jimmy
      Location
      Date and time
      November 29, 2013, 12:22PM
  • Again, Australia demonstrates its protectionist and xenophobic culture, regardless of the party in power.

    As others noted yesterday, this is yet another case where international investors in places like New York and Frankfurt will continue to think of Australia as unreliable and a complete joke, and start pulling out (or not putting any) investment money into Australia.

    Commenter
    Kat
    Location
    Date and time
    November 29, 2013, 10:13AM
    • Only in Australia would someone describe turning down the ceding of an entire industry to a foreign monopoly with a history of shady dealings as 'xenophobic'.

      Sorry bud, take your politically correct nonsense elsewhere. You are only showing your ignorance. I challenge you to name a single country, third world basket cases aside, that would have said yes in a comparable situation. China? America? Lol!

      Commenter
      Fred
      Location
      Date and time
      November 29, 2013, 10:30AM
    • And as for your ludicrous 'protectionist' Australia comment, can you name a country that has lower tariffs than Australia?

      Or do you not know what protectionist means?
      From Hawke to Keating to Howard to the present, Australia has probably been the most pro-free trade country in the world, to its considerable detriment. Just about everything we once owned has been flogged off. And you have the nerve to say one tiny instance of standing up for our own interests for a change is xenophobic!

      Commenter
      Fred
      Location
      Date and time
      November 29, 2013, 10:37AM
    • Lol protectionist and xenophobic? Remember to say goodbye to our car manufacturing industry soon.

      Commenter
      Andrew137
      Location
      Date and time
      November 29, 2013, 10:38AM
    • xenophobic to a white anglo-saxon company from the US? huh?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      November 29, 2013, 11:44AM
    • Wwwwishlion - Xenophobic does not equal racism. It means distrust of other cultures.

      The amount of anti-American, anti-"POM" and other anti-foreign comments heard frequently in Oz is common. Or anything not seen as "true blue Aussie".

      There's now a headline on the Age website this was a purely nationalistic and political move, pure and simple.

      As for keeping the car industry alive, why bother when it makes zero sense, being an island in the middle of nowhere with a small market.

      Ford is not Australian, its American. And the belief Holden is some Aussie icon, when its just re-branded GM Chevrolets, badged this way to play into Aussie nationalism, shows how ridiculous economic nationalism is.

      Commenter
      Kat
      Location
      Date and time
      November 29, 2013, 12:13PM
    • @Kat, yes i know the definition, I just dont believe this is a case to use the xeno word. The government is trying to pump Australia as the food basin of asia and wants to to maintain our companies to fulfill that (if it will happen is another thing that will remain to be seen)

      Commenter
      Wwwish Lion
      Location
      Moes Bar - its Friday
      Date and time
      November 29, 2013, 1:32PM
  • out of CBA puts at average 77.76...

    Good Trading, Everyone!

    Commenter
    mirage
    Location
    Date and time
    November 29, 2013, 10:12AM
  • Yesterday's headline was "Big miners weight on bourse".

    Overnight, RIO was up 3.9% and BHP 1.7% on the FTSE, along with other international miners. Keep an eye on these two today.

    Today, "Big miners lead market higher" ??

    Commenter
    Bud Fox
    Location
    Date and time
    November 29, 2013, 9:56AM
    • Nope

      Commenter
      Nope
      Location
      Sydney
      Date and time
      November 29, 2013, 10:07AM
    • yup

      Commenter
      yup
      Location
      Date and time
      November 29, 2013, 10:20AM
    • maybe

      Commenter
      maybe
      Location
      @swimming north pole
      Date and time
      November 29, 2013, 10:36AM
    • Yes but not until after Allan Gift!'s it to us! Oh mighty Allan please gift this to us so that they may rise again.

      Commenter
      Wwwish Lion
      Location
      Moes Bar - its Friday
      Date and time
      November 29, 2013, 12:06PM
  • let QAN be foreign own. We sold everything already, what is it an airlines has to offer !

    Commenter
    got brain
    Location
    Date and time
    November 29, 2013, 9:55AM
    • I guess it would be hard to privatise our government.....no buyers???

      Commenter
      mirage
      Location
      Date and time
      November 29, 2013, 10:13AM
  • Re Graincorp.

    I am very happy that a strategic Australian asset was not allowed to be poached by an American monopoly. Monopolies are bad for competition, bad for capitalism. Foreign-owned monopolies are bad for nation-states.

    Great day for the country. In any other country the decision would have been made without any fuss at all, in Australia it required months of agonising.

    Commenter
    Fred
    Location
    Date and time
    November 29, 2013, 9:54AM
  • Prohibit ADM take over, Govt buys 10% of Qantas, Consider taxing online purchases under $1000, while internet economy is allowing likes of Google, Amazon, Apple etc. sell to Aus without paying GST or Income tax.. Too hard...

    Bring back Paul Keating, we need real reform, urgently !!

    Commenter
    Ronn
    Location
    Sydney
    Date and time
    November 29, 2013, 9:53AM
    • It occurred to me the other day that Labor is the party of the great nation-building reforms, ie Snowy Mountains Scheme, wages & prices accord, floating the dollar, compulsory super, Mabo, Native Title and lately Gonski, NDIS & NBN. The Libs, because of their conservative nature, are loathe to take on major change, unless at the behest of their business mates. The GST is the only notable reform that the Libs can lay claim to and even that was first advanced by Keating in '85. Can any of the Liberal luvvies on here refresh my memory with another notable Liberal reform. I'm expecting silence.

      Commenter
      mitch of ACT
      Location
      Date and time
      November 29, 2013, 10:35AM
    • They are good at privatising prisons and then locking everyone up.....

      Commenter
      Bob
      Location
      Franga
      Date and time
      November 29, 2013, 2:47PM
    • the opening of Australia to multiethnic immigration under Menzies and Harold Holt; Holt's 1967 Referendum on Aboriginal Rights; Sir John Gorton's support for cinema and the arts; selection of the first Aboriginal Senator, Neville Bonner, in 1971; Malcolm Fraser's Aboriginal Land Rights Act 1976 and John Howard's gun control reform of 1997, which restricted gun ownership. West Australian Liberal, Ken Wyatt, became the first Indigenous Australian elected to the House of Representatives in 2010.

      Commenter
      Wwwish Lion
      Location
      Moes Bar - its Friday
      Date and time
      November 29, 2013, 4:09PM
  • 9:34am: The battle for GrainCorp looks to be over ........ The spectre of Clive cleaning up rural votes must have hung heavily over poor Joe's shoulder. Put this down to a Palmer win.

    Commenter
    bearly gruntled
    Location
    land of hot air
    Date and time
    November 29, 2013, 9:51AM

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