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Markets Live: Fortescue at 1-year low

Date

Patrick Commins, Jens Meyer

Share close well lower for the day, led by a sell-off in big miners after the iron ore price tumbled further, while local investors shrug off the unexpected rate cut in the eurozone.

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That’s it for Markets Live today and for the week.

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

Thanks for reading and your comments.

Have a great weekend and see you all again Monday morning from 9.

Falling iron ore prices have winded Australia’s share market, with the big miners dragging the local bourse to finish the week firmly in the red.

The benchmark S&P/ASX 200 Index fell 27.2 points, or 0.5 per cent, to 5598.7 for the week, as investors digested a sea of data and many companies traded ex-dividend.

But the iron ore producers had a particularly tough week, especially Andrew Forrest’s Fortescue Metals Group, which plunged 6 per cent to $3.92 – its lowest since June last year.

Fortescue has lost 32.7 per cent this year, or about $6 billion of its market cap, causing the value of Mr Forrest’s stake in the miner to shrink by $2 billion to $4 billion.

But it was not just Fortescue. BHP lost 2.8 per cent over the week to close at $35.65. It also traded ex-dividend on Tuesday. Rival Rio Tinto shed 2.1 per cent, to $61.30.

Patersons Securities strategists Tony Farnham blamed falling iron ore prices, with the metal measured out of Tianjin port, diving more than 4 per cent on the first four days of the week to a five-year low at $US84.30 a tonne on Thursday night.

“Certainly from a materials perspective the focus this week has been the slide in iron ore prices,” Mr Farnham said.

Two smaller miners of the bulk metal were among the week’s top 10 worst performing stocks on the ASX. BC Iron head headed the list, losing 19.7 per cent to $2.24, while Mount Gibson fell 8 per cent to 63.5 cents.

“The smaller ones are further up the cost curve,” Mr Farnham said. “It’s self evident that the BHPs and Rios of this world can handle lower iron prices more than smaller guys.”

Elsewhere, Mr Farnham said shares in energy companies had also been hit as geopolitical risks in the Ukraine and northern Iraq appeared to ease.

Woodside Petroleum lost 0.2 per cent to $42.96 on Friday, while Santos finished 0.3 per cent to $15.11 and respectively. But for the week both companies finished higher with Woodside up 0.6 per cent and Santos 1.9 per cent.

Read more.

 

Standard & Poor's has cautioned against further stimulating the mortgage market, saying this would increase the risk of a housing bust and make Australia more vulnerable in a financial shock.

The global credit ratings agency also backed the big banks' opposition to "bail-in" rules for creditors, warning the major lenders could be stripped of their AA- credit ratings if Australia went down this path.

In a submission to the financial system inquiry led by former Commonwealth Bank chief David Murray, S&P argued against several policies floated by Mr Murray to help smaller lenders compete in home lending.

Regional banks have told the inquiry they face an unfair playing field under current rules that allow the big four banks and Macquarie about half as much capital for every dollar lent out, because of the larger banks' more advanced risk systems.

But in a blow to the regional banks' push, S&P said giving the smaller lenders capital breaks would create new risks in the banking system.

Read more.

Making allowances for smaller banks could help overheat the mortgage market, says S&P.

Making allowances for smaller banks could help overheat the mortgage market, says S&P.

And here are the best and worst among the top 200 names.

It was a particularly tough day for gold miners, despite the ECB ramping up its plans for more monetary easing.

Best and worst performers in the ASX 200 today.

Best and worst performers in the ASX 200 today.

Shares end the week on a sour note as banks and miners drive a 0.6 per cent loss in the benchmark index to its lowest close in almost three weeks.

The ASX 200 and All Ords both finished Friday's session 33 points lower at 5598.7 and 5598.9, respectively.

BHP was the biggest single drag on the market, down 1 per cent, while Rio fell 1.4 per cent as the iron ore price continued to plunge. The Big Four all dropped, and CSL and Telstra added to the market's decline.

Challenger was the day's highlight, surging 4 per cent in a day when only 47 of the top 200 names advanced.

Australia has a growing cash problem, say analysts at Morgan Stanley.

Since the GFC Aussies have added $613 billion to bank deposits, a 57 per cent increase, equivalent to a compound annual growth rate of 8 per cent a year. Bank deposits - as tracked by the ABS's "M3" measure - for the first time are larger than the country's GDP, and are worth more than the total market cap of the ASX to boot.

Higher savings rates and de-leveraging among households explains the big run-up in cash piles, all hallmarks of a more conservative approach to finances among Australians.

But the analyst at Morgan Stanley think this is likely to "gradually" change, for three reasons:

First, the official cash rate is likely to languish at a record low 2.5%, or move lower, for an extended period. That should reduce the appeal of deposits.

Second, banks are now in a much stronger funding position allowing them to whittle away the premium offered to depositors.

Third, with lower global risks the logic for a high exposure to low-returning cash reserves is much weaker.

So where will that cash go? Shares? Bonds? Property?

The value of cash deposits is greater than the market capitalisation of the ASX.

The value of cash deposits is greater than the market capitalisation of the ASX.

A parliamentary inquiry has grilled the corporate regulator's top brass over why a financial planner who caused widespread misery by tipping people into forestry schemes that failed was banned from the industry for just three years.

During a Parliamentary Joint Committee hearing this morning, Labor Senator Deborah O'Neill said victims of Peter Holt, whose company Holt, Norman, Ashman, Baker was the biggest seller of investments in Timbercorp, had told her his behaviour was more in line with "ten year or permanent banning than the three years that's been applied".

"They've lost everything, one of the things they want is to prevent this happening to anyone else," she said.

Liberal MP Tony Smith asked: "What do you have to do to get life?"

Ms O'Neill also asked why the Australian Securities and Investments Commission was planning to return a $20,000 security bond, lodged under an old regulatory regime, to Mr Holt's firm.

ASIC chairman Greg Medcraft said ASIC delegates who decide penalties had to operate within case law set by the Administrative Appeals Tribunal, which currently treats holding a financial services license as "a right, not a privilege".

"That's part of the issue they have to think about," he said.

ASIC executive Louise Macaulay told the hearing Mr Holt had been banned in 2012 for giving inappropriate advice "influenced by very high commissions paid on certain agribusiness products".

Speaking after the morning session, Nationals Senator John Williams, who is also on the committee, said the ban handed out to Mr Holt was "disgusting".

Read more.

ASIC Chairman Greg Medcraft.

ASIC Chairman Greg Medcraft. Photo: Nic Walker

Asian markets are mostly lower, in a case of 'sell the fact' after the ECB's rate cut:

  • Japan (nikkei): -0.1%
  • Hong Kong: -0.3%
  • \Shanghai: +0.3%
  • Taiwan: -0.6%
  • Korea: -0.4%
  • ASX200: -0.55%
  • Singapore: -0.6%
  • New Zealand: +0.4%

 

‘‘We’re seeing a bit of profit-taking today following the recent rally,’’ says IG market strategist Ryan Huang. ‘‘Investors are looking out for the US jobs data due tonight and the Chinese exports data next week.’’

We asked a number of investors for their take on the ECB's decision to ease monetary policy even further and what it means for global liquidity and our market.

Here are their responses:

1. How important is the move for global liquidity?

Platinum Asset Management managing director Kerr Neilson

Significant, as it enhances the existing easing mode taking place in China and Japan - versus a move towards tightening in the United States and United Kingdom. There are interesting implications for currencies and national competitiveness.

BlackRock Australia head of fixed income Stephen Miller

It is an important step and, by European standards a timely response to the region’s predicament. It could stimulate lending, improve confidence and potentially encourage exports via a lower euro. Along with the Bank of Japan, the ECB could potentially become an alternative source of global liquidity as the US Fed’s balance sheet expansion comes to an end. However, as Draghi said at Jackson Hole, the ECB needs to be supported by structural reform and “smart” fiscal easing.

Magellan Asset Management portfolio manager Domenico Giuliano

It is difficult at this stage to gauge by how much, but it is clear the initiatives announced at the ECB’s September meeting will mean an increase global liquidity. Lower interest rates should encourage the private sector to increase borrowing, as well as encouraging banks to deploy their excess funds away from deposits with the ECB. The central bank’s plans to purchase asset-backed securities and covered bonds is actually quantitative easing, as it will be financed by money creation.

PM Capital global equities portfolio manager Ashley Pittard

It is a continuation of the trend we have seen from other central banks over the past five years. The US Federal Reserve was the first and most aggressive, then the BoJ, and now the ECB. As a result of all this “cheap” money, investors are encouraged to increase their risk. Without this unprecedented global liquidity injection the equity markets would not be making new highs globally, as the risk of owning safer assets would be higher.

The ECB's move is significant for global liquidity, Platinum Asset Management's Kerr Neilson says.

The ECB's move is significant for global liquidity, Platinum Asset Management's Kerr Neilson says. Photo: Patrick Cummins

And 2. What do you expect it will mean for Australian investors?

Kerr Neilson

Despite this news I think the outlook is probably neutral for the local currency. While extra stimulus in Europe will be supportive of the Australian dollar a slower China is hurting it.

Stephen Miller

At the margins it will be supportive for global equity markets, any by extension Australian shares. A weaker euro is means the impact on global currency market is likely to be much bigger. I do expect some depreciation of the Aussie dollar, but only when the Fed communicates a definite intention to raise rates in the US.

Domenico Giuliano

Markets now project lower interest rates in Europe, along with more liquidity, which could encourage global investors to seek out higher yielding investments including Australia assets. That might have consequences for an appreciating Aussie dollar against the euro, along with possible further compression in Australian bond yields and higher valuation multiples on Australian stocks.

Ashley Pittard

Short term the upward trend in markets will continue as people are encouraged to take on more risk, but ultimately longer term interest rates will go higher, and people that are highly levered at the wrong time will be in trouble.

And while we're looking at the iron ore miners, Fortescue shares have just plumbed a one-year low at $3.86.

Shares are down 4 per cent for the day, 7 per cent for the week and more than 33 per cent since the beginning of the year.

The plunge has shaved about $6 billion off the iron ore miner's market capitalisation, taking it to just above $12 billion.

Spare a thought for Fortescue founder and chairman Andrew 'Twiggy' Forrest, whose net worth has shrunk by a tidy $2 billion, with his stake in the company now valued at $4 billion.

Apols: an earlier version of this post said Fortescue shares hit a two-year low. We got a bit ahead of ourselves.

Sinking fortune: this year's fall in the price of iron ore has shaved $2 billion off Andrew 'Twiggy' Forrest's Fortescue stake.

Sinking fortune: this year's fall in the price of iron ore has shaved $2 billion off Andrew 'Twiggy' Forrest's Fortescue stake. Photo: Erin Jonasson

Iron ore prices may be up for another dive as Chinese steel mills take a breather after the summer production peak, analysts say.

The benchmark iron ore price plunged 1.6 per cent to a fresh five-year low to $US84.30 a tonne on Thursday night, and is down 37 per cent since January 2014.

But the worst is yet to come, according to UBS analysts, who forecast a further fall in the iron ore spot price in September and October.

Historically, crude steel production rates in China have declined around September and November as the steel mills take a breather after the summer peak in steel deployment, according to the analysts.

"Lower production reduces steel mills ore requirements and may prompt a buyers' strike," UBS analysts said in a note.

The commodity price is likely to pick up again in November and December as China begins restocking in preparation for the northern winter, UBS said and, forecasts the iron ore price to recover to the $US100 mark by December 2014.

Goldman Sachs analysts were more bearish for the bulk commodity, predicting iron ore to sell at $US80 a tonne in 2015.

The analysts said iron ore miners were facing a bumpy road in the short term as the negative impact of falling property prices on new housing kicks in in the 2014 second half and 2015.

Meanwhile, local iron ore miners are taking another beating:

  • Rio Tinto: -1.3% at $61.30
  • BHP Billiton: -1.3% at $35.55
  • Fortescue: -3.7% at $3.90
  • Gindalbie: -2.1% at 4.6 cents
  • Atlas Iron: flat at 57.5 cents
  • Arrium: +0.3% at 64.75 cents

 

Iron ore price dived to five-year low. <i>Graphics: Les Hewitt</i>

Iron ore price dived to five-year low. Graphics: Les Hewitt

With acquisition-hungry G8 Education one of the best performers, up 3.4 per cent so far to $5.61, here's an article by from Montgomery Investment Management analyst Andrew Macken in last week's Cuffelinks newsletter, in which he warns that not all revenue growth can be considered equal:

One of the first numbers examined by investors and analysts when a company reports its results is revenue. And more specifically, most are interested in the growth in revenue from, say, one year prior. A company that is growing revenues strongly is more likely to be growing earnings strongly, and therefore more likely to be growing its dividends to shareholders strongly. Furthermore, revenue growth is considered to be a relatively clean metric in that it is independent of the company’s cost structure and is typically untainted by management’s accounting policies.

But not all revenue growth is created equal. And investors and analysts need to carefully dissect the nature of the revenue growth.

Consider a retailer that owns a number of stores. While revenue growth in each store might be weak, the company can boost its headline revenue growth number by opening new stores. We observed this at JB Hi-Fi which reported full-year 2014 revenue growth of 5.3% per annum. Yet on a store like-for-like basis, revenue only grew by 2.0% per annum over the same period.

Similar to the idea of opening new stores is the idea of acquiring new businesses to boost headline revenue growth. This is the strategy of childcare and education provider G8 Education. The company recently reported revenue growth of a whopping 59% per annum for the half-year ending 30 June 2014. Most of this has stemmed from the acquisition of additional learning centres. This can be clearly observed in G8’s cash flow statement: payments for the purchase of businesses were $218 million in the six-month period to 30 June 2014. These are significant cash investments given reported revenues in the same period were $187 million.

Read more at Cuffelinks.

Hard on the heels of the ECB's rate cut, a top US Federal Reserve official says US interest rates, which the Fed has kept near zero since December 2008, are too high, citing subdued inflation and "unacceptably high" unemployment as evidence.

"Interest rates are not low enough," Minneapolis Federal Reserve President Narayana Kocherlakota said at a Town Hall here. The fact that the Fed has not been able to achieve its twin objectives of maximum employment and 2-per cent inflation shows that rates are higher than they should be, he said.

Asked why then is the Fed reducing its bond-buying program, which is aimed at pushing down borrowing costs, Kocherlakota said he had no good answer.

"Given where we are with inflation, I think that it's challenging to know why we are removing stimulus from the economy at the rate that we are," he said.

Nickel is poised to advance for a fifth week on concern ore supply will decline as the Philippines considers banning exports of unprocessed minerals.

The metal in London is set to rise 3.2 per cent this week. Nickel for delivery in three months was up 0.2 per cent at $US19,425 a metric tonne in Tokyo. It closed at $US19,395 yesterday, the highest since July 9.

The government should move toward a ban on mineral-ore exports, Ramon Paje, the environment secretary, said yesterday from Manila, backing a proposed bill in the Philippines calling for restrictions aimed at boosting domestic the country’s downstream metals industry.

‘‘Nickel was the best performer this week following ore supply concern from the Philippines,’’ said Kazuhiko Saito, an analyst at Fujitomi, a commodities broker in Tokyo.

Prices surged 40 per cent this year, the most among the six main metals on the LME, after Indonesia banned ore exports in January.

Lenders and credit bureaus say the huge interest in website Getcreditscore when it launched on Tuesday marks a turning point for borrowers in Australia as they wake up to their ability to use their credit score to bargain on interest rates.

Backed by peer-to-peer lender Society One, Getcreditscore.com.au crashed due to the amount of traffic on its first day on Tuesday. By Thursday morning it had received 299,000 unique visits and 403,000 hits. The site gives people their a credit score for free calculated by credit bureau Veda Group based on their borrowing history.

Site spokesman Christopher Zinn said everyone was surprised at the response. “I thought I would have to do a lot more work training and educating people so they understand what a credit score is."

The credit scores are based on the credit files of Australians that Veda – the country’s biggest consumer credit bureau – keeps and which lenders contribute to and check for borrower credit worthiness.

Veda spokeswoman Belinda Diprose said there was an “overwhelming” response well beyond expectations, but would not say how many people actually requested credit scores.

One of the dumbest policy solutions to emerge out of the ashes of the global financial crisis is non-recourse “bail-in” bonds, which David Murray’s financial system inquiry is thinking about recommending, Christopher Joye writes in the AFR:

This proposal, which has for self-interested reasons been embraced by banks everywhere, requires a bare-bones explanation to understand the strife it could cause down the track.

Imagine if all residential borrowers convinced the government to adopt the following brilliant way to avoid future housing crises. If you look like you will not meet your monthly mortgage repayments – so there’s a chance you might default – the government has the ability to step in and disappear your debts. (This is precisely what the banks are advocating.)

More specifically, the government has the unilateral right to swap your lender’s once-safe loan into highly risky and perpetual equity in your home. All your repayment obligations conveniently vanish. It is, therefore, impossible for you to default and lenders can never take possession of your property and effect a distressed sale at a fire-sale price.

Genius, right? If you fail to save enough, spend too much money, or just take on excessive debt, the government can bail you out. Borrowers never default and asset prices always go up.

The plan is not marketed this way, of course. Working together, borrowers and governments tell lenders that their loans are now “loss-absorbing” capital that – wait for it – actually avoid public bailouts. You see, taxpayer money is not being burned. Only lenders wear the pain.

But who is deciding whether these borrowers are good or bad credits? Who unilaterally converts their debts into equity in a manner that no other industry can avail itself of? Who is subsidising shareholders? Certainly not the private sector or free markets.

Read more

A boom in new housing and pick up in apartment building pushed construction activity in August to its fastest pace of growth since November, the latest Performance of Construction Index shows.

The index rose 2.4 points to 55 last month, its third straight month above the 50 level that indicates growth and the highest level since November, when it was 55.2.

A separate sub-index of housing work rose 7.7 points to 60.9, its highest level in eight months, while apartment building rose 13 points to 64.9, regaining ground lost since May.

Commercial construction rose for a second month, although at a slower pace than in July.

The figures reflect signs earlier this week that detached homes are returning as the main driver of construction. Official figures this week showed stand-alone house approvals jumped almost 14 per cent in NSW in July. They also rose in SA and WA.

Engineering construction is still declining with that sub-index falling 3.5 points to 43.7.

Construction is picking up.

Construction is picking up. Photo: Erin Jonasson

Investors will think they are seeing double when meeting the new leadership team of OZ Minerals, after Rio Tinto executive Andrew Cole was appointed managing director today.

Cole will run the copper miner alongside its current chief financial officer, Andrew Coles, joining OZ on December 3 to replace outgoing managing director Terry Burgess.

Cole most recently served at Rio's Canadian iron ore business, which many believe is bound for divestment.

He will earn a $750,000 base salary each year and has the opportunity to raise that closer to $2 million each year if certain performance hurdles are achieved.

Is China's economy ''unravelling"? Quentin Grafton, the former chief economist and head of the Australian Bureau of Resources and Energy Economics (ABARE) seems to think so, and it could hit Australia hard.

Speaking at a conference on Thursday, Grafton said the iron ore price was unlikely to recover quickly as the Chinese economy begins "unravelling", leading to a painful downturn in the Australian economy in 2015.

He said falling prices for coal and iron ore, a slump in business investment, an overpriced housing market and high dollar had placed the Reserve Bank of Australia “between a rock and a hard place”.

“Put all those things together and it could be a difficult ride for us,” he said. “This isn’t about doom and gloom – it’s about looking at the risks and numbers. There’s a clear and present danger.”

He said the Reserve Bank of Australia should prepare for a difficult ride as the overpriced property market and high dollar created a challenging economic environment as coal and iron ore prices dropped.

Grafton's comments join an increasingly vociferous choir of concern about the Chinese economy, with investor fears stoked by a Chinese residential property market that is experiencing its worst slump on record.

Meanwhile, the benchmark price for iron ore – which accounts for more than $1 out of every $5 of export income – has fallen 35 per cent this year to less than half its 2011 high of $US190.

Read more

The only Wall Street bank to accurately predict the US dollar’s decline in 2013 is betting on the largest rally for the greenback in 15 years.

Goldman Sachs’s chief currency strategist, Robin Brooks, predicts the US dollar will appreciate 5 per cent to $US1.25 per euro within six months, putting his estimate among the highest in a Bloomberg survey of more than 60 analysts.

He also said the dollar would gain 6 per cent on a trade-weighted basis during the next 12 months against the Group of 10 currencies. All that was before the US dollar’s 1.6 per cent jump overnight on the European Central Bank’s unexpected interest-rate cuts.

America’s currency is enjoying a groundswell of support as the Federal Reserve stops buying bonds and expanding the supply of money as it moves toward its first interest-rate increase since 2006. That’s boosting the appeal of dollar-denominated assets with yields on Treasuries rising relative to the rest of the developed world.

“The foreign-exchange market has been more skittish than the bond market in terms of pricing in a recovery,” Brooks said. “While we certainly believe the Fed is not going to jump the gun on hikes, it’s also not ideologically dovish that many people have come to fear after all these years of unconventional measures.”

The market is flatlining now, recovering a bit from the early losses, but the big miners are still struggling. Here's what the blue chips are doing this morning:

  • BHP: -0.95%
  • Rio: -0.9%
  • ANZ: flat
  • CBA: +0.1%
  • NAB: -0.4%
  • Westpac: +0.1%
  • Woolies: +0.4%
  • Wesfarmers: +0.7%
  • telstra: +0.35%

 

And the biggest winners and losers among the top 200:

<p>

The Australian sharemarket has opened lower, following Wall Street's lead rather than the rally in Europe after the ECB cut rates.

The benchmark S&P/ASX fell 12.9 points, or 0.2 per cent, to 5618.4, while the broader All Ords lost 12.5 points, or 0.2 per cent, to 5619.6.

Among the sectors, materials have plunged 0.8 per cent, while financials are down 0.1 per cent.

The European sharemarket liked the sound of policy action at the ECB, but the key question is will it work, Perpetual head of investment markets research Martin Sherwood notes:

  • When you consider the size of the 'stimulus' it could be underwhelming as a rate cut by -0.1% is neither here nor there and an asset purchase program of maybe €200 billion in a region which has €40 trillion of bank assets, probably won't have much impact as the banks are still contracting credit.
  • Unless the banks are made solvent or capable of issuing credit given the state of their balance sheets, then the limited rate reduction will have an even more limited impact on the economy.
  • However, this will be the last rate cut by the ECB as the problems in Europe are not entirely monetary in their nature. As such the policy torch will be passed over to governments, which seemingly don't want to do 'whatever it takes' and this is where the major problem lies as the ECB is quickly running out of policy action and governments are going to have to implement reforms, whether they are popular or not.

 

Meanwhile, IG's Stan Shamu notes the different directions of monetary policy in the world's two biggest economic blocks:

  • As the ECB fleshes out its QE in October, the Fed will be winding down its own QE program. This just emphasises the kind of divergence to expect from this currency pair and shows just how much more room there is for another leg lower.
  • Not only has the ECB taken a big step, it appears that some members were in favour of doing more and Draghi himself said further unconventional instruments may be used  to alleviate risks of low inflation.
  • As a result, it is clear the euro will remain a funding currency of choice and traders will continue to look for selling opportunities.

The Australian dollar has shot up against the euro following the surprise announcement by the European Central Bank of a further interest rate cut.

The local currency reached a new 15-month high at 72.44 euro cents overnight, gaining nearly 2 per cent since the Thursday rate. It's continued to trade around 72.21 euro cents early trade.

Against the US dollar, It briefly spiked to over US93.90¢ following the ECB surprise cut but quickly eased back to the Thursday trading level of US93.50¢.

In an early and aggressive move, the ECB president Mario Draghi cut the benchmark interest rate by 10 basis points to a record 0.05 per cent. He reduced the margin lending facility rate to 0.30 per cent and pushed the deposit rate further down to -0.2 per cent.

Analysts said the Australian dollar was likely to continue to rally against the euro.

"Given the low volume environment, we retain our view that there is scope for EUR to continue to underperform currencies where economies are performing better and interest rates are higher, such as the AUD, CAD, and NZD," Commonwealth Bank of Australia senior currency strategist Peter Dragicevich said in a note.

Dramatic jump ... The Aussie has hit a 15-month high against the euro, which plunged after the ECB meeting.

Dramatic jump ... The Aussie has hit a 15-month high against the euro, which plunged after the ECB meeting.

JB Hi-Fi loves Apple releases, writes Matt Felsman, a private client adviser at Shaw Stockbroking:

JB Hi-Fi is a well-run business generating industry-leading sales productivity and cost-of-doing-business margins. Over the past month however, shares in JBH have been sold off more than a Beatles back catalogue, down around 15 per cent.

The share price has bounced off a recent low of $16.48 and yesterday we saw indications that record-low interest rates are helping to spur consumer confidence, with Australian retail sales rising 0.4% in July from a month earlier.

Retailers like JB Hi-Fi derive substantial revenue from Apple products, and next week Apple is set to unveil not only the new iPhone 6 but also details of a long-awaited "smartwatch". The chart below shows the historic correlation between the JB Hi-Fi share price and new iPhone releases.

With a few months until Christmas and a change in share price momentum now is a good time to take a closer look at the stock.

Qantas chief executive Alan Joyce has received a 40 per cent fall in his take-home pay to just over $2 million this year as the airline seeks to freeze wages across the company. 

The release of the pay card for Qantas' senior executives comes just a week after the airline announced a $2.8 billion annual loss, which included a large write-down in the value of its international fleet. 

Qantas' annual report shows that Mr Joyce did not receive any cash bonuses or long-term incentives last financial year because performance targets were not met due to the airline's poor financial state.

The airline's five other top executives also received cuts to their pay. The take-home pay for chief financial officer Gareth Evans totalled $1.05 million, down from $1.4 million a year earlier. 

The take-home salaries for Mr Joyce and his senior executives differ to their statutory pay for the year due to accounting treatment of share-based payments. Mr Joyce's statutory pay for the year to the end of June totalled almost $4 million, down from $5.1 million a year earlier.

Qantas is half way through axing 5000 jobs as part of plans to strip out $2 billion in costs over the next three years.

Despite the magnitude of the bottom-line loss, Qantas shares have rallied almost 21 per cent since the annual result last Thursday after Mr Joyce declared the airline was over the worst and forecast a return to pre-tax profitability in the first half of this financial year.

Read more.

Qantas chief Alan Joyce has taken a hefty pay cut.

Qantas chief Alan Joyce has taken a hefty pay cut. Photo: Louise Kennerley

The man who manages the world's biggest mining funds has thrown his support behind BHP Billiton's demerger plan but reminded big miners there is no point doing a one-off round of shareholder returns.

Blackrock managing director of natural resources Evy Hambro said big miners had reached an "inflection point" where shareholders returns were poised to increase significantly.

"I think we are at the inflection point, we have started this process and I think the overall returns are going to get bigger in terms of the money that comes back to shareholders," he said.

"I'm very, very confident on that, barring anything bizarre in world markets or crazy politics."
The comments come after Rio Tinto promised to "materially increase" shareholder returns in February and after Glencore launched a $US1 billion ($1.1 billion) share buyback.

Such an outcome would herald the culmination of Mr Hambro's four year campaign to convince miners to improve returns to shareholders, but he warned it must be just the beginning.

"If you are going to do a share buyback there is no point doing a one-off share buyback," he said. "What is sensible is for companies to embark on a long term process of returning capital to shareholders on a sustainable basis.

"Management have the ability to stop that process very rapidly if they want to by going back to the old ways so it is really in their hands and we would be so disappointed if they stopped after having done so well over the past couple of years."

Blackrock ranks as the biggest holder in BHP, one of the biggest in Rio and is a major holder in most big miners. Despite many London-based shareholders selling down BHP shares when the demerger was announced last month, Hambro said he was satisfied with the strategy.

"The demerger process that BHP has embarked upon is the fairest and most efficient solution for the strategy of simplifying their business," he said. "Giving shareholders the choice to retain exposure to those assets or not is absolutely the best decision."

Read more

'I think the overall returns are going to get bigger in terms of the money that comes back to shareholders.': BlackRock manager of natural resources Evy Hambro.

'I think the overall returns are going to get bigger in terms of the money that comes back to shareholders.': BlackRock manager of natural resources Evy Hambro. Photo: Bloomberg

Woolworths says it will invest $750 million into reducing food and liquor prices in 2015 and has refuted analyst claims that it has taken its foot off the promotional pedal to boost profits.

As Coles unveiled plans to reinvest cost savings from a $38 million redundancy program into cutting grocery prices and fixing up stores, Woolworths reiterated that it was committed to reducing prices after saving customers $750 million in 2014 and trimming the cost of the average shopping basket by 3.1 per cent.

"Investment in prices for our customers is clearly a key priority for Woolworths given the competitive market in which we're operating," a Woolworths spokesman told Fairfax Media on Thursday.

Woolworths chief executive Grant O'Brien and director of supermarkets Tjeerd Jegen have rejected suggestions from analysts that Woolworths raised prices in the June quarter to boost margins in food and liquor and achieve its profit guidance in the face of weaker earnings from BIG W and losses in home improvement.

Mr O'Brien said Woolworths prices had been "consistent" in the third and fourth quarters and it had gained ­market share at the fastest rate for three years.

"We measure 4000 prices every single week," said Mr Jegen. "And on those 4000 prices every single week we're the lowest-priced supermarket in Australia and have been and will be."

However, analysts believe Woolworths is losing its price leadership to Coles, which claims to have reduced prices by 5.2 per cent cumulatively over the last five years.

Read more.

Price wars: Industry analysts believe Woolworths is losing its price leadership to Coles, which claims to have reduced prices by 5.2 per cent cumulatively over the last five years.

Price wars: Industry analysts believe Woolworths is losing its price leadership to Coles, which claims to have reduced prices by 5.2 per cent cumulatively over the last five years. Photo: Penny Stephens

The world's biggest iron ore producers are targeting record shipments as lower output costs offset plunging prices and less competitive mines in China shut.

Vale, Rio Tinto, BHP Billiton and Fortescue Metals Group are still making money even after prices of the steel-making ingredient dropped 37 per cent since December to the lowest level since 2009. They're betting that higher-cost producers will be squeezed out of the market.

Slowing steel demand in China, which buys 67 per cent of seaborne iron ore supply, and new production capacity in Australia and Brazil have led to a global surplus that Goldman Sachs forecasts will more than double to 175 million tonnes in 2015. As mines in China close, the four companies will boost their share of the seaborne supply to almost 70 per cent, according to CLSA, a broker and investment group.

"You've got the four major producers with very strong, world-class, lowest-cost production," said Daniel Kang, an analyst at JPMorgan Chase in Hong Kong. "Even at current prices or lower, the economics of their expansion projects are very compelling."

Ore with 62 per cent iron content delivered to the Chinese port of Tianjin declined to $US84.30 a tonne, down another 1.6 per cent overnight, according to The Steel Index, the lowest since October 2009. Prices are 56 per cent below a record $US191.70 reached in February 2011.

The slump has a way to go before the biggest producers are in the red. Rio Tinto has the lowest break-even cost at $US42, BHP's is $US51 and Vale is at $US60 in terms of ore landed in China with 62 per cent content, according to UBS estimates.

Read more.

Rio Tinto has the lowest break-even cost at $US42, BHP's is $US51 and Vale is at $US60, according to UBS estimates.

Rio Tinto has the lowest break-even cost at $US42, BHP's is $US51 and Vale is at $US60, according to UBS estimates. Photo: Bloomberg

The European Central Bank’s surprise decision to cut interest rates as well as start buying securitized debt brought investors out from the sidelines, sending the region’s benchmark index to a two-month high.

The Stoxx Europe 600 Index rose 1.1 per cent to 348.89 at the close, the highest level since July 3. The gauge, which opened lower, erased losses before the ECB reduced all three of its main interest rates by 10 basis points. It extended the gains, led by bank shares, after the central bank’s President Mario Draghi announced the decision to buy a “broad portfolio of simple and transparent securities”.

“The lowering of all three interest rates was a very nice surprise, as was the news that the ECB is really trying to do something in the ABS market,” said Michael Woischneck, an equities fund manager at Lampe Asset Management in Dusseldorf, Germany. “And they are announcing all this on the same day, which means that the ECB really wants to move ahead of the curve. It’s definitely what the market was waiting for, and then a bit more.”

In committing cash to the market for asset-backed securities, Draghi sought to rekindle an asset class that can funnel loans to the real economy and ease funding conditions for banks. The Stoxx 600 has rebounded 7.2 per cent from a four-month low on Aug. 8 on expectations of an ECB policy boost.

National benchmark indexes rallied in 16 of the 18 markets in western Europe with those in France, Italy, Spain, Portugal and Greece jumping more than 1.5 per cent. Germany’s DAX advanced 1 per cent.

Stimulus measures have helped the Stoxx 600 rally about 62 per cent from a low in September 2011. Since taking over in November of that year, Draghi has pledged to hold borrowing costs low and said in July 2012 he would do “whatever it takes” to save the euro.

So this is the big news overnight: the European Central Bank cut interest rates to a fresh record low and launched a new scheme to push money into the flagging euro zone economy, surprising markets and leaving open the option of more to come.

In a series of measures highlighting growing concern about the currency bloc's health, the ECB cut its main refinancing rate to 0.05 per cent from 0.15 per cent and drove the overnight deposit rate deeper into negative territory, now charging banks 0.20 per cent to park funds with the central bank.

The International Monetary Fund, which has pressed the ECB to do more to buoy the euro zone, welcomed the measures. The euro zone flatlined in the second quarter of the year and the Ukraine crisis is now weighing heavily on business confidence.

"QE was discussed," ECB President Mario Draghi said of the possibility of quantitative easing (QE) - essentially printing money to buy assets.

"Some of our Governing Council members were in favour of doing more than I've just presented, and some were in favour of doing less. So our proposal strikes the mid-road," he said.

New ECB economic forecasts foresee slower growth this year, of just 0.9 per cent, picking up to 1.6 per cent in 2015.

The forecast for inflation, now running at just 0.3 per cent, was cut to 0.6 per cent, rising to 1.1 per cent in 2015, still way below the ECB's target of close to but below 2.0 per cent.

Read more.

"Some of our Governing Council members were in favour of doing more than I've just presented, and some were in favour of doing less. So our proposal strikes the mid-road," ECB President Mario Draghi:  said.

"Some of our Governing Council members were in favour of doing more than I've just presented, and some were in favour of doing less. So our proposal strikes the mid-road," ECB President Mario Draghi: said. Photo: AP

Iron ore has continued to tumble, slumping another 1.6% overnight to a fresh five-year low of $US84.30 per metric tonne. Locally, shares are poised to open little changed as a weak lead from Wall Street has thrown cold water on the optimism spurred by the ECB's latest policy moves.

Here’s what you need2know:

• SPI futures down 4 pts at 5629

AUD at 93.50 US cents, 98.37 Japanese yen, 72.24 Euro cents and 57.23 British pence

• On Wall St, S&P 500 +0.3%, Dow +0.1%, Nasdaq +0.5%

• In Europe, Euro Stoxx 50 +1.8%, FTSE +0.1%, CAC +1.7%, DAX +1%

Iron ore falls 1.6% to $US84.30 per metric tonne

• Spot gold down 0.5% to $US1263.16 an ounce

• Brent oil down 0.8% to $US101.95 per barrel

What’s on today:

US: non-farm payrolls

• UK BoE inflation forecast

• Germany: industrial production.

Stocks to watch:

BHP Billiton, Rio Tinto, BC Iron, Atlas Iron as the iron ore price hits 5-year lows.

• The following stocks trade ex-dividend: Caltex Australia, Evolution Mining, Sonic Healthcare.

• Bell Potter has kept its forecasts and “buy” rating unchanged on National Australia Bank but edged the price target slightly higher to $37.50 from $37.20.

Incitec Pivot has been cut to underperform vs sector perform at RBC Capital; price target $2.70.

• Deutsche Bank has given Sandfire Resources a “buy” rating after its unexpected full-year maiden dividend and has a 12-month price expectation of $7.30.

 

Read more.

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

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:
  • FMG's net debt as per Appendix 4E is $7.2b

    Commenter
    PJ
    Location
    Sydney
    Date and time
    September 05, 2014, 3:38PM
    • No point in trying to second guess markets when they panic. Australians seems to love bad news just look at the newspapers and the usual suspects.

      Be patient remember when Buffett bought Bank of America. Don't follow the crowd over the cliff. Your figures for debt are correct and the maturity of most of that debt is 5 years hence.

      Good luck.

      Commenter
      Harry Rogers
      Location
      Date and time
      September 05, 2014, 4:03PM
  • RSI for FMG is below 28 now. The current price is $3.88. It will rebound to $4 within days. Anyone thinks the same?

    Commenter
    PJ
    Location
    Sydney
    Date and time
    September 05, 2014, 3:26PM
    • If iron goes any lower, no. RSI has little relevance if the end product price is collapsing.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:40PM
    • RSI only matters in normal conditions. You can't fight the I/O price dropping each day. Until that changes we are heading down (I own BCI, in the same camp)

      Commenter
      GS
      Location
      Date and time
      September 05, 2014, 3:46PM
  • With summer approaching here's a timely warning. Heat waves hit the elderly & the poor the hardest. Heat waves kill more people each year than natural disasters. While 173 people died in the Black Saturday fires, for example, 374 people died from heat stress around that time. So if you have elderly or vulnerable relatives now's the time to give the retail sector a lift and buy them at least a window-mounted airconditioner. You'll get in before the summer demand lifts the price.
    http://www.abc.net.au/environment/articles/2014/09/04/4081144.htm

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 3:15PM
  • Shorted CTX off 28.8 after it dropped its dividend -- looks very overbought. First pullback to around $26. Stops over the recent high.

    Commenter
    jezza
    Location
    Date and time
    September 05, 2014, 3:10PM
  • I guess the wild ride on ACR isn’t over yet.

    Commenter
    Rabbit
    Location
    Date and time
    September 05, 2014, 2:45PM
    • Is it worth holding onto these for a bit longer yet? Will they go up shortly?

      Commenter
      Tim
      Location
      Date and time
      September 05, 2014, 4:40PM
  • ACR - mind the gap!!!

    Commenter
    bcp
    Location
    O
    Date and time
    September 05, 2014, 2:39PM
  • After SGN paid out the div, I took a 3c loss because it looked weak. Been buying again another 3-4c lower than I sold out of the other day and again getting whacked down! Who the hell is selling this thing down. The yield on this now is nuts!

    Commenter
    GS
    Location
    Date and time
    September 05, 2014, 2:24PM
    • I had a stock recently that earned $30M cash last FY but MC of $90M... price never went up! If I could turn 30% on my investment yearly, I would think it amazing!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:17PM
  • The absence of a mining tax could be contributing to the iron-ore companies' woes. Without the tax they see no reason not to push out as much ore as possible. Take the super profits. But the excess supply has driven down the price and they are worse off now than they would have been paying the tax. But no tax is what they wanted and a cut to profits is what they got. Serves them right.

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 2:22PM
    • I've never seen a bow drawn that long before! You must have a lot of practice.

      Commenter
      Picken
      Location
      Choose
      Date and time
      September 05, 2014, 3:23PM
    • @Picken, the bow may be drawn long but the arrow could be on target. I have seen many economic policies that seemed good on paper but had the strangest response effect. Examples, pink batts - rampant fraud, rooftop solar - takeup that exceeded wildest expectations, school halls - rampant fraud and overcharging. After all didn't the big miners say that they opposed the mining tax because it would hinder investment and production. No mining tax and look at them go.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 3:58PM
  • so fmg is worth about $12 billion now. Isnt that what their debt is?

    Commenter
    smilingjack
    Location
    Date and time
    September 05, 2014, 2:19PM
    • FMG is just another debt laden dirt digging sink hole. MBN comes to mind when 'guessing' future sale prices of a said material.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:20PM
    • FMG's net debt as per Appendix 4E is $7.2b

      Commenter
      PJ
      Location
      Sydney
      Date and time
      September 05, 2014, 3:32PM
    • $9B usd last time I looked

      Commenter
      mushy
      Location
      Date and time
      September 05, 2014, 3:32PM
    • Cash $2.4b and Gross debt of $9.6b = Net debt of $7.2b.

      It is the net debt that matters not the gross debt. For example if someone got a housing debt of $1m and $200k in their offset account then their net debt is $800k and that is the number that matters.

      Commenter
      PJ
      Location
      Sydney
      Date and time
      September 05, 2014, 3:46PM
  • Goodbye 5600. You had gotten way ahead of yourself.

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 2:18PM
    • not yet young man

      Commenter
      Allan Mitchell
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:48PM
  • @ Eds, are you sure about the 1.54pm comment that FMG is at a 2 year low?

    I bought some at $3.06 on July 3, 2013. I sold them at $4.19 on August 12, 2013.

    That's within the last two years isn't it?

    Eds: Hi pass the red, yes, our bad. A one-year low it is!

    Commenter
    pass the red
    Location
    Date and time
    September 05, 2014, 2:16PM
  • only fools buy shares on fridays

    Commenter
    motley
    Location
    Date and time
    September 05, 2014, 2:12PM
    • Fridays are usually good up days altho whether you should buy on an up day is up to you. Useless fact, since 2/7/2012 526 (35%) points of the 1497 points increase in the Allords to yesterday occurred on a Friday. Mondays used to be big negative days but they have turned positive overall. But this Monday could be different.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 3:50PM
  • surely there'll be some bids at the 600 level?

    Commenter
    j
    Location
    syd
    Date and time
    September 05, 2014, 2:07PM
  • "Be greedy when others are fearful". loading the boat with BHP calls. Never fun trying to catch falling knives, though.

    Commenter
    50BahtLeo
    Location
    Date and time
    September 05, 2014, 2:04PM
    • interesting play

      Whats your time frame on the calls?

      Commenter
      mushy
      Location
      Date and time
      September 05, 2014, 3:34PM
  • Down to 5600 and right on cue, Liberator is back on the blog.

    Getting ready for the mother of all shorts I suspect!

    Commenter
    Mister5100
    Location
    Date and time
    September 05, 2014, 2:02PM
    • Hi Mister. Are you winning recently? I really wanted the Aussie Trusted to push the XJO to 5800... why can everyone here not ramp it up a little more. This fall is too early.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:22PM
    • PS: Money is in the account. Not shorting yet! I'll call if it goes live as I always have.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 3:24PM
  • "We measure 4000 prices every single week," said Mr Jegen from Woolworths. "And on those 4000 prices every single week we're the lowest-priced supermarket in Australia and have been and will be."

    If that was the case, why do you not compare like-for-like products with ALDI so it is all in the open for everybody to see Mr Jegen?

    Commenter
    Viking
    Location
    Sydney
    Date and time
    September 05, 2014, 1:30PM
  • Currently I am working in the Philippines and I really don't think they will pass the bill to ban exports of untreated nickle etc. The cost of electricity here is very very high and I cannot see the slightest possibility of a profitable refinery here. Plus the corruption and red tape would take years to get through the approval process.

    Commenter
    Geoperth
    Location
    Date and time
    September 05, 2014, 1:23PM
    • Mabuhay!

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      September 05, 2014, 3:28PM
  • so today's the day, for weeks i've been trying to trade the asx 200 down into the big fig at 5600, just belted every time.
    was waiting for some kinda big move over night to push it thru, in the end didn't take anything special, just drained out.
    pity was long today.

    Commenter
    j
    Location
    syd
    Date and time
    September 05, 2014, 1:18PM
  • The ASX now 4 times further down than the Dow and it's more than 3 times as big.. Seriously how can anyone invest in the ASX with his kind of form. Oh and there was yesterday as well and Tuesday losing all the gains. What a rort.

    Commenter
    ASX
    Location
    Sydney
    Date and time
    September 05, 2014, 1:17PM
    • The DOW and the ASX don't measure the same things, they are not equivalent indices.
      in addition, a lot of money comes out of the ASX in dividends from companies. The US market has a lot less companies that pay dividends as matter of course.

      You are comparing Apples and Oranges

      Commenter
      econorat
      Location
      Sydney
      Date and time
      September 05, 2014, 2:17PM
  • Hockey asking ATO 'to double its efforts' going after the international tax avoiding baddies. But Joe how does that yell with cutting 300 jobs at ATO mate?

    Commenter
    Viking
    Location
    Sydney
    Date and time
    September 05, 2014, 1:17PM
    • 300 jobs gone at the ATO. More like 4000 to 5000. Reduced audits & compliance action and escalatng uncollected debt. http://www.canberratimes.com.au/federal-politics/political-news/australian-tax-office-compliance-ability-gutted-say-departing-insiders-20140715-zt92a.html
      I doubt that Hockey is serious. Just striking a pose before the G20 Finance Ministers conference. Why would the Libs crack down on their donors.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 2:07PM
  • It's absolutely unbelievable, one has to pinch oneself so as to check that one hasn't dozed off:

    " ...top US Federal Reserve official says US interest rates, which the Fed has kept near zero since December 2008, are too high ..."

    "... Asked why then is the Fed reducing its bond-buying program, which is aimed at pushing down borrowing costs, Kocherlakota said he had no good answer. ... "

    If that doesn't raise alarm bells about a Western world sleepwalking itself into suicide then I don't know what. Economies that have been crushed under a mountain of debt, taxes, welfarism and statist dirigisme are now falling back on money-printing as a last attempt at avoiding reality.

    Commenter
    Dr No
    Location
    Sydney
    Date and time
    September 05, 2014, 1:17PM
    • Markets will rally forever and never crash without any repercussions for the greed and ill thought out monetary policies that we are all witnessing. Friday Sarcasm...

      World trading patterns and figures are approaching a very scary area.

      I would not wish to be an Aussie right now holding half a mill in housing debt.

      Commenter
      Librerator
      Location
      SEQLD
      Date and time
      September 05, 2014, 2:25PM
  • Hey Allan -- are you still in Qantas or did you bail out with the pop?

    Commenter
    jezza
    Location
    Date and time
    September 05, 2014, 12:52PM
  • Thinking these half price Foxtel prices will hit SMW & NEC in the next couple of years. $25 p/m is pretty good compared to all the free to air garbage!

    Commenter
    GS
    Location
    Date and time
    September 05, 2014, 12:47PM
    • Is there any discernible difference between Foxtel $25 crap and free-to-air crap.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 1:05PM
    • It's a different type of crap. You can escape, talent/property/cooking/dating shows on Foxtel. Even if the novelty wears off them after 1-3 years, that's 1-3 years of SWM & NEC reporting badly and the share price of each tanking down further!

      Not to mention Netflix which will slaughter all... depending if they price it under $20 & not get greedy with "Australian prices".

      Commenter
      GS
      Location
      Date and time
      September 05, 2014, 1:57PM
    • @Mitch: yep. You also get UKTV, Arena, Lifestyle Channel, Fox8, MTV, TCM, Fox Sports News, Eurosport News, Sky News, Sky News Business, Fox News, CNN, Discovery, National Geo, BBC World News, Bloomberg TV, Disney Channel, Cartoon Network, Channel V.
      Some of those maybe not for you, but I like several of those channels.

      Commenter
      Irish Phil
      Location
      Date and time
      September 05, 2014, 2:12PM
    • I know it is non Australian like but I am not interested in sport, only movies. If they would allow the subscriber to choose the channels they wanted I would not hesitate and take up the offer. In its present form they charge for crap which I can look at anytime for free on the free to air channels.

      Commenter
      DavidB
      Location
      Date and time
      September 05, 2014, 2:46PM
  • The story at 9:37am on Woolies. Popped into my local Woolies for a couple of items yesterday at 4:45pm. Just 2 human checkout operators and a queue of 27 people (I counted) waiting to use the automated checkouts.. Turned around and walked out and went across the road to Aldi. In and out in 2 minutes. Staff cuts at Woolies due to the Masters losses might be saving them money but they are pi**ing off their would-be customers.

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 12:35PM
    • spot on Mitch.

      Never shop there now never

      Commenter
      mushroom
      Location
      Date and time
      September 05, 2014, 12:53PM
    • I'm calling BS. You mention here at least once a week that you shop at Aldi and not at 'Colesworth' yet you went into your local Woolies instead of Aldi across the road? Not sure what your agenda is making things up.

      Commenter
      Tim
      Location
      Date and time
      September 05, 2014, 1:05PM
    • Agreed. I want to drop my 15 items in a basket on a bench and let the person behind counter run it through. I am generally tired after work and just want it sorted. Nothing worse than the counter weight being stuffed on the Chinese import scale and checkout... blocking you and stuffing it up.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 1:23PM
    • which store?

      Commenter
      chee
      Location
      Date and time
      September 05, 2014, 1:24PM
    • @Tim, that kind of comment is not worthy of a response. I'm surprised the Eds let it through.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 2:16PM
    • @Liberator, at least at Aldi if a queue develops at the checkout they generally open another one. Shoppers there also seem more inclined to let those with few items queue jump ahead. At Woolies it's every shopper for themselves due to the long wait and they could be the same people.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 2:42PM
    • @ Liberator of SAQLD.. Those gears are imported /mfg in/from USA/Europe . (person who sourced these checkout units would know better). Don't keep blaming China. By the way China made product qualities not all bad at all)

      Commenter
      Up and Down is Norm
      Location
      Date and time
      September 05, 2014, 3:16PM
    • Prices are down. I'm not buying it coles. Rolled Oats were 94 cents now $1.40. Milk was under $2 now $2.40 and dont get me started on the tofu!!!!!

      Commenter
      Not buying it
      Location
      Coles
      Date and time
      September 05, 2014, 4:00PM
  • RE 12:18pm Not happy with Getcreditscore.com.au

    Tried the site the other day and kept getting server errors, had to try multiple browsers, finally worked on my phone and said I had already requested my credit score in the last 12 months and need to wait now. I HAVEN'T requested my credit, nor applied for anything in the last 12 months. It was those damn server errors when I first tried it!

    Grrrrr at waiting for another 12 months to check now!

    Commenter
    GS
    Location
    Date and time
    September 05, 2014, 12:28PM
    • @GS. I'm guessing you won't be the only one that it happened to. If you are keen might be worth a shot and ring them to get it reset. After all, they get something out of it also.

      Commenter
      Pete of ACT
      Location
      Date and time
      September 05, 2014, 1:39PM
    • hmmm I did see a "contact us" thingy but ended up frustrated with it all by the end and just closed it!

      I may just give it a try on the weekend!

      Commenter
      GS
      Location
      Date and time
      September 05, 2014, 2:00PM
    • I filled in all my details and then was told that it couldn't identify me even though I have multiple credit cards and a mortgage. I smell a rat! Perhaps it's a con to make people pay up for the privilege after they get frustrated trying to get it for free.

      Commenter
      Mayne
      Location
      Date and time
      September 05, 2014, 3:48PM
    • I also got that message until I put in my old address (where I applied for home loans etc). Try your old address.

      Commenter
      GS
      Location
      Date and time
      September 05, 2014, 3:54PM
    • ... assuming you've moved elsewhere that is! :)

      Commenter
      GS
      Location
      Date and time
      September 05, 2014, 3:55PM
    • @Mayne - maybe but they are legally required to give you a free credit history once a year if they have a file on you. There are a number of companies that do this stuff. I did a D&B search a while back and they came back with nil record and that is the answer I was given when I questioned them... but then again how do you know!

      Commenter
      Pete of ACT
      Location
      Date and time
      September 05, 2014, 4:04PM
  • "Economists increasingly concerned China's property slump will wreak economic havoc globally, particularly for Australia"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 05, 2014, 12:27PM
    • If you read up on the GFC you will see that Chinese investment in US realestate was one of the primary factors leading to the housing bubble and subsequent crash. Yet another reason to ban foreign investment in residential.

      Commenter
      Ryan
      Location
      Date and time
      September 05, 2014, 1:16PM
    • Australian's are too reliant and now addicted to foreign investor property acquisition pushing up their own preexisting asset value. Pity the poor kids in Sydney - 9x average income for an average home.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 2:54PM
  • One bright note on the market downturn is that the yield on the many upcoming dividend payers is improving and we know who they are. On a brighter note, for some, the yield will probably be even better this time next week.

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 12:24PM
  • article 11.56 am

    Housing Boom!

    Told ya it would happen one day.

    Commenter
    ellen
    Location
    SEQLD
    Date and time
    September 05, 2014, 12:11PM
    • Investor heavy SMSF Units and Majority Foreign Owned High Rise vs Australian FHBs... see the error in the news.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 1:28PM
  • Ed: Picture @ 9:25am. Is that USB or UBS?

    ED: Well spotted. Must have happened just before our third coffee hit.

    Commenter
    ExJayOh
    Location
    Date and time
    September 05, 2014, 12:08PM
  • Sooo, we are all cool with the ECB moves overnight? It seems a pretty big piece of info and no real talk here as yet...

    Commenter
    Oh_Mighty_Zeus
    Location
    Mount Olympus
    Date and time
    September 05, 2014, 11:54AM
  • Cash Rates

    16 of the OECD/G20 countries are running a central reserve rate of 2.5% or less and showing signs of financial stress within their markets.

    10 of these (incl UK & USA) are running at or under 1%... with the vast majority printing money to hold off an internal internal credit crunch.

    What can we expect next year with growth in the EU expected to stagnate, China on the brink of a shadow bank crisis and Australia hemorrhaging from it's eyes with debt. The USofA debt crisis is not even close to ok... they are stuffed in all respects with an elaborate reporting scheme backed on, again, printed money and a $18T sovereign debt...

    Think I will roll the balance of my super in to a safe market sector.

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    September 05, 2014, 11:52AM
    • What would be "safe market" sector? Gold, Cash, Staples, Blue Chips... ?

      Commenter
      DJ77
      Location
      Sydney
      Date and time
      September 05, 2014, 12:07PM
    • @Liberator, when you find a safe market sector let us all know.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 12:25PM
    • Cash if Institution managed. Precious metals if Self managed. The theory is, when cash loses value to an appreciable extent, a super fund will be the last thing to worry about. You may be more concerned about for example, where you can find a place to hunt wild ducks.

      Commenter
      Ryan
      Location
      Date and time
      September 05, 2014, 1:21PM
    • @Liberator, why would you bother. According to the Clive Palmer model you have a 50/50 chance of being dead before you need it. The fact that your dependents will need your super is irrelevant under the Palmer model.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 1:28PM
    • This is my dilemma. What is safe over the next 18 months... I am trending risk adverse for now but see very little to give me a warm fuzzy feeling.

      Gold... only worth something if others have cash to pay for it. Staples... not my thing. Property... is done for growth / returns (sorry Sydney is not the world). Utilities... what is left of the profitable ones with more than a 12 month outlook.

      Might go buy a hobby farm for cash and grow my own food!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 1:36PM
    • Roll some stock in to Smith & Wesson... we might need it soon with all this religious fanaticism taking over the world! Sales might go up!

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 1:48PM
    • @Liberator, I was going to suggest buying canned food as everyone has to eat but as far as value for volume and demand goes you can't beat spirits & tobacco. You might feel guilty charging a mother with kids top $ for cans of baked beans but the sky's the limit for whisky & rum.The bad times bring out man's worst side and spirits and a smoke will help that along. The Smith & Wesson would come in handy then too.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 4:21PM
  • Ed: Picture @ 9:25am. Is that USB or UBS?

    Commenter
    ExJayOh
    Location
    Date and time
    September 05, 2014, 11:51AM
  • BDR heading sub 45c, still a great buy! Pile in fellas!

    Commenter
    BDR
    Location
    Yeah Yeah!
    Date and time
    September 05, 2014, 11:49AM
    • yes, lets hope it's not another SBM

      Commenter
      barbara
      Location
      Date and time
      September 05, 2014, 12:45PM
  • Ed: Where did the chart go re JB Hi-Fi at 9:52am?

    Ed: hi ExJayOh, we had an attribution misunderstanding so we took it down. It is a good one! So hopefully we can get it up again at some stage. Chrs

    Commenter
    ExJayOh
    Location
    Date and time
    September 05, 2014, 11:47AM
  • Economists are concerned that China has built up their perceived financial greatness on the back of a corrupted, highly flawed, shadow-banking-ponzi-scheme? Surely there be no risk in China?

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    September 05, 2014, 11:36AM
  • Sense of panic in the market. Love these times where opportunities just open up. A few more down down stories will help as "Hanrahan" takes over.

    Commenter
    Harry Rogers
    Location
    Date and time
    September 05, 2014, 11:27AM
    • Sense of panic?
      It's been stimulus filled euphoria driving world markets and indexes to all time highs. Our accumulated index has been hitting new records and I suspect the total market cap of the asx 200 has as well.
      Any bad news has only served to drive markets higher, and risk premiums on shares are virtually non existent.
      But if you see opportunity go for it.

      Commenter
      MTD
      Location
      Date and time
      September 05, 2014, 12:02PM
    • love you mate but we are down 12 points, lol

      Commenter
      when harry
      Location
      met sally
      Date and time
      September 05, 2014, 12:07PM
    • Thanks for comments and opinions.

      I find that in the past 2 years when the cash exits there is the usual oversold position. Then the cash finds dead ends out there and return to equities including miners and banks.

      Simple maths if you are trying to achieve better than 2%. The doomsayers rarely invest they just comment which is good for my portfolio.

      Commenter
      Harry Rogers
      Location
      Date and time
      September 05, 2014, 1:26PM
  • Shaw Stockbroking think that the new Iphone will be a boon for JBH.

    Sorry, Shaw, but I see their business in decline. There are no new items in their catalogues that people want to purchase.

    I would imagine at the moment sales are being made based on heavy discounting and those replacing faulty products.

    Laptops in decline. PC's no one buys. Tablets peaked. Phone's can be brought anywhere.

    Where is JBH's next big ticket item that everyone wants to upgrade to, or take up? There isn't one, and nothing on the horizon.

    Apple's innovation curve is lagging now as there are no unfulfilled needs to innovate into.

    JBH will be cheaper this time next year.

    Commenter
    Joe the POM
    Location
    Geelong
    Date and time
    September 05, 2014, 11:23AM
    • Soooo... People always want to buy the latest, phone/tablet, people always need laptops for school/uni/work, smart watches and other wearables is a thing, gaming consoles are still selling well along with the new games and accessories, consumer spending has been nudging higher and a positive looking xmas is around the corner.

      Commenter
      DR
      Location
      Clovelly
      Date and time
      September 05, 2014, 1:15PM
    • Agree with you here. The internet is bringing suppliers (in any shape) very close to their customers. The result is that more and more items become commodities e.g. the value of any given item shrinks because it is easier to get to.

      Commenter
      Viking
      Location
      Sydney
      Date and time
      September 05, 2014, 1:25PM
  • Question on tax deductible housing investment. A lot of people quite anti it but how is investing in a property any different from any other kind business investment. The government wants to take its tax cut in any profits and so it seems only fair they allow loses to be deductible. Or are people suggesting the risk in housing investment should be 100% with the investor?

    Commenter
    Peter
    Location
    Oz
    Date and time
    September 05, 2014, 11:05AM
    • This was asked yesterday and the answer is quite simple. When you set up a business with borrowed money or your own you have the objective of turning a profit ASAP, even after paying interest on borrowings When you buy an investment property with borrowed money the sole objective seems to be to make a loss to offset against your other taxable income. The profits may come years later when you sell for a capital gain on which you will only pay tax on 50%. In housing investment the intention is to place the risk squarely with the taxpayer.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 11:58AM
    • If I invest in business A and business A makes a loss, I can't write off that loss as a deduction against my personal income (there are exceptions - Arts businesses being one, e.g. musos etc). The loss is carried forward to the following accounting year and is a deduction against future revenue made by business A.

      However, with negative gearing, if I make a loss on a house, I can get a deduction for that loss against my person income.

      Commenter
      Jools
      Location
      Date and time
      September 05, 2014, 12:00PM
    • 100% with the investor. It is NOT a value adding enterprise and should not be comforted by tax concessions. It is a speculative guess as to which way it will move. As a comparison to a true business value adding investment, say a new cafe, your create jobs and reap the rewards of offering a service.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 12:17PM
  • BOTHFT are trading hard this morning XJO. 15 point run up faster than my screen was refreshing! Not too many genuine investors trading the market these days. I think the machine will conquer the world!

    Commenter
    Liberator
    Location
    SEQLD
    Date and time
    September 05, 2014, 10:48AM
    • The singularity is coming...

      Commenter
      Fred
      Location
      Date and time
      September 05, 2014, 11:47AM
    • yes often some strange price movements these days. that one worked out for me tho, take it where u can get it i guess.
      would prefer some normal price movements tho.

      Commenter
      j
      Location
      syd
      Date and time
      September 05, 2014, 1:23PM
  • Another Australian company worth a look. AMA Group (AMA) great owner manager in Ray Malone beautifully simple business model, could be the GEM or GXL of the panel beating sector. Very attractive div of 7.1% grossed up for buyers in next month before they go ex div. thinking of buying, interested to hear other thoughts though

    Commenter
    Rob James
    Date and time
    September 05, 2014, 10:41AM
    • @robjames - or TOP which has high exposure to AMA - long term tipped to excel - AMA also gets the thumbs up from Eureka Report for being in the same category as GEM and GXL

      Commenter
      julia
      Location
      central victoria
      Date and time
      September 05, 2014, 11:42AM
    • @ Rob James - AMA does not look great at first glance on the metrics I prefer. EPS is falling 3 years straight. ROE is falling 4 years straight. Both are still positive and the company has low debt, so I am not suggesting it is a basket case, but the prospects for growth into a big company, producing large scale increases in profits are not apparent to me at first glance, and I would want to know why EPS and ROE are falling. Nice div!

      Commenter
      billyw
      Location
      avalon beach
      Date and time
      September 05, 2014, 11:45AM
    • @billyw I like ROE too, if you look at their recent reports they show that panels is one of six profitable businesses in AMA - but panels is far and away the best ROE of the 6. Then look at recent acquisition of RMA which doubles size of panels business. Finally 1.6c div / 7% was created without RMA contribution and is consistent with last year - so prospects of div increase are also good. On simple numbers, consistent div of 1.6 means 14% grossed up div over next 13 months, and that's a business as usual conservative estimate. Think I may have just convinced myself haha!

      Commenter
      Rob James
      Date and time
      September 05, 2014, 12:00PM
    • The dividend on AMA may be nice but don't overlook that the dividend is only paid ONCE a year. The only thing I see going for this company is that it's repair business is not easily shipped o/seas. In the meantime it is subject to the cost-cutting at every opportunity of the motor insurance companies. Have you ever heard a good thing said about them. I looked at this one and decided to pass.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 12:05PM
    • re response to your query - ha - typical male versus female response - I go for concept and advice that AMA as a company is well run - male analysis is acute dissection of the figures

      Commenter
      julia
      Location
      central vic
      Date and time
      September 05, 2014, 1:12PM
    • @ulia, there are other considerations besides sex. I invest in companies with a good yield AND regular dividends. One dividend a year won't pay my grocery bill. I prefer at least 2 and am deeply in favour of those that pay quarterly with a good annual yield. There's a whole batch of them going ex-div on 26/9 so I am accumulating while I can but even with the big downturn in the market over the last 2 days their prices have been stable.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 3:03PM
    • @mitch - just a humorous aside Mitch, but they have done some analysis on this and women often fare better because men obsess too much about the fine detail in the figures and swap and change too much - I'm sure you're an excellent investor and no one wins them all - its a fun gig and I enjoy your posts esp anti abbot - so keep having a go at the right wingers - cheers

      Commenter
      Julia
      Location
      Central vic
      Date and time
      September 05, 2014, 3:53PM
    • @julia even I get tired of having a go at the right wingers. They are such easy targets and make it easier every day. It's almost like they are doing it deliberately.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 4:39PM
  • Iron ore heading to $80 a tonne quickly. Come on FMG!

    Commenter
    DR
    Location
    syd
    Date and time
    September 05, 2014, 10:35AM
  • DOW INTRADAY HIGH
    The Dow made an intraday high of 17161.55 and the S&P500 also an intraday high at 2011.17.
    The highs were made early and significantly the market retraced to cover the chart gap for a smooth upswing.
    I would expect more to come.

    Commenter
    It's All About Making Money
    Location
    Lennox Head
    Date and time
    September 05, 2014, 10:23AM
  • If only we had a Treasurer who understood basic economics "A beautiful set of numbers" he said on the release of the latest GDP, channelling Paul Keating. However this gives the lie to that statement " The rise in inventories in the June quarter accounted for the large majority of the 0.5 per cent growth in GDP overall. If inventories didn't grow by this much GDP would have been negative for the June quarter. " http://www.smh.com.au/business/the-economy/what-the-gdp-figure-for-june-really-means-20140903-10bu5d.html#ixzz3COHfWatt
    As Rio, BHP, Fortescue and the other iron-ore miners continue in their mad rush to dig up dirt to try to sell it o/seas to buyers who are full to the gills with the stuff we will continue to produce "beautiful sets of numbers" that mask the real trouble awaiting us in 2015 when the forecasts of falling growth rates by the RBA & the economic pundits are borne out. But don't worry, the recession will all be Labor's fault.

    Commenter
    mitch of ACT
    Location
    Date and time
    September 05, 2014, 10:06AM
    • We took on debt during the boom years and now we have to pay it back during the lean years.

      But that is usually how things go. Most folks who have to declare personal bankruptcy build up a balance on their credit card when they are in employment and things are going well. It is only when they loose that well-paying job that they realise what a massive problem the credit card balance is...

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      September 05, 2014, 10:52AM
    • What would Labor do differently? Mitch - you need to understand by now that both parties would do the exact same thing financially as the Australian 'over consumer' has dictated the financial undoing of this nation.

      Both parties lack the sack to go and make HARD decisions i.e. removing negative gearing, taxing foreign MNs and bringing back capital punishment for our worst criminals.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 10:54AM
    • Wow Mitch are you okay.... your actually willing to apportion some blame against your beloved Labor for spending up beyond its means... or did someone else just use your screen name??

      Commenter
      Multi
      Location
      narrabeen
      Date and time
      September 05, 2014, 11:17AM
    • By the numbers and excluding the build up in inventory, my guess is that Australia could have already entered recession.

      Commenter
      Viking
      Location
      Sydney
      Date and time
      September 05, 2014, 11:37AM
    • There is a world of difference between gov't debt and household debt and too many people have swallowed the Abbott gov't line that gov't debt is BAD. Ignorance is a disease easily caught. Gov't debt is there to stabilise the economy in tough times, eg during the GFC when the private sector stopped spending. The stimulus spending that Labor took on was entirely the right thing to do and supported by the RBA, Treasury and independent economists here and abroad. Gov'ts have access to a revenue stream that households do not and that is the ability to tax and to raise new taxes. What this gov't should be doing is continuing to provide stimulus, not cutting pensions and benefits, and taxing those with the ability to pay and certainly not getting rid of the carbon tax, $7-9b in revenue foregone. Stupid, stupid, stupid.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 12:17PM
    • @mitch - you still seem to be under the impression that the last 6 years in Australia have been "tough times". I think you will very soon learn that these were our good and prosperous years. The lean years are just about to start...

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      September 05, 2014, 1:23PM
    • Mitch - Government spending like Labor during the GFC was at best a tampering of the real market by propping up 'fluff' that should have corrected to realistic levels. Instead we have a bloated financial sector, over generous working conditions and a government committed to cost blow outs that FAR exceed any realistic tax base. The day a Government has to borrow money is the day the Government is trading insolvent. History repeats time and again.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 1:44PM
    • @Liberator the problem is that in allowing a correction to realistic levels the gov't would have decimated the economy. The debt we have now, spent on supporting the economy, would have been instead accumulated from welfare payments to the army of newly unemployed and the loss of tax revenue from a diminished economy. At least we still have a functioning economy able to pay off that debt when the time is right.

      Commenter
      mitch of ACT
      Location
      Date and time
      September 05, 2014, 3:29PM
  • Dow went down 8 points so that would be 2 points for the ASX right ? And the loss yesterday. ASX like flogging a dead horse. Wait for 10.09 am.

    Commenter
    Dow
    Location
    Sydney
    Date and time
    September 05, 2014, 9:56AM
    • FTSE ended up and the Dow down 8. Our Spi was up 33 last night lost the lot and now ASX down more than Dow as per the last 5 years. We go down as much and more and never go up as much. 650 points in 5 years. The ASX is as useless as those referee's in last nights game.fd

      Commenter
      Joke
      Location
      Sydney
      Date and time
      September 05, 2014, 10:23AM
    • The DOW is just the US version of the ASX. It contains all of the same companies, so why is the performance different? I just can't work it out.
      What a joke. What a sick, boring, overused, dull joke.

      Commenter
      Flog that dead horse
      Location
      Flog it! Flog it!
      Date and time
      September 05, 2014, 10:56AM
    • The ASX is a discounting mechanism for the next session on the US markets. It was the reversal of $SPX last night from highs that has caused the market to be down. SPI was up about 24 through the night but finished only marginally higher. Spin the wheel again, place your bets!

      Commenter
      50BahtLeo
      Location
      Date and time
      September 05, 2014, 11:39AM
  • Both IFM and TNE have been included by S+P in the ASX300 index today, and TNE has jumped straight into the 200 benchmark. Readers of this blog will know that since I decided to raise my optimistic voice against the harbingers of doom who frequent this space I have been singing the praises of these two Australian success stories. Do yourself a favour, read the annual reports for these two Australian companies over the last 5-10 years.

    Commenter
    billyw
    Location
    avalon beach
    Date and time
    September 05, 2014, 9:54AM
    • you forgot to mention TFC - also added to ASX200. Keep up the good work!

      Commenter
      doglover
      Location
      Date and time
      September 05, 2014, 10:10AM
    • I neglected to point out that TFC has also made a debut on the 200, and it also has an annual report worth reading back some years. There are great Aussie success stories out there, but you don't hear much about tem in this blog.

      Commenter
      billyw
      Location
      avalon beach
      Date and time
      September 05, 2014, 10:14AM
    • thanks Billyw. TNE always on my watchlist, one of those big fish that got away, bought sold for great profit, only to keep running.... indefinately! Check out TME, valuation looks spot on if not cheap after some structural changes, looking at low double figures growth 2015, juicy dividend to boot due soon. Just an idea though. Happy trading!

      Commenter
      Happy
      Location
      Trader
      Date and time
      September 05, 2014, 10:26AM
    • IFM is fantastic. Still holding a large position bought at @ 0.24. Sold some at 0.75 but I'm glad I didn't sell all.

      Commenter
      got brain
      Location
      Date and time
      September 05, 2014, 10:40AM
    • @ Happy Trader, I can see why you would trade this, but it would not appear suitable for me - the long term outlook for CRZ, REA and SEK as specialised on line list providers with global potential seem more attractive than a general on line list provider in a small market like NZ. Like many of these online providers it has a low debt whicjh is great, but I see the EPS is falling and the ROE flat. Why is that?

      Commenter
      billyw
      Location
      avalon beach
      Date and time
      September 05, 2014, 11:50AM
  • Am a holder of PSY since 10.5 cent level. Nearly sold when price hit 3. cents. Based on research it seems that they have a good thing with the UWA. Does anyone else have this share and what are your thoughts about thiscompany. Must say that I expected this annoc last week but someone seems to have known more then me and made a lot yesterday.

    Commenter
    Geoperth
    Location
    Date and time
    September 05, 2014, 9:54AM
    • Been watching it for weeks and just didn't believe it would keep going up. When it pulled back, I still didn't buy, thinking it was another TON and would fall back further. Am now on board for a small amount and am hoping it will go up further, but have some funds aside to buy more if it pulls back. Congrats to all those who must have done very well out of this one.

      Commenter
      doglover
      Location
      Date and time
      September 05, 2014, 10:07AM
    • Re PSY, they estimate the current MEMS market at $14bil but have no sales for 10 years. A bit early yet to be in this one for me, as I try to value companies based on their return on equity primarily. Reminds me of Dyesol (DYE) – great science, you want it to succeed, but no real revenue stream. I would expect to find plenty of suitable entry points if they start to make money, but I would not be inclined to wait for that development while others are kicking goals – as a Perth boy you may know about TFC? Cheers.

      Commenter
      billyw
      Location
      Avalon beach
      Date and time
      September 05, 2014, 11:02AM
  • With iron ore sinking below $80 per tonne and the Ebola virus raging out of control in Guinea with closed borders and cancelled flights as a result, will Rio Tinto still go ahead with its $20 billion Simandou iron ore project?

    Commenter
    Dr No
    Location
    Sydney
    Date and time
    September 05, 2014, 9:49AM
    • Yes they will.

      Commenter
      Rio
      Location
      Sydney
      Date and time
      September 05, 2014, 9:59AM
    • They might just buy FMGs lot for cheap...

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 10:44AM
  • Merge, demerge, merge demerge...

    Does nothing for shareholders in the long wrong except lose money which is syphoned off and distributed to bankers and other assorted middlemen.

    All pat each other on the back, light up cigars and congratulation themselves on shuffling the deck chairs while scoffing at the public who actually own the companies

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 05, 2014, 9:49AM
  • "Luxury home prices in Perth's most famous suburbs, including Mosman Park, Dalkeith, Subiaco and Cottesloe, are either flat or have fallen since 2008, new data shows.

    The median house price for $1 million-plus homes in Mosman Park was $1.55 million last financial year compared with $1.75 million six years ago"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    September 05, 2014, 9:45AM
    • Is there going to be a Housing Boom ?

      Commenter
      Deafman
      Location
      Sydney
      Date and time
      September 05, 2014, 9:57AM
    • you have never been to Perth!

      Commenter
      Allan Bond
      Location
      Date and time
      September 05, 2014, 10:28AM
    • Perth is such an isolated area, houses are going to fall since the economy is starting to go in reverse. I wish house prices in Sydney would start going backwards.

      Commenter
      DR
      Location
      Clovelly
      Date and time
      September 05, 2014, 10:36AM
    • SEQLD looking shaky. The towns north and west of Brisbane are shot to pieces. Only 200,000 home owners to worry about a falling asset price.

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      September 05, 2014, 11:09AM
    • Housing Boom. That's the first time I've heard that.

      Commenter
      Echo
      Location
      Sydney
      Date and time
      September 05, 2014, 11:49AM
  • Clime sent me this
    Very interesting

    http://www.clime.com.au/investing-report-archive/bhp-rio-hide-iron-ore-slump/?mkt_tok=3RkMMJWWfF9wsRoivK7PZKXonjHpfsX86usoW7Hr08Yy0EZ5VunJEUWy3IEARdQ%2FcOedCQkZHblFnV0LSq2jVaMNqqwM

    Commenter
    stu
    Location
    buderim
    Date and time
    September 05, 2014, 9:41AM
  • "I'm not usually a betting man but during a lovely dinner on the weekend I bet a very bullish iron ore analyst friend of mine that ore will hit $85 a tonne before Christmas.

    Which side of the stake would you be on?"

    Commenter
    Jimmy
    Date and time
    June 30, 2014, 10:48AM

    Read more: http://www.smh.com.au/business/markets-live/markets-live-ironwrought-rally-20140623-3amzq.html#ixzz3COMP77pu

    Commenter
    Jimmy
    Location
    won himself a case of beer
    Date and time
    September 05, 2014, 9:19AM
    • Oops. That was the wrong link....

      http://www.smh.com.au/business/markets-live/markets-live-healthscope-ipo-developments-no-better-offer-for-country-road-asx-200-down-20140630-3b2nt.html#ixzz3CPLlYnqA

      Commenter
      Jimmy
      Location
      shouln't talk about himself in the 3rd person
      Date and time
      September 05, 2014, 1:26PM
Comments are now closed