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Markets Live: shares advance two days in a row

Date

Markets Live: shares seal two days of gains to finish the week; Qantas advances

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That's it for Markets Live today.

Thanks for reading and for your comments.

See you again at 9 on Monday.

Despite a positive run on Friday, Australian shares moved modestly lower over the week amid soft domestic and disappointing Chinese economic data.

Global investors are also growing cautious as the company earnings season looms in the United States.

The S&P/ASX 200 Index and the broader All Ordinaries Index lost 0.7 per cent over the week to close at 5486.8 points and 5474.6 points respectively, as the big four banks dragged the bourse lower.

“Most international sharemarkets retreated over the last week on worries that problems at some European banks might spark a return of its debt crisis and nervousness about a possible correction in the US,” AMP Capital head of investment strategy and chief economist Shane Oliver said.

Read more

Some Friday commentary from BusinessDay columnist Michael Pascoe:

"The circus of the Australian Senate this week certainly provided entertainment for the masses, or at least the Canberra community.

But under cover of the noise and theatrics, a genuinely serious problem is starting to build for the nation.

It really doesn’t matter much if the carbon price was scrapped yesterday, next week or next month.

Given how much it’s costing Clive Palmer in dollars and Tony Abbott in reputation, the one sure thing is that it will go.

Yet to be seen is exactly what sort of amendment the Palmer United Party wants and what the government will accept – though it looks like the government will accept anything right now to fulfil its election chant of axing the tax."

Read more

Here's some advice from The Australian Financial Review's markets columnist Phil Baker on how to spot a winning stock:

"For all its fancy jargon and complex theory, investing is about nothing more than making money in a sensible fashion. Those with the highest returns from the right strategy win.

But spotting winners isn’t easy. US stocks have outperformed over the past 12 months, but with Federal Reserve support looking as though it has peaked, along with their operating margins, the only avenue left for growth is mergers and acquisitions, which is stock-specific and not enough to push the Dow Jones or S&P 500 higher.

The US profit-reporting season is starting to take off and will be a major focus for investors next week, when more than 50 companies from the S&P 500 report their second-quarter numbers. Analysts polled by Thomson Reuters expect S&P 500 earnings to grow 6.2 per cent in the three months to June 30 – down from 9.7 per cent on January 1 – but up from 5.6 per cent in the March quarter."

Read more

Here's an account of how the week traded.

Shares are down 0.7 per cent for the past five days, making it the worst week for equities in four weeks.

The week that was

The week that was

Now here's some depressing news: chocolate, the great mood lifter, is getting more expensive.

It's enough to leave a bitter taste in your mouth. The price of cocoa has soared close to three-year highs, surging 45.7 per cent since March last year, while cocoa butter - the main ingredient for chocolate, derived from the cocoa bean - has almost doubled, rising about 96 per cent.

Chocolate cravings across Asia, which is experiencing a rapidly growing middle class, have been linked to the price rise, with chocolate makers already passing on the cost to shoppers.

Upmarket confectionary maker Haigh's, which will celebrate its centenary next year, has increased the price of its products by an average of 3 per cent.

Read more

The S&P/ASX 200 Index closed 22 points higher or 0.4 per cent ahead to 5486.8 points.

Winners and losers at the close

Winners and losers at the close

Important developments at Commonwealth Bank of Australia, reports Colin Kruger.

"The Commonwealth Bank can’t be accused of appointing an unknown quantity to head the sweeping review of its wealth management unit’s compo process.

Liberal party favourite, and former High Court judge, Ian Callinan, has been appointed chairman of the independent review panel reporting to CBA chief, Ian Narev. 

It’s a deja vu for Callinan, who was brought in as an independent arbitrator five years ago by then CBA chief Ralph Norris to sort out the mess of its involvement in the collapse of financial adviser, Storm Financial."

Read more

JPMorgan has previewed the copper sector's second-quarter production reports and finds:

  • Prospect for weaker outcomes at PanAust (overweight) and an opportunity for the market to pose questions around the Guangdong Rising Assets Management (GRAM) offer. The broker separately thinks there is a "reasonable probability of a revised bid".
  • The focus will be on 2014-15 production guidance at Sandfire Resources (neutral)
  • Weaker quarter-on-quarter production at OZ Minerals (neutral) and need for clarity around the company's strategy for Carrapateena.

CIMB has lifted its price target on Transurban to $7.97 from $7.29 and retained its add recommendation and top sector pick.

Acquisitions and expansion of its existing assets should pave the way for revenue growth in 2014-15.

Critical to CIMB's forecasts are a 5.1 per cent yield and 9 per cent dividend per share growth.

Transurban EBITDA waterfall chart

Transurban EBITDA waterfall chart

Deutsche Bank has initiated coverage on Scentre Group with a buy rating and $3.65 price target.

The broker this the market is not recognising the potential of Scentre's development and property management platform.

It also denounces the "myth" that deleveraging is an earnings growth killer, saying Scentre can roll-out its 2018 development pipeline and maintain gearing at current levels.

 

Scentre debt analysis

Scentre debt analysis

MFS Investment Management has likened fund managers to goal keepers in their capacity to fall into a trap of "action bias" - moving for the sake of it.

"A goalkeeper is expected to act. In the case of a penalty kick, the norm is to dive. A scored goal is perceived to be less disappointing when it follows action, which is the norm. Innate self-confidence, years of training and the crowd’s expectations further contribute to this suboptimal decision. 

"If the goalie dives, then he feels that he did his best to stop the ball, and so does almost everyone else. On the other hand, a scored goal is perceived to be worse when it follows inaction, which is a deviation from the norm...

"Portfolio managers can often fall into the same trap of action bias — trading frequently, with confidence that this action adds value."

The truth is, it doesn't. "An awareness of this action bias may help them recognize that inaction can be an optimal strategy."

Australian singer Megan Washington has won a significant settlement from Qantas after the airline misused a video of her performing I Still Call Australia Home at a corporate event.

The ARIA award-winning artist took legal action against the airline last year, seeking $500,000 damages for its alleged unauthorised use of a recording of her singing at Qantas' 90th anniversary party.

The airline then used the video on its website, YouTube channel, and during in-flight entertainment.

Ms Washington said the use raised issues of copyright and her reputation.

The use of the video also potentially breached the agreement between Ms Washington and the airline over the performance.

Read more

Qantas has settled with Megan Washington

Qantas has settled with Megan Washington Photo: Louie Douvis

Over at The Australian Financial Review, Mark Mulligan reports on subtle changes in the interest rate outlook:

Sluggish economic growth and crimps on household spending could force the Reserve Bank to cut interest rates as soon as September, according to one of Australia’s leading economists.

Goldman Sachs’s head of portfolio strategy Tim Toohey said wage and others pressures on household incomes, slower mining export growth and a long lag before new growth drivers kick in could force the RBA’s hand within months. The bank forecasts a 25 basis point cut in the cash rate to 2.25 per cent.

Goldman Sachs is the first financial house to break away from the pack, with most banks now forecasting a rate rise some time next year, after retreating from earlier predictions of a cut in 2014. Commonwealth Bank of Australia is sticking to its forecast of a rise this year.

However, a raft of downbeat indicators this week – including higher unemployment, stubbornly weak consumer sentiment and spending and mixed signals from business – could force some of them to reconsider.

Read more

 

Electricity prices could be headed for a decline in real terms in NSW for the first time in living memory, with the industry regulator flagging a reduction could be in order thanks to a decline in interest rates and slowing spending by the big network owners such as Ausgrid and Endeavour Energy.

The signal comes at the start of a new regulatory regime which is aimed at preventing "gold plating'' of the network following a period of massive spending which has rivalled the $30 billion-plus cost of the national broadband network.

The NSW government-owned network companies - Ausgrid, Endeavour Energy and Essential Energy - have applied to raise prices around 2.2-2.4 per cent a year over the next five years, a little less than the expected rate of inflation.

Read more

Commonwealth Bank of Australia has appointed the former High Court judge Ian Callinan as chairman of the independent review panel it was forced to establish in the wake of a damning Senate committee report last month.

Mr Callinan, who begins his work with the bank today, will initially advise the bank's chief executive Ian Narev on designing the compensation program “to ensure it fulfils its primary objective of supporting affected customers and guaranteeing an independent review of their cases,” CBA said.

Read more

Australia's housing boom is cooling off, but the market remains strong, as home loan approvals held steady in May.

There were 52,092 approvals in the month, compared to 52,071 approvals in April, the Australian Bureau of Statistics said on Friday.

That was better than the 0.5 per cent fall in housing finance commitments that economists were expecting.

The figures were another sign that the housing market is taking a break after a year of strong growth, said ANZ head of Australian economics Justin Fabo.

Read more

Here's how the All Ordinaries are going.

All Ordinaries winners and losers mid-session

All Ordinaries winners and losers mid-session

Roc Oil’s biggest shareholder, Allan Gray, has failed in a challenge to the company’s planned $800 million merger with Horizon Oil. He had argued a loophole in listing rules allowed such deals to happen without investor consent.

Fund manager Allan Gray, which owns 19.9 per cent of Roc, called an extraordinary general meeting in Sydney on Friday in a bid to change Roc’s constitution and allow Roc investors to vote on the Horizon transaction.

Under ASX listing rules, one company can buy another with its shares without getting approval from its own shareholders.

While the resolution required the support of 75 per cent of Roc’s register, only 46 per cent of proxy votes cast backed the proposed change, with 53 per cent of votes cast against the constitutional change.

Read more

Safe haven buying has spurred gold to highest in more than three months amid renewed fears about Europe's banking system.

The precious metal surged 1.1 per cent in overseas trade on Thursday night to $US1339.20 an ounce, bringing the gains for the year to date to 11.26 per cent, according to Bloomberg.

Concerns about the heath of a top-listed Portuguese bank appeared to be the catalyst for the spike, sparking fresh fears about a looming banking crisis in the euro zone.

Espirito Santo Financial Group, the largest shareholder in Portugal's Banco Espirito Santo, suspended trading in its shares and bonds, citing "material difficulties" at parent company ESI.

Rivkin chief executive Scott Schuberg said: "once again the Europeans are getting worried about the health of those large-enough-to-matter economies that have required assistance in the past", citing Portugal, Ireland, Italy, Greece and Spain.

But Mr Schuberg said the rise in gold was not a "convincing break".

The big four banks receive excessive support from the federal government, stunting the development of alternatives, the Australian Centre for Financial Studies says in a new paper.

“Policymakers should be very careful not to continually make more and more policy concessions to Australia’s largest banks, because that unreciprocated support will damage the development of other capital channels,” Sam Wylie, from the Melbourne Business School, writes in a paper on financing business – the fourth prepared by the ACFS ahead of the release of David Murray’s interim report next Tuesday.

Capital is carried from savers to businesses through four channels: bank loans, the equity market, the bond market and securitisation.

Read more

Fortescue Metals Group has failed to achieve its full-year export guidance after succumbing to heavy rain in January and its own ambitious targets.

The iron ore miner had vowed to raise exports by 32 per cent during the June quarter to meet its full year guidance of 127 million tonnes, but confirmed this morning that it had fallen short.

Despite a strong June quarter, the miner shipped a total of 124.2 million tonnes during the 2014 financial year.

Fortescue shares were 10¢ lower at $4.25 in early trading.

The S&P/ASX 200 Index has opened a fraction lower, down 0.2 per cent.

Winners and losers at the open

Winners and losers at the open

After 25 years working around the world as a highly paid geologist earning a six-digit salary, Phil Scheimer is back in Australia weighing up his future prospects: day labourer or pizza delivery man.

The collapse of the global mining boom is decimating the ranks of working geologists. With little chance of employment, many are being forced into unwanted career changes to pay the bills.

"I just want the phone to ring and for someone to say we've got work for you, any work," says Scheimer from his home in Perth. The city rode the mining boom over the past decade but is now facing tens of thousands of people returning from mining camps jobless.

Read more

Transurban chief executive Scott Charlton has called on governments to allow the private sector to build more roads, arguing governments should not be the default provider of new infrastructure.

''It makes sense to test the private sector,'' Mr Charlton told Fairfax Media. ''Just because we might have a windfall gain from the privatisation of poles and wires doesn't mean the government is best placed to deliver [infrastructure] on the other side.''

Mr Charlton's comments were made to The Australian Financial Review's BOSS magazine.

The NSW and Queensland governments are planning to privatise their electricity transmission networks, raising billions of dollars to spend on roads and other infrastructure. Typically, governments oversee the construction of new networks, such as NSW's $11 billion WestConnex motorway.

Read more

Some analysis from BusinessDay columnist Elizabeth Knight on Woolworths and Masters:

"Woolworths boss Grant O'Brien is desperate for the market not to declare his home improvement operation, Masters, a man-made disaster but with only three months left before its US joint venture partner, Lowes, gets the opportunity to sell its share to Woolworths it's clear that time is not O'Brien's friend.

Woolworths still maintains it can get the home improvement business to break even by 2016 as does the British hardware expert, Matt Tyson, it imported to fix it up. By then it will have notched up five years and should have rolled out 150 stores.

But there remains a credibility gap – not the least of which is because according to figures periodically released by Lowes, Masters' financial performance appears to be going backwards.

Ratings agency Fitch believes that over the course of the 2014 and 2015 financial years Masters will lose $300 million but is more concerned about the possibility Woolworths may need to pay Lowes up to $800 million to buy its 33 per cent."

Read more

Gold surged to 3-1/2 month highs yesterday on safe-haven buying sparked by worries about Portugal's top listed bank, and after India kept record high duties on bullion that could prompt jewelers who did not buy gold earlier to return to the market.

Stocks on both Wall Street and Europe fell while the safe-haven yen hit multi-months highs after worries about Portugal's Banco Espirito Santo alerted investors to the possibility of a new European banking crisis.

"We did have a strong gold rally during the last period of sovereign risk in Europe, so it's not surprising to see the market reacting like this," said James Steel, metals analyst and senior vice-president at HSBC in New York.

Read more

Indonesian shares are at a 13-month high after Jakarta governor Joko Widodo cited exit polls and unofficial quick counts to claim victory in the presidential election. On Thursday, the Jakarta Composite Index closed 1.5 per cent higher. With a volume of 7.7 billion securities changing hands it was the busiest day on the Indonesian bourse since September, indicating an influx of offshore investment into the country.

Ahead of Wednesday’s poll, many foreign investors had been hoping for a clear victory from the popular Mr Joko, known as “Jokowi”, to boost sentiment among Indonesian consumers and deliver a boost to the local sharemarket.

Earlier in the week, Acorn Capital head of equities ­Douglas Loh said he was  optimistic the election of Mr Joko could provide a halo effect for Indonesian shares, much as the March election of Narendra Modi in India has done in that country.

Local stocks are set to open lower after concerns about a Portuguese bank hammered shares in Europe and weighed on Wall Street.

What you need2know:

SPI futures down 16 points to 5404

AUD at 93.90 US cents

On Wall St, S&P 500 -0.04%, Dow -0.4%, Nasdaq -0.5%

In Europe, Euro Stoxx 50 -1.6%, FTSE -0.7%, CAC -1.3%, DAX -1.5%

Spot gold up $US7.79 to $US1335.62 an ounce

Brent oil up 36 US cents to $US108.64 per barrel

Iron ore up slightly at $US96.90 per tonne

What's on today Australia: ABS May housing finance;

German: consumer price index report.

Read more

Good morning and welcome to Markets Live.

Your editor today is Vesna Poljak.

This blog is not intended as investment advice.

Quotes Search

Sort comments by:
  • What a week! Can't wait for US trade tonight! LOL

    BC Iron down 5%
    Fortescue down 7%
    Mount Gibson down 8%
    Atlas down 10%

    Commenter
    Oh Dear
    Location
    Date and time
    July 11, 2014, 4:58PM
  • Bulls quiet alright, to busy making money.
    Bears noisy...and broke.

    Commenter
    STU GUTZ
    Location
    Date and time
    July 11, 2014, 4:27PM
    • Oh yeah down for the week. Bears in the saddle..

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 11, 2014, 4:46PM
  • FTH up to 7.50 from 20c in May 1 Trade Anybody ????????

    Commenter
    FTH
    Location
    Sydney
    Date and time
    July 11, 2014, 3:54PM
    • FTH only has 13 shareholders, I would suggest it is some kind of off market structured trades between the owners and private equity groups funding them

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      July 11, 2014, 4:25PM
    • Looks undervalued. Australia's booming.

      Commenter
      Bellhop
      Location
      5&dime Motel
      Date and time
      July 11, 2014, 4:39PM
  • Where is Patrick Commins?

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    July 11, 2014, 2:27PM
    • Playing cricket?

      Commenter
      Sticks
      Location
      Date and time
      July 11, 2014, 3:09PM
  • Anyone knows current iron core price in China ? E.g Dalian iron core price . Thanks

    Commenter
    Malvik
    Location
    Date and time
    July 11, 2014, 2:23PM
    • Sept Deliv. holding steady at around 709 CNY (which i think equates to $114 USD) last few days

      Commenter
      Eddie
      Location
      Sydney
      Date and time
      July 11, 2014, 3:12PM
  • It’s going to hit the price of milk; it’s going to hit the price of fruit and vegetables. ..The reality of the carbon tax is it is small family businesses and it is goods such as milk and fruit and vegetables that are going to be hit. – Greg Hunt, 22 May 2012

    No Greg, milk is still $1/litre at Coles.

    And this guy's a minister of the crown?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 2:07PM
    • Is it really milk that is being sold for $1 per litre? After they take all the cream away and add salt plus a tad of H2O for taste I don't think you could call it milk any more.

      Commenter
      Pest
      Location
      Lowood
      Date and time
      July 11, 2014, 2:37PM
    • Pest: But they do call it Milk, it is written on the side of the carton.

      Commenter
      DR
      Location
      syd
      Date and time
      July 11, 2014, 3:34PM
    • Full cream milk does not have the cream taken away, water and salt are not added. Don't know about in Lowood, anything's possible out there.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 11, 2014, 3:39PM
  • How much longer will Tony be PM? He is being pupped by PUP. The method he used against the ALP is being used against him. IT was always a mistake to put a superficial DLPer in as leader. So, those who live by the sword so shall they perish and the chickens are coming home to roost. It is really so funny. Tony its time you spent more time with your family.

    Commenter
    Wally
    Location
    Flynn
    Date and time
    July 11, 2014, 1:29PM
  • "It has no assets, no revenues and no business plan to speak of. But a company called Cynk Technology has seen its value soar as high as $5.09 billion."

    “And it is nothing short of a testament to just how broken this excuse for a market is that a company with no assets, no revenues, no website and one employee can go from zero value to nearly $US5 billion in market cap in a few days.”

    "“We must sadly conclude that the company is nothing but a fraud,” said the financial news website Zero Hedge."

    Commenter
    House of Cards
    Location
    Date and time
    July 11, 2014, 1:05PM
  • Back on MSB with 600 @ $4.35 after 12 months on the sideline.

    Commenter
    Rabbit
    Location
    Date and time
    July 11, 2014, 12:51PM
  • Hot under the collar for not jumping aboard the TON express, up another 13%. Who are these people not making money on the ASX, return them to the banks please. LMAO!

    Commenter
    TON
    Location
    express
    Date and time
    July 11, 2014, 12:35PM
    • who are these people? 99% of all people and at least 50% of the people here. Of course none of them ever bought shares pre 2008. no no no. they were all waayyy too smart for that. they only started buying 24 months ago. of course you did.

      Commenter
      smilingjack
      Location
      Date and time
      July 11, 2014, 1:58PM
  • Single digit VIX. This market action is hilarious.

    Commenter
    Bye Bye Fiat Money
    Location
    Date and time
    July 11, 2014, 12:28PM
  • I want to short Bank. With current price NAB too high. 12.7 PE, too too high. Must be lower. Also dividend is only 6% or about 8.6% with frank. I short NAB $33.67. CAN ONLY GO DOWN. I think Allan right. BEAR!!!

    Commenter
    Melvik
    Location
    Date and time
    July 11, 2014, 12:19PM
    • I would be buying not shorting NAB currently.
      My inverse Allan index (IAI) is predicting a rise of at least $1

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      July 11, 2014, 12:37PM
    • Don't ask for advice on the internet. If you can't make your own financial decisions go and see a financial planner.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 11, 2014, 12:58PM
  • This chart makes for interesting reading.

    http://www.zerohedge.com/news/2014-07-07/chart-day-weather-apologist-economists-worst-nightmare

    A few US companies refute the cold weather reason for poor GDP.

    If GDP is bad again next quarter, the US Fed will be hoping for a warm summer to blame.

    Something will happen soon, as Belgium can't invest more than their entire GDP in US Treasuries.

    Commenter
    nolongerconfused
    Location
    Date and time
    July 11, 2014, 12:18PM
  • Ed, can we please have the All Ords chart back at the top of the forum?

    Commenter
    Gareth
    Location
    Sydney
    Date and time
    July 11, 2014, 12:12PM
  • extrodinary price action on the index this morning. does someone know something?

    Commenter
    j
    Location
    syd
    Date and time
    July 11, 2014, 12:00PM
    • For what it's worth - some enthusiastic buying of blue chip miners (see RIO chart) & banks. A case of buy the dip no matter how fleeting.

      Commenter
      BTFD
      Location
      Date and time
      July 11, 2014, 12:15PM
    • People realising the Portuguese bank excuse to sell off is pretty weak.

      Commenter
      GS
      Location
      Date and time
      July 11, 2014, 12:29PM
    • Divs next month too... any dip is a buy!

      Commenter
      GS
      Location
      Date and time
      July 11, 2014, 12:31PM
    • sorry, it's my fault. Every time I sold the SPI, it went up 10 points!

      Commenter
      taoster
      Location
      Melb
      Date and time
      July 11, 2014, 12:32PM
    • none of that explains a 60 pt non stop vertical run on no leads. something else?

      Commenter
      j
      Location
      syd
      Date and time
      July 11, 2014, 1:39PM
  • WHATS HAPPENING!

    Commenter
    ?
    Location
    Date and time
    July 11, 2014, 11:50AM
  • Anyone know what was in ResMed's earnings call this morning that is causing their stock price to advance on a negative day for the ASX?

    Commenter
    DR
    Location
    syd
    Date and time
    July 11, 2014, 11:33AM
  • I wasn't too concerned about today's dip - in fact I was hoping for it so I could top up. I watched ANZ hit $32.96 and then I blinked and missed my opportunity. Strange day.

    Commenter
    Gareth
    Location
    Sydney
    Date and time
    July 11, 2014, 11:29AM
    • Got in 33.01. Pretty interesting jump.

      Commenter
      ANZ
      Location
      Date and time
      July 11, 2014, 1:12PM
  • Something my simple mind cannot understand. When the GST at 10% on most goods and services was introduced it was the greatest thing since sliced bread, even though it doesn't apply to sliced bread, and would boost the economy and job creation by improving the efficiency of the tax system. When the carbon tax was introduced at about 9% on electricity it was a toxic, job destroying, soul destroying tax. On both occasions most of the populace received compensation for the respective taxes by means of tax cuts and/or pension &/or benefit increases. What is the difference between the two that one should be so desired and the other so despised. Even though I have spent years working on developing and implementing economic policy, including the GST, for govt's of both colours, the hatred by one sector of the population for the carbon tax is beyond any rational belief particularly when abolishing the tax is going to cost $7bn+ a year in lost revenue. That's an immediate addition to future deficits.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 11, 2014, 11:16AM
    • How about the government doesn't spend that $7b and there wont be that "deficit" you speak of?

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      July 11, 2014, 12:15PM
    • I think you're mis-remembering things slightly. The GST caused huge consternation at the time (it was going to ruin the economy). It also had independents (greens) that held the balance of power for its introduction and they got politically decimated after voting for it.

      The Carbon Tax repeal has little to do with logic. It was caught up in the concerted effort to oust Labour. For a campaign that denounced the 'lie' it is ironic how many misstatements and yes lies Tony, the liberals and some of the media through at the Carbon Tax. Short answer people got scared (it will ruin the economy) and people got mean.

      There will be a small drop in electricity prices (which were largely going to be compensated from the CT revenue anyway) and Tony Abbott can claim a enormously costly (in cash and in international standing) 'victory'. And then get on with creating a whole new Palmer Carbon Tax (just don't call it a tax).

      Commenter
      Peter
      Location
      Oz
      Date and time
      July 11, 2014, 12:23PM
    • Start with the fact that Australians were prepared to accept a GST that was low on global standards as opposed to having to cop paying more than anywhere else in the world for the carbon tax.

      Commenter
      Sticks
      Location
      Date and time
      July 11, 2014, 12:26PM
    • Or, you know, you could just spend less.......

      Commenter
      4Seam
      Location
      Date and time
      July 11, 2014, 12:28PM
  • Bulls are awful quiet.

    Commenter
    Beef
    Location
    Steak
    Date and time
    July 11, 2014, 11:06AM
  • INSURERS - Good to see IAG and SUN and QBE up on a down day. A good early indicator in my opinion. Insurers make some of their income from trading and investment and can be ahead of the game.

    Commenter
    It's All About Making Money
    Location
    Lennox Hd
    Date and time
    July 11, 2014, 11:05AM
    • Some? Most of their big Net Profit years is derived from investments.

      Commenter
      DR
      Location
      syd
      Date and time
      July 11, 2014, 1:31PM
  • "The big four banks receive excessive support from the federal government, stunting the development of alternatives, the Australian Centre for Financial Studies says in a new paper"

    Stop the entitlements!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 10:57AM
  • "After 25 years working around the world as a highly paid geologist earning a six-digit salary, Phil Scheimer is back in Australia weighing up his future prospects: day labourer or pizza delivery man."

    Why not consider:

    Teaching
    Community service
    Aged care
    Study

    and stop feeling sorry for yourself after reaping the biggest mining boom the world has ever seen.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 10:46AM
    • Most of the geologists I know aren’t even capable of delivering a pizza in a timely fashion.

      Commenter
      Mining Engineer
      Location
      Date and time
      July 11, 2014, 11:06AM
    • eds- whats driving the index up so rapidly?

      Commenter
      Need to Know!
      Location
      Date and time
      July 11, 2014, 11:24AM
    • If I had been working for 25 years at a 6 figure salary, I'd be so well off I wouldn't even need another job, retire early?

      Commenter
      DR
      Location
      syd
      Date and time
      July 11, 2014, 11:24AM
    • Also after 20 years of earning over 6 figures a year sure he would have a solid financial buffer and investments to prepare for a downturn and retirement.

      Commenter
      d d
      Location
      Date and time
      July 11, 2014, 11:29AM
    • @ Allan, exactly, +1

      Commenter
      pass the red
      Location
      Date and time
      July 11, 2014, 11:39AM
    • @pass the red. I see what you did there.

      Commenter
      Need to Know!
      Location
      Date and time
      July 11, 2014, 11:53AM
    • So Phil Scheimer worked for 25 years on a huge salary, loses his job and now has to do minimum wage work for a living?

      His main problem, I would suggest, is not in earning money but in spending it.

      Commenter
      SamR
      Location
      Date and time
      July 11, 2014, 11:54AM
    • @Allan +1.

      Non of those occupation you stated above offer 6 digits salary for 20 hours a week though ? that's why.

      Commenter
      Hugo
      Location
      Date and time
      July 11, 2014, 11:55AM
    • Six figures is about the average wage isn't it? I'm confused. I have been on 6 figures for 4-5 years now, managed to put 3 years salary away, so I have little sympathy for him, although I did recieve a few bonuses along the way. I often wonder if I have saved most of it or simply been lucky in critcally short field. Did I say me me me me me ? Yep.

      Commenter
      me me me
      Location
      hahaha!
      Date and time
      July 11, 2014, 12:16PM
  • Things over the last 5 years that have effected the ASX to the downside.
    Greece Spain Italy Portugal (the country) Europe ( Almost falling off a cliff) America ( Even closer to falling off a cliff) Earthquakes ,cyclones, tornados tsunamis Carbon tax Mining tax Flood levies Govt Leaders stabbing each other and now we have 3 pensioners in Portugal wanting to withdraw their pensions all in the same afternoon and down goes the ASX. What's going to happen on Monday when it finds out the Queen is a man and Harold Holt is dead ! PS Things that have effected the ASX to the upside over the last 5 years. TBA. When they happen.

    Commenter
    ASX
    Location
    Sydney
    Date and time
    July 11, 2014, 10:39AM
    • Yet the ASX accumulation index is up about 70% over 5 years. Cheer up.

      Commenter
      Sticks
      Location
      Date and time
      July 11, 2014, 11:19AM
  • Not sure how I feel about the story posted at 9:58. There were a lot of people who rode the mining boom for years and years and made damn good money. Money well over $100,000 pa. Mining booms don't last, they come and go (its part of the industry) so people should have made the most of it while it happened.

    If people were smart, they would have done very well out of the last mining boom and financially be in a very good position.

    Commenter
    SI
    Location
    Date and time
    July 11, 2014, 10:37AM
    • ... but ... but this was the never-ending boom wasn't it? The smart guys on TV - wearing suits and all - said that the new Asian middle-class would buy resources for the next 100 years ... I don't get it. It was different this time wasn't it?

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      July 11, 2014, 10:55AM
  • Now I know why Collins Foods (CKF) has risen almost 20% after also paying a div. Director/manager shareholder bought up $6M worth.

    Kinda makes me hopeful it will now go down as it's only 1 person buying it & not a crowded trade. Oh well whatever!

    Commenter
    GS
    Location
    Date and time
    July 11, 2014, 10:30AM
    • *major shareholder

      Commenter
      GS
      Location
      Date and time
      July 11, 2014, 10:36AM
    • You wouldn't think that there would be much money in greasy chicken. Bring on the fat tax.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 11, 2014, 10:43AM
    • A spectacular rise. It is always good seeing a director buying and it show confidence in my opinion.
      More sellers are creeping in now. Time to be cautious?

      Commenter
      It's All About Making Money
      Location
      Lennox Hd
      Date and time
      July 11, 2014, 10:46AM
    • Since it's only one person buying, plus also trading ex-div, it should be back closer to $2 after Copulos stops buying.

      Div is now MEH at these levels. No incentive to buy for me anymore.

      Commenter
      GS
      Location
      Date and time
      July 11, 2014, 11:07AM
    • The fat tax isn't a bad idea Mitch but if it ever happens you'll just come back here whinging about how it targets those who are already struggling to make ends meet on their welfare payments.

      Commenter
      Tim
      Location
      Date and time
      July 11, 2014, 11:26AM
    • haha. Tax everything hey Mitch. Spoken like a true labor supporter. Mining making big profits, better tax them on that. Banks making big profits, better create a super profits tax on the banks. Labor = tax tax tax, spend spend spend.

      Commenter
      SI
      Location
      Date and time
      July 11, 2014, 11:27AM
    • @Mitch, I think the only people that floated the idea of a super tax on banks were liberal. The mining industry is hugely subsidised by our taxes and much of the profits made flow straight overseas. We don't have many options for revenue in Oz (esp. now the NBN has been nobbled) but buy all means, its probably best just to let the mining companies keep everything.

      Commenter
      Peter
      Location
      Oz
      Date and time
      July 11, 2014, 12:51PM
  • Another great day for GOLD coming up.
    All those pensioners hording $100 bills so they can cheat on the pension assets test should switch into the yellow metal and at least get a capital gain.
    http://www.theage.com.au/business/markets/currencies/where-have-all-the-100-notes-gone-20140613-3a0yo.html
    New Zealand has no pension assets test and has a fraction of the $100 bills lost from circulation.

    Commenter
    Engineer
    Location
    Scam City
    Date and time
    July 11, 2014, 10:10AM
    • what? before it goes crashing back down? you aint made nothin' until you have sealed the deal my friend. good luck ;)

      Commenter
      false
      Location
      hopes
      Date and time
      July 11, 2014, 10:18AM
    • Thats what they all say. When do you plan on locking in your profits? Good luck when human brains re-engage after fear subsides. Up too much way too quickly.

      Commenter
      I love
      Location
      Gold
      Date and time
      July 11, 2014, 10:22AM
  • The bank problem in Portugal is hardly a surprise however it shows clearly that bank commercial paper needs to be treated with great caution as Banco Espírito Santo sold paper to its retail arms to finance intercompany problems.to the tune of €2.7bln

    I usually run for cover when a bank gains rapid growth by lending outside its borders. In Banco Espírito Santo case, believe it or not, its major debt is in Angola. Cant see thsi affecting the European system as its too small.

    As George Bernard Shaw said:

    “A pessimist is a man who thinks everybody is as nasty as himself, and hates them for it.”

    Market will be back to normal tomorrow but gold wlll hold.

    Commenter
    Harry Rogers
    Location
    Date and time
    July 11, 2014, 10:08AM
  • The days of rich Chinese buying up posh houses and apartments in Australian cities could be coming to an end. http://money.cnn.com/2014/07/10/news/china-corruption/index.html Some of those properties bought in recent years are going to be dumped back on to the market to pay the costs of keeping their owners out of jail.
    Housing kaboom.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 11, 2014, 10:05AM
    • Chinese are buying property in USA too.

      One really good reason for the flight of capital is China have signaled they're going to let defaults happen for markets to find the right level.

      Pollution in China may be a reason. The US has one advantage over Australia, our property market is overvalued in any measure. Even if US property does decline again, it's cheap so any loss will be a lot less.

      Commenter
      nolongerconfused
      Location
      Date and time
      July 11, 2014, 12:32PM
  • Scott Carlton seems to be the new "tax imposer". We pay taxes to build roads and yet those who get out tax money will not build these public transport amenities. NOT RIGHT !

    Commenter
    Josephus
    Location
    Sydney
    Date and time
    July 11, 2014, 10:01AM
    • It doesn't matter who builds the roads as the gov't will contract the job out to the private sector anyway. Then they will be built as toll roads so that you end up paying for them twice. Once in the sale of public assets to build them and then everytime you use them.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 11, 2014, 10:39AM
    • Roads are used for much more than just people that need to get from A to B. Businesses rely on roads, farmers, trades people, delivery people, shipping containers. The list goes on.

      Roads are the proverbial veins of our economy. Shifting the centre focus of funding to public transport is a completely farcical ideology.

      Commenter
      MLJ
      Location
      Date and time
      July 11, 2014, 10:56AM
    • @MLJ but the roads that you are looking for won't be built. Instead roads will be built in urban areas only and immediately be clogged up by cars as more and more people drive to work because public transport has been neglected. Think how free the roads would be for business transport if commuters left their cars at home and caught the bus/tram/train/ferry instead.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 11, 2014, 11:55AM
  • Oh no, a Portuguese Bank, better sell my shares and carry my money around in my pocket.

    Commenter
    Chris
    Location
    Ocean Grove
    Date and time
    July 11, 2014, 9:58AM
    • No your pockets aren't safe either. Unemployment on the rise, crime will increase, you have no where to hide. Short the ASX! Sell everything you own!!! Please think of your children, today is the end!!!!!!!!!!!!!!!!!!!!!!!!!

      Commenter
      drama
      Location
      queen
      Date and time
      July 11, 2014, 10:17AM
  • So why is the Chinese state owned media suddenly branding the massive outflow of cash from the country "money laundering"? Does this mean a government crackdown on the overseas property spending spree is coming? http://www.scmp.com/business/banking-finance/article/1550351/bank-china-laundering-money-would-be-emigrants-cctv-reports

    Commenter
    China Crackdown
    Location
    Date and time
    July 11, 2014, 9:58AM
  • What is happening in Portugal a deja vu of GFC ?

    Commenter
    Malvik
    Location
    Date and time
    July 11, 2014, 9:50AM
  • "Transurban chief executive Scott Charlton has called on governments to allow the private sector to build more roads, arguing governments should not be the default provider of new infrastructure"

    Of course he has. We don't need more road that just get filled up with more and more cars. We need better public transport and better internet.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 9:33AM
    • yeah....Id be having a little look at the TPP as regards the internet. Ithink big business knows driverless cars are coming so why would you need public transport. a side note. looks like another airport is on the way this time on the central coast at wyee. why another airport 30kms from newcastle airport is beyond me.

      Commenter
      smilingjack
      Location
      Date and time
      July 11, 2014, 2:02PM
  • "Labor ruse sees FoFA regulations tabled in the Senate"

    Oh this just gets better and better.

    The attempted watering down of FoFA regulations to protect secret commissions is classic LNP "born to rule", "you don't need to know", "rent seeking", "clip the ticket" class warfare.

    Well you can kiss that particular payback goodbye Tony.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 9:31AM
    • This gov't becomes more inept by the day. Budget, FoFA, Carbon Tax. Just as well we aren't fighting a war altho when you consider how easily Tony Abbott heaps insult after insult onto foreign leaders we very well soon could be.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 11, 2014, 11:00AM
  • "“The Climate Institute chief executive said recent figures from the Energy Supply Association of Australia suggest the savings will total between $80 and $200.”

    Abbott said $500. Where's the money Tony.

    Oh and Clive Palmer believes that all claims by asylum seekers should be done on mainland Australia. I agree.

    He should put that in as an amendment to the carbon tax repeal bill.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 9:20AM
  • "a Portuguese bank hammered shares in Europe and weighed on Wall Street"

    Yep, pull one thread and the whole lot could unravel.

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 11, 2014, 9:16AM
    • Banco Espirito Santo holds the money of the working class and poor. So, this is the bottom of the heap that is showing cracks. As the actual losses are from a "holder" it will be written off but the crack stays. Remember the story of the boy who saved Holland by putting his finger in the leaky dyke? Well.....this is not it !!

      Commenter
      Josephus
      Location
      Sydney
      Date and time
      July 11, 2014, 10:10AM
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