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Markets Live: Shares have worst session since May 19

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Markets Live: Shares closed in the red for the third day in a row, heavy selling plagues Navitas

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That's it for Markets Live today.

Thanks for reading and for your comments.

We apologise for the technical issues and hope to see you again at 9 tomorrow.

The Australian dollar largely ignored a small increase in consumer confidence on Wednesday after breaking through US94¢ early and hovering there for most of the day before dipping slightly in late trade.

Consumer sentiment rose 1.9 per cent in July, a private survey of 1200 consumers by Westpac and the ­Melbourne Institute found, in sharp contrast to the strengthening ­confidence in the business sector.

The Australian dollar rose ­moderately higher after the news, though its upward movement was mostly supported by Tuesday’s encouraging National Australia Bank ­business survey and steep declines in US equities overnight.

It reached a high of US94.16¢, up from its intraday low of US93.91¢.

 

The biggest software float in Australian history is off to a disappointing start. At midday on Wednesday, shares in educational software company 3P Learning, owner of Mathletics, opened 4.6 per cent below their $2.50 offer price at $2.39 before quickly falling more than 16 per cent to as low as $2.14.

3P Learning, which owns educational programs Mathletics and Reading Eggs, raised $282.7 million through the issue of shares priced at $2.50 apiece, giving the company a market capitalisation of about $330 million. New shareholders were expected to control more than 80 per cent of the company following the issue.

It's a Michael Lewis feature on BusinessDay!

"Bloomberg reporter Michael Moore was recently given a brief, tantalising glimpse of transcripts from the case against Goldman Sachs brought by one of its former mortgage traders, Deeb Salem.

Though he had been paid $US35 million ($37 million) over six years in his job, Salem argued in February before a panel of US securities industry regulator Finra that, back in 2010, he had been cheated out of millions by the bank.

“Let’s be very clear," Salem testified, "I was one of the most sought-after investment professionals in the mortgage industry.” Goldman Sachs, he claimed, was punishing him for his 2007 "self-evaluation" form, later made public by a US Senate investigation, in which he boasted of having manipulated the market for subprime mortgage bonds so that he might bet against them at higher prices.

“I am as competitive as Michael Jordan," Salem wrote to his superiors, to tell them something about himself. "I don’t just want to win; I want to win every time and I want to steamroll the opposition.”

Read more

"I want to steamroll the opposition": Former Goldman Sachs mortgage trader Deeb Salem claims he has been cheated out of millions by the bank.

"I want to steamroll the opposition": Former Goldman Sachs mortgage trader Deeb Salem claims he has been cheated out of millions by the bank.

The split of News Corp has bumped its print business off the Fortune 500 list of the world's biggest companies.

But its sister company, 21st Century Fox, has effectively taken the newspaper empire's place in its debut on the list.

Fox – ranked at 318 – was spun off from News Corp's publishing arm in July last year in an effort to free the entertainment business from News Corp's low growth media assets, which include The Australian, The Daily Telegraph and the Herald Sun.

Shareholders have warmed to the demerger, with Fox's shares rising 19.62 per cent to about $US34.10. But News has also traded in positive territory, rising 5.75 per cent to $18.63, despite the UK phone hacking scandal and subsequent jailing of former editor Andy Coulson for 18 months.

Read more

Australian shares got swept up in a global share sell-off on Wednesday, taking their biggest daily tumble in more than seven weeks.

The benchmark S&P/ASX 200 Index fell 1.1 per cent, on Wednesday to 5452.5 points, while the broader All Ordinaries Index shed 1 per cent to 5442.2 points, as Chinese inflation and local consumer confidence data disappointed.

Local shares took a negative lead from Wall St after the S&P 500 and Dow Jones Industrial Average each lost 0.7 per cent on Tuesday night. Nerves are building that equity markets in the United States are set for a dip if company earnings disappoint heading into the US reporting season in the weeks ahead.

“The only time US equities have traded on a higher average price to sales ratio in the past 25 years was in the lead up to the dot com bust,” Wingate Asset Management chief investment officer Chad Padowitz said.

Read more

Northern Star Resources was the stock everyone wanted to be in on today and Hartleys has done an analysis of its strong June quarter production report.

It has held on to its buy recommendation but increased its price target to $1.61.

Northern Star production trends

Northern Star production trends

Pressure on Australia’s big four banks to join the global coal divestment movement is growing, with a Whitsunday tourism operator who succeeded in convincing Deutsche Bank to step away from funding the Abbot Point port expansion in Queensland now targeting Australia’s biggest banks.

Tony Brown, the president of the Whitsunday Charter Boat Industry Association, claimed an unlikely lobbying victory in May when Deutsche Bank temporarily blacklisted the $1.8 billion Abbot Point coal terminal in the waters off the Great Barrier Reef.

The bank said it would wait until agreement was reached between the Australian government and UNESCO over the condition of the Great Barrier Reef before proceeding with any funding deal. 

Read more

The Abbot point site is surrounded by wetlands and coral reefs.

The Abbot point site is surrounded by wetlands and coral reefs. Photo: Tom Jefferson

The S&P/ASX 200 Index declined 58.4 points or 1.1 per cent to 5452.5 points, the worst day for shares since May 19.

Stocks have declined three days in a row.

Winners and losers at the close

Winners and losers at the close

Here's some analysis from BusinessDay columnist Michael Pascoe on the consumer confidence numbers:

"Overall consumer sentiment may have improved a little over the past month, but the outlook of our two main political tribes diverged again.

According to the Westpac/Melbourne Institute survey, coalition voters’ outlook improved by 5.5 per cent over June and is up 24.7 per cent on this time last year, but Labor voters’ consumer sentiment dropped 6.2 per cent and is down by 25.5 per cent over the year.

The overall result is that the nation has more people pessimistic about their outlook than optimistic – the trend measure of the consumer sentiment index remains below the break-even 100 mark at 94, up just 0.4 per cent this month and 9 per cent below where it was a year ago."

Kathmandu founder Jan Cameron has virtually ruled out a second attempt to regain control of her discount retail empire, saying “I failed and have paid the price for that failure”.

Ms Cameron, who appointed administrators and receivers to retail holding company DSG Holdings Australia last week, appears to have no plans to buy back DSG’s 100-plus profitable Sam’s Warehouse and Crazy Clarkes stores.

Rather, the 60-year-old philanthropist, environmentalist and animal welfare advocate is relieved that her five-year foray into the struggling discount variety sector has come to an end.

Read more

Trading at 10 times revenues, biotech stock Sirtex ranks as one of the most expensive stocks in the market.

But unlike Xero, the Kiwi accounting software house with global ambitions whose shares are tradiing on a heart-stopping multiple of 30 times its revenues, Sirtex at least makes a profit as well as paying a small dividend and, at last balance date, had around $50 million in cash in hand.

And despite a 60 per cent surge in its share price over the past 12 months, there are still analysts who rate the company a 'buy'. Baillieu Holst's Stuart Roberts, for one, reckons Sirtex shares have further to go, setting a $21 price target on the shares. Broking house CLSA has a $21.50 value on them.

Read more

Could Brambles shares attract a higher valuation multiple if they were traded in the United States?

Bank of America Merrill Lynch thinks that the company's substantial US operational footprint could justify a move.

"[Brambles] trades on a similar P/E multiple as listed US peers (consumer staples and large retailers), but its forecast EPS growth is 66 per cent higher than the peer median in FY15," the broker says. The benefits of a US listing are primarily a deeper pool of investor interest and access to cheaper debt.

Brambles valuation analysis

Brambles valuation analysis

Craigs in New Zealand has upgraded Fonterra to hold from sell on valuation grounds.

"Visibility into the business and more granularity on strategy remains a key issue requiring resolution ahead of more conviction and Fonterra’s lack of track record on earnings growth over a sustained period also demands a cautious approach," the broker says.

Chinese consumer prices rose by a less than expected 2.3 per cent in the year to June, stoking fears that growth in the world's second biggest economy could be moderating.

The market had expected a 2.5 per cent increase, in line with May’s reading.

The weaker than expected numbers may lead to worries that the government has failed to stabilised the economy, despite a series of targeted stimulus measures.

The Producer Price Index – a measure of wholesale prices – fell at an annual rate 1.1 per cent, its 28th consecutive month in the red.

But the National Bureau of Statistics said the price declines shown in the PPI have been shrinking for the last three months.

“This shows that some positive changes are happening in the industrial market,” it said in a statement.

The weaker CPI was led by falling fresh food prices.

Consumer prices in May rose by 2.5 per cent, a sharp increase from April’s annual increase of 1.8 per cent.

Many developed market stocks/markets are regarded as being expensive, still this hasn’t stopped them climbing to record highs. The Australian benchmark S&P/ASX 200 Index is up 13 per cent over the past year, and is trading at 19.6 times forward earnings.

Wall Street has also been trading at records and at a valuation of 18 times reported earnings, the highest since 2011 when it was in the middle of a 19 per cent slide, its biggest during the current five-year bull market, according to Bloomberg.

But the Dow Jones has been unable to hold above the record of 17,000 mark and dropped 118 points overnight as investors locked in profits ahead of the second quarter reporting season, with US miner Alcoa the first company to post results that beat expectations.

Longview Economics chief market strategist Chris Watling said that 2014 was on course to be one of the quietest years of volatility in the past 50 years.

Consumer confidence has inched higher this month but remains well below its high late last year, as households remain focused on taxes and fallout from the budget.

Sentiment rose 1.9 per cent from June to 94.9 points, the Westpac Melbourne Institute index showed on Wednesday.

Westpac chief economist Bill Evans said the lack of a stronger rebound in confidence was disappointing.

“Our best guide as to the driver of current sentiment remains the results from the June survey on news recalled,” Mr Evans said.

“A record 74 per cent recalled news on ‘budget & taxation’, the highest ever recall rate for this issue, swamping other news items such as ‘economic conditions; ‘employment’; ‘interest rates’ and ‘international conditions’,” he said.

Qantas Airways has officially abandoned a “carbon surcharge” on its domestic and regional fares in anticipation of the likely repeal of the carbon tax.

However, the move is unlikely to result in lower airfares because the airline said the competitive nature of the domestic aviation market meant it had not been able to recover the cost of the carbon tax through price increases as originally intended.

In February 2012, Qantas announced its intention to raise domestic ticket prices as a result of the carbon tax. It said fares on Qantas and QantasLink flights would rise by $1.82 to $6.86, depending on the length of the sector.

Read more

Navitas is the shocker of the day if not this week. Shares are down 30 per cent this morning after the company confirmed Macquarie University from 2016 will offer internal pathway education programs, a role previously filled by Navitas.

This is a blow to earnings in the second half of 2015-16 and the first-half of 2016-17 and the company is taking up to a $40 million impairment charge to address the lost contract.

 

The S&P/ASX 200 Index has opened 28 points or 0.5 per cent lower.

Winners and losers at the open

Winners and losers at the open

Another interesting piece from Morgan Stanley saying the market is too optimistic on the aviation industry.

MS has reduced its rating on Qantas to underweight (price target: $1.04), believing the shares are 23 per cent too expensive and that the market has a turnaround strategy already priced in.

For Virgin Australia Holdings, it is staying underweight, (price target: 34 cents) because its market share wins may have come at a cost. Worryingly, there is also the risk of a capital raising.

Aviation earnings expectations

Aviation earnings expectations

DZ Bank and Citigroup, among the top three forecasters for the Australian dollar, predict it will end the year 7 per cent stronger than the consensus.

DZ Bank, the most accurate at predicting the Aussie in the four quarters through June as measured by Bloomberg Rankings, is joined by third-ranked Citigroup in projecting the Aussie will end 2014 at US96¢ from US93.87¢ as of 5 pm Tuesday in Sydney. The local currency gained to touch US94¢ overnight.

The median estimate of more than 50 analysts surveyed by Bloomberg is for a 4.1 per cent slide to US90¢ by December 31.

Read more

Morgan Stanley has stuck to its overweight recommendation on JB Hi-Fi, saying this is an attractive entry price for investors.

MS is optimistic that the gaming cycle will lead to improved profits and offshore gaming retailers have reported good sales from gaming.

"We estimate that the gaming category will provide a 5-6 per cent tailwind to FY15 like-for-like sales growth. On this basis, we lift our FY15 EPS forecasts by 2 per cent. Our $1.45 FY15 EPS forecast sit around 5 per cent ahead of consensus," the broker says.

It also sees free cash-flow growth and a lift in the dividend payout ratio.

Gaming sector outlook

Gaming sector outlook

After Manchester United's torrid season, change is the agenda at Old Trafford. Signing potential World Cup winner Louis van Gaal as manager may be a stroke of genius, so we consider news of a change in apparel sponsor equally promising.

Adidas offered Manchester United more than $US100 million ($106 million) a year to supply the team's apparel, a bid that led its rival Nike to end contract renewal talks with the record 20-time English football champion.

Nike and United couldn't reach an agreement after more than a year of exclusive talks, allowing the club that claims to have more than 650 million worldwide followers to open negotiations with other suppliers of football gear.

"Any partnership with a club or federation has to be mutually beneficial," Nike said in a statement. "The terms that were on offer for a renewed contract did not represent good value for Nike's shareholders."

The terms offered by Adidas are more than double the 150 million pounds ($273 million) Puma agreed in January to pay United's rival Arsenal over five years, a record.

Read more

Will a new apparel sponsor have the same impact as a new manager at troubled Manchester United? Pictured: Louis van Gaal.

Will a new apparel sponsor have the same impact as a new manager at troubled Manchester United? Pictured: Louis van Gaal. Photo: Reuters

Australian technology entrepreneurs, along with their financial backers and bankers, will be watching the performance of educational software maker 3P Learning with keen interest when it debuts on the Australian Securities Exchange at midday today.

3P Learning, which owns e-learning and core literacy resources Mathletics and Reading Eggs, has raised $282.7 million through the issue of shares priced at $2.50 apiece. It will be the eighth-largest float to hit the ASX in 2014, and the second-largest technology company to list on the local sharemarket in its history, according to Dealogic data.

Three of five largest technology floats ever to launch on the ASX will have listed within the past five weeks, a sure sign that interest in the sector is heating up.

The offer from 3P Learning comes just weeks after the biggest technology initial public offering to ever list on the ASX. Media monitoring business iSentia Group, which raised $284 million, jumped 19 per cent on its June 5 debut.

 

 

If it's worth writing once it's worth writing again. So we were pleased, but not surprised, to read this report on Bloomberg that America's cupcake craze is fading.

Listed Crumbs Bake Shop Inc has shut its 48 stores and missed its rollout target of 200 shops in the United States.

One of Crumbs' problems apparently is it is up against rival Sprinkles' 24-hour cupcake machines. That and consumers have lost interest in the cupcake phenomenon.

The message investors, is that it is important to know a unsustainable trend when you see one.

James Packer has just one obstacle to clear before his ambition of operating a Sydney casino will become a reality, after the New South Wales gaming regulator gave approval for the billionaire and his company Crown Resorts to operate a restricted gambling venue.

The Independent Liquor and Gaming Authority on Tuesday said following an investigation it had deemed Mr Packer, Crown and all close associates to be fit and proper operators of a casino.

The probity decision paves the way for Crown’s proposed $1.5 billion luxury high roller casino and hotel to be built on the Barangaroo waterfront development precinct.

Read more

James Packer

James Packer Photo: Louise Kennerley

The Abbott government has held off tabling its watered-down financial advice rules in the Senate as it seeks to use the coming days to lobby new Palmer United Party senators for support for the proposals.

Labor senators took the unusual step on Tuesday to try to table the Abbott government's future of financial advice (FoFA) regulations, saying the Senate needed them to be introduced so the entire chamber could consider whether or not to disallow them.

But the Coalition refused, leaving Labor to accuse the government of wanting to give lobbyists more time to ''work on'' Clive Palmer and PUP senators.

Read more

Some highlights from The Australian Financial Review's Street Talk column today:

Link Market Services chief tweaks company ahead of IPO

Challenger sells remnants of Howard Mortgage Fund

UK's Polo circling Blackham

Expectations are rising that Stockland will accept the Frasers Centrepoint $2.6 billion offer for rival Australand, and use the cash raised from its 19.9 per cent stake to increase its greenfield developments.

This comes as the 2014 financial year reporting season for real estate investment trusts is due to start in three weeks. Traditionally, Australand is the first REIT to report, followed closely by Stockland.

Broking analysts expect the reporting season to clarify the office market conditions, to the extent of rental incentives and vacancy outlooks.

Read more

Some analysis from BusinessDay columnist Elizabeth Knight on the David Jones saga:

"Time's up for Solomon Lew if he wants to throw a precisely placed grenade at Woolworths of South Africa's $2.2 billion takeover of David Jones. He had until Tuesday to buy enough shares to block the deal but no large trades in the stock were recorded.

It appears Lew has instead chosen to remain at 9.9 per cent - which won't be enough to derail the takeover unless there is a groundswell against it from smaller shareholders that either don't like the price - this is unlikely - or register a protest vote against the scheme - possible but also unlikely.

Given Lew has been closely guarding his agenda his actions - or inaction - on Tuesday are the only guide to his strategy."

Solomon Lew.

Solomon Lew. Photo: Jesse Marlow

Scentre Group, the spin-off from the Westfield empire, has made its first corporate foray with an issue of €2 billion ($2.9 billion) in bonds to help reduce debt and finance future development projects.

The senior bond issue is across four tranches ranging from four to 12 years. Bankers suggest it may become one of the largest ever in Europe by a non-bank Australian corporate.

Scentre's directors, led by new chief executive Peter Allen, held an investor roadshow in Europe last week, where it was said the reception was positive for the vehicle. Scentre has interests in 47 shopping malls in Australia and New Zealand.

Read more

Yellow Brick Road will come out of its trading halt today after acquiring the privately owned non-bank lender RESI Mortgage as part of its push to gain market share from the major banks.

YBR will pay $36 million for the business.

The company also announced that it had secured $42.05 million of commitments, more than the $38 million amount it intended to raise. The raising was placed to existing shareholders and institutional clients of Bell Potter.

After a mad scramble by the banks to sign up savers with juicy interest rates, the gloss has come off keeping cash in the bank.

Cheaper finance for the banks is triggering a fall in term deposit rates, despite no move in the official cash rate by the Reserve Bank for almost a year.

Analysis by financial comparison website RateCity shows banks have been gradually winding back the interest rates paid to savers since the start of the year as the war for deposits comes to an end.

A comparison of 82 different term deposit providers found average one-year term deposit rates had fallen from 3.55 per cent to 3.48 per cent in July.

That’s still above the 2.5 per cent cash rate, but it’s not quite the returns of 5 per cent that were on offer a couple of years ago.

Read more

Local stocks are set to open sharply lower after a broad sell off on global markets.

What you need2know:

  • SPI futures down 29 points to 5443 
  • AUD at 93.97 US cents
  • On Wall St, S&P 500 -0.7%, Dow -0.7%, Nasdaq -1.3%
  • In Europe, Euro Stoxx 50 -1.4%, FTSE -1.3%, CAC -1.4%, DAX -1.4%
  • Spot gold up $US1.90 to $US1318.90 an ounce
  • Brent oil down $US1.24 to $US109.00 per barrel
  • Iron ore up slightly at  $US96.50 per tonne 

What’s on today:

Australia: June Westpac-MI consumer confidence index;

US: Federal Reserve minutes of June 17-18 FOMC meeting.

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:
  • "The once bustling city of Flint home to one of America’s biggest companies is considering bankruptcy, suffering a huge drop in population and abandoned streets."

    Commenter
    8 Miles of DEBT
    Location
    Date and time
    July 09, 2014, 4:57PM
  • Bulls missing in action. Apparently they're having some testical issues. LMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 4:23PM
    • You appear to have a fixation on certain parts of a bull's anatomy.

      Focus on the prize, dear.

      Commenter
      Don Quixote
      Location
      La Mancha
      Date and time
      July 09, 2014, 5:19PM
  • @3:33pm article, it would appear that voting for labor has a negative impact to your emotional well being.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    July 09, 2014, 4:18PM
  • This bull was 5400 in 2006. 8 years later it's still sick. Forget getting back to 6800 record highs like the Dow has made a record high recently. Time to put this sick bull down?

    Commenter
    Vet
    Location
    ASX
    Date and time
    July 09, 2014, 4:17PM
  • I reckon DML will get refinancing and be a 10 bagger @0.05

    Commenter
    Gambler
    Location
    Date and time
    July 09, 2014, 4:16PM
  • I reckon DML will get refinancing and be a 10 bagger @0.05

    Commenter
    Gambler
    Location
    Date and time
    July 09, 2014, 4:09PM
  • So looks like we are heading for a steeper dive towards the end of trade and I suspect further falls tomorrow. 53?? here we come.Then it would be worth buying.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 09, 2014, 3:46PM
  • "the nation has more people pessimistic about their outlook than optimistic – the trend measure of the consumer sentiment index remains below the break-even 100 mark at 94, up just 0.4 per cent this month and 9 per cent below where it was a year ago"

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 3:46PM
  • another down day tomorrow?
    anyone brave enough to buy this arvo?

    Commenter
    j.
    Location
    syd.
    Date and time
    July 09, 2014, 3:43PM
  • bears having a rare day out
    bulls not enjoying the rout
    problems with the blog
    enough for me to hit the grog
    bottle of red for me
    what about you BSB
    champers for Allan me supposes
    and his wife will expect roses
    Gareth, our banks are down
    so for you no Carlton crown
    so until tomorrow
    i am off to drown my sorrow

    Commenter
    cyril
    Location
    Date and time
    July 09, 2014, 3:31PM
  • NST getting a huge uplift from positive June production update!

    Having a positive impact on a lot of goldies, the exception being.......you guessed it SBM!

    Commenter
    born loser
    Location
    Date and time
    July 09, 2014, 3:18PM
    • when i was talking drinks
      forgot someone me thinks
      frustrated with the technical hitch
      was hoping our old comrade mitch
      would offer to shout
      our Vesna a great big stout!

      Commenter
      cyril
      Location
      Date and time
      July 09, 2014, 3:46PM
  • Sorry readers, we are having technical issues which are delaying normal publishing on Markets Live and BusinessDay. We hope to resume updates soon.

    Commenter
    Vesna Poljak
    Location
    Date and time
    July 09, 2014, 2:28PM
  • no one wants it today.

    Commenter
    j.
    Location
    syd
    Date and time
    July 09, 2014, 2:16PM
  • Boart Longyear down a lazy 15% lmao!

    Commenter
    Merciless Shorter
    Location
    Date and time
    July 09, 2014, 2:11PM
  • Where are the bulls? Who left the gate open?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 1:48PM
    • There is no "Bull" run nor "Bear" Bite nowadays. ASX just behaves normal since Feb 2014, up and down within the range 5350+ to 5500, usually 75 points. Today is great opportunity to stock up then sell in 2-3 days.

      Commenter
      Up and Down is Norm
      Location
      Date and time
      July 09, 2014, 2:35PM
    • yeah the sale price in 3 days time will just about cover brokers fees stamp duty and cgt.
      having a good old laugh at share traders.

      Commenter
      smilingjack
      Location
      Date and time
      July 09, 2014, 2:46PM
    • nah Bears just bite better he he.

      Commenter
      Bull
      Location
      'wandering up the road somewhere'
      Date and time
      July 09, 2014, 3:10PM
    • A lot of stock share prices move up/down 3-7% within 2 -3 days while share trade brokerage fee buy/sell together only merely 0.22%. Who is smarter?

      Commenter
      Up and Down is Norm
      Location
      Date and time
      July 09, 2014, 3:52PM
  • "Westpac chief economist Bill Evans said the expected recovery after a sharp drop in May had failed to materialise.

    "This is another disappointing result for the index,” he said."

    Housing boom!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 1:38PM
    • Consumer confidence is still down due to the Budget. If you were the average family set to lose $3,000pa would you be spending. The gov't is in line to lose as much in tax revenue from lost business activity as it is seeking to gain from cuts to pending. Great economics.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 2:28PM
    • bill evans - who stated that rates would be going up up and up. let me guess hes an economist that works at banks. ie wouldnt know if his bum was on fire.
      but what does he care as long as people are buying shares and he gets paid either way. ditto governments that collect that stamp duty on every trade. just like housing. keep the mugs buying and selling. ka ching.

      Commenter
      smilingjack
      Location
      Date and time
      July 09, 2014, 4:01PM
  • Okay, its been close to 3hrs - last news update at 10:46 am.

    EDs: ????

    Commenter
    GrimReaper
    Location
    Date and time
    July 09, 2014, 1:07PM
  • Slow news day on the blog?

    Commenter
    DR
    Location
    syd
    Date and time
    July 09, 2014, 1:01PM
    • What do you mean a slow day? We have a stock that once traded for $23.80 that hit 15.5 cents today. Enough chit chat DR. You are needed in the ER!

      Commenter
      Nurse
      Location
      Date and time
      July 09, 2014, 2:30PM
  • About time someone made a take over offer on SBM, that would stoke the fire.

    Commenter
    repoman
    Location
    Dorrigo
    Date and time
    July 09, 2014, 12:48PM
    • Firesale yet?

      Commenter
      BearshapedBull
      Location
      Date and time
      July 09, 2014, 1:43PM
  • NST kicking butt today, that's more like it!

    Commenter
    Gold Balls
    Location
    Date and time
    July 09, 2014, 12:47PM
    • Gold Balls, any ideas why NST gaining so much lustre today?

      Commenter
      Introspective
      Location
      Melbourne
      Date and time
      July 09, 2014, 2:41PM
    • favourable June production update

      Commenter
      Gold Balls
      Location
      Date and time
      July 09, 2014, 3:15PM
  • Germany thrashing Australia on renewable energy targets. #timcahilling.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 12:45PM
    • If you are serious about renewable energy why not put together a business plan and raise money to do it? I can put you in touch with some boutique infrastruture investment groups.

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      July 09, 2014, 1:20PM
    • Wwwish did you watch 4Corners with the video of the solar farm just outside Canberra, with another to come. I am looking for suitable local investments in green energy but at the moment most are being financed by private companies with the profits going o/seas. They are also under threat from Abbott & co due to the plan to cut the RET. If that doesn't happen the future is promising.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 2:35PM
    • @mitch, yep I have seen them.

      This may be of interest to you mitch, not sure what they consider a wholesale investor though
      http://lighthouseinfrastructure.com/services/solar-fund/index.html

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      July 09, 2014, 2:54PM
    • @Wwwish thanks for the reference. I am yet to find a fund that gives the ROI I an getting from my own 5kw of rooftop solar. 17%pa.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 3:19PM
    • LOL you make a lot of assumptions about what people may or may not be doing.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 3:29PM
  • "Thanks to favorable weather and record production from solar and wind power, renewable energy accounted for approximately 31 percent of Germany’s electricity generation in the first half of 2014. "

    And at times up to 60%.

    And Australia is trying to unwind the 20% target. What a laughing stock the LNP dinosaurs are.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 12:42PM
    • And all that sunlight and wind didn't cost a cent nor destroy huge swathes of the environment in the process

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 1:05PM
    • where did you get this numbers from and if Australia would subsidize solar and wind power like Germany , we would be broke

      Commenter
      unbelivable
      Location
      brisbane
      Date and time
      July 09, 2014, 1:08PM
    • So crazy. But they don't want to sink a nice coal market?

      Commenter
      DR
      Location
      syd
      Date and time
      July 09, 2014, 1:15PM
    • LOL not unbelievable, undeniable:

      http://www.abc.net.au/4corners/stories/2014/07/07/4038488.htm

      Why broke? We're the richest nation on earth. Didn't you hear? Sounds like you want it both ways.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 3:17PM
  • It is so cold in Melbourne today that an extra 2 degrees would be much more pleasant.

    Commenter
    Wwwish Lion
    Location
    Melbourne
    Date and time
    July 09, 2014, 12:28PM
  • QAN

    Does anybody believe anything that Qantas says? Some say it has about 12 months before it just fades away.

    Such is the quality of management these days.

    QBE

    Thought I should look again so after sifting through 200 pages I am astounded that anybody holds this stock. What an unbelievable mess this company is, as you would need a dozen crystal balls to work out its strategy. As usual all the REAL money is made at home.

    Commenter
    Harry Rogers
    Location
    Date and time
    July 09, 2014, 12:25PM
  • "Rookie senator Ricky Muir broke away from his Palmer United Party voting bloc on Wednesday to deny the government a speedy vote on the repeal of the carbon tax."

    LOL. Bye Tony.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:45AM
  • "The wife of a professional poker player accused of a $100 million fraud against clients of the Commonwealth Bank has also been charged with a serious fraud offence."

    Commonwealth bank's new slogan - "Asleep at the wheel".

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:44AM
  • Bulls are awful quiet and shy today. Come on, it's not a party without you. Snort!

    Commenter
    Herman
    Location
    Prahran
    Date and time
    July 09, 2014, 11:43AM
  • Bull meat on special AGAIN. Prices are down down. 99c a kilo. Enjoy!

    Commenter
    Coles
    Location
    Butcher
    Date and time
    July 09, 2014, 11:40AM
    • After all that huffing and puffing nothing has come down enough to warrant any buying! I fear tomorrow will be an up tick.

      Commenter
      confused
      Location
      Date and time
      July 09, 2014, 3:36PM
  • Clive Palmer has effectively guaranteed that a full blown emissions trading scheme will be implemented by blocking changes to the renewable energy target.

    Since this is the central plank of Tony Abbott's prime ministership he should resign now.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:19AM
    • Don't despair Allen. Just 2 more years and then the electoral asteroid will hit and wipe out these fossil fuel dinosaurs. In the meantime we can take guidance on what the rest of the world is doing to combat climate change and develop renewable energy sources then adopt proven world's best practice. Between now and then we will just have to put up with being a laughing stock on so many issues.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 11:59AM
    • Federal spending is moving back towards a balanced budget and the border breaches are stopped. The emission trading scheme can be tackled in a second attempt. No reason to resign,

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      July 09, 2014, 12:03PM
    • What a utterly stupid comment, you've got no idea what's going to happen on the ASX tomorrow, never mind in parliament over the next two years.

      And neither does anyone else.

      Commenter
      SteveH.
      Location
      What's your name kid?
      Date and time
      July 09, 2014, 1:05PM
    • LOL a snarky dinosaur evidence that Tony is having a torrid time thanks to the Senate.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 3:32PM
  • Where's happy hippy our resident oceanographer? Still waiting for an explanation on how the Arctic ice volume is not shrinking and lithium ion batteries aren't deep cycle storage.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:16AM
    • Well I'm anything but a hippy, but don't get the Arctic confused with the Antarctic. The Antarctic is the one that really matters and its ice is currently at record levels:

      http://www.reportingclimatescience.com/news-stories/article/antarctic-sea-ice-hits-a-new-record-extent.html

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      July 09, 2014, 12:06PM
    • Perhaps he's on some other non-finance blog where you should be.

      Commenter
      Dollar
      Location
      Date and time
      July 09, 2014, 12:46PM
    • Nope. A weakly positive increase in Antarctic sea ice due to ice loss from the land mass is minor compare to the volume of sea Artic ice loss. You were told that last week,

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 1:28PM
    • LOL renewable energy is central to the economy. Only LNP dinosaurs think otherwise.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 1:33PM
    • Throwing baits everywhere...too much coffee?

      Commenter
      BearshapedBull
      Location
      Fishermans wharf
      Date and time
      July 09, 2014, 1:45PM
    • I'm not a happy hippy, either, but I'm still waiting for the base load solar power station.

      Commenter
      BaseLoad
      Location
      Date and time
      July 09, 2014, 3:32PM
  • "Crescent Dunes is a remarkable thing to see. This is the first solar thermal power plant in the world to have molten salt storage, so what it does it takes the energy of the sun, produces electricity and then stores that as heat in molten salt storage and, at night, when they need to make use of that power, they can run it from the heat that's being stored in this molten salt storage facility.

    BRIAN PAINTER: The thing with being able to store the energy is that we can shift the time of delivery; we can deliver night time, day time, when a utility might want power, we can deliver any time."

    http://www.abc.net.au/4corners/stories/2014/07/07/4038488.htm

    Gee that sounds like base-load power?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:04AM
  • "Today the United States has for example,150 000 employees in the solar industry, so about a third of those, 50 000, are here in California and that's actually a 50 per cent growth in those jobs just over the last three years.

    So we actually have more employees today in the solar industry in the US than there are in auto manufacturing and than there are in coal mining."

    http://www.abc.net.au/4corners/stories/2014/07/07/4038488.htm

    See why renewable energy is important to the economy and jobs?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 11:02AM
    • How many of those jobs are tax payer-funded? I've seen some figures that each of those jobs has cost the tax payer $400,000.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      July 09, 2014, 11:59AM
    • Unlikely since solar is now cheaper than new coal fired power stations.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 1:31PM
    • But they aren't working on base load solar power stations that are providing any significant input to the grid.

      Commenter
      BaseLoad
      Location
      Date and time
      July 09, 2014, 3:41PM
    • Of course they are, first one comes online in a couple of months. First of many.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 4:32PM
  • @10:46am the excuses start over why the carbon tax cuts won't be passed on. Are we surprised.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 09, 2014, 10:59AM
    • Just the beginning. On all power bills it says what the government estimates the additional cost the CT is. Not the company sending you the bills estimate!!

      Commenter
      Gforce
      Location
      Syd
      Date and time
      July 09, 2014, 12:19PM
  • For some guidance on what the final outcome may be today the FTSE & DAX fell by 1.25% & 1.35% respectively. We are well on the way.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 09, 2014, 10:56AM
  • Lord Deben: "The real issue is this: if people outside and inside Australia believe that Mr Abbott took climate change seriously, was going to international conferences to try to play Australia's part in leading the world, that he actually thought this was important and not, as is rumoured, thinks it's all rubbish, to use an English word, then we would be much more sympathetic with the views that he's putting forward. But we all know he and his government do not take this seriously where the rest of the world, as to 80-plus per cent plus of emitters are taking it so seriously, that we find it very upsetting that Australia should be slapping us in the face and saying, "We don't care about the climate. You can get on with it. We are not doing our part."

    http://www.abc.net.au/lateline/content/2014/s4042037.htm

    Disgraceful behaviour by Abbott, Hunt and the rest of the LNP dinosaurs protecting their mates in the coal industry.

    The richest country in the world, with abundant renewable energy and this is the face we show the rest of the world.

    Doubly disgraceful.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 10:52AM
  • Quite a revealing interview with Lord Deben on Lateline last night. Abbott, Hunt and the other LNP dinasours are the laughing stock of the world.

    Largest manufacturing facility in California? Yep, Tesla electric cars. 0-60mph in 4.5 seconds and 500 miles on a single charge.

    And they said it was a toy.

    New economy model coming out soon for $30K.

    What's the LNP doing? Protecting bogan billionaires and their coal mines.

    Is fmg $6 yet?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 10:45AM
  • Coupla punters were looking at day trading BPT but should have been a short..... i'm following a cycle [daily] on PRY could be a better option lately...swings of 6-10c not uncommon.

    Commenter
    BearshapedBull
    Location
    Mugpunters Lounge
    Date and time
    July 09, 2014, 10:22AM
  • Is market correction on the way after strong run in many months ?

    Commenter
    Malvik
    Location
    Date and time
    July 09, 2014, 10:15AM
    • Yep. 10% down. I've already moved all my super from equities into cash for a while.
      See http://www.theage.com.au/business/markets/sharemarket-tipped-for-a-10-per-cent-pullback-20140709-zt0xm.html

      Commenter
      Engineer
      Location
      Scam City
      Date and time
      July 09, 2014, 10:31AM
    • If the market going down is a correction, does that mean that when it goes up its an error?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      July 09, 2014, 10:35AM
    • Why do people always start talking of a correction after ONE down day? Mon and Tues were NOT really down days. ASX just as likely to jump tomorrow.

      Commenter
      Gumly
      Location
      Mackay
      Date and time
      July 09, 2014, 11:29AM
    • The articles wrong in that it portrays the asx as record territory uh uh only the Dj is so poor journo skills there.

      Commenter
      Bearshapedbull
      Date and time
      July 09, 2014, 11:31AM
    • I have moved 60% of my super into Defensive Growth after reading this article 2 days ago :
      Veteran fund manager Han K. Lee says inflation is about to bite, leaving global sharemarkets set for the biggest tumble since the global financial crisis.

      http://www.smh.com.au/business/markets/sharemarkets-set-for-biggest-tumble-since-gfc-says-veteran-investor-han-k-lee-20140707-zsyj6.html

      Commenter
      Homer
      Location
      Springfeild
      Date and time
      July 09, 2014, 11:58AM
  • I no longer feel bad for selling Navitas too early :)

    Commenter
    GS
    Location
    Date and time
    July 09, 2014, 10:11AM
    • oversold?

      Commenter
      BearshapedBull
      Location
      Mugpunters Lounge
      Date and time
      July 09, 2014, 10:33AM
    • I'm taking a small punt/daytrade!

      Commenter
      GS
      Location
      Date and time
      July 09, 2014, 10:51AM
    • @BearshapedBull, I think so, a buying opp there once the dust settles I'd say.

      Commenter
      JJ
      Location
      NSW
      Date and time
      July 09, 2014, 10:57AM
    • BSB: Not if the loss of the contract is going to impact future dividends.

      Commenter
      DR
      Location
      syd
      Date and time
      July 09, 2014, 11:01AM
    • Should still be getting a 10c+ div in 4-5 weeks. Maybe my "daytrade" can extend that far!

      Commenter
      GS
      Location
      Date and time
      July 09, 2014, 11:54AM
    • Thought the same but had a good look and too tough for me now sentiment is uncertain. Good luck

      Commenter
      Harry Rogers
      Location
      Date and time
      July 09, 2014, 12:19PM
    • Ok the punt is now down 6%... you win some you lose some! I'll see what the brokers have to spin tomorrow!

      Commenter
      GS
      Location
      Date and time
      July 09, 2014, 1:37PM
    • Woo in the money again! It's profit time lol

      I'll be quiet on this now :)

      Commenter
      GS
      Location
      Date and time
      July 09, 2014, 2:43PM
  • The mugs who bid up ACR to $1.305 yesterday bailing out for whatever they can get. There have been more games played with this stock than in the World Cup.

    Commenter
    mitch of ACT
    Location
    Date and time
    July 09, 2014, 10:11AM
  • @955am comment
    Dem bones Dem bones
    Dem jawbones...

    Commenter
    BearshapedBull
    Location
    Mugpunters Lounge
    Date and time
    July 09, 2014, 10:11AM
  • dow -118points could see a continued ASX drop....but bargain hunting will take some thought to find value.....looking,looking.

    Commenter
    BearshapedBull
    Location
    Mugpunters Lounge
    Date and time
    July 09, 2014, 10:05AM
  • Good luck to the holders of IPO 3P learning support for a sound education business model should be a growth stock for all involved both sides of the coin.
    Lets see if a bargain materializes after some over zealous buying frenzy...similar to MVF scenario.

    Commenter
    BearshapedBull
    Location
    Mugpunters Lounge
    Date and time
    July 09, 2014, 10:00AM
    • Down 13.2% about 20 mins after opening. Surely that's not common?

      Commenter
      Gareth
      Location
      Sydney
      Date and time
      July 09, 2014, 12:24PM
  • So they are finally thinking of allowing the gold price to be fixed by the market.

    Barclays (fined billions already for corrupt practices), HSBC (fined billions already for corrupt practices), Soc Gen (fined billions already for corrupt practices) and Scotia Bank (fined €600,000 for misleading practices) are the fabulous four who set the price each morning.

    I wonder if the central banks had lunch with these four to discuss that their economies were in fine shape and there was no worry about their fiat currencies?

    Guess which way the price will go if the market makes the judgment on the price of gold ?

    Oh and of course there is still outstanding fines and cases for rigging LIBOR. Wonderful foundations we have for the financial system!

    Commenter
    Harry Rogers
    Location
    Date and time
    July 09, 2014, 9:57AM
    • Which way?

      I am an investing nob but am considering investin 100k in gold and silver. More as long term security.

      Commenter
      d d
      Location
      Date and time
      July 09, 2014, 10:39AM
    • @d d, it is your call but if you do buy $100K worth of physical gold or silver, remember the importance of opportunity cost. Physical metals do not generate income.

      By buying physical gold or silver you will forgo the opportunity of deriving income (realised capital gain, dividend income and imputation credits) from any or all of: individual shares, ETFs and Listed Investment Companies.

      Commenter
      Dr Kiwi
      Location
      Date and time
      July 09, 2014, 2:21PM
  • who was it yest that said 5500 was the floor now ?

    Commenter
    j
    Location
    syd
    Date and time
    July 09, 2014, 9:57AM
  • What happened to the 5500 floor everyone talked about. Must have been made with paper.

    Commenter
    Peter
    Location
    Sydney
    Date and time
    July 09, 2014, 9:55AM
    • boards weren't nailed down.

      Commenter
      BearshapedBull
      Location
      Mugpunters Lounge
      Date and time
      July 09, 2014, 10:07AM
    • Only got that high through hype & wishful thinking. Still 100 points above where it feels right to me for it to be. If consumer confidence stays low so will the ASX. The cuts from the gov't, real or imagined, are not helping.

      Commenter
      mitch of ACT
      Location
      Date and time
      July 09, 2014, 10:26AM
    • 5500 breakout hasn't happened yet, don't panic. We have just moved up +140 last week and down -60 in 3 days. It's a normal sawtooth upwards. I trade millions both ways.

      Commenter
      Goldman
      Location
      Date and time
      July 09, 2014, 11:57AM
  • Where are the bulls today?

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 9:51AM
    • They bet on GOLD and are now having a quite drink at The Flying Duck in Prahran. You're welcome to join in.

      Commenter
      Engineer
      Location
      Scam City
      Date and time
      July 09, 2014, 10:27AM
    • I couldn't think of anything worse.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 10:41AM
    • Dammit got it wrong i'm at The Whining Clown in Prahran.

      Commenter
      Ferdinand
      Location
      The Bull
      Date and time
      July 09, 2014, 10:45AM
    • how long do you think allan would last in a room full of drunk bulls today?...or even bears for that matter, lol

      Commenter
      no banks .. no party!
      Location
      about 5 seconds
      Date and time
      July 09, 2014, 11:06AM
    • Wow, it's been a great 2013/14 for the bulls.

      2014/15 looks like getting even better. A$ should drop back to 88cents.

      RIO back up to $70.

      Life's good.

      Commenter
      lima
      Location
      Date and time
      July 09, 2014, 5:22PM
  • Today, go short on Porsche, Audi, VW, BMW, and Mercedes-Benz. Simply because, sales are likely to be zero for sometime in...Brazil! GG.

    Commenter
    Gordon Gekko
    Location
    Greg Coffey World
    Date and time
    July 09, 2014, 9:21AM
  • It's funny how often what should be enormous stories get very little attention in the mainstream media.

    One is Germany's failure to get its gold repatriated from the US federal reserve. The only explanation is that the fed doesn't have enough gold left to do so! Watch this space.

    Commenter
    Fred
    Location
    Date and time
    July 09, 2014, 9:19AM
    • Do you have a reference for that story Fred? Sounds like it could be a bigger scam than the missing metal that CITEC Resources thought they had stored at Qingdao Port.

      Commenter
      Engineer
      Location
      Scam City
      Date and time
      July 09, 2014, 10:03AM
    • There is no gold left, the Federal Reserve has stolen everything of course. The reason this doesn't get a mention in media is of course that the same interest group that runs the Fed also has very large ownership and decision making positions in the largest media companies.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      July 09, 2014, 10:07AM
    • I love it..Thanks Fred....I saw an incredible chart yesterday and can't seem to find it now...It shows all currencies have fallen against gold except NZ with Australia just below.....Given it's measured in USD, I'm not smart enough to work out exactly what it means. I don't own any gold but I own a SL of silver.

      Commenter
      JohnBB
      Location
      Date and time
      July 09, 2014, 10:16AM
    • We'll look after your SL John

      Commenter
      Janet
      Location
      TheFed
      Date and time
      July 09, 2014, 10:25AM
    • @Janet...Are you suggesting confiscation? ...or....erosion of value?

      Silver is also an industrial metal, so gives it value based on how much it costs to produce, demand, and as a precious metal. Very safe investment IMO.

      Commenter
      JohnBB
      Location
      Date and time
      July 09, 2014, 10:53AM
  • "The Coalition's amended financial advice laws have fallen into disarray this week after Mr Palmer said he ''would never'' support them."

    The wreckers getting wrecked. Sweet, sweet irony. LMAO!

    Commenter
    Allan
    Location
    Prahran
    Date and time
    July 09, 2014, 9:17AM
  • 5500 rejected AGAIN...Palladium up.

    Commenter
    JohnBB
    Location
    Date and time
    July 09, 2014, 9:10AM
    • "Local stocks are set to open sharply lower"

      Three down days in a row? I like it!

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 9:19AM
    • "James Packer has just one obstacle to clear before his ambition of operating a Sydney casino will become a reality"

      If only he had used his inheritance for good instead of evil.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      July 09, 2014, 9:20AM
    • @Allan....It was the way he was raised....

      Public land was given away to a billionaire, and we're not allowed in to what he builds.....Premier that did the deal with him resigned for dealings in another matter...Let's have Barangaroo suspended and have an investigation....There's a genuine stench to it.

      Commenter
      JohnBB
      Location
      Date and time
      July 09, 2014, 9:52AM
Comments are now closed