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Markets Live: Shares up as JB smashed

Date

Patrick Commins, Jens Meyer

Shares remain buoyant after a bounce at the open, as Treasury Wine fields a fresh takeover bid and JB Hi-Fi is sold down on its earnings report.

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That's all from us for today. Thanks for reading the blog and posting your comments.

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

While equities flew in Japan, the ASX200 only managed to put on around half a per cent, with the banks mainly responsible for the gains, IG's Stan Shamu notes:

  • Despite the gains, I feel equities are at risk of being sold into strength in the near term as confidence remains subdued.
  • Bendigo's results have helped set the pace for the banks with results driven by good net interest margin growth. While BEN didn’t necessarily shoot the lights out, the banks were just looking a little oversold over the past week and this played into its hands.
  • The results showed good growth in cash earnings, while net profit was a touch below estimates. The dividend of 33 cents was bang in-line with estimates and the net interest margin was up modestly at 2.24%.
  • CBA is also starting to ramp up heading into its results and the $80 mark also managed to lend some support.
  • Treasury Wine has extended gains after receiving a competing takeover offer from a global private equity investor. This takeover is also at $5.20 cash per share and investors will be hoping this sparks a bidding war for the company.

Meanwhile, Japanese stocks have posted their biggest one-day jump in four months, with the Nikkei gaining 2.4 per cent to 15,130.52.

The index recouped most of its steep losses suffered on Friday, boosted by a slight drop in the yen and amid talk that the nation’s giant pension fund has freed itself to buy more domestic equities.

The sharemarket has closed higher, but gains were at the lower end of the regional spectrum.

The ASX200 rose 21.7 points, or 0.4 per cent, to 5457.0, while the broader All Ords gained 19.8 points, or 0.4 per cent, to 5449.4.

Among the sectors, financials added 0.5 per cent, materials rose 0.4 per cent, while gold fell 2.4 per cent.

Profit season has underscored just how finely tuned share price valuations are with big price swings on the upside and downside on the back of earnings results.

Numbers that drift above or below consensus have been rewarded and punished in equal measure.

Today, McAleese shares surged more than 20 per cent in response to confirmation that profit will meet the high end of guidance. JB Hi-Fi meanwhile reported disappointing sales despite an increase in profit, sending its stock down 8 per cent.

The theme was evident last week with a price drop for REA Group on Friday after it seemingly failed to over-deliver given a price-earnings valuation in excess of 40 times forecast earnings. REA’s shares fell 8 per cent though net profit rose 37 per cent.

And Cochlear surged 10 per cent on regulatory approvals and a rebound in sales as investor optimism returned to the company and chief executive Chris Roberts highlighted his “tremendous confidence” in the fiscal year ahead.

OzForex and QBE Insurance Group were on the wrong side of investors with sharp falls in the wake of trading updates.

Escala Partners chief investment officer Giselle Roux says the reasons behind the pronounced share price reaction can be attributed to short covering in the case of price rallies, or impatience with companies priced to perform in the case of price declines.

"The ones like Cochlear [are] about short covering. It came out with a result that wasn’t as bad as some thought it may be and you get a whole host of short covering coming in,” Roux explains.

“The other side is a more interesting one, so you see JB Hi-Fi being sold off a great deal [on Monday]. The company’s tried to reassure people that it sees sales growth this year, the market’s doing a very quick click and drag of that first month,” extrapolating a weak start over a whole 12 month period.

A Telstra share buyback is “very unlikely” despite the telecommunications company’s growing cash pile, according to Commonwealth Bank analysts.

Commonwealth Bank analyst Nathan Burley told clients Telstra was likely to keep the cash and stay flexible about its spending options instead of handing it back to shareholders.

His view contrasts with those from other fund managers and rival analysts who expect Telstra to launch a share buyback scheme worth at least $2 billion at its financial results announcement on Thursday.

“We believe Telstra is likely to remain conservative and keep flexibility, especially given investments and acquisitions are likely,” Burley said. “A buyback ... is also very undesirable and only marginally accretive at current prices.”

The company would have to buy $3 billion in its own shares back from current holdings just to improve its earnings per share by 3 per cent, he added.

The buyback talk has come about thanks to Telstra’s growing cash pile following the 70 per cent sale of its Sensis directories business for $454 million in January as well as its 76.4 per cent stake in Hong Kong mobile service business CSL for around $2 billion.

Most Telstra watchers expect the company to splurge the money on buying Asian businesses to help it generate large profits from the region.

The float of the cinema ticketing software business Vista Group International means a payday worth almost $NZ52 million ($47.4 million) for two former accountants from Auckland, Murray Holdaway and Brian Cadzow, who co-founded the company in 1996.

Vista started trading on the New Zealand Stock Exchange before the Australian market opened on Monday above the $NZ2.35 ($2.14) offer price at $NZ2.39 ($2.18), and by midday Sydney time the stock was up 7.7 per cent at $NZ2.53 ($2.31). On the Australian Securities Exchange the shares opened above the $2.14 offer price at $2.35, before easing to $2.30.

Reflecting on the deal that valued the company they co-founded at $NZ188 million ($171.50 million), the pair credit the vibrant culture of the local film scene for propelling their success.

Read more ($)

Stock markets around the region are higher after tensions eased slightly in Ukraine but Japan is the clear outperformer.

The Nikkei is up more than 2 per cent after a report the nation’s pension fund has freed itself to buy more domestic equities.

The $1.3 trillion Government Pension Investment Fund temporarily removed a cap on local stock investment, the Nikkei newspaper reported.

‘‘The GPIF news is obviously positive and likely in the short term to push the market higher,’’ said Andrew Sullivan, head of sales trading at Espirito Santo Securities in Hong Kong.

Removing deviation limits would enable GPIF to allocate more of its assets to domestic stocks before changing its target for the asset class in an upcoming review of holdings. The fund is expected to boost its goal for local shares to about 20 per cent of its portfolio around September from the current level of 12 per cent.

The Turkish lira has advanced as Prime Minister Recep Tayyip Erdogan became Turkey’s first directly elected president, extending his rule through 2019.

The victory extends Erdogan’s leadership and consolidates the Justice and Development Party’s hold on power after a more than 13-year tenure, the longest period of political stability since a multiparty system was adopted in 1946.

‘‘What is important now is who will be the prime minister and, more than that, who will be the boss of the economy,’’ Afa Boran, a money manager at Amwal in Doha, Qatar. ‘‘There are some serious economic risks such as foreign debt and inflation.’’

Turkey’s currency is up 0.4 per cent to 2.1361 per US dollar and is 0.6 per cent stronger this year.

Erdogan’s 11-year tenure as premier saw annual growth average 5 per cent, with foreign investors pouring $US78 billion into Turkish stocks and bonds since 2006.

The nation’s economic growth has been fuelled by consumption and private-sector borrowing that swelled the current-account gap to 7.5 per cent of gross domestic product in the first quarter. That’s the biggest among the so-called fragile five economies most vulnerable to a withdrawal of foreign investment needed to finance their deficits. South Africa, Indonesia, India and Brazil are the other four.

Turkey's first directly elected president: Recep Tayyip Erdogan.

Turkey's first directly elected president: Recep Tayyip Erdogan. Photo: AFP

Global ratings agency Standard & Poor’s has lowered the outlook on Canada’s banks from stable to negative in response to the government’s “bail-in” consultation paper that seeks to ensure that bondholders rather than taxpayers stump up the costs in the event of a bank failure.

The move could portent ratings actions against Australia’s banks as the Murray led financial system inquiry explores solutions to the “too big to fail” challenge that would prevent taxpayer funds being used to save failed institutions.

On Friday, the agency placed the ratings of several Canadian banks including Royal Bank of Canada and Toronto Dominion Bank on a review citing “reduced potential for extraordinary government support arising from the implementation of the new elements of the resolution framework for Canadian banks”.

Canada’s regulators have been exploring ways to respond to failed banks in a way that maintains the stability of the financial system but reduces the need for taxpayer funds to be used.

Such measures would likely force losses on bank creditors such as bondholders and reduced assumptions of government support therefore weakens the credit ratings of the banks.

The David Murray-led financial system inquiry is examining similar measures being introduced in Australia to solve the “too-big-to fail” problem and made reference to the decision by another rating agency Moody’s to review the ratings of Canada’s banks, which like Australia’s, are among the safest and highest rated in the world.

Commonwealth Bank’s credit strategist Scott Rundell said that S&P currently regards Australia’s government as being highly supportive of the banking sector.

Six lenders currently benefit from a ratings uplift as a result of “extraordinary” government support – ANZ, Commonwealth Bank, National Australia Bank, Westpac, Macquarie Bank and Cuscal.

“So if S&P's assessment of Australian government’s willingness to provide extraordinary support reduces to being 'supportive' from the current 'highly supportive', S&P’s issuer credit rating for the four major banks and Macquarie Bank might be lowered by one notch,” said Rundell in a note to clients.

Read more

Chinese iron ore futures have ticked higher as stockpiles at the country's ports dropped for a third straight week, reflecting firm demand as buyers sought cheaper cargoes.

Stockpiles of imported iron ore at China's ports fell by 900,000 tonnes to 110.65 million tonnes on Friday, according to industry consultancy SteelHome which tracks inventory at 44 Chinese ports.

The port stocks, however, remain not too far below a record high of 113.7 million tonnes. CBA said last week there needs to be a sharper decline in port inventory to outweigh the increase in supply and spur a stronger recovery in iron ore prices.

Iron ore for January delivery on the Dalian Commodity Exchange was up 0.2 per cent at 674 yuan ($US109.5)  a tonne by midday, but still well below last week's high of 692 yuan.

"Some mills are preferring to buy cargoes from the ports which are about $US2-$US3 cheaper than new shipments," an iron ore trader in Shanghai told Reuters.

But some buyers are still facing tight credit conditions, from traders to mills, preventing them from buying shipments, said a trader in China's eastern Shandong province.

"The flow of money is tight. Even if mills are able to sell their steel products, they don't get paid on time. Traders are also having difficulty getting letters of credit," he said.

Iron ore for immediate delivery to China slipped 0.3 per cent to $US95.70 a tonne on Friday.

Woodside Petroleum has resurrected its relationship with Noble Energy via a new exploration deal off the coast of Gabon in West Africa, just months after the two companies failed to agree terms for the Perth-based producer to buy into the giant Leviathan gas venture in Israel.

Woodside in May ditched its $US2.5 billion ($2.7 billion) deal to buy into Leviathan after 18 months of negotiations.

Noble, the operator of the Leviathan gas field, put the collapse of the deal down to the changed plans for the development of the field, which chief executive Charles Davidson inferred had diminished the importance of Woodside’s liquefied natural gas expertise.

Three months on, the energy companies appear to have set aside their differences by striking a new agreement whereby Woodside has acquired a 40 per cent stake in an exploration, exploitation and production sharing contract in the Gabon coastal basin.

Noble holds a 60 per cent interest in the permit and will be the operator. It also holds a seismic commitment and option for future drilling.

Woodside chief executive Peter Coleman described the region as a high graded emerging oil province, helping the company to build its African expertise following recent exploration deals in Tanzania and Morocco.

“Once again, this opportunity reflects our disciplined and strategic approach to studying regional petroleum systems and is a good fit for our core capabilities in deepwater exploration,” said Mr Coleman.

Woodside shares are 0.4 per cent higher at $41.76.

Housing market sales continued to reflect positive housing market sentiment in the past week, particularly in Sydney where elevated auction levels for this time of year have cleared at greater than 75 per cent for the fifth consecutive week, ANZ notes:

  • Home prices edged higher in the past week, with price growth easing to 11.2% in annualised trend terms. Trend price growth remained strongest in Melbourne (+1.7% m/m), followed by more moderate gains in Sydney (0.8% m/m) and Brisbane (0.1% m/m). In contrast, home prices continued to ease moderately lower in Adelaide and Perth.
  • Auction sales continued to reflect buoyant home buyer and vendor sentiment, with the number of cleared capital city auctions remaining elevated for this time of year.
  • Reflecting the rebound in consumer confidence in recent weeks, elevated auction clearance rates in Sydney and Melbourne in particular foreshadow strong sales demand and further housing price gains in the remaining months of 2014.
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Ahead of tomorrow's NAB business confidence and conditions survey for July, the signals are pointing up:

Major regional markets are enjoying solid gains, led by Japan's Nikkei, which has jumped 2.2 per cent.

Elsewhere:

  • Hong Kong's Hang Seng +1.2%
  • Hang Seng China Enterprises +1.7%
  • Shanghai Composite +0.9%
  • Taiwan's TAIEX +0.9%
  • Korea's KOSPI +0.7%
  • Singapore Straits Times +0.8%
  • Jakarta Composite +0.9%
  • Kiwi NZX 50 -0.2%

Total lending finance soared 7.6 per cent in June to levels last seen before the GFC, underpinned by a 12.1 per cent lift in business lending, according to the ABS.

Total new lending in June was $72.9 billion – the highest since January 2008.

In original terms, lending totalled $84.1 billion in June 2014, the second highest total on record behind June 2007 ($90.8 billion), CommSec chief economist Craig James writes:

  • While growth is being driven by business lending, both personal and housing loans are well up on a year ago. Simply, consumers and businesses are embracing cheap financing.
  • And hopefully in the case of business, some of the extra dollars are being put to work in new investment, in turn leading to the hiring of more staff.

Jonathan Shapiro and Max Mason take a look at the growing threat of the  “passive investment” revolution championed by regulators and asset consultants that is sweeping through the global investment industry.

As the David Murray-led financial systems inquiry shines a light on the high costs in the superannuation system, fees paid to active managers are being scrutinised as a way to strip out costs from a pension system considered one of the most expensive in the world.

Some local experts are warning of conflicting messages between costs and economic growth when it comes to the future of superannuation. “If we want really low costs in super, given that much of the costs relate to active asset management and unlisted assets such as infrastructure, you have to get rid of them and go passive,” said Tria Investment Partners’ Andrew Baker, an investment consultant.

“But at the same time, the government wants the super system to fund new infrastructure, the needs of growing companies, and to be able to bail out the financial system when it gets into difficulty. That’s active management. 

‘‘You can’t have it both ways. If we want super to contribute to the economy – and it is – we have to accept higher costs than a passive approach.”

Read more

RetireAustralia’s initial public offer plans have been shelved with owners JPMorgan and Morgan Stanley unable to agree with brokers on a price for the listing, the AFR's StreetTalk writes.

The group, jointly controlled by investment banks JPMorgan and Morgan Stanley, is the largest private retirement group in Australia, and had been tipped for a $500 million IPO to kick off as soon as September with an ASX debut in time for Christmas.

It is understood that Morgan Stanley and JP Morgan pulled the plug on fast progressing float plans after failing to agree on a sale price, StreetTalk says.

Retirement groups including Aveo and New Zealand operators Ryman Healthcare and Summerset have done much to rehabilitate the reputation of the much-maligned retirement sector and deferred-management fee villages, but brokers warned the groups that persisting wariness towards the sector among investors would mean hopes for a lofty listing price wouldn’t eventuate.

There has been much conjecture over the value of the listing since whispers of the group’s listing plans started circulating in late 2013. Some pundits pinned the listing value circa $400 million while other groups put the value as high as $600 million.

More StreetTalk ($)

Credit Suisse strategists' top long and short ideas.

Credit Suisse strategists' top long and short ideas.

The recent pull-back provides an opportunity to cover your shorts in “higher beta stocks” like Bank of Queensland, write Credit Suisse strategists in their latest note which lists their best long and short ideas.

“Beta” refers to the degree to which a share price co-moves with the broader market.

“Our expectation of downside risk to Aussie bonds yields, even from here, also suggests it is prudent to tone down short positions in high yielding bond proxies like BOQ,” they write. They add in its place IAG.

That’s right – they reckon bond yields could continue to go down.

“Both our long and short positions have an average 2015 PE of 15x. However, our long positions provide a higher dividend yield (4.5% vs 3.9%) and free cash flow yield (6% vs 3.6%). In an environment of low or even falling bond yields we think our portfolio is well placed,” they write.

Below is their complete list of stocks they reckon will go up (long ideas) and stocks they think will go south (short ideas).

And one more on JB Hi-Fi, this time from Citi who have just send out the good, the bad and the verdict on the retailer's earnings results:

Positives

  •  Gross margins up: Gross margins rose 17bp, which may reflect a better sales mix.
  • Dividend payout ratio: JB Hi-Fi total dividend was 84 cents, an increase of 17%. This is a step-up in the payout ratio to 65%, from 60% previously.

 

Negatives

  • Cash flow weak: JB Hi-Fi had operating cash flow fall 74% to $41 million. The result reflects timing of creditor payments primarily. Even so, the working capital to sales is at its highest level in at least 10 years.
  • Costs rising faster than sales: Operating costs rose 5.7% in FY14 v sales growth of 5.3%. Reducing cost growth will be a challenge given fixed rent increases and higher wage rates.

 

Implications

  • With slower sales growth and continued cost increases, we expect earnings to decline. Our FY15e EPS forecast is 11% below consensus.
  • We have a 'sell' rating on JB Hi-Fi and target price of $15.50. The FY14 result was solid, but the sales risks facing the company are significant. Across the electronics industry, there is a weak new product pipeline and price deflation remains rampant.

Lawyers representing victims of failed forestry group Timbercorp plan to sue financial planners who reaped $92 million in commissions after advising their clients to invest in the company.

The move comes as Timbercorp liquidator KordaMentha ramps up the pressure on victims to repay loans they took out to finance their investment by launching a flurry of legal action in the Victorian Supreme Court.

Financial planning networks whose members sold Timbercorp products include the CBA’s scandal-plagued Commonwealth Financial Planning and Sentry Group, which is owned by the bank that financed Timbercorp, ANZ.

BusinessDay has seen loan application forms filled in by clients who used financial planners that have blank spaces where the investor’s assets and liabilities are supposed to be disclosed.

Timbercorp paid planners and advisers commissions of up to 10 per cent of the investment, plus a trailing commission of 0.5 per cent a year on the loans taken out by their clients.

Since April, when the High Court upheld the validity of the loans after a failed class action, KordaMentha has lodged at least 49 lawsuits against investors, five of which have settled before reaching court.

In just three days at the end of last month KordaMentha lodged 11 lawsuits against investors, claiming a total of almost $4.8 million, which are due to come before the court for a first directions hearing on Friday.

Slater & Gordon lawyer Mark Walter said his firm was "starting to be retained by growers who are being sued".

Read more.

 

KordaMentha has lodged at least 49 lawsuits against investors.

KordaMentha has lodged at least 49 lawsuits against investors.

JB Hi-Fi has, apparently, "a bloke problem"...

The consumer electronics retailer has admitted it is struggling to achieve its gender diversity targets because male employees, particularly in regional areas and senior management ranks, are not moving on.

In 2014, about 39 per cent of JB Hi-Fi’s employees were women, but women accounted for just 4 per cent of its senior management and executive team (1 of 23), compared with 5 per cent in 2013 and 9.5 per cent in 2012.

Only 21 per cent of commissioned sales staff and only 10 per cent of store managers were women and the company had no female store managers in regional areas.

The JB Hi-Fi board set measurable objectives in relation to gender diversity in March 2012 and adopted a strategy to achieve these objectives.

However, two years down the track, JB Hi-Fi is struggling to achieve its targets and in some areas the proportion of women in senior roles has gone backwards.

Read more.

The restaurant industry is encouraging members to automate and outsource as much as possible to save money in the face of “unsustainable” labour costs.

Restaurant and Catering Australia will today release the results of a survey showing wages and staff on-costs, including payroll tax and training, account for about 45 per cent of business expenses for members.

“We’re saying outsource everything you possibly can,” RCA chief executive John Hart said. “Whether that’s taking reservations, cleaning the kitchen, cleaning the restaurant, laundry.

“We’re also trying to get them to invest in the cost of value-added food product as opposed to spending money on labour. So if they can buy in pre-prepared things that cost them less in kitchen labour then we’re trying to convince them to do that as well.”

Mr Hart acknowledged that automating processes and outsourcing tasks were job killers, but insisted operators no longer had any choice.

The 2014 Industry Benchmarking Report, based on the 2012-13 financial results of 340 members, found 12.9 per cent of respondents close on both Sundays and public holidays.

The vast majority said they closed at these times due to the cost of penalty rates on these days. The association is campaigning for the removal of penalty rates for casuals on weekends.

The association, which represents 35,000 restaurants, cafes and catering businesses across Australia, celebrated a small victory in May, when a full bench of the Fair Work Commission reduced penalty rates by 25 per cent on Sundays for casual employees.

Read more.

“We’re saying outsource everything you possibly can,” RCA chief executive John Hart said.

“We’re saying outsource everything you possibly can,” RCA chief executive John Hart said. Photo: Quentin Jones

Bell Potter analyst Lafitani Sotiriou reckons investors should buy Crown Resorts while sentiment is weak. Despite the recent string of bad news items, “the key medium- to longer-term value drivers are still there”.

Sotiriou notes Dreams Manila opens in a few months, Studio City in a year and Melco Crown’s capital expenditure profile will fall without any additional projects.

“Already, there is capacity for a new $US500 million buyback of Melco Crown’s shares on market as announced overnight,” Sotiriou writes in a research note to clients today.

He believes Crown remains in a strong position with exposure to gaming markets which present attractive long-term value, via Melco Crown and Crown’s portfolios.

Sotiriou has lowered his 2014, 2015 and 2016 financial year earnings by 4.6 per cent, 5.8 per cent and 2.6 per cent respectively.

“The downgrade is driven by our revised Melco Crown estimates, which are lower following the second quarter 2014.”

Bell Potter has a “buy” recommendation on Crown shares and $19.50 price target.

Here's how one analysts views the recent sell-offs in equities...

 

 

China loosened monetary conditions last quarter at the fastest pace in almost two years, a Bloomberg gauge showed, testing the waning effectiveness of credit in supporting economic growth.

Bloomberg’s new China Monetary Conditions Index - a weighted average of loan growth, real interest rates and China’s real effective exchange rate - rose 6.71 points to 82.81 in the second quarter from the previous three months. That’s the biggest jump since the July-September period of 2012, with May and June's numbers the first back-to-back readings above 80 since January 2012.

New yuan loans in July will be a record high for that month, according to a Bloomberg News survey of analysts before data due by Aug 15, suggesting officials are keeping the credit spigot open even as debt risks mount.

While consumer inflation below the government’s goal allows room for more easing, economic data will determine how far policy makers go.

“The central bank worries more about inflation and financial risks, but the government is worried more about growth and employment,” said Ding Shuang, senior China economist at Citigroup in Hong Kong. “Growth will rebound in the second half, so that will give the central bank some support in not expanding credit and liquidity further.”

With Premier Li Keqiang saying he wants financing charges cut for some sectors to support growth, “the central bank will still be under pressure, not necessarily to expand credit, but to lower lending costs,” Ding said.

Each $US1 in new credit added the equivalent of an extra 20 US cents in GDP in the first half of 2014, according to data compiled by Bloomberg. That compares with 29 cents in full-year 2012 and 2013 and 83 cents in 2007, when global money markets began to freeze.

Read more at Bloomberg.

JB Hi-Fi is still the biggest loser among the top 200 stocks, down 7.2 per cent, despite profit rising 10.3 per cent for the year, in line with guidance and expectations.

So what's bothering investors? Seems that sales disappointed, especially in the tablet sector, along with the outlook.

Group sales for the year rose just 5.3 per cent to $3.48 billion – below the company’s original guidance of 6 to 8 per cent – underpinned by 2 per cent same-store sales growth and augmented by the opening of a net five new stores. Sales growth would have been stronger if not for a 2.4 per cent fall in same-store sales in the June quarter following a post-Budget slump in discretionary spending.

JB Hi-Fi’s new chief executive, Richard Murray, said the negative sales trend persisted into July, with total sales down 3.2 per cent and same-store sales down 5.5 per cent.

Murray said July sales were impacted by recent marketwide declines in tablet sales, but gross margins in July were ahead of those at the same time last year.

“We anticipate sales in the first half of 2015 will continue to be impacted by reduced tablet sales, however we are positive about the pipeline of new products to be released and as a result we expect solid sales growth for the year,” he said.

Murray also said he expected sales this year to rise $120 million or 3.4 per cent to about $3.6 billion – below consensus forecasts for sales growth around 7 per cent.

JB Hi-Fi managed to lift net profit by almost double the rate of sales growth in 2014 by increasing gross margins by 17 basis points to 21.7 per cent and keeping tight control on costs, which rose marginally from 15.1 per cent of sales to 15.2 per cent.

African Bank Investments got emergency support from South Africa’s central bank in a plan calling for the company to raise 10 billion rand ($US938 million) in capital and break off a so-called bad bank for soured loans.

Firms including Barclays Africa Group, FirstRand and fund administrator Public Investment Corp agreed to underwrite the capital raising for the remaining good bank, South African Reserve Bank Governor Gill Marcus told reporters in Pretoria yesterday. The book value of the good bank is 26 billion rand after impairments. The bad bank will be placed in a SARB-backed vehicle, with the Reserve Bank paying 7 billion rand for the unit’s 17 billion-rand book.

“It’s a good idea because there’s a portion of the business that’s still working and some people are still servicing their debts,” Owen Nkomo, founder of brokerage Inkunzi Investments, said from Johannesburg yesterday. “I don’t think SARB will sell the bad book but will try to make as much money from it in collections as it can.”

The central bank’s rescue package, which includes creditor protection, culminates a week in which African Bank lost most of its market value and comes just days after the Portuguese government stepped in to save Banco Espirito Santo . African Bank surprised investors on Aug. 6 by saying chief executive officer and founder Leon Kirkinis resigned, it will have a record loss this year and needs a fresh capital injection.

African Bank was put under curatorship, or administration, to give it time to come up with a rescue plan, the Reserve Bank said. Tom Winterboer, part of the financial services leadership team at PwC, will be responsible for African Bank with immediate effect and is expected to suspend interest payments, the Central Bank said, without giving further information.

Read more.

Special forces loyal to Iraqi Prime Minister Nouri al-Maliki were deployed in strategic areas of Baghdad on Sunday night after he delivered a tough speech indicating he would not cave in to pressure to drop a bid for a third term, police sources said.

Pro-Maliki Shite militias stepped up patrols in the capital, police said. An eyewitness said a tank was stationed at the entrance to Baghdad's Green Zone, which houses government buildings. 

In a speech on state television, Mr Maliki accused Iraq's Kurdish President Fouad Masoum of violating the constitution by missing a deadline for him to ask the biggest political bloc to nominate a prime minister and form a government.

"I will submit today an official complaint to the federal court against the president of the Republic for committing a clear constitutional violation for the sake of political calculations," said Mr Maliki.

Serving in a caretaker capacity since an inconclusive election in April, Mr Maliki has defied calls by Sunnis, Kurds, some fellow Shiites, regional power broker Iran and Iraq's top cleric for him to step aside for a less polarising figure.

The troop movements have raised speculation that they may mark the start of a coup by Mr Maliki to take full control of the government.

A western security expert based in Iraq said that Mr Maliki deployed members of the Golden Dawn militia and the elite SWAT special forces units around the International Zone prior to giving the speech.

"He was clearly anticipating a negative, possible coup-like response," said the expert, whose employer does not allow him to speak openly to the media.

Read more.

Iraqi Prime Minister Nouri al-Maliki wants to hold on to power.

Iraqi Prime Minister Nouri al-Maliki wants to hold on to power. Photo: AP

Is the Australian market overvalued?

Australian industrial valuations do look full in the context of history and versus global comps, UBS analysts write in a note this morning:

  • The circa 17x industrial ex-financial price-earnings multiple suggests the market at the stock level is more expensive than it appears at its headline overall valuation of 14.5x (due to lower P/Es for mining and financials).
  • Low interest rates are likely buoying the valuation of the industrial portion of the market (as they are for financials) and in our view the prospect of a lower A$ also supports higher than average valuations.
  • Additionally, from a margin perspective there is not a clear case that industrial stocks are (on average) under-earning. This makes the market more reliant on the A$ coming down to help support some decent earnings growth.
  • We retain our 5625 year-end target and continue to favour beneficiaries of a lower A$.
  • Stocks trading at the largest premiums to history are Ramsay Health Care,
    GrainCorp, REA Group, James Hardie Industries, Boral and Treasury Wine Estates. Of these, we particularly like Boral due to its cyclical recovery potential in respect of US and Australian housing.
  • Stocks trading cheaply versus history include; Primary Health Care, Resmed, Monadelphous Group, Lend Lease Group, Leighton Holdings and CSL. Of these, our preferred stocks are Resmed and CSL.

 

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Shares in McAleese, the owners of Cootes trucks, have surged 21 per cent to 57c after announcing it will deliver 2014 earnings at the top end of its revised guidance range but take up to $15 million of impairments as it announced the sale of its Liquip tanker business.

McAleese has struck a binding agreement to sell Liquip, which provides tanker equipment and maintenance services, to US engineering and industrial group Dover Corporation for $65 million.

McAleese chief executive Mark Rowsthorn said the sale was “a pleasing outcome” for McAleese’s shareholders, with $45 million of profit from the sale due to be booked in the company’s 2015 results.

McAleese’s stock, which closed at 47¢ on Friday, had slumped almost 70 percent year to date before today’s jump, after it cut 2014 earnings guidance several times in the wake of a fatal trucking accident involving one of its Cootes tankers in Sydney.

It also lost transport contracts with key customers like BP and Shell and has subsequently restructured its business, replacing senior management, cutting jobs and selling tankers and other assets.

On Monday, McAleese said it would report fiscal 2014 full year EBITDA at the upper end of its most recent guidance range of $82 million to $85 million on revenue of around $760 million.

The company will take impairments of between $10 million and $15 million in fiscal 2014 following a review of other asset sales, including surplus equipment from its Cootes transport business, which is expected to generate an additional $30 million.

Read more.

McAleese shareholders have enjoyed a surge today in the share price after the company announced earnings will be at the upper end of guidance.

McAleese shareholders have enjoyed a surge today in the share price after the company announced earnings will be at the upper end of guidance.

Gains are spread across the market as shares enjoy a solid Monday morning bounce, with heavyweights banks and miners moving in the same direction.

The ASX 200 is 37 points, or 0.7 per cent, higher at 5472.3, while the All Ords is 0.6 per cent ahead at 5464.8.

Among the reporting companies this morning, investors have reacted negatively to JB Hi-Fi's in-line result, selling the stock down 6.8 per cent early.

Other companies which have reported this morning:

  • Bendigo & Adelaide Bank +0.8%
  • G8 Education +4.8%
  • Coffey +5.8%
  • Freelancer +0.7%

And those involved with M&A today:

  • BC Iron -1.2%, target Iron Ore Holdings +5.6%
  • Treasury Wine Estates +0.4%

Gold miners are the only corner of the market in retreat, down 2 per cent in early trade.

The country’s largest listed childcare provider G8 Education has reported a 48 per cent rise in interim net profit after tax to $16.3 million, tied to the group’s aggressive roll up of centres.

The company reported a 59 per cent rise in revenue to $187.2 million, in the six months ended June 30. The result was above analysts’ expectation of $144 million, according to data compiled by Bloomberg.

The company acquired 76 child care centres in the 2013 financial year, which contributed to strong growth in the interim results.

“The result for the 2014 half-year was pleasing, and reflects both organic growth in G8 Education’s existing early learning centres and the positive contribution of recent acquisitions,” managing director Chris Scott said in a statement.

Earnings before interest and tax rose 77 per cent to $30.1 million, which was ahead of consensus of $27 million. On an underlying basis, which removes acquisition and financing costs, EBIT for the half was $31.1 million.

In the first half of the 2014 financial year, the Group continued to expand, completing the acquisition of 115 child care centres.

At 30 June 2014, the Group owned 349 centres in Australia and 18 in Singapore.

The company also announced the acquisition of 25 childcare centres for $82.7 million, of which $72.7 million is payable on settlement. The remainder is linked to an earnings target for the first year following settlement. The price is equivalent to four-times earnings before interest and tax in the 12 months following settlement.

The company also announced the acquisition of 19 centres on July 8. Once these past two acquisitions are settled G8 will operate 411 centres in total.

Online employment portal Freelancer said it swung to a first-half loss of $600,000 as it further reinvests revenue into future growth.

The loss for the six months ended June 30 compared with a $500,000 profit in the year-earlier period. Revenue, however, rose 51 per cent to $11.9 million, which Freelancer chief executive Matt Barrie said was “extremely pleasing”.

“The record revenue result is a measure of this performance as a whole. We have continued to focus on reinvestment in key areas of the business such as product development to drive future growth in the company’s broader marketplace offering and executing on strategic acquisitions where appropriate,” Mr Barrie said in a statement to the Australian stock exchange.

Freelancer registered a 54 per cent uptick in users compared with the year earlier.

The company owns 40 similar sites around the world, including Freelancer.co.uk in Britain.

Bendigo and Adelaide Bank has posted a 9.9 per cent rise in annual cash net profit after tax to $382.3 million for 2014, beating analysts forecasts of around 8 per cent growth.

The regional bank said it would give a final fully-franked dividend of 33¢, which is 2¢ higher than the half-year dividend and raising total dividends for the year to 64¢, up 3¢ on the 2013 financial year.

Managing director Mike Hirst said it had managed to increase its net interest margin by 0.05 per cent to 2.26 per cent in a highly competitive mortgage market, despite not joining its rivals in slashing interest rates.

“A five basis point increase in net interest margin is testament to the bank’s value proposition in what is a highly competitive environment,” he said.

“We do not pursue growth for growth’s sake.”

The bank has launched several securitisations of its loan book in Australia and overseas to take advantage of favourable borrowing conditions.

The lower wholesale funding costs have also allowed reductions in term deposit rates. This particularly helps Bendigo as close to 80 per cent of its funding comes from deposits.

Read more.

Bendigo and Adelaide Bank  made a full-year profit of $382.3 million for the year to June 30, up from $352.3 million a year ago.

Bendigo and Adelaide Bank made a full-year profit of $382.3 million for the year to June 30, up from $352.3 million a year ago. Photo: James Davies

Re the fresh bid for Treasury Wine Estates (see post at 9:03), the AFR is reporting that it's private equity firm TPG behind the second offer.

If you thought using a toll road was costly, try building one, writes BusinessDay columnist Michael West:

Melbourne’s giant East West Link road project is shaping up to cost $1 billion a kilometre and Sydney’s WestConnex $473 million a kilometre.

Brisbane’s Airport Link cost $747 million a kilometre and Sydney’s Cross City Tunnel was constructed at a capital cost per kilometre at $476 million.

These and other road project figures have been prepared for Fairfax Media by actuary Ian Bell. An excellent interactive graphic below shows the capital costs of Australia’s major road projects.

Direct comparisons are fraught as some projects are still in the planning stage, others were completed some time ago and the more costly projects have high tunnelling costs. Melbourne’s CityLink for instance had a capital cost of $100 million a kilometre (10 per cent of East West estimates) and Sydney’s Westlink M7 had a capital cost of $58 million.

Nevertheless the estimates are instructive in that they tell taxpayers and motorists what they are up for – something their elected leaders are not telling them.

The governments of Victoria and NSW have left the planning and prospective funding of their biggest projects, East West Link and WestConnex, shrouded in secrecy.

The lack of co-ordinated, long-term planning of major transport projects across the nation is even more concerning. There has been little effort even to properly evaluate whether rail networks – arguably more effective than roads and a fraction of the cost – would be a superior option to big-ticket spending on roads.


Read more.

It looks like a normal supermarket, complete with fruit and vegetables, meat and freshly baked bread, but there’s one thing missing from Woolworths’ newest store – the customers.

Woolworths has opened its first ­dedicated online store at Mascot, in the heart of the biggest online retail market in Australia.

Australia’s largest retailer currently picks products to fulfil online grocery orders from supermarkets closest to online shoppers’ homes.

But, as online grocery shopping becomes increasingly popular, Woolworths is considering opening ­dedicated online stores – also known as dark stores or “shadow warehouses” – in each of its major markets.

According to consulting firm AT Kearney, which has analysed dark stores operated by retailers such as Tesco, Asda, Sainsbury and Waitrose, dedicated online fulfilment stores can be almost three times more efficient than traditional supermarkets.

Retailers can fulfil online orders faster because dark stores are laid out for optimal picking and pickers or “personal shoppers” can whirl their trolleys around night and day, without having to navigate around slow-moving customers, promotions and check­out queues. Woolworths’ general manager of multi-channel retail, Kate Langford, says early results from the Mascot store are encouraging.

“The advantage for our online shopper is the range in store is designed according to their needs – that means we get orders to customers faster,” Ms Langford said.

Read more.

Speedy service: Woolworths’ general manager of multi-channel retail Kate Langford says the store's layout ensures that customers' orders are processed quickly.

Speedy service: Woolworths’ general manager of multi-channel retail Kate Langford says the store's layout ensures that customers' orders are processed quickly. Photo: Brendan Esposito

Kerry Stokes' iron ore venture is set to be acquired under an estimated $250 million takeover deal announced today by established iron ore miner BC Iron.

The cash and scrip offer would see shareholders in Mr Stokes' company, Iron Ore Holdings, receive 0.44 BC iron shares plus 10 cents in cash

The Iron Ore Holdings board has recommended the deal to its shareholders, which will require at least 90 per cent take up to proceed. 

The deal comes at the perfect time for BC, which had reached the end of its forseeable export growth path.

Iron Ore Holdings has been developing multiple iron ore operations in the Pilbara, including one that is seeking to export adjacent to the Sino Iron project in the Pilbara.

Mr Stokes owns just over half of the company, and it also boasts former WA premier Richard Court on its board.

Read more.

The Iron Ore Holdings board has recommended the deal to its shareholders, which will require at least 90 per cent take up to proceed.

The Iron Ore Holdings board has recommended the deal to its shareholders, which will require at least 90 per cent take up to proceed. Photo: Bloomberg

The first shot has been fired in what will be a busy week for earnings.

Higher gross margins and lower costs have helped consumer electronics retailer JB Hi-Fi overcome weak fourth-quarter sales to lift net profit by 10.3 per cent to $128.4 million for the 12 months ending June.

The net profit compared with consensus forecasts around $127.7 million and was in line with JB Hi-Fi’s guidance of $126 million to $129 million.

Group sales for the year rose 5.3 per cent to $3.48 billion and would have been stronger if not for a 2.4 per cent fall in same-store sales in the June quarter following a post-Budget slump in discretionary spending.

The result was the last for former JB Hi-FI chief executive Terry Smart, who retired in June after 14 years with the company.

New chief executive Richard Murray is expected to give an update on future growth initiatives as JB Hi-Fi’s store network starts to mature.

Analysts expect Mr Murray to forecast 3 to 5 per cent sales growth for 2015, which is below the group’s historic rate of growth.

“The company is the best in class retailer in electronics, but the new product pipeline across the electronics industry looks weak and price deflation will result in weak sales,” said Citigroup analyst Craig Woolford in a note last week.

“The new CEO, Richard Murray, may look for acquisitions and expansion in commercial sales to drive growth,” he said.

JB Hi-Fi declared a final dividend of 29¢, taking the full-year pay out to 84¢, compared with 72¢ in 2013. The dividend will be payable September 5.

Read more.

JB Hi-Fi plans a pipeline of new products, some of which are expected to be released before Christmas.

JB Hi-Fi plans a pipeline of new products, some of which are expected to be released before Christmas. Photo: Glenn Hunt

In local news this morning, Treasury Wine Estates, the owner of Penfolds, Rosemount and Lindemans, has received a rival takeover proposal from a global private equity investor.

The company won't say who it has received the second proposal from, but there are suggestions in the market that private equity firm Carlyle Group may have some involvement.

Treasury told the ASX this morning that it has decided it is in the best interests of shareholders to ''engage further with this private equity investor''.

It will negotiate a confidentiality agreement with the new private equity investor and allow them to also come in and conduct due diligence on the company.

This is the same access it has already allowed to US private equity firms Kohlberg Kravis Roberts and its junior partner Rhone Capital. They made a bid of $5.20 per share a week ago, increasing an original stand-alone offer from KKR alone made in mid-April of $4.70 per share.

TWE shares closed at $5.13 on Friday.

US stocks rose on Friday, with the Standard & Poor’s 500 Index climbing the most in five months to erase a weekly loss, as signs that tensions are easing in Ukraine outweighed concern over crises in the Middle East.

The S&P 500 jumped 1.2 percent to 1,931.59, the most since March 4. The Dow Jones Industrial Average climbed 185.66 points, or 1.1 percent, to 16,553.93.

“For the most part the market has been pretty resilient over the last week or so,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities, said. “It has been able to shrug off a lot of negatives and not go lower than it had.”

European shares had a poor end to last week, with the German benchmark index now more than  10 per cent lower than it’s last peak. Here’s a round-up of where some of the European bourses are sitting after the recent months of losses:

  • DAX has entered into a correction, dropping 11% from July 3 record
  • France’s CAC down 10% in intraday trading since 6-year high in June
  • Portugal’s PSI 20 Index – 30% since its 3-yr high and near 1-yr high
  • Italy’s FTSE -15% since June high
  • Euro Stoxx 50 -10.1% since June high, after rallying 83% from March 09 to June 2013
  • Greece ASE Index -24% from high on March 18, lowest since October

 

Local shares are set to snap a six-day losing streak on a positive lead from Wall Street and on positioning ahead of a wave of earnings reports.

Here's what you need2know:

SPI futures up 37 points, or 0.7%, at 5413

AUD at 92.76 US cents, 94.81 Japanese yen, 69.19 Euro cents and 55.29 British pence.

• On Wall St, S&P 500 +1.2%, Dow +1.1%, Nasdaq +0.8%

• In Europe, Euro Stoxx 50 -0.2%, FTSE -0.5%, CAC -0.1%, DAX -0.3%

Iron ore dropped 0.3% to $US95.70 per metric tonne

• Spot gold lost 0.2% to $US1309.58 an ounce.

• Brent oil down 0.4 per cent to $US105.02 per barrel.

What’s on today

No local releases.

Stocks to watch

• Credit Suisse has downgraded cement producer Adelaide Brighton to an “underperform” rating and has lowered its target price to $3.55 from $3.60. “Financial discipline has (uncharacteristically) been relaxed in what we believe is a defensive move to protect ABC’s most profitable cement market (South Australia),” the bank said.

• Deutsche Bank has a “hold” rating on Tabcorp Holdings and a $3.70 target price.

Read more.

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

Your editors today are Jens Meyer and Patrick Commins.

This blog is not intended as investment advice.

BusinessDay with wires.

 

Quotes Search

Sort comments by:
  • What a fantastic result for the ASX today. First time in the green on a Monday since we lost Harold Holt. Down 80 points on Friday and 200 points over the last 6 days with the Dow up 185 points we managed a lousy 20 points. Are you kidding. China up over 1% Hong Kong 300 Japan 350Taiwan Yes Taiwan 86 ASX 20 Like flogging a dead horse. No actually it's worse.

    Commenter
    Peter
    Location
    Sydney
    Date and time
    August 11, 2014, 4:24PM
  • Boys, this is why you buy and don't rent.

    http://www.smh.com.au/interactive/2014/millers-point/bob-flood.html

    Commenter
    got brain
    Location
    Date and time
    August 11, 2014, 3:58PM
  • fair to say the economy has been left in a mess judging by the ASX

    Commenter
    budget
    Location
    emergency
    Date and time
    August 11, 2014, 3:51PM
  • I shorted CWN back in January @$18.22, how good am I?

    FIGJAM

    Enjoy!

    Commenter
    Herman
    Location
    Prahran
    Date and time
    August 11, 2014, 3:34PM
    • nice to get it right at the top again @Herman, well done

      Commenter
      Mister100%
      Location
      ASX legend
      Date and time
      August 11, 2014, 3:49PM
    • Good on you! Me too!!!

      Commenter
      Paper
      Location
      Trading
      Date and time
      August 11, 2014, 4:03PM
    • You probably need to talk to Allan.

      Commenter
      Banker
      Location
      Sydney
      Date and time
      August 11, 2014, 4:40PM
  • Wow, lots of panic towards the close!

    Commenter
    wots
    Location
    up doc
    Date and time
    August 11, 2014, 3:32PM
  • To me a sure sign of market weakness is when, on an up day, one of the Big 4 goes negative. WBC is usually the first to do so and today is no exception.

    Commenter
    mitch of ACT
    Location
    Date and time
    August 11, 2014, 3:13PM
    • right on to at as usual @ mitch...lol

      Commenter
      glass
      Location
      half full
      Date and time
      August 11, 2014, 3:45PM
  • Gains what gains, down she goes again!

    Commenter
    last bets
    Location
    please gents
    Date and time
    August 11, 2014, 3:09PM
  • Real house prices still 2.5% below the peak of June 2010.

    Why don't they put that on the graph?

    Commenter
    Ya canna fool me
    Location
    No such thing as a sanity clause
    Date and time
    August 11, 2014, 2:58PM
  • presumably there is no way of knowing which individual orders through the day are short sellers or not?

    Commenter
    new chum
    Location
    Date and time
    August 11, 2014, 2:53PM
  • Looking to get rich quick, got $100k burning a hole in my pocket.

    Any thoughts about M & A possibilities.

    Was thinking OZL might be a chance for half of it!

    Commenter
    fevola
    Location
    Date and time
    August 11, 2014, 2:39PM
    • have a look a SXY, sexy name, worth a punt lol

      Commenter
      hunter
      Location
      the punter
      Date and time
      August 11, 2014, 2:48PM
    • Just pay back your debts Brendon.

      Commenter
      Tim
      Location
      Date and time
      August 11, 2014, 2:59PM
    • Buy a fireproof pair of trousers. Your money will be safer in your pocket than on the market.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 3:06PM
  • Daxman is getting excited!

    Commenter
    Daxman
    Location
    Sydney
    Date and time
    August 11, 2014, 2:37PM
    • about?

      Commenter
      nick eye
      Location
      Date and time
      August 11, 2014, 3:05PM
    • speaking in the 3rd person.

      Commenter
      Learner
      Location
      Melbourne
      Date and time
      August 11, 2014, 3:43PM
  • How long can someone be wrong before thy are right. Shouldn't that graph show prices falling? I thought auctions were secretly being passed in ect... oh dear. que the property bears with correct data extrapolated from the flux capacitor of the bear hyper drive.

    Commenter
    ...i thought?
    Location
    Date and time
    August 11, 2014, 2:02PM
  • To me this rally today looks far from genuine. Perhaps just the shorters caught out by the surprise rise in the DOW and covering their positions. The international situation is no better this week than last and I still expect Putin to invade East Ukraine on the pretext of a humanitarian mission to rescue the "rebels" (his own forces) and save himself from a humiliating defeat and loss of face at home. The West can do nothing other than isolate Russia completely. That won't hurt the ordinary Russians, most of whom can't afford imported goods, but it will hurt Putin's elite. Eventually they will give him the push. So the worsening of the Ukraine situation will drive markets back down. That will suit the shorters. After all, the higher the price of a stock the more money to be made in selling it back down. They'll probably make more money than they will lose as a result of today's rise. But the longs who have been busy buying today will regret that decision.

    Commenter
    mitch of ACT
    Location
    Date and time
    August 11, 2014, 1:58PM
    • nope, putin is withdrawing troops from the border. nothing will eventuate, history forgets these spats.

      Commenter
      tin
      Location
      hats
      Date and time
      August 11, 2014, 2:15PM
    • 3 hours is a long time in the life of a blogger lol

      There's this horrible smell of dead cats.
      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 10:37AM

      Read more: http://www.smh.com.au/business/markets-live/markets-live-shares-up-as-jb-smashed-20140811-3dh94.html#ixzz3A3O185Nf

      Commenter
      kitty
      Location
      Date and time
      August 11, 2014, 2:17PM
    • @kitty, do you know what is meant by the term "dead car bounce." What I was referring to then is just as consistent with what I said above and where the market is going right now.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 2:31PM
    • @tin, how long do you think with mechanised armies it takes to move them back again. Overnight is more time than required.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 2:40PM
    • Mitch, I'm not sure what is great or fair about having a tax that costs more than it raises. That also applies to the carbon tax where most of the revenue is given back as handouts in one form or another.

      Commenter
      Tim
      Location
      Date and time
      August 11, 2014, 2:57PM
    • Putin got played into a corner, no biggy. Putin is not as loose as people try and portray. He bluffed his hand, took a chance but he got called out. He will remove troops, remain quiet long enough for this to be a distant memory removed from our newspapers, some hand shakes and back slaps with world leaders will follow.

      Commenter
      tin
      Location
      hats
      Date and time
      August 11, 2014, 3:04PM
    • @tin, not a chance. The man will not accept his image being tarnished by a backdown. No cost is too hjgh to feed his ego.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 3:50PM
    • Is he going to hand back Crimea as well?

      Commenter
      Allan
      Location
      Prahran
      Date and time
      August 11, 2014, 4:07PM
    • @Tim

      Really?

      The carbon tax was designed to provide an economy wide signal to reduce emissions at lowest cost.

      It was not designed to raise revenue.

      As it was not designed to raise revenue the funds raised were distributed back to taxpayers. It was returned in ways that were independent of behavior in order to preserve the pollution reduction incentives.

      Is it really so difficult to understand?

      Commenter
      Jimmy
      Location
      Date and time
      August 11, 2014, 4:42PM
    • @ Tim 2.57
      Maybe but this time it wont be coming out of my hard earned.
      All the Mining tax needed was a start, it can be improved on as time goes on.
      Money for jam to most clear thinking people.

      Commenter
      Red Rooster
      Location
      Scrub Cutting
      Date and time
      August 11, 2014, 4:49PM
  • Been thinking about the budget and Abbott's poll woes and have come up with a solution.

    Scrap the current budget and start again.

    Increase the GST to 15% and make it applicable to everything. Proven way to fix debt and deficits.

    Might even get a lift in the polls for having the courage to do what needs to be done to fix the mess!

    Commenter
    Allan Mitchell
    Location
    SEQLD
    Date and time
    August 11, 2014, 1:47PM
    • New Budget certainly. But this time do the exact opposite of what the IPA wants.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 1:53PM
    • bringing in GST didn't hurt John Howard, so raising GST could be the answer, instead of dicking around with any other stupid taxes like the ALP tried.

      Commenter
      Concerned Australian
      Location
      Date and time
      August 11, 2014, 2:16PM
    • @Coincerened. Dead right. Instead of making the mining companies pay a fair amount of tax for their plundering of our irreplaceable mineral wealth, make all Australians, particularly the poorest, pay more for all of their goods and services. By the way, most Australians were more than fully compensated for the carbon tax. Hockey is going to really miss that annual $7bn+ contribution to the Budget. Blind ideology overriding economic common sense.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 2:37PM
    • Before this fix negative gearing and SMSF rorting.

      Commenter
      xyz
      Location
      Date and time
      August 11, 2014, 3:23PM
    • When I go over the Gateway, and BEEP, toll paid:- Why does a substantial portion of this toll go to a 3rd party corporate as fat profits? Why does it not go towards a tax payer owned bank where said funds can be then used to fix the woeful transport system we are quilt fixing on a daily basis...

      Commenter
      Liberator
      Location
      SEQLD
      Date and time
      August 11, 2014, 3:44PM
  • Half in cash, half in stocks. Stocks in holding so far this FY are up 10% (not including dividends). Cash.. well what ever the pittance the big four are paying these days. Hoping for some more pull back obviously but happy to wait with stocks growing at a nice steady pace. Never understood why the ASX is so misunderstood.

    Commenter
    Love the ASX
    Location
    just want to smooch it ;)
    Date and time
    August 11, 2014, 1:42PM
  • how much lower can CWN SP go?

    Commenter
    CWN
    Location
    buyer
    Date and time
    August 11, 2014, 1:19PM
    • Looks like punters don't like the Vegas move!

      Commenter
      Allan Mitchell
      Location
      SEQLD
      Date and time
      August 11, 2014, 1:59PM
    • Still a license to print money! The house always wins... Buy whilst cheap!

      Commenter
      GS
      Location
      Date and time
      August 11, 2014, 2:53PM
  • Article @ 10:42am: surprised that they didn't list the banks as trading at a large premium to historical levels...

    Commenter
    DR
    Location
    syd
    Date and time
    August 11, 2014, 1:17PM
  • Tony Abbott's in a whole heap of trouble when articles like this start appearing in the Murdoch press. His golden boy is taking on a distinct lemony colour. http://www.news.com.au/national/tony-abbott-acknowledges-disappointment-of-voters-and-starts-to-tighten-up-government-management/story-fncynjr2-1227020322463
    How long before Murdoch starts echoing the calls for a DD.

    Commenter
    mitch of ACT
    Location
    Date and time
    August 11, 2014, 1:13PM
    • Have you notice that we now have 3 pretenders, namely Joe, Julie and Mal.

      Commenter
      Wally
      Location
      Flynn
      Date and time
      August 11, 2014, 2:03PM
    • If this government can't repeal speech gagging laws and get the budget back on track for surplus, then what are they for? We didn't get rid of Labor just to replace them with a Labor Lite. We need to have a viable option to the right of the centre-right party in this country.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      August 11, 2014, 2:30PM
  • Just to let you all know,Westpac have again reduced their term deposit rates even-though the Reserve Bank did not lower the cash rate,obviously they do not need our money and stuff the income dependent.

    Commenter
    Garry of Melbourne
    Location
    Date and time
    August 11, 2014, 1:01PM
    • Do you seriously not know why our domestic banks deposit & lending rates are NOT closely linked to the RBA rates??
      I don't see mortgage holders complain about 5 year fixed rates tumbling despite RBA rates being on hold!!

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 1:10PM
    • All of the banks are doing it. http://www.dailytelegraph.com.au/business/breaking-news/big-four-slash-term-deposit-rates/story-fnn9c0gv-1227014807188
      I've got cash on TD for 5 years taken out 3 years ago at double today's rates. In the depths of the GFC I was getting 8.05% from Suncorp. I was not complaining.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 1:31PM
    • Getting ready for next months rate cut by the RBA no doubt!

      Commenter
      Xenaphon
      Location
      Date and time
      August 11, 2014, 1:36PM
    • I'm tipping an interest rate cut by March to save us from a Hockeynomics recession. Won't work as most people apply the first 1 or 2 interest rate cuts to pay off their mortgage and other debt faster. . Could take 3 cuts at least.

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 2:12PM
  • How do you know if a stock is being shorted in intra day trading?

    Commenter
    new chum
    Location
    Date and time
    August 11, 2014, 12:58PM
    • Just turn around and if your backsides on fire it's being shorted and dinner won't be affordable.

      Commenter
      Jonaze
      Location
      Sydney
      Date and time
      August 11, 2014, 2:48PM
  • The Nikkei would be a nightmare to work - up 2.22% today

    From memory it was down approx 3% about this time on Friday

    Commenter
    Allan Mitchell
    Location
    SEQLD
    Date and time
    August 11, 2014, 12:51PM
  • When the market is down, its starts off down and goes further down.

    When its up, it opens up and stays flat with little or no volatility for the rest of the day.

    Why is it so?

    Commenter
    Allan Mitchell
    Location
    SEQLD
    Date and time
    August 11, 2014, 12:43PM
    • SPI futures are live during US trading, so much of the increase is already priced into the market, at least the XJO anyways.

      Commenter
      Scott
      Location
      Sydney
      Date and time
      August 11, 2014, 1:25PM
    • yes @Allan, CBA is actually down on open price of $80.87 - currently $80.68

      Commenter
      which bank?
      Location
      Date and time
      August 11, 2014, 1:32PM
    • So you know that. Trade it.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 1:49PM
  • GEM continues on it's merry way, UP 4.29% plus increased dividend.

    Got to love that.

    Childcare services BOOM!

    Commenter
    GEMma
    Location
    Date and time
    August 11, 2014, 12:32PM
    • Indeed. I am a big fan of this company.
      Very shrewd acquisitions, and well managed.

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 12:50PM
  • 2GB Ipod shuffle $53.50 from Apple. Equivalent quality item from Aliexpress with 16GB card @ $9.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    August 11, 2014, 12:22PM
    • thanks for the heads up old boy! will check this out.

      Commenter
      Happy
      Location
      Trader
      Date and time
      August 11, 2014, 12:35PM
    • Looks more expensive to me?

      http://www.aliexpress.com/item/Apple-Apple-iPod-shuffle-4-generation-2G-MP3-player-BNM-genuine-sports-car/2010013592.html

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 12:36PM
    • In fact, they do not seem to stock Apple iPod Shuffles at all ???

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 12:37PM
    • bargain, must try this on-line shopping!

      Commenter
      Allan Mitchell
      Location
      SEQLD
      Date and time
      August 11, 2014, 12:38PM
    • Buyer beware this site looks crook to me, Browsing the watch section rings alarm bells straigt away. Not you typical genuine respectable brands and its got China written all over it.

      Commenter
      Happy
      Location
      Trader
      Date and time
      August 11, 2014, 12:43PM
    • Agree with Happy. A lot of 'replica' gear here. You do pay for quality, on occasion.

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 1:11PM
    • Most of the replies got it wrong. OP is saying you can buy another brand media player equivalent of the ipod mini for less.
      OP also seems to think it's a bargain to buy a Kogan TV which produces awful image quality is a good idea comparing to a sharp and crisp TV from eg.. Sony.
      Oh, if you think Kogan TV quality is the same as the established brands, I'm sorry for your eyes.

      Commenter
      Rock
      Location
      in the head
      Date and time
      August 11, 2014, 2:01PM
    • All the panels come from the same couple of factories.

      Oh and if you're that hung up on the brand name, buy the equivalent item for 80% less and draw the logo on in texta. Cheers.

      Commenter
      Brand
      Location
      vICTIM
      Date and time
      August 11, 2014, 2:35PM
    • @Brand Victim.. All panels come from the same supplier. Typical response from below average consumers, listen to the seller's spin too much. There are more to a monitor/ TV than just a Panel you know ?
      Of course you don't. You made the comment like you did before.

      Commenter
      Rock
      Location
      in the head
      Date and time
      August 11, 2014, 2:50PM
    • Yeah there's a $20 controller card as well. That makes all the difference. Not.

      Commenter
      Allan
      Location
      Prahran
      Date and time
      August 11, 2014, 4:01PM
  • Was looking to buy HVN @$3.00 for a trade (missed $2k last week on them) but after seeing JBH getting it lost confidence, keeping my fingers off the buy button. Does anybody know when they report...must be soon. On another topic, gold hangs on to recent gains and goldies get another clip around the ear! Geez this is hard!

    Commenter
    Ox
    Location
    Kensi Pk
    Date and time
    August 11, 2014, 12:09PM
    • i agree, real hard market to make a quid mate

      Commenter
      fevola
      Location
      Date and time
      August 11, 2014, 12:25PM
    • If this is a hard market to make a quid then you really need to take your quids else where! Unbeleivable, stop gambling, speculating, day trading, buy for long term holds, cut losses early let the winners run, do some research, we are actually in a wee bit of a bull market, surely you must have found a few bull stocks by now, take to long and you will get caught on the way back down.

      Commenter
      OMG
      Location
      `OMG
      Date and time
      August 11, 2014, 1:00PM
  • ''Unsustainable' labour costs crippling restaurant industry"

    There are far too many restaurants and cafes. If you want to eat out and have other people's labour input into preparing and serving your meals then pay a price that reflects a fair rate for their service. Otherwise cook it yourself at home.

    We don't have personal servants at home because labour is expensive. Ditto for any labour.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    August 11, 2014, 11:58AM
    • nice to see our MSM resolutely refusing tie labour costs to the cost of personal shelter.
      Usurious rents and mortgages for the foreseeable future.
      Excellent

      Commenter
      vested
      Location
      interest
      Date and time
      August 11, 2014, 12:15PM
    • Yep. Prices can't come down, people can't pay more. Something in Australia's about to break. It's very very clear there's an attack on minimum wages by big business and politician and it's even clearer the electorate will not tolerate it. Crunch time is coming.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 2:33PM
  • COH last week 30% fall in revenue and shares go up 10% in one day. Last week CFE reported 26% Yield or 4c F/F grossed up 38% but their share falls. Today JBH report OK shares fall 7%. I don't own any of these but if I had to pick one I couldn't, before reporting, now or in the future. Wouldn't have a clue what's going on with the ASX seems worse than a raffle.

    Commenter
    Backward
    Location
    Sydney
    Date and time
    August 11, 2014, 11:55AM
    • You don't understand because you look at two lines of their financials (profit & revenue) and think that if they are both up you should buy and if they are down you should sell. The game takes a little more skill than that.

      Commenter
      DR
      Location
      syd
      Date and time
      August 11, 2014, 1:15PM
  • On Friday one of the contributors used the word YOUR incorrectly . Please note there are at least three ways this word can be used.
    No 1. Yore as days gone by.
    No 2. Your as in possessive pronoun.
    No 3. You're as in you are contracted.
    Please try and get them right.

    Commenter
    Pest from the West
    Location
    Lowood South East Qld
    Date and time
    August 11, 2014, 11:54AM
    • here here!

      Commenter
      your write
      Location
      Date and time
      August 11, 2014, 12:08PM
    • well a big meow to you two he he.

      Commenter
      Henry the
      Location
      Kat
      Date and time
      August 11, 2014, 12:16PM
    • If you want an example of how strange and confusing the English language can be consider this sentence: "At the present time I present you with this present."

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 12:16PM
    • Their you go again, getting all pedantic. I convene with you're sentiment

      Commenter
      neither here nor there
      Location
      Date and time
      August 11, 2014, 12:19PM
    • @pest. How do you soothe a grammar nazi, Pat them on the back saying "there, their, they're."

      Commenter
      mitch of ACT
      Location
      Date and time
      August 11, 2014, 12:24PM
    • their ewe go again mitch many ways out their two spell an say sumthinks

      Commenter
      iq
      Location
      not high
      Date and time
      August 11, 2014, 12:36PM
    • Seems a perfectly cromulent usage to me.

      Commenter
      Oh_Mighty_Zeus
      Location
      Date and time
      August 11, 2014, 3:31PM
  • You can buy just about any consumer item on Aliexpress at @ 50-90% less than Australian retail with free postage.

    Retailers like JB HiFi have no where to go but down.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    August 11, 2014, 11:50AM
    • I support businesses in my local community!

      Commenter
      gerry
      Location
      Date and time
      August 11, 2014, 12:12PM
    • Have never heard of them, but went on and searched for a GoPro camera to compare prices, as I am in the market for one.
      They don't seem to stock them?!?

      Commenter
      Irish Phil
      Location
      Date and time
      August 11, 2014, 12:15PM
  • Average dividend yields are 3-4%. Pollyannas believe 8-10%.

    Total real returns inc. dividends since the 2007 bust are @ zero.

    Those assets that are CENTRAL to the Australian economy are still 30% overpriced due to the credit bubble.

    Commenter
    Allan
    Location
    Prahran
    Date and time
    August 11, 2014, 11:44AM
  • @11.23, ticket clippers and used share salesman say "buy" - amazing!

    Commenter
    MTD
    Location
    Date and time
    August 11, 2014, 11:41AM
  • BCI has resumed down from Friday's close. I wonder why the market does not like their intended acquisition of IOH.

    Commenter
    Learner
    Location
    Melbourne
    Date and time
    August 11, 2014, 11:19AM
    • BCI has to pay out the doe for it.

      Commenter
      Peter
      Location
      Sydney
      Date and time
      August 11, 2014, 2:54PM
  • Coup in Iraq going on right now?

    Commenter
    Sam
    Location
    Date and time
    August 11, 2014, 11:19AM
  • If you read the press - What troubled times we have now - Middle East Oil countries being torn apart by "sponsored" civil wars, Europe economy in long term flat to failing from spiral of debt and falling population, US economy able to withstand an oil shock? Aust Budget and political process ransomed by a shambolic bunch of next generation self interest crooks, Might be time to buy stable country gold and energy stocks

    Commenter
    Greg
    Location
    Date and time
    August 11, 2014, 11:11AM
    • bye!

      Commenter
      chicken
      Location
      hawk
      Date and time
      August 11, 2014, 11:26AM
    • How is Euro economy going down because of falling population yet everyone here says Australia's economy is failing because of growing population?

      Commenter
      Wwwish Lion
      Location
      Melbourne
      Date and time
      August 11, 2014, 11:27AM
  • Looking for 185 points on the ASX today. Already have one sixth. Only five sixths to go.

    Commenter
    Peter
    Location
    Sydney
    Date and time
    August 11, 2014, 11:08AM
  • I just wish our politicians would stop playing politics and let the Government govern.

    Don't give a flying flock who is running the joint, but the stupid games we have now and for the past 7 years is killing the share market!

    Commenter
    apolitical
    Location
    Date and time
    August 11, 2014, 11:00AM
  • Was looking to buy HVN @$3.00 for a trade (missed $2k last week on them) but after seeing JBH getting it lost confidence, keeping my fingers off the buy button. Does anybody know when they report...must be soon. On another topic, gold hangs on to recent gains and goldies get another clip around the ear! Geez this is hard!

    Commenter
    Ox
    Location
    Kensi Pk
    Date and time
    August 11, 2014, 10:59AM
  • Asx not mirroring dow should be screaming to people how absolutely delicate our sham economy is. NOT how weak willed traders are, or how our market's a backwater.

    Commenter
    JohnBB
    Location
    Date and time
    August 11, 2014, 10:51AM
    • To me it screams buying ASX stocks are a "buy when cheap & hold" kinda market. No action at all... and when it does, it's to short (for quick large gains.

      Buy high yielders and go about your day is more like it! Trade evenings & nights on Euro/US exchanges.

      Commenter
      GS
      Location
      Date and time
      August 11, 2014, 11:00AM
    • nope its weak traders JohnBB. ruled by greed and fear. sell offs and correction polish the turds from the pile. good bye chicken littles, buy in high and sell back at a discount, its embarrassing really. you can not deny the rise and rise of countless brillant companies in this country. people invested in these that are long term holders don't even batter an eye lid at threads like this. day traders all ways in a state of greed and fear hoping for the quick gains, well with those come big losses enjoy!

      Commenter
      chicken
      Location
      hawk
      Date and time
      August 11, 2014, 11:06AM
    • Weak Economy. The US almost fell off the cliff Europe was a basket case and NZ went through 2 recessions. Weak economy. Another excuse. Been hearing excuses of why the ASX is not performing. Will put that on the bottom of my list. Oh hang on I ran out of ink.

      Commenter
      Peter
      Location
      Sydney
      Date and time
      August 11, 2014, 11:14AM
    • Yeah okay Peter. Ignore the blindingly obvious at your peril.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 1:17PM
  • Re the bizarre comments on the asx not mirroring the dow. If world growth falls we crash because our entire economy is based on selling red dirt.. Remember our dollar went to $0.60 in the gfc? Your arguments are similar to when oil goes down 20% why doesn't petrol go down 20%? Because it's not a function of the whole story.

    Commenter
    JohnBB
    Location
    Date and time
    August 11, 2014, 10:47AM
  • Markets normally fear bad news and hope for good news but with money printing in response to the GFC, markets fear good news as it means less free money and hope for bad news for more free money.

    US Fed Chair Yellen is hoping the fear of tapering will temper stock prices while our RBA Gov had a snow ball’s chance in hell of hoping to jaw bone our A$ lower.

    Rising unemployment is the fear of property spruikers and with evidence of it retailers would be hoping for a rate cut but RBA Gov fears it would fuel a property bubble, which most think we don’t have but actually do. (Google: Minski financial instability hypothesis.)

    Yellen hopes tapering and ending money printing will take the heat out of asset prices but all central banks fear capital outflows will drive rate higher and fear another round of money printing, which Wall St would hope for.

    Summary; the hope is the dead cat can keep bouncing but the fear is a dead cat can’t bounce 9 times!

    Commenter
    nolongerconfused
    Location
    Date and time
    August 11, 2014, 10:46AM
    • That's it, in a nutshell. Hopefully I can find the trigger, the weakpoint, and go from there.

      Commenter
      Scott
      Location
      Sydney
      Date and time
      August 11, 2014, 12:08PM
  • The AHZ spread is starting to open. Could be some price apprecation.

    Commenter
    Paul
    Location
    Date and time
    August 11, 2014, 10:43AM
    • sold anz Wednesday 32.90, bought
      today 32.55
      the online brokerage are making dough, off of me

      Commenter
      stu
      Location
      Date and time
      August 11, 2014, 11:18AM
    • ANZ going down await quarterly report Tuesday then up again. CBA to report huge profit ! NAB buy now !

      Commenter
      ANZ Down Down
      Location
      Date and time
      August 11, 2014, 11:41AM
    • I don't think OP was talking about ANZ :)

      Commenter
      GS
      Location
      Date and time
      August 11, 2014, 12:34PM
    • Ticker = AHZ waiting for a lift in sp since spp maybe some sales figures might stir.....avg 11c but target 16c one day,soon.

      Commenter
      Bearshapedbull
      Date and time
      August 11, 2014, 12:38PM
  • I recall @Allan suggesting that SBM was an imminent takeover target. Do you have any updated thoughts on this as I am thinking about cashing in my lot

    Commenter
    barbara
    Location
    Date and time
    August 11, 2014, 10:39AM
    • whoops need glasses sorry

      Commenter
      stu
      Location
      Date and time
      August 11, 2014, 11:54AM
  • NT and WA to employ 10000 foreign workers under "designated areas migration agreement". Govt. and employers do not want to bother hiring locals inspite of highest unemployment figure in 12 years. There very few countries in the world with pollies without any grey matter in their heads and employers so full of greed.

    Commenter
    xyz
    Location
    Date and time
    August 11, 2014, 10:38AM
    • Unfortunately these kind of policies are endemic throughout the Western world.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      August 11, 2014, 10:44AM
    • disgusting, disgraceful behaviour. special economic zones by a different name.
      how much is enough for them?

      Commenter
      j
      Location
      syd
      Date and time
      August 11, 2014, 11:09AM
    • Correct dr no and will destroy Australia. While we dither with a few cents on a stock price our country is being destroyed by successive governments selling us out to big business. We're going to lose everything because pretty much, we deserve to for having a complete absence of appreciation for what we had.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 11:19AM
  • There's this horrible smell of dead cats.

    Commenter
    mitch of ACT
    Location
    Date and time
    August 11, 2014, 10:37AM
    • Best bait for rock lobster, know where I can get some?

      Commenter
      kaillis bros
      Location
      Date and time
      August 11, 2014, 10:45AM
  • The average 1 Million portfolio in the US went down $8000 on Thursday and went up $18000 on Friday. Here in wonderful Australia the ASX lost $16000 for an average 1 Million portfolio on Friday and has made back $7000 today as we speak. This just continues to happen. Not so worried about going up with them but we keep falling by the same as them but don't recover it. During the GFC the Dow and the ASX went down to the same percent and then for the first 6 months up the same. That's where the story ends trendsetters.. .

    Commenter
    Ripoff
    Location
    Sydney
    Date and time
    August 11, 2014, 10:34AM
  • 'Shorters', & 'Traders' must be getting slaughtered in this environment. How can you possibly pick the direction, one day up 1% the next day down 1.5%. Meanwhile the investors who bought for the long haul quietly look on with a smile, happy pocketing their 8-10% fully franked dividend yields based on their purchase prices of assets that are CENTRAL to the entire Australian economy! Happy days!

    Commenter
    Herman
    Location
    Prahran
    Date and time
    August 11, 2014, 10:25AM
    • Wednesday CBA reports wait to see the banks lift !

      Commenter
      CBA Profits
      Location
      Date and time
      August 11, 2014, 10:32AM
    • +1, CAJ had 5% wiped off her during the chicken little migration. Still up 16% this FY, probably due for pull back anyway, CAJ SP tends to get away from its self in a bull market. Happy trading :)

      Commenter
      Happy
      Location
      Trader
      Date and time
      August 11, 2014, 10:39AM
  • Daxman says buy for this week. Sell the next two. Then get ready for the X-mas boom! Yeah baby. Gift!

    Commenter
    Daxman
    Location
    Sydney
    Date and time
    August 11, 2014, 10:18AM
    • Agreed. Going to be an interesting end to this month/start of Sept....

      Commenter
      Bye Bye Fiat Money
      Location
      Date and time
      August 11, 2014, 10:36AM
  • This quaint little backwater called Australia is really a joke. On Friday BIG BROTHER ordered that we PANIC, and dutifully we panicked and sold down assets, despite no obvious change in fundamentals, to the tune of over 1.5%. Then on Friday BIG BROTHER said, "hey little man, we changed our mind, there's no need for panic just yet, but hey, you'd better be ready cos we may change our minds any day soon..anyway we'll let you guys know, just make sure you're ready to panic on our orders..." And so it is today the same assets that were heavily sold off on Friday, look to bounce, despite the same fact again that there has been no material change in fundamentals. We really are a pathetic little backwater and it's high time we grew up and grew a pair.

    Commenter
    Melvik
    Location
    Date and time
    August 11, 2014, 10:12AM
    • Roller coaster ride coming ! Keep out with all the uncertainty.....

      Commenter
      Hold On
      Location
      Date and time
      August 11, 2014, 10:19AM
    • Probably need more than a pair maybe need a whole bunch.

      Commenter
      ASX
      Location
      Sydney
      Date and time
      August 11, 2014, 10:20AM
    • your cries of pain and angst are heard, what i would be interested in is how you intend to fix this problem!

      Commenter
      find solutions
      Location
      not faults
      Date and time
      August 11, 2014, 10:21AM
    • Bit harsh, Melvik. A lot of people got caught unawares with the GFC. It's not surprising that they are jumpy now and panic every time it looks like the market is going to fall. Use it as an opportunity to buy, but don't disparage those who react in panic. No-one has a crystal ball....

      Commenter
      doglover
      Location
      Date and time
      August 11, 2014, 10:22AM
    • You know its a market made up of many people with different goals different temperaments trading different shares right?

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 10:37AM
  • Freelancer, SP so dissapointing since the big float, way too much hype.

    Commenter
    What
    Location
    do you guys think?
    Date and time
    August 11, 2014, 10:10AM
  • We were down 80 or so pts Fri in anticipation of all the negative geopolitical news and down futures also pushing -80 all day.

    Well turns out the DOW was up 185pts and today we have only regained 29pts on the ASX. What a laughing stock of a market!

    Commenter
    GS
    Location
    Date and time
    August 11, 2014, 10:10AM
    • Spot on. Something stinks here.

      Commenter
      ASX
      Location
      Sydney
      Date and time
      August 11, 2014, 10:18AM
    • all noise to me GS. didnt sell, didnt buy, and better for it.

      Commenter
      Happy
      Location
      Trader
      Date and time
      August 11, 2014, 10:21AM
    • We have a slow market !

      Commenter
      Slow ASX
      Location
      Date and time
      August 11, 2014, 10:26AM
  • Id be very confident road spending would be far more efficient if pork barrelling where removed.

    Most fixes I see would be very inexpensive. For example, a tunnel instead of lights at intersections. Moving bus stops 100m. Take roads out of the vested interested hands of politicians would make a huge difference.

    Commenter
    JohnBB
    Location
    Date and time
    August 11, 2014, 10:05AM
    • How would building a tunnel be an inexpensive fix? Cheaper than a traffic light? You're dreaming...

      Commenter
      doglover
      Location
      Date and time
      August 11, 2014, 10:26AM
    • Thats not what I said doglover.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 10:41AM
    • Most fixes I see would be very inexpensive. For example, a tunnel instead of lights at intersections.

      Is there some other meaning to these words?

      Commenter
      doglover
      Location
      Date and time
      August 11, 2014, 11:06AM
    • That's right doglover. The traffic fix is inexpensive. The reference to lights is so you know what and where I'm talking about. The English language hey. Tricky for beginners.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 1:20PM
    • Very tricky. As you said

      "Id be very confident road spending would be far more efficient if pork barrelling where removed."

      Or did you mean "were removed"?

      Commenter
      doglover
      Location
      Date and time
      August 11, 2014, 2:18PM
    • @doglover. I haven't confused the two since first grade. I'm using Android with sausage fingers and predictive text. But thanks for the English class.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 3:57PM
  • Dow down 80 points on Thursday ASX down 80 points on Friday Dow up 185 points on Friday so therefore all things being equal the ASX should go up today 185 points shouldn't it !! Shouldn't it ??

    Commenter
    Dave
    Location
    Sydney
    Date and time
    August 11, 2014, 10:04AM
    • Our market is just a plaything! Best shorter's market in the world!

      Commenter
      GS
      Location
      Date and time
      August 11, 2014, 10:13AM
  • "Need to Know" seems to have an error in the data ...
    " Wall St, S&P 500 -0.3%, Dow -0.4%, Nasdaq -0.4%"
    US markets were up strongly on Friday.

    Eds: Thanks Engineer, fixed now. Chrs

    Commenter
    Engineer
    Location
    Scam City
    Date and time
    August 11, 2014, 10:01AM
  • But the ASX doesn't go up? Only down I thought.

    Commenter
    Coles
    Location
    Date and time
    August 11, 2014, 9:23AM
    • We are only hoping for a bounce. Don't get too excited Coles!

      Commenter
      Ox
      Location
      Kensi Pk
      Date and time
      August 11, 2014, 9:32AM
    • UP UP, prices are up!

      Commenter
      Elmer Funke Kupper
      Location
      Date and time
      August 11, 2014, 9:45AM
    • Market up today down for rest of week ! Keep watching and keep cashed up !

      Commenter
      Rollercoaster
      Location
      Date and time
      August 11, 2014, 10:21AM
  • Military coup in Iraq happening as we speak. Watch oil prices shoot up today.

    Commenter
    Dr No
    Location
    Sydney
    Date and time
    August 11, 2014, 9:07AM
    • Overthrowing secular governments in the Middle East (Iraq, Libya, still trying in Syria) is one of the greatest strategic errors the West has made. The blowback is only just beginning...

      Commenter
      Fred
      Location
      Date and time
      August 11, 2014, 9:48AM
    • That is big news. What are your sources for that story Dr? There is still nothing that I can find on-line and the oil price is down. You wouldn't be trying to scare the market would you?

      Commenter
      Engineer
      Location
      Scam City
      Date and time
      August 11, 2014, 10:36AM
    • http://www.smh.com.au/world/forces-loyal-to-iraqi-pm-nouri-almaliki-deploy-in-baghdad-streets-sparking-coup-fears-20140811-102m66.html

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      August 11, 2014, 10:46AM
    • @ Engineer, I read it on Reuters and Zero Hedge. According to Reuters the presidential palace is surrounded by tanks...

      Commenter
      Fred
      Location
      Date and time
      August 11, 2014, 10:46AM
    • Iraq is basically a country only to be found in history books from now on as far as I'm concerned. It's split into three de facto independent countries: the Shiite southern Iraq (with Baghdad increasingly contested), Kurdistan, and the Caliphate.

      Commenter
      Dr No
      Location
      Sydney
      Date and time
      August 11, 2014, 11:04AM
    • Tried to tell people that for a while Dr no. Oil was cheap.

      Commenter
      JohnBB
      Location
      Date and time
      August 11, 2014, 1:50PM
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