BusinessNow: Live coverage of financial markets and companies, plus analysis and opinion
Market Matters says now is the time to sell ANZ Bank shares.
- Kidman directors back Rinehart bid
- Dreamworld closed indefinitely
- Sell ANZ, says Market Matters
- Commodities drive terms of trade rise
- Ardent’s recovery under threat?
- CBA ups Aussie forecasts
- Analysts hail NAB’s result
- Centuria, 360 confirm talks
- ASX200 hits 5-week low
- NAB keeps dividend steady as profit rises
Welcome to the BusinessNow blog for Thursday October 27. National Australia Bank has beaten expectations will its full-year result, but analysts are questioning the sustainability of its dividend, while Ardent Leisure shares have jumped as investors spot a bargain.
8.24pm:A bet on the end of Reagan’s legacy
The forces of deregulation, free trade and open markets that powered stocks and bonds through the past three decades are under siege.
The rise of Donald Trump, Britain’s vote to leave the European Union and the upsurge in populism across much of Europe are worrying signs that the assumptions investors relied on may need to change.
Investing for deglobalisation is hard. Less trade means slower growth, which hurts stocks. The combination of higher costs and less efficient supply chains means higher inflation, which is bad for bonds. More red tape is bad for profits. More government spending would mean higher taxes or bigger deficits, or both.
“We are moving away from free markets to semi- or quasi-administered price systems,” said Pascal Blanque, chief investment officer at Amundi, Europe’s largest asset manager. “We have got potentially something that could remind us more of the 70s.”
The 1970s were an extreme example of stagflation — rising prices and sluggish growth — and the world is far from the 14 per cent inflation hit at the end of the decade. In the three decades that followed, investors came to accept the exact opposite as the norm. Trade was slowing even before the recent populist backlash, and investors now need to look for a new model. Read more.
7.45pm: British GDP beats expectations
The UK economy slowed only slightly in the three months following voters’ decision to exit the European Union, according to an official estimate on Thursday that confirms the UK weathered the surprise referendum result better than many expected.
In the most comprehensive snapshot of the UK economy since the Brexit vote, the Office for National Statistics said the economy expanded 0.5 per cent in the third quarter compared with the second, an annualized rate of 2 per cent. Read more.
7.29pm: Samsung profit ruptures
Samsung Electronics said its net profit fell 16.8 per cent to 4.54 trillion Korean won ($US4.0 billion) in the third quarter, as a disastrous recall of its premium Galaxy Note 7 smartphone caused the company’s mobile division to report its smallest quarterly profit since it launched its first Galaxy series phone more than six years ago.
Samsung’s mobile operating profit plunged 96 per cent from a year earlier to 100 billion won after the discontinuation of the Galaxy Note 7, which went on sale August 19. Dozens of reports of overheating forced the company to first recall the phone on Sept. 2 and then — on October 11 — to abandon it altogether. Read more.
6.53pm:VW returns to profit
Volkswagen says profits bounced back to €2.34 billion ($US2.55bn) in the third quarter from a large loss a year earlier, when the bank had one-time losses in anticipation of settling its scandal over cars rigged to cheat on diesel emissions tests.
The figure reported Thursday for profit after tax reversed last year’s loss of €1.67bn.
For the year-earlier quarter, the company took a €6.7bn charge in anticipation of looming costs for recalls, fixes and buybacks of cars with software that enabled the cheating. A judge in federal court in San Francisco on Tuesday approved a $US15bn settlement under which Volkswagen will buy back or fix almost half a million cars.
Third-quarter sales revenue rose 1 percent to €52.0bn.
AP
6.28pm: European stocks open lower
European stocks sagged in opening deals on Thursday, with London’s benchmark FTSE 100 index slipping 0.29 per cent to 6,937.68 points in early trading.
In the eurozone, Frankfurt’s DAX 30 was off 0.17 per cent at 10,691.86 points and in Paris the CAC 40 index also lost ground, giving up 0.18 per cent to 4,526.34 points compared with Wednesday’s close. AFP
6.02pm:Tokyo stocks retreat
Tokyo shares fell on Thursday as investors locked in profits after the market advanced to its highest level in six months the previous day.
The benchmark Nikkei 225 index fell 0.32 per cent, or 55.42 points, to 17,336.42 while the Topix index of all first-section issues gave up 0.05 per cent, or 0.69 points, to 1,382.01. AFP
5.35pm: Aussie falls more than half a cent
The Australian dollar has retreated against the US dollar as markets reconsider the strength of the inflation data that prompted the Aussie dollar to rally above US77 cents on Wednesday.
At 5pm (AEDT) on Thursday, the local unit was trading at US76.30c, down from 76.90c on Wednesday.
Moody’s Analytics economist Emily Dabbs said the headline CPI figure on Wednesday was stronger than expected, but when a rise in fruit and vegetable prices is excluded the data is not as strong as it initially appeared. “We might be seeing markets paring back a little bit because of that,” Ms Dabbs said.
“I think maybe markets over reacted to the initial release of that data.” Ms Dabbs said Moody’s Analytics still expected the Reserve Bank to keep interest rates steady at its November meeting next week, but a cut to interest rates could still be on the cards early next year.
Ms Dabbs said the prospect of a US interest rate rise in December also was putting downward pressure on the Aussie dollar. AAP
5.06pm:Kidman directors back Rinehart bid
Mining magnate Gina Rinehart is closer to securing the S. Kidman & Co pastoral empire with the company’s board unanimously backing an increased offer lobbed by Hancock Prospecting and its Chinese partner Shanghai CRED, writes Kylar Loussikian.
The $386.5 million bid for the S. Kidman & Co pastoral empire narrowly betters a $386m blockbuster offer earlier this week by a consortium of four wealthy farming families.
The Australian first revealed Ms Rinehart’s interest in the sprawling cattle portfolio in August, with Hancock Prospecting confirming a $365m bid alongside minority partner Shanghai CRED, a Chinese firm led by billionaire Gui Guojie.
4.31pm:Dreamworld closed indefinitely
Dreamworld has cancelled a planned memorial at the park tomorrow for the four people killed this week, and flagged the popular tourist attraction will remain closed indefinitely, writes Scott Murdoch.
In a statement issued after the market close, it said Queensland Police had told the park not to go ahead with tomorrow’s service.
Earlier, Dreamworld operator Ardent Leisure’s shares surged as much as 9 per cent to $2.17 after falling 28 per cent since Tuesday to a 10-month low of $1.83.
Ardent shares closed up 7.5 per cent at $2.15.
4.26pm:Stocks close at 5-week low
Australia’s S&P/ASX 200 has closed down 1.2 per cent at a five-week low of 5295.5. It’s the worst two-day fall for the index since the September selloff, when it hit 5192, writes Daniel Palmer.
CBA did much of the damage today, falling 1.6 per cent amid a worsening advice-fee scandal. Elsewhere, Wesfarmers was down 2.7 per cent after Deutsche Bank cut its rating to ‘sell’ on weak sales data.
Yield stocks were smacked as the “bondcano” worsens, with 10-year yields up 7bps at 2.34 per cent.
Among such names, Stockland fell 2.9 per cent, Sydney Airport closed down 3 per cent, while Transurban slipped 1.8 per cent.
Oil stocks slid after crude oil fell 4.7 per cent in five days, with Oil Search down 2.4 per cent. Meanwhile, resources were generally weak with South32 down 8 per cent.
On the positive side NAB rose 0.5 per cent on better than expected results.
Ardent Leisure bounced 7 per cent amid hopes of an early restart of Dreamworld, but in an update provided after the market close the company said the reopening had been delayed.
4.23pm:Dalla Valle to depart BHP
Prominent BHP Billiton executive Dean Dalla Valle has announced his intention to step down from the group on March 31 next year, writes Daniel Palmer.
Mr Dalla Valle has been with the mining giant for 38 years and currently serves as chief commercial officer.
“Dean is one of the longest serving and most respected leaders at BHP Billiton,” chief executive Andrew Mackenzie said.
3.58pm:Sell ANZ, says Market Matters
Marketmatters.com.au has just sent a trading alert to clients advising them to sell ANZ shares above $28.00.
“As per recent reports, banks typically have a very good October followed by a weak November and we are taking the opportunity today to reduce our exposure to the banks and increase our cash levels,” the advisory service says.
“ANZ does go ex-dividend at the start of November, but we believe it’s prudent to sell now, with the expectation of buying back at lower levels thus forgoing the November dividend.”
ANZ shares were last down 0.5 per cent at $28.11.
3.52pm:Commodities drive terms of trade rise
This year’s rally in commodity prices has helped drive the biggest lift in the terms of trade in five years, writes Daniel Palmer.
Official figures from the Australian Bureau of Statistics, released today, revealed import prices fell 1 per cent in the September quarter, while export prices jumped 3.5 per cent.
On the year to September 30, export prices still remained down 5.4 per cent, while import prices were off 5.1 per cent.
3.17pm:Ardent’s recovery under threat?
Ardent Leisure shares are up 9 per cent at $2.17 after falling 28 per cent since Tuesday to a 10-month low of $1.83.
But could plans to reopen Dreamworld this weekend be rejected by the police?
They are due to make a decision this afternoon.
3.05pm:Bravura covered at $1.45
Bravura’s book has been covered for its IPO at $1.45 per share, with support from domestic and institutional investors.
3.03pm:Atlassian founders top Young Rich List
Mike Cannon-Brookes and Scott Farquhar, the co-founders of Australian tech group Atlassian, have topped the BRW Young Rich List for an unprecedented fifth straight year.
The successful float of their enterprise software company on the US-based NASDAQ exchange last year helped double their combined wealth to $4.68 billion and solidified the joint number one spot on the list.
Campaign Monitor founders Dave Greiner and Ben Richardson, another tech duo, claimed the two spots after Mr Farquhar and Mr Cannon-Brookes, with their email marketing business performing well.
However, their combined wealth of $543 million fell well short of the leaders.
Daniel Palmer
2.52pm:Fortescue mulls $1.5bn Pilbara mine
Fortescue Metals Group is just six months away from committing to spend up to $1.5 billion on a new mine in the Pilbara, in what will be its single biggest capital commitment in years.
Speaking to reporters during the company’s annual media tour to the Pilbara, chief executive Nev Power said the company (FMG) would make a decision on whether to develop its Eliwana or Nyidinghu deposits as a replacement for its existing Firetail mine.
In a reflection of the new financial strength of Fortescue and its healthy cash generation in the current climate, the new mine’s construction cost will be funded out of existing cash reserves and future cash flows.
2.46pm:JB Hi-Fi under fire for CEO bonus
JB Hi-Fi chairman Greg Richards has defended the awarding of more than $1.38 million in shares to boss Richard Murray, despite one third of shareholders in the consumer electronics group rejecting the proposal.
But the recent acquisition of The Good Guys would not give a “free kick” to the CEO to hit his earnings targets, Mr Richards said.
Speaking after the annual general meeting in Melbourne this morning, where more than 34 per cent of shareholders voted against the approval of 48,096 “zero exercise options’’ to Mr Murray, Mr Richards conceded that three out of four proxy advisory firms had recommended to their clients to vote down the lucrative bonus deal.
2.10pm:CBA ups Aussie dollar forecasts
CBA has raised its year-end forecast for the Australian dollar to US77c from US73c because of a stronger terms of trade.
“Higher prices for Australian commodities will lead to a faster recovery in Australia’s terms of trade, not just for the third quarter of 2016, but also for the current fourth quarter too,” CBA currency strategist Richard Grace says.
“This will generate a positive net income effect to the overall economy. Australia’s trade deficit is also set to narrow significantly over coming months, directly as a result of the lift in commodity prices, translating to a narrowing of Australia’s current account deficit from 3.8 per cent of GDP to around 2.5 per cent of GDP, which will support a higher valuation of the Australian dollar.”
But CBA still expects the Australian dollar to slip to US75c by mid-2017 as commodity prices correct modestly lower on slowing demand from China, and an end to the temporary factors that restricted commodity supply.
“We anticipate Chinese policymakers to ramp up measures aimed at cooling China’s rapid house price growth and curb excessive increases in leverage,” Grace says.
“Moreover, the risk of more RBA interest rate cuts cannot be ruled out because of Australia’s benign inflation outlook.”
AUD/USD was last at 0.7628.
1.55pm:ASX hits fresh 5-week low
Australia’s S&P/ASX 200 has hit a fresh five-week low of 5329.5 in afternoon trading.
It’s essentially more of the same as most of this morning’s trends are being extended.
Wesfarmers is down 2 per cent, near a two-month low it hit this morning after Deutsche Bank cut its rating.
Bond proxies are under pressure as 10-year bond yields have risen 5 basis points after taper worries sparked a jump in German bund yields.
Because of this, real estate is the second-weakest sector after consumer staples, Stockland down 3 per cent.
Energy is also weak, with Woodside down 1.6 per cent after crude oil fell 4.7 per cent in the past five days as Iraq and Russia baulked at cutbacks.
NAB is supporting the market with a 1.7 per cent rise on better-than-expected results.
The index looks well on its way toward a restest of the 200-DMA at 5254.
The 200-DMA held in September, and the index will look neutral while above the September low at 5191.2.
The S&P/ASX 200 was last down 0.5 per cent at 5331.5.
1.40pm:CBA facing $105m compo bill
Commonwealth Bank of Australia is facing a $105 million bill for fresh advice failings uncovered as part of an industry-wide review ordered by the corporate regulator.
The Australian Securities and Investments Commission said today compensation from the nation’s largest financial institutions in relation to erroneous fees charged for financial advice is set to increase sevenfold, with a staggering 175,000 customers impacted, with the majority tied to CBA.
In a report into “systemic failures” that have seen fees charged without a service being provided, the corporate watchdog said the issues were more widespread than has currently been recognised through compensation payments.
Michael Bennet, Daniel Palmer
1.34pm:KIRBY on Crown, Ardent Leisure
James Kirby looks at Crown’s China troubles and Ardent Leisure after the Dreamworld tragedy.
1.25pm:Investors jump back into Coca-Cola
Investors jumped back into Coca-Cola Amatil today, briefly, after Macquarie analysts said the sell-off has uncovered value.
The shares rose as much as 2.6 per cent early but by 1pm were just 0.6 per cent higher for the day at $9.68.
Monday saw the stock drop 6.4 per cent to $9.68 in its worst one-day fall since April 2014 after the board warned of higher input costs relating to the increasing cost of sugar and electricity and concerns from investors around consumption trends.
Despite that, Macquarie opted to lift its rating on Coca-Cola Amatil to neutral, saying this week’s share price decline has improved the value proposition, “particularly given the rerating taking place among its peer group of global bottlers”.
“Post the sell-off in recent days, we see CCL as providing an improved relative value proposition, despite its outlook remaining tepid at best,” Macquarie said.
“Management continue to execute well, to mitigate the impact against a number of industry headwinds, and we forecast 3 per cent EPS CAGR over three years.”
1.01pm:Challenger shares hit record high
Challenger shares have surged as much as 13 per cent to a record high of $11.89 on a deal to sell annuities to customers of AMP and Japan’s Sumitomo Mitsui from September next year.
It also reaffirmed its 2017 profit guidance, saying the new annuity deals would not have any impact in the year to August.
CGF shares were last up 4.8 per cent at $11.00.
12.46pm:Blackmores slumps on profit fall
Blackmores shares have slumped on the Australian market after chairman Marcus Blackmore revealed a sharp fall in first quarter profit, which has also hit executive pay.
Shares in the company (BKL) were down almost 6 per cent at $98.55 as the first quarter results were released ahead of the company’s annual general meeting today.
The company reported that first quarter group sales were down 8.1 per cent to $149 million and net profit after tax dropped 46.6 per cent to $12m.
Sarah-Jane Tasker
12.27pm:Bargain hunters snap up Ardent shares
Ardent Leisure shares have bounced almost 9 per cent today as the company fronts shareholders two days after a horror incident that cost four lives at its Dreamworld theme park.
At midday Ardent Leisure shares were 8.75 per cent higher at $2.175. The share price rise comes after two days of selling as the market tries to determine the scale of the uncertainty the tragedy creates for the company and tourism industry as a whole.
Today’s annual general meeting seems to have given investors very little to go on, with the board declining to give any firm guidance on the earnings implications other than to say there will be a financial hit and it may extend into fiscal 2018.
Between the news breaking on Tuesday afternoon and yesterday’s open the stock fell as much as 31.3 per cent to a nine-month low of $1.82, but investors clearly see some opportunity to enter the stock today.
Analysts seem to be waiting for more information before ditching the Ardent, with Bloomberg data showing three ‘buy’ ratings, nine ‘holds’ and no ‘sell’ recommendations.
Citi and Morgans have been the only major brokers to downgrade the stock to hold from buy following Tuesday’s tragedy.
12.13pm: Analysts hail NAB result
NAB’s FY16 result shows good cost control, low loan losses and a stronger capital position, according to Morgan Stanley. The broker currently has an underweight rating and $24.10 target price on the banks.
Meanwhile, Goldman Sachs says the capital result was the highlight for NAB, since its CET1 ratio of 9.77 per cent was 25 basis points better than the broker expected, due to flat credit growth in risk-weighted assets minus the increase in mortgage risk weights.
It adds that the flat dividend equated to a 2H16 payout ratio of 81 per cent payout ratio, which appears unsustainable. Management’s discussion around the dividend and payout ratio would suggest they are comfortable maintaining a higher payout ratio in the current environment of low risk-weighted assets growth.
CLSA’s Brian Johnson says the NAB’s FY16 result looks good overall with better cost control and lower loan losses, while margins were weaker, as expected.
11.30am:Centuria, 360 Capital confirm talks
Centuria Capital Group and 360 Capital have both confirmed that they are in talks, with no agreement reached yet, responding to media reports that the two are potentially looking to merge the businesses, writes Maggie Lu Yueyang.
Dataroom flagged earlier that Centuria and 360 Capital are talking to create a $3.5 billion real estate empire, with Moelis likely to be working on the deal.
“Centuria confirms that it is having discussions with 360 Capital Group but no agreement has been reached,” the company said in a filing to the ASX this morning, noting it is looking at a range of potential acquisition opportunities.
360 capital also confirmed the talks with Centuria regarding a potential transaction.
Centuria, which has a market value of about $81m, has at least $1.9bn of funds under management through its listed Centuria Capital, while 360 Capital, with a market value of about $218m, has $1.48bn under management.
1.05am:ASX 200 hits new five-week low
Australia’s S&P/ASX 200 is down 0.2% at 5350.8 after hitting a new 5-week low of 5339.4.
Wesfarmers fell 2% after Deutsche Bank cut its rating to Sell after disappointing sales data.
The Real Estate sector is also weighing on the market, with Westfield down 1.6% after 10-year bond yields rose 5 basis points overnight.
On the positive side, Ardent Leisure up 5.5%, Crown up 2.2% on bargain hunting, and NAB up 1.9% after maintaining its dividend and beating profit expectations.
But Blackmores is down 5.2% after 1Q sales fell 8.1% Y/Y and it said FY17 earnings will fall.
10.42am:NAB payout ratio “stretched”: Watermark
NAB’s profit beat was driven by lower bad debts and tax, and the dividend payout ratio looks “stretched” according to Watermark.
While cash earnings beat expectations, pre-provision profits were in line with expectations in both periods, notes Watermark financials analyst Omkar Joshi.
The net interest margin missed by three basis points on the full year and seven basis points on the half year.
And while bad debts were 14 per cent below consensus expectations, new impaired loans rose slightly in the Australian business.
While the dividend was maintained at 99c, he notes that the payout ratio for the full year is now at 81 per cent.
“This is starting to look stretched and NAB has included some disclosure around the sensitivity of the payout ratio to risk-weighted asset inflation and ROE,” Joshi says.
“It is interesting to observe the high sensitivity of the payout ratio to an increase in risk weighted asset inflation.”
He also says surprisingly strong capital ratio was driven by very muted risk weighted asset inflation of only 1.3 per cent which may not be sustainable going forward.
“Overall, the result was a beat driven largely by lower bad debts and expenses which benefited from charges taken in previous periods,” he says.
NAB shares were last up 1.4 per cent at $27.84.
10.25am:Stocks steady as NAB lifts
The Australian sharemarket has opened broadly steady despite a strong showing from NAB after it beat expectations for full year profit.
At the 10.15am (AEDT) official market open, the benchmark S&P/ASX 200 index edged up 2.5 points, or 0.05 per cent, to 5,362.3, while the broader All Ordinaries index tacked on 1.5 points, or 0.03 per cent, to 5,443.6.
Daniel Palmer
10.20am:Wesfarmers cut to sell vs hold — DB
Deutsche Bank has cut Wesfarmers to ‘sell’ vs ‘hold’ and lowered its price target to $38 versus $43.
“There are risks with calling one quarter a trend but we believe Woolworths is improving in an environment where deflation is constraining market growth and Aldi continues to gain share,” analyst Michael Simotas says.
“We believe sales growth will be increasingly difficult to come by which could undermine the value loop that has been pivotal to Coles’ success. Looking through the noise, the outlook for Bunnings remains bright but Coles is the key driver of our valuation.”
Wesfarmers shares were last down 1.3 per cent at $40.91.
10.10am:Arrium should be sold, creditors told
Debt-laden steelmaker Arrium should be sold off to the highest bidder, its creditors have been told.
Administrator KordaMentha has released a report arguing “it is more practical to sell the businesses” held by the South Australian group than to wind it up. This would increase the chances of Arrium continuing as a business and provide a better return to creditors than liquidation, assuming a potential sale price of more than $20 million.
“It is our opinion that it would be in creditors’ interests,” KordaMentha said in the report.
9.33am:Dreamworld to weigh on profits: CEO
Ardent leisure CEO Deborah Thomas has confirmed the Deamworld tragedy will have a “significant impact” on earnings this year.
She notes that theme parks earned 34 per cent of Ardent’s FY15 revenue as of October 25.
Dreamworld is due to reopen for a charity day this Friday before reopening for normal operations on Saturday.
While the results of a police investigation are awaited, investors have now had two days to digest the tragedy.
After falling 27 per cent to $2.00 a share in the past two days, the share price could attract bargain hunters near the February low at $1.71.
9.15am:A boost for JB Hi-Fi?
JB Hi-Fi should get a boost after it reconfirmed guidance for FY17 sales of $4.25bn.
Comparable first quarter sales rose 8.3 per cent, in line with market expectations.
JBH shares closed down 3.7 per cent yesterday, at $28.01, after hitting a two-month low of $27.51.
9.07am:Broker rating changes
Coca-Cola Amatil raised to Neutral vs Underperform — Macquarie
Altium raised to Hold vs Sell — Bell Potter
SeaLink Travel raised to Buy vs Hold — Bell Potter
Crown raised to Outperform vs Underperform — CLSA
Resmed raised to Underperform vs Sell — CLSA
8.10am:NAB keeps dividend steady as profit rises
National Australia Bank has booked a 4 per cent rise in cash earnings for the full year and held its dividend steady despite warnings from analysts its payout ratio is unsustainable, Daniel Palmer writes.
For the year to September 30, the bank said cash profit lifted to $6.48 billion, up $261 million on last year.
Its statutory earnings, in contrast, weakened 94.4 per cent to $352 million, hit by the loss on the divestments of its UK operations and 80 per cent of its life insurance arm.
NAB will provide a final dividend of 99c per share, fully franked, in line with its most recent interim and final dividends.
Read more
7.50am:Bravura lowers IPO price
Software solutions provider Bravura has priced its initial public offering at $1.45 per share, lower than previously expected, Bridget Carter writes.
The price equates to 14.8 times its forecast annual earnings.
The company will raise $148 million, leaving Ironbridge Capital with a 47 per cent interest
in the business.
Demand is said to be strong at that price, according to those close to the deal.
Currency volatility, including the falling British pound, has played a part in the price revision.
7.10am:Australian market set to open higher
The Australian market looks set to open higher, bouncing back after losing 1.5 per cent yesterday and after a mixed performance on Wall Street.
At 6.45am (AEDT), the share price index was up 12 points at 5,344.
Locally, in equities news, National Australia Bank is due to release its full-year results.
Ardent Leisure has its annual general meeting in Sydney, two days after a fatal accident at its Dreamworld theme park on the Gold Coast. JB Hi-Fi, Blackmores, Tatts Group, Whitehaven Coal, Tassal Group and UGL also have their annual general meetings scheduled for today.
In Australia, the market yesterday closed sharply lower as investors found little positive news to provide upward drive.
The benchmark S & P/ASX200 index fell 83 points, or 1.52 per cent, to 5,359.8 points.
The broader All Ordinaries index lost 81.2 points, or 1.47 per cent, to 5,442.1 points.
AAP
7.00am:Iron ore nears 6-month high
The iron ore price has soared to its highest point in almost six months, pushing past its previous August peak as investors hope for an improvement in Chinese demand, Elizabeth Redman writes.
Iron ore gained 1.8 per cent to $US62.70 a tonne overnight, according to The Steel Index, compared to $US61.60 the previous day. Dalian iron ore futures also pushed higher.
6.55am:Dollar fades
The Australian dollar has slipped against the US dollar, losing much of the gains it saw following surprisingly strong local inflation figures.
At 6.35am (AEDT), the local unit was trading at US76.42 cents, down from US76.90 cents yesterday.
The Australian dollar rose more than half a US cent after Australian Bureau of Statistics data yesterday showed that the consumer price index had risen to 0.7 per cent in the September quarter, beating analysts expectations of a 0.5 per cent rise.
AAP
6.50am:Coke’s profit, revenue fall
Coca-Cola said profit and revenue fell less than expected in the latest quarter as developed markets buoyed the top line despite softness abroad.
Overseas weakness and the stronger US dollar have dragged results lately for the company, which generates about half its sales abroad but translates results into dollars. Higher prices and smaller packaging in the US that costs consumers more per ounce have helped Coke offset those declines.
Dow Jones
6.40am:Wall St mixed in choppy trade
Gains in Boeing’s shares helped offset Apple’s losses in the Dow Jones Industrial Average during choppy trading overnight.
In Europe, shares fell as investors digested a string of earnings reports across both sides of the Atlantic.
Dow Jones
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