ASX 200 Live: ASX jumps as Wall Street rallies; China CPI stokes commodities

Stocks rise after strong US gains in response to lower-than-expected jobless claims data and commodities rise on China CPI beat. Super Retail boss 'used company funds to further affair': court docs. News Corp flags 'external interest' in Foxtel. Life360 shares jump as much as 20pc after revenue rise. 

The ASX is set to rise after a solid day on Wall Street. Picture: Gaye Gerard

That's all from the Trading Day blog for Friday, August 9. The ASX 200 closed up 1.3 per cent at 7777.7 points. The index jumped as much as 1.5 per cent after Wall street soared on lower than expected jobless claims in the US and as iron ore and copper prices rose after China's CPI exceeded estimates.

The Aussie dollar is trading around US65.90c.

Updates

4:40 pm August 9, 2024

David Rogers

Australian stocks continued to recover on Friday as US initial jobless claims data helped allay recession fears and China's higher than expected CPI inflation data buoyed commodities including iron ore and copper.

The S&P/ASX 200 index closed up 95.7 points or 1.3 per cent at a five-day high close of 7777.7 points after rising as high as 7795.1 intraday.

After hitting a record high of 8148.7 last week, the ASX suffered a brutal 5.8 per cent fall last Friday and Monday as US economic data sparked recession fear that magnified an unwind of yen "carry trades" caused by Japanese rate hikes.

All sectors rose with tech, property, materials, communications, and energy outperforming and discretionary, staples, utilities, financials and health care lagging.

Life360 soared 18 per cent after reporting, Goodman Group leapt 3.2 per cent, Rio Tinto rose 2 per cent as iron ore futures rose 2.5 per cent to $US101.95 a tonne, REA Group soared 6.8 per cent after reporting and Woodside gained 2.3 per cent.

Wesfarmers fell 0.6 per cent as Citi downgraded, Coles fell 0.2 per cent, QBE lost 1.7 per cent after reporting and CSL rose 1 per cent.

Big banks rose 0.3-1.1 per cent led by ANZ.

3:17 pm August 9, 2024

Stocks trim gains as Nikkei sours

David Rogers

Some analysts say short yen carry trades were cleaned out as USD/JPY plunged about 12 per cent in the past few weeks, a move that accelerated after the BoJ delivered a bigger than expected rate hike and US data showed recession risks.

"After a week of forced deleveraging across multiple asset classes, which included a five-standard deviation move in USD/JPY, market positioning is much cleaner," says IG market analyst, Tony Sycamore. "We know of very few funds, if any, that could still be holding long USD/JPY positions after a 20 big-figure sell-off; in fact, some of the faster-moving momentum accounts are likely now short USD/JPY."

But stocks remain jittery despite the big rebound on Wall Street on Thursday.

Australia's S&P/ASX 200 is up 1 per cent at 7761 this afternoon after surging to 7795.1 as commodities jumped on China's CPI beat.

It comes as the Nikkei 225 falls 0.4 per cent after rising 2 per cent in early trade.

USD/JPY falls 0.4 per cent to JPY146.72 after rising 0.4 per cent earlier.

2:54 pm August 9, 2024

Super Retail exec survey showed 'toxic culture'

Eli Greenblat

A survey of key executives at Super Retail Group in late 2023 revealed a toxic culture at the retailer that included senior management commenting that the culture among its most senior executives “sucks at the top right now”, many staff had “one foot out the door” and the organisation had lost its values.

These complaints were hidden from the board.

A sensational statement of claim lodged with the Federal Court by sacked Super Retail chief legal officer Rebecca Farrell also claims that the retailer’s staff “did not feel safe to speak up” because there was “too much conflict and nepotism” around chief executive Anthony Heraghty and then head of HR Jane Kelly.

The court documents claim that Mr Heraghty was engaged in a secret extra marital affair with Ms Kelly.

“Staff needed a ‘leader … not encumbered by personal relationships or [who] is egotistical or creates a different class for himself or those close to him,” read one anonymous complaint in a staff ‘pulse’ survey conducted by the retailer.

“The Pulse Survey results of the executive leadership team which were critical of the CEO and (Ms Kelly) were never shared with the whole board of Super Retail”, the court documents report.

2:52 pm August 9, 2024

Super Retail told of affair, bullying in Nov 2023

Eli Greenblat

A whistleblower within Super Retail Group first alerted the highest ranks of the company in November 2023 that the chief executive Anthony Heraghty and head of HR Jane Kelly were having an affair, which was linked to the misuse of company funds and bullying of staff.

This misuse of company funds included funding an international work trip.

According to the statement of claim lodged by sacked chief legal officer Rebecca Farrell the disclosure was made via a whistleblower complaints platform called ‘Whispli’.

The first Whispli disclosure included a complaint that asserted that the CEO and HR boss, Ms Kelly, are engaged in an affair, the CEO’s executive assistant had left employment with Super Retail as a result of the affair and there had been inappropriate use of Super Retail’s funds through expense claims incurred to further the affair including an international work trip.

The whistleblower complaint also said Ms Kelly had bullied team members that an unhealthy culture was developing because of the CEO and Ms Kelly’s conduct.

The whistleblower was later contacted by a senior executive to investigate the allegations further but there was a conflict of interest as that senior executive’s ultimate boss was Ms Kelly.

The whistleblower asked the complaint and disclosure needed to be referred to the board and company chairman, Sally Pitkin.

Ms Pitkin was later briefed about the whistleblower complaint.

2:48 pm August 9, 2024

'Get off the bus': Super Retail boss told execs

Eli Greenblat

Super Retail Group chief executive Anthony Heraghty told some of the retailer’s most senior executives that they were “not welcome here” and to “get off” the bus and “go” after management made a series of complaints about the toxic culture within the company.

According to the statement of claim lodged by sacked chief legal officer Rebecca Farrell a pulse survey of senior staff revealed a toxic culture, lost corporate values and concerns staff couldn't make complains as CEO Mr Heraghty was having a secret affair with the Super Retail then head of HR, Jane Kelly.

At the end of a meeting to discuss the complaints and staff survey with the executive leadership team (ELT), Mr Heraghty ‘glared’ at certain individuals and said if they weren’t part of the team they could go.

“The CEO responded, while glaring at certain individuals within the ELT, including the Applicant (Ms Farrell), that ‘if you’re not on the bus, then get off and go. Just go. You’re not welcome here. Because I don’t have the energy to deal with this.

‘We’ve got too much to do,’ Mr Heraghty allegedly told the meeting.

A month later a whistleblower report complained that Mr Heraghty and Ms Kelly were engaged in an affair.

1:09 pm August 9, 2024

ASX 200 up 1.5pc; China CPI stokes commodities

David Rogers

Australia's stock market is having its third best day this year as China's higher than expected CPI data helps commodity prices, adding to a rebound in stocks that followed a big rise in the S&P 500 after initial jobless claims undershot estimates.

The ASX 200 index rises 1.5 per cent to a four-day high of 7794 points with the materials sector outperforming along with tech, energy, communications and property.

Rio Tinto jumps 3.1 per cent as Singapore iron ore futures rise 2 per cent to $101.40 after China's July CPI rose 0.5 per cent on-year versus 0.3 per cent expected.

The bigger than expected rise in China's inflation rate gives some hope of a recovery in domestic demand after a deflationary spiral fuelled by a lack of confidence in the property sector. China saw its longest streak of deflation since 1999.

Elsewhere in commodities, Comex copper futures are rise 1.5 per cent.

1:01 pm August 9, 2024 Highlight

Super Retail CEO didn't disclose office romance: former counsel

Eli Greenblat

Former Super Retail chief legal officer Rebecca Farrell has revealed in her statement of claim between December 2022 — possibly earlier — and May 2024 Super Retail chief executive Anthony Heraghty was in a "romantic relationship" with the then-head of HR, Jane Kelly.

Ms Farrell’s statement of claim lodged with the Federal Court states at no time between February 2020 and December 2023, when she was carrying out her role as company secretary, did Mr Heraghty disclose his romantic relationship with Ms Kelly to the board or any member of the board or provide notification of a material personal interest to the board.

12:57 pm August 9, 2024 Highlight

Super Retail lawyer feared mistakes from excessive work

Eli Greenblat

Former Super Retail chief legal officer Rebecca Farrell warned chief executive Anthony Heraghty, head of HR Jane Kelly (who is alleged to have been having an affair with the CEO) and chairman Sally Pitkin at an executive retreat in Noosa her role was "too big", causing stress, anxiety and depression.

Ms Farrell, in her statement of claim lodged with the Federal Court, said she was concerned her excessive workload would cause her to "miss something" and then have chair Ms Pitkin blame her for being "silent or complicit" in relation to any alleged breaches of the law by Super Retail in the same way Ms Pitkin had, in her capacity as director of the Star Casino, described The Star general counsel to the Bell Inquiry.

Ms Farrell also warned Mr Heraghty and Ms Kelly the turnover of lawyers and secretariat staff in her team was, in her view, a direct result of the excessive workload of the team and the lack of resources available.

12:51 pm August 9, 2024 Highlight

Super Retail workloads 'excessive and unreasonable'

Eli Greenblat

Super Retail Group staff who reported to sacked chief legal officer Rebecca Farrell on several occasions from May 2021 made disclosures they were under pressure and unable to do all the aspects of their work which led to stress and risks to their health and safety.

The statement of claim lodged with the Federal Court by Ms Farrell states she made complaints and raised the issue around excessive workloads to a number of executives including the head of HR, Jane Kelly, who Ms Farrell has claimed was having an affair with CEO Anthony Heraghty.

Ms Farrell also told the CEO there was a "lack of resources" in her team which made it "very difficult" for her to complete her work and that the workload was "excessive and unreasonable".

Ms Farrell’s statement of claim also states she made these allegations of excessive workloads and risks to health and safety to Super Retail chairman Sally Pitkin.

12:43 pm August 9, 2024 Highlight

Super Retail boss 'used company funds to further affair': court docs

Eli Greenblat

Super Retail Group chief executive Anthony Heraghty has been accused of an inappropriate use of company funds through expense claims to conduct a sexual relationship with then-head of human resources Jane Kelly, in court documents.

In a statement of claim lodged by sacked Super Retail chief legal officer Rebecca Farrell, she claims Mr Heraghty’s personal assistant left the company because of the alleged affair and that there had been an "inappropriate use of Super Retail funds through expense claims incurred to further the affair".

The statement of claim also alleges Ms Kelly, who left the company last year, bullied team members and an "unhealthy culture" developed at the retailer because of the affair between the CEO and HR boss.