ASX snaps 5-day winning streak

ASX closes firmly lower despite hitting an 8-month high in early trade, while Telstra surged on restructure news.

Telstra plans to split into three separate entities. Picture: Bloomberg

• GrainCorp swings to profit
• Wesfarmers unveils Bunnings sales spike
• Telstra announces major restructure

That's all from Trading Day. The local sharemarket reversed an early rise to close firmly lower. Telstra announced a major restructure at its investor day, while companies including Woolworths, Nine, Breville, Medibank and Wesfarmers held AGMs.

John Durie 7.49pm: Technology is Penn’s friend

In Andy Penn’s five years as chief executive, Telstra’s stock has underperformed the market by 72 per cent, earnings have fallen 15 per cent and revenue has fallen close to $1bn to $26.2bn.

His time in the chair has come as NBN rolled out, taking with it Telstra’s monopoly earnings on its copper network, and to his credit he has pulled whatever levers he has to try to create positive momentum.

So far he has failed but the market took some comfort from the latest efforts, starting with the fact earnings guidance was affirmed in the middle of a recession.

Technology will be Penn’s friend and 5G represents a huge boost amid the first recession in 30 years, but at Thursday’s strategy day there was more shuffling of the decks than actual evidence of a rebound in earnings.

The fact is Penn is nearer the end of his term than the beginning and would obviously prefer to go out on a high.

At some a point the board and/or shareholders will want to see some evidence of change.

Read more

6.57pm: Citi backs CSR’s more centralised approach

In a note to clients, Citi says CSR’s Strategy Day highlighted an increased focus on collaboration between CSR’s portfolio of brands and improving the supply chain to enhance earnings flexibility through the cycle.

“The strategic initiatives outlined are sensible, however the benefits will take the next five years to fully realise. Further quantification of the benefits and costs will be released at a later date.

“There are significant supply chain savings to be realised at CSR, where the individual business units previously operated in silos. By centralising procurement and logistics routes, CSR aims to lower the supply chain costs which has consistently trended at ~9% of CSR’s sales over the last five years. This compares to Brickworks at ~7%. For every 1 percentage point improvement, this could drive a $16 million in EBIT upside, should the cost savings be retained. This represents 9% upside to our FY22e EBIT forecasts.

“CSR is currently assessing the potential to rationalize its operating network across PGH bricks in NSW and QLD to unlock further property development opportunities. Following the closure of Horsley Park next year, the bricks business operates 9 sites across 556 hectares, with many sites located in growth corridors. The company recently sold an 8.6 hectare land parcel at Horsley Park for an EBIT of $5.6 million per hectare. Taking a more active approach to the company’s large property land bank could see CSR unlock development opportunities over the next few years, in areas which have seen price appreciation.

“CSR maintains a strong balance sheet position with net cash of $153 million as at 30 September 2020, and line of sight of $220 million in cash proceeds from property over the next four years. The initiatives outlined today are yet to be quantified, but will likely be funded from the existing operating capex, and could see the potential for M&A or capital management.

“CSR’s strategic direction makes sense, and positions the business for profitable growth. While the supply chain initiatives are more tangible, the ability to cross-sell the full product suite beyond what already exists is yet to be proven. A structurally lower cost base could see better earnings leverage to the upturn, from mid-2021. We maintain a Buy rating with a $5.20 target price.”

6.29pm: Citi sees Charter Hall as a buy

Citi says in a report to clients: “At today’s AGM, CHC has upgraded FY21 EPS guidance by c.4% to 53c per share. We have previously flagged upside to CHC’s FY21 guidance earlier this week and in August.

“AUM as of Oct-20 was $43.4bn, +7% vs June-20 and is only c. -1% below our FY21 AUM estimate ($43.7bn). The AUM surprise was largely on the back of better than expected net acquisitions ($2.7bn, already ahead of Citi’s 1H21 estimate of $2bn). CHC is benefitting from the Covid-19 related international border restrictions, with new global sovereign funds and pension fund partnerships established since June. We believe the low interest rate environment puts CHC in a favourable position to continue to grow AUM given ongoing demand for real estate. CHC has grown AUM at c. 25% p.a. over the 5 years to June 2020, and the 7% growth in AUM since June implies c. 20%+ annualised, indicating continued demand for real estate post-Covid.

“Given the potential for continued strong AUM growth, we see further upside to FY21 guidance despite today’s upgrade and forecast 54.3c, +2.5% above guidance and +1.7% above consensus. Moreover, we see potential for significant positive consensus revisions to FY22 driven by the potential for higher AUM and strong performance fees (we are c. +16% above consensus).

“We reiterate Buy given (1) Potential for further acquisitions activity (as transactions pick up into Christmas), (2) upside to guidance, (3) potential for positive consensus revisions (Citi +2%/16% above FY21/FY22 consensus), and (4) current pricing at c. 20x FY22e, -28% below GMG’s c. 27x.”

6.01pm: Listen to the latest Money Cafe podcast

Wealth editor James Kirby and InvestSMART’s Alan Kohler discuss:

• Mortgage rates: fixing regrets? If you’re paying 3 per cent, you’re paying too much.
• James says that betting against the bank rarely works.
• Vaccine news.
• US election wash up. The market hasn’t priced in much disruption before January.
• If tech stocks cool, where will the run happen?
• How do you pick a sector ETF?
• The REST climate settlement: how to audit a fund’s ethical claims?
• How long do you have to hold a stock to earn a dividend?

Don’t forget to send your own questions to James Kirby and Alan Kohler via [e-mail]

4.32pm: ASX snaps 5-day winning streak

Australia’s sharemarket broke a recent winning streak as US index futures turned down.

The S&P/ASX 200 fell 0.5pc to 6418.2 in mixed trading characterised by a shift back from value to growth stocks after extreme moves following the US election and Pfizers’ COVID vaccine breakthrough.

The pullback ended a 5-day winning streak for the S&P/ASX 200, while the broader All Ordinaries index ended an 8-day winning streak.

It came as S&P 500 futures fell 0.6pc after the US recorded a record daily increase in COVID cases, pointing to more lockdowns after NY state tightened restrictions for bars and restaurants late Wednesday.

Wesfarmers rose 2.5pc after reporting strong online retail sales, Telstra rose 3pc on restructuring plans, while Afterpay jumped 3.3pc and Goodman Group rose 1.2pc.

CBA fell 1.8pc despite an upgrade from Jefferies, NAB fell 2.4pc ex-dividend and Fortescue tumbled 4.4pc despite its planned move into renewable energy.

4.09pm: $A has short-term downside risk: NAB

NAB sees short-term downside risk for AUD/USD from the current level of 0.7270, with a 0.7000-0.7400 range expected to hold for the next few weeks.

While noting that reduced uncertainty out of the US election has allowed AUD/USD to trade back up nearer the top than bottom of the 0.70-0.74 prevailing range, this range is expected to hold in coming weeks before a break higher, albeit with some risk it occurs this year, according to senior FX strategist, Rodrigo Catril.

But he notes that the “air is proving thin above 0.7300 just at the moment” and 0.7400 is “seen holding the top-side for the time being.”

And on a 6-12 month view he cautions that a deepening of the Australia-China international relations/trade spat is “a risk to otherwise positive commodity price/negative US dollar backdrop and higher levels.”

Eli Greenblat 4.05pm: Wesfarmers chair decries government debt burden

Wesfarmers chairman Michael Chaney has decried the “enormous government debt burden” piled up in the wake of the COVID-19 pandemic which he believes will demand reform across industrial relations, taxation and regulation to avoid mass unemployment for the next generation.

Addressing shareholders at the Wesfarmers annual general meeting in Perth, Mr Chaney said in his chairman’s address that the conglomerate went into the health and economic crisis with a strong balance sheet and had a few investment opportunities under review.

But the impact of COVID-19 remained a key theme of Mr Chaney’s address, as well as chief executive Rob Scott, with the stress now placed on the Australian economy and employment growth a key concern for both Wesfarmers executives.

Wesfarmers chairman Michael Chaney PHOTO: MARIE NIRME

Mr Chaney, a former chairman of Woodside Petroleum and National Australia Bank, stressed the dire need for substantial economic reform in the face of the mountain of debt the government has run up and the threat to future generations.

The government and the nation would need more than ever healthy companies that can employ Australians and pay taxes, but Mr Chaney warned this was in peril if businesses were not supported by a reform agenda.

“At the end of the day, the health of the Australian economy relies on the health of companies like Wesfarmers. We are a huge employer of people and are responsible for the collection of billions of dollars in tax revenues each year,” Mr Chaney said.

The nation’s debt, now heading to one trillion dollars, made that reform all the more crucial.

“The enormous government debt burden that has arisen from COVID-19 makes change in these areas even more critical than before if we are to ensure that our next generation have gainful employment and access to all the social services which we take for granted. It will require inspired and determined governments to achieve this.”

Ben Wilmot 4pm: Vicinity shareholders rebel director re-election

Shopping mall giant Vicinity has been hit by a hefty vote against the re-election of a key director with a long history at billionaire John Gandel’s private group, which holds a major stake in the company.

Shareholders rebelled against the re-election of Peter Kahan, with a protest vote of 21.8 per cent against returning him to the board, and chief executive Grant Kelly also was hit by a substantial vote against his pay package, copping a near 18.9 per cent protest vote.

Both resolutions passed but were the stand out from at the annual meeting on Thursday.

Mr Kahan sits as an independent non-executive director on the Vicinity board. He was appointed 2015 after a career in property funds in which he rose to become executive deputy chairman, chief executive and finance director of The Gandel Group.

The property veteran was finance director of The Gandel Group when Gandel Retail Trust and Colonial First State Retail Property Trust merged in 2002.

Proxy advisory house ISS recommended a vote against Mr Kahan’s re-election because it considers him a “non-independent director” on a board that is not majority independent.

ISS added that Gandel’s representation on the board (37.5 percent) was “disproportionate” to its current shareholding of 15.2 percent.

Mr Kahan also chairs the remuneration committee and ISS said there was “significant concerns” about the company’s remuneration practices in the long term incentive grant for fiscal 2021.

The grant to Mr Kelley was criticised for not having sufficiently strict requirements and ISS warned of a risk of “excessive opportunity for substantial bonuses” for hitting undisclosed goals.

Proxy house CGI Glass Lewis supported the resolutions but flagged concerns about the incentive package.

Despite the votes against these resolutions Vicinity said it was well positioned for COVID-19 recovery, and shares have partially recovered but are well pre-pandemic levels.

Vicinity did not pay a final distribution for the six-months to the end of June 30 and raised $1.2bn in a discounted equity raising ahead of Melbourne’s second lock down.

Mr Kelley said CBD locations nationally continue to be impacted by many city employees working from home, and by travel restrictions.

3.45pm: North West Shelf processing trains could be retired

Two of the five processing trains could be retired at the $34bn North West Shelf LNG plant in Western Australia by 2025 due to a lack of gas, Macquarie says.

Australia’s largest LNG plant, operated by Woodside Petroleum, is moving to a new tolling structure reliant on third party resources but faces a supply shortage in the next few years.

“We have now modelled a ~30 per cent reduction in NWS capacity to 11.9m tonnes a year as two of the original LNG trains are retired in the next five years,” Macquarie said on Thursday.

Woodside on Wednesday flagged a possible shut in of NWS Train 3 in the 2024 calendar year to save on operating expenses, Citi noted.

Consultancy Wood Mackenzie has a similar forecast estimating more than 40 per cent, or 7m tonnes, of its 16.9 million tonne annual capacity will be unused by 2027 unless supplies from big offshore fields are found to fill the gap.

Several short-term solutions have been struck. Woodside’s own offshore Pluto field will send gas through the plant from 2022 under a non-binding deal agreed to in August, while more controversially the Kerry Stokes-backed Beach Energy received an exception from the export ban and will be able to process gas from its onshore Waitsia field from 2023.

Read more: Woodside’s North West Shelf gas exports in doubt

3pm: Stay overweight on banks: UBS

After reviewing the recent earnings season for Australian banks, UBS financials analyst Jonathan Mott concludes that investors should stay Overweight the sector and he has kept his Buy ratings on ANZ and Westpac.

“We expect the banks to rally through book value, as the market looks for a cyclical earnings and dividend recovery,” Mr Mott says.

Since April, he notes that banks built credit provisions consistent with a moderate downturn caused by COVID restrictions.

But with substantial policy support directly targeting both the housing market and small-medium enterprise employment, and now with positive news regarding a vaccine, credit provisions could fall sharply.

If the economic recovery continues, the banks may soon be in a position of excess capital, underpinning dividends and capital returns, according to Mr Mott.

But a cyclical recovery in credit and capital should be weighed against longer term revenue headwinds.

With house prices now rising amid unprecedented fiscal and monetary policy support, he sees a growing risk that near-zero interest rates may become embedded in asset prices.

“With many mortgagors re-leveraging, this makes the task of eventually moving policy rates off zero challenging,” he adds.

Thus ongoing margin pressure looks embedded, yet with an underlying cost base of $36bn, the banks will cut expenses to offset this.

Mr Mott sees huge efficiency opportunities for banks but wonders how they move to a structurally lower cost base while meeting community and political expectations, and what proportion of these benefits will flow through to shareholders.

3.35pm: Ovato to make 300 workers redundant

Print and distribution business Ovato will make 300 workers redundant and close its Clayton printing plant in Melbourne as it fights insolvency.

The company today announced a $40m rights issue and restructure, which it says is aimed at saving 900 jobs in Australia’s manufacturing industry.

“Print-based industries have been significantly affected in recent years and the COVID-19

pandemic has increased the pain this year for many parts of our group,” chief executive Kevin Slaven said.

“Ovato has suffered losses for several years because of the costs of measures to meet the reduced demand for printed communications. This restructure allows for the company to get back to profitability and a sustainable future.

“The Scheme will reduce our cost base, make us more sustainable and provide customers,

suppliers and the 900 remaining staff certainty around a viable and profitable future.”

The company booked a net after tax loss of $108.8m in the last financial year. It’s creditors will meet on November 30.

3.10pm: MS tips Kogan, Tyro to join ASX 200 next month

Morgan Stanley equity strategists expect five stocks including Reece, Kogan, Tyro Payments, Codan and PointsBet to get S&P/ASX 200 inclusion next month.

“At this review, the size premium is even more pronounced with the potential inclusion of Reece, with an estimated index weight of 22bps (four times the historical average), which drives $171mn in passive demand in a single stock name,” they say.

“On aggregate, we estimate passive demand may see A$432mn in value to trade.” Avita Therapeutics, Cooper Energy, Western Areas, Service Stream and GWA Group are expected to come out of the index, which is currently carrying one additional constituent.

Meanwhile Mineral Resources is expected to replace Flight Centre in the ASX200. Afterpay should get ASX50 inclusion after rising 134pc in the past 12 months, though it will have to wait for ASX200 inclusion, according to Morgan Stanley.

Some savy long-short investors put a lot of emphasis on picking index inclusions and exclusions.

The next S&P/ASX 200 index review is due to be announced on December 11.

Lilly Vitorovich 3.06pm: Origin viewership down on last year

The second State of Origin match, which saw NSW level the series against Queensland, was the most watched program on Australian television on Wednesday night, but its audience was down 14 per cent from last year.

Around 2.43m people around the country watched the second Origin game on Nine Network on Wednesday night. That’s up 2.3 per cent from a little more than 2.37m viewers of the first match last Wednesday, which coincided with the hotly contested US Presidential election.

Still, the second Origin match last year attracted a near 2.8 million national audience.

Across the five metropolitan cities on Wednesday night, the match scored an audience of 1.65m, up 3.5 per from last week’s near 1.6m. However, it was down nearly 16 per cent from 1.96m metro viewers last year.

The games’ pre-match show came in fourth spot on the TV ratings with 1.1m national viewers, trailing behind Seven’s news at 6pm and 630pm.

Its post match program on the Blues’ thrashing of the Maroons 34-10 at Sydney’s ANZ Stadium, took 13th spot with 622,000 national viewers.

State of Origin - NSW v QLD: Game 2

3pm: ASX set to snap 5-day winning streak

Australia’s share market is set to end a five-day winning streak after a sharp intraday fall.

The S&P/ASX 200 fell 0.8pc to an intraday low of 6499.6 after rising 0.3pc to an 8-month high of 6470.9.

It comes as S&P 500 futures fell 0.6pc and Nasdaq futures fell 0.8pc after the US reported a record high 146,149 new COVID cases in the past 24 hours.

Bridget Carter 2.57pm: Private equity funds prepare for Link acquisition

The Carlyle Group and Pacific Equity Partners are understood to have brought in South African bank Investec to assist with its $2.9 billion attempted acquisition of Link Administration Holdings.

The two private equity funds that have offered $5.40 per share for Link by way of a scheme of arrangement have already been working with Jarden.

Credit Suisse has been offering assistance.

However, it is understood that Investec will assist the private equity firms on Link’s interests in the Property Exchange Australia business, known as PEXA.

Investec aided Morgan Stanley Infrastructure Partners on its acquisition of PEXA in 2018 when it was part of a consortium that bought the business for $1.6bn, along with Link and the CBA.

Since the private equity firms lifted their offer to $5.40 per share from $5.20 per share, the company’s share price has drifted lower.

It was trading at about $4.92 in Thursday afternoon trade.

Shareholders may be wary that Carlyle and PEP may walk away from the target after applying more scrutiny, which has occurred when buyout funds have embarked on due diligence for a potential takeover target in the past.

Carlyle and PEP are currently carrying out due diligence on Link after being granted access to due diligence materials from the board on a non-exclusive basis.

This was despite Link directors rejecting its latest offer.

The due diligence is expected to take between four and six weeks.

Elise Shaw 2.23pm: Migration declines for a third consecutive month

In a “normal year” around 25,000 people per month (in net terms – arrivals less departures) would arrive in Australia to live and work, reports CommSec chief economist Craig James.

In September, almost 9000 left the country while just over 4300 decided to call Australia home.

Over the past six months almost 16,000 people have left Australia in net terms.

“Apart from times of war, there has never been a time like this. In the 44 years of monthly records there has never been three months in a row where more people left Australia than settled here. That is, before September 2020,” says James.

“Migration will be high up on the wall of ‘Big Issues’ to be addressed in coming months. Skilled migration is vital for a raft of Australian sectors, especially housing, but also retail, hospitality, health, construction more broadly, like infrastructure, as well as rural and regional areas. If Australians won’t or can’t do the available work then the skills have to be imported. For a key resource exporter, Australia does have to rely on bringing into the country the required specialised workers.”

According to the Australian Bureau of Statistics data, overseas visitor arrivals rose by 22.6 per cent in September to 3720 trips. Arrivals are down by 99.5 per cent from a year ago.

Short-term departures (“resident returns – short trips”) rose by 1.1 per cent in September, lifting from a record low of 8070 trips to 8170. Departures are down 99.2 per cent on a year ago. For migration, there were 8850 people defined as “permanent or long-term departures” in September.

There were 4320 people defined as “permanent or long-term arrivals”. On balance, 4530 people left Australia in the month and 15,920 have left Australia over the past six months.

2.17pm: Banks’ profitability to improve in 2021: Fitch

Fitch Ratings says it expects the profitability of Australian banks to improve in 2021 after a reduction in provisioning charges, one-offs and remediation costs.

But the rate of recovery will be tempered by persistent headwinds, such as subdued growth, margin compression, high investment expenditure and the possibility of more provisioning charges.

The S&P/ASX 200 Banks index has risen 42pc since March and recently moved decisively above its 200-day moving average for the first time since February after the bank reporting season.

Perry Williams 2.15pm: China ditching energy investment reflects tensions: CS

China’s decision to ditch investment in Australia’s energy sector reflects mounting geopolitical tensions and tougher foreign investment rules, Credit Suisse said.

Woodside Petroleum said potential Chinese buyers pulled out of a deal to acquire a stake in the energy producer’s $16bn Scarborough gas project amid the ratcheting up of trade tensions between the two countries.

The move signals big Australian energy assets may increasingly be out of reach for Chinese buyers.

“Expectations for LNG asset sell-downs were already muted given weak market conditions,” Credit Suisse analyst Saul Kavonic said.

“The prospect for Chinese buyers acquiring such material Australian gas infrastructure has become further challenged this year in wake of geopolitical tensions and a stricter FIRB lens being applied to such situations recently.”

The Morrison government in June introduced a new national security test to all foreign investment bids for sensitive assets, including energy companies, in the biggest shake-up of foreign acquisition and takeover laws in 45 years.

China relies on Australia for 40 per cent of its LNG needs and it may be in the interests of both nations to diversify and discover new markets and investors, consultancy EnergyQuest said.

“I think there is a bigger issue for the industry. Australia is the dominant supplier of LNG to China with a 40 per cent market share. Every silver lining has a cloud. It’s in the interests of both sides to diversify their markets and suppliers but that’s not easy to do,” EnergyQuest chief executive Graeme Bethune said.

Intervention by the government in Australia’s east coast gas market could further scare off potential investment by Chinese heavyweights.

“There are also potential issues on the east coast where continuing investment by CNOOC, Sinopec and PetroChina is essential for domestic gas supply as well as LNG. Any heavy-handed government action to divert gas to domestic or to regulate prices could badly backfire. I’m sure the government is conscious of this,” Mr Bethune said.

1.45pm: Charter Hall lifts earnings guidance

Charter Hall has lifted its earnings guidance by almost 4pc.

Based on no material change in current market conditions and assuming the COVID-19 operating environment does not deteriorate markedly from here, the Group now sees FY21 guidance for post-tax operating earnings per security of approximately 53 cents a share from previous guidance of 51 cents a share. FY21 distribution per security guidance remains unchanged at 6pc growth over FY20.

Shares last up 0.1pc at $13.87.

1.13pm: Optus blames COVID-19 for 31pc earnings drop

Singtel, which owns local telecommunications company Optus, says it’s Australian revenue for the first half was affected by COVID-19 and the tapering of NBN migration revenue.

Meanwhile shutdowns and travel restrictions impacted customer growth, including roaming and prepaid revenue from inbound travellers and foreign students.

Earnings before interest, tax, depreciation and amortisation fell 31 per cent for the period, on lower revenue as well as lower margins, the company said.

12.51pm: Aussie stocks sink as US futures turn down

Australia’s share market has turned down with US futures.

The S&P/ASX 200 share index fell 0.3pc to an intraday low of 6428 after rising 0.3pc to an eight-month high of 6470.9.

It came as S&P 500 futures fell 0.2pc and Nasdaq 100 futures fell 0.4pc.

Despite Pfizer’s encouraging COVID vaccine developments this week the focus may shift back to the economic risk from the worsening pandemic in Europe and the US.

NY state ordered new COVID restrictions Wednesday afternoon, with all bars and restaurants with liquor licences to close at 10pm.

12.02pm: ASX turns negative

Australia’s shares market was slightly lower in mixed trading after hitting a fresh eight-month high.

The S&P/ASX 200 was little changed at 6443 after ranging from 6444.8 to 6449.7.

A rebound in growth stocks lent support with Afterpay up 5pc, Goodman up 1.9pc, CSL up 1.6pc and ResMed up 2.1pc.

Telstra was up 4.5pc on its restructuring plan, while Wesfarmers rose 3.3pc after reporting strong online retail sales growth.

But Financials were restrained by a pullback in bond yields and an ex-dividend fall in NAB.

There was also a broader unwinding of strength in value stocks that surged after the US election result and Pfizers’ COVID vaccine breakthrough this week.

As well as Financials, the Utilities, Energy, Materials, Industrials and Real Estate sectors lost ground, with AGL down 1.4pc, Santos down 1.3pc, BHP down 0.6pc and Scentre down 1.5pc.

Adeshola Ore 11.58am: CBA lowers serviceability floor rate

Commonwealth Bank has lowered its serviceability floor rate, or stress test, to 5.1 per cent after the Reserve Bank last week cut interest rates to a record low of 0.1 per cent.

The modification, which will be in place from Saturday, is down from the current rate of 5.4 per cent. Last month, Westpac dropped its serviceability rate from 5.35 per cent to 5.05 per cent.

Rate City research director Sally Tindall said Australia’s two largest banks had responded to the current ultra-low rate environment.

“CBA realises low rates are here and they’re here to stay for the next few years. This drop to the floor rate may help some CBA applicants borrow more from the bank.” she said.

“We expect other banks to re-assess their serviceability floors in response to the low-rate environment, particularly NAB who now has the highest floor rate of the big four.”

Lilly Vitorovich 11.52am: Seven gains on cost saving measures

Seven West Media has forecast that its interim television advertising revenue could be down about 5 per cent, citing a “short and volatile” ad market during the coronavirus crisis.

Chief executive James Warburton says the metropolitan free-to-air TV market was down 5 per cent from July to October from the same period last year.

However, cost savings so far in the current financial year, excluding the Morrison government’s JobKeeper program, “have more than offset this revenue decline”, Mr Warburton said.

Mr Warburton said its newspaper operations in Western Australia, which includes prominent mastheads The West Australian and The Sunday Times, has got off to a “positive start” with year-to-date cost savings having been offset most of the revenue declined. He blamed the revenue decline on “continued weakness in travel against a strong retail backdrop”.

“Relentless focus on cash flow has reduced net debt to approximately $425m at the end of October with $750 in drawn facilities and $325m cash,” Mr Warburton told shareholders during the group’s first virtual annual general meeting on Thursday.

Mr Warburton said the group wasn’t in a position to provide annual earnings guidance, due to market uncertainty.

Seven chairman and biggest shareholder Kerry Stokes said the group had been working with the media industry and the federal government to get its “fair share of advertising dollars, hundreds of millions of which continue to be siphoned off to the foreign digital players”.

“These foreign owned online platforms pay little tax in Australia and operate on an entirely different playing field without being constrained by the myriad requirements placed on local media players,” he told shareholders.

Mr Stokes said the competition regulator had carried out “very effective work” to bring digital platforms including Google and Facebook “to account for the damage they are causing to jobs, the integrity of news gathering and the established, law abiding businesses in Australia”.

“We urge political parties from all sides to implement changes in legislation recommended by the ACCC.”

Seven West Media shares last up 4.8pc at 22c.

11.45am: Hipages slips on debut

Shares in online trade services platform hipages have slipped to $2.35 on the company’s ASX debut, down on its IPO price of $2.45 a share.

“Today marks an important step in our evolution with hipages well positioned to take advantage of powerful digital and community trends that will drive increased demand for our innovative solutions,” chairman Chris Knoblanche said of the company’s listing today.

“We believe hipages has a significant role to play in improving the engagement of Australians with a wide range of trade services.

“My fellow directors and I are delighted to welcome our new shareholders to the register and thank existing shareholders for their ongoing support, as we embark on the next phase of our journey.”

News Corp, publisher of The Australian, holds a 25.7 per cent stake in the company.

Hipages shares last $2.46.

11.40am: Nine gains on sport broadcasting deals

Nine Entertainment shares have surged 6.8 per cent to $2.52 after the company announced it had bought the international broadcast rights for Wimbledon and the French Open.

It comes after Nine said this week that it had secured a broadcast deal with Rugby Australia worth $100m over three years, and said it would launch an on demand sports streaming service, Stan Sport.

11.19am: Breville flags first half earnings boost

Breville chief executive Jim Clayton has told investors at the company’s annual general meeting that the company has continued to experience healthy demand across all geographies for the financial year to date.

Mr Clayton said that assuming there is no significant change in market conditions, the kitchen appliance maker expects to book an earnings before interest and tax of between $128m and $132m.

That compares to $100.9m for the 2020 financial year.

Mr Clayton said Breville was only providing a full year guidance because it’s an uncertain year, saying that the company didn’t normally provide a guidance at its annual general meeting because it doesn’t have true visibility of the first half of the year until the end of January.

Breville shares last up 2.5pc at $26.77.

Breville CEO Jim Clayton. Picture: John Feder

10.28am: ASX opens higher

Australia’s sharemarket hit a fresh eight-month high after offshore gains, on track for its seventh straight rise.

The S&P/ASX 200 rose 0.3pc to 6470, led by positive corporate announcements and a shift back to growth stocks.

Telstra surged 6.2pc on its restructure plan and Wesfarmers jumped 2.6pc on strong online retail sales growth.

Xero and GrainCorp jumped more than 6pc after reporting and Nine Entertainment surged 9pc on strong earnings guidance.

Tech has surged amid solid gains in Xero, Afterpay and NEXTDC up 3.5pc, and Wesfarmers is boosting the Consumer Discretionary sector.

Consumer Staples, Communications and Health Care are also outperforming.

But value stocks are mostly down as they were in the US after a great run since the US election and the vaccine news this week.

Santos is down 2.3pc, NAB is down 1.8pc ex-dividend, Fortescue is off 1.9pc, Transurban is down 0.6pc despite an upgrade and Qantas is down 1pc.

Eli Greenblat 10.20am: Woolworths to push ahead with liquor demerger

Woolworths chief executive Brad Banducci said the retailer remained committed to the $10 billion spin off and possible demerger of its liquor and hotels business, Endeavour Group, and despite the disruptions caused by COVID-19 the company was hopeful to execute the corporate manoeuvre in 2021.

Addressing shareholders at the company’s annual general meeting on Thursday, Mr Banducci also said 2020 had been a “transformative year” for the supermarket group’s digital businesses. This digital revolution was driven by a material step-change in the demand for the convenience of online shopping and home delivery as well as a material increase in the number of customers who are looking to engage with Woolworths via its digital platforms.

In his AGM speech, Mr Banducci confirmed the Woolworths board intended to spin out its drinks and hotels arm, which includes its Dan Murphy’s chain and portfolio of pubs, following recent shareholder approval to structurally separate the businesses from the rest of Woolworths.

“After gaining shareholder approval at last year’s AGM, the restructure and merger of ALH and Endeavour Drinks to form Endeavour Group was completed in February. Since then, the team has been working hard behind the scenes to build the right systems and establish the many partnership agreements between Endeavour Group and Woolworths Group,’’ Mr Banducci said.

“The material financial impact on the Hotels business following the onset of COVID resulted in the board making the decision to defer the separation of Endeavour Group until calendar 2021.

“The specific timeline is subject to ongoing review, but we remain committed to the separation and will update our shareholders once more clarity around timing is available.”

Turning to the company’s recent trading performance though 2020, Mr Banducci told shareholders that after disruption to its online services during the March and April surge buying at its supermarkets, Woolworths rapidly added capacity to meet demand.

Bridget Carter 10.10am: Macquarie Capital ‘well placed’ for Telstra restructure

Investment bank Macquarie Capital is believed to be well placed to aid Telstra with its corporate restructure announced on Thursday that could see it sell down a stake in its mobile towers business.

On Thursday, chief executive Andrew Penn said a restructure would enable Telstra to take advantage of potential monetisation opportunities for its infrastructure assets.

The restructure is expected to be completed by December 2021 and would involve the company split into three separate divisions.

These would include InfraCo, InfraCo Towers, which includes its mobile tower assets and ServeCo, which would consist of its products and services.

It added that it would look to monetise its mobile tower assets over time given the strong demand and compelling valuations for what was high-quality infrastructure.

It also said that Telstra InfraCo was established as a standalone business unit in 2018, which offered the flexibility to monetise different asset groups.

Telstra used Macquarie Capital and JPMorgan in 2017 when it explored a possible securitisation and demerger of its long-term NBN contract.

The Australian telco giant, then worth about $54bn, was looking to split out the $5bn of revenue it would receive from the government for the NBN rollout over about 20 years to hold in a separate structure or sell to an infrastructure investor.

The Australian government reached an agreement with Telstra in 2011, where it would receive $11bn in compensation for the use of its copper network, $4bn of which related to payments for disconnecting customers from its phone network and migrating them to the NBN.

9.58am: What’s impressing analysts?

AusNet cut to Underperform: RBC

Brickworks cut to Sell: Morningstar

CBA raised to Hold: Jefferies

CBA target price raised 7.5% tp $79: Bell Potter

CleanSpace raised to Buy: Bell Potter

Flight Centre cut to Hold: Morningstar

GPT cut to Neutral: Macquarie

Macquarie Group cut to Sell: Morningstar

Seek cut to Sell: Morningstar

Seven Group cut to Sell: Morningstar

Transurban raised to Buy: Macquarie

Steadfast cut to Sell: Morningstar

Worley cut to Hold: Morningstar

9.51am: ASX set to rise

A pro-risk night on Wall Street, albeit with an obvious shift from value to growth shares, favours another rise in the Australian market, although a short-term top may be near.

Overnight futures suggest the S&P/ASX 200 will open up 0.4pc at 6475, putting the 6500 “round number” resistance within striking distance.

But with the index already having risen 8.8pc in the past 8 trading days and 47pc since March, stronger profit taking is likely before the weekend.

Also, last night’s underperformance of value versus growth on Wall Street after the strong outperformance of value in recent days, may presage a short-term dip in the S&P 500.

If so, the obvious level of support for the S&P/ASX 200 would be the former major resistance level around 6200.

Note that the VIX volatility index hit a 2-month low close of 23.45pc.

Lower volatility may be hard to sustain in the context of worsening European and US economic fallout from COVID.

Similarly, while higher US and Australian bond yields have helped Financials, 10-year rates above 1pc might start to pull money away from shares in the short-term.

Still, Pfizer’s vaccine gives light at the end of the tunnel and Dr Fauci said he would be surprised if Moderna’s mRNA platform drugs (expected soon) did not reveal “a similar degree of efficacy.”

Telstra’s corporate restructure plan may unlock value, while investors will focus on AGM guidance from Wesfarmers, Vicinity, Woolworths, Nine, Nearmap, Medibank, Breville, Charter Hall, Sonic Healthcare and Cooper Energy.

Results from Xero, Vocus and GrainCorp are also in focus.

David Swan 9.43am: Telstra to re-sell energy plans

Telstra has announced at its investor day it is exploring the opportunity to re-sell energy plans to consumers.

“These plans are at an early stage, but we‘re about to apply for the necessary licenses and you will therefore become aware of them in the coming weeks,” chief executive Andy Penn said.

“We are one of the largest consumers of electricity in the country...We already underwrite projects that generate enough renewable energy to power about 100,000 homes, and we provide standby power that enable more renewable energy to be absorbed into the energy grid. We also deploy machine learning and IoT to change the way that we use energy. We have a very experienced energy team.

“We‘re exploring bringing all of this experience to the table with a consumer offering...We plan to do so with a simple affordable solution at a low cost, and we will do it with the same measured and conservative approach that we have applied to health over the last few years.”

Bridget Carter 9.42am: Brookfield finalises DBCT price

Brookfield has finalised the price for the Dalrymple Bay Coal Terminal, with shares to be sold at $2.57 each.

The total offer size available to new investors will be $656m.

The company’s market value will be $1.286 billion.

Net debt will be $1.788bn, with the company’s enterprise value to be $3bn.

As earlier reported, investors will receive a yield of 7 per cent.

The company will hold its book build next Thursday, with the prospectus lodged next Friday.

Dalrymple Bay Coal Terminal will start trading on December 10.

Working on the float is Merrill Lynch Equities, Citi, Credit Suisse as lead managers.

It comes after QIC’s Future Fund agreed to buy 9.99 per cent of the company for a price worth $128.47m.

9.40am: Retail Food Group flags first quarter revenue slump

Retail Food Group has told the market that it has seen a number of positive indicators in its Brumby’s and Crust stores, despite the impacts of COVID-19 restrictions.

Still, Retail Food Group, the franchisor for Donut King, Crust, Gloria Jeans and Brumby’s, said that across its domestic franchise network, total sales for the first quarter were down 14.5 per cent on the prior period.

“We anticipate additional positive momentum as Victoria’s COVID-19 measures are further eased, marketing activity returns to more normal levels, and the Group continues to execute on its broader turnaround plan,” executive chairman Peter George said in a statement to the market.

“Green shoots are also starting to appear in terms of potential new franchisee interest, with expressions of interest received in connection with dozens of new and existing store opportunities, including advanced discussions in connection with 15 potential new sites or territories across the Donut King, Crust and Gloria Jean’s brands.”

9.31am: Nearmap confirms contract value forecast

Aerial imagery company Nearmap says its annual contract value is expected to be between $120m and $128m for the full year, in line with consensus forecasts.

In a statement ahead of the company’s annual general meeting this morning, Nearmap said it would continue to target 20-to-40 per cent annual contract value growth in the medium to long term.

“Nearmap will continue to bring new and value-adding tools and functionality to the Company’s growing customer base, further enhancing the Company’s market and technology leadership,” the statement said.

“The combination of the September capital raising and new growth initiatives means Nearmap is fully funded for the foreseeable future.”

Lilly Vitorovich 9.17am: Nine secures tennis rights

Nine and its subscription streaming service Stan have bought the international broadcast for two grand slam tennis tournaments, Wimbledon and the French Open, for an undisclosed sum.

The announcement of the three-year deals comes just days after Nine announced that sport would feature on Stan for the first time from next year after securing a broadcast deal with Rugby Australia worth $100m over three years.

Nine chief executive Hugh Marks said on Thursday that the tennis broadcast rights gives the media group the “flexibility to develop the right mix of games” that will appear on its free-to-air television network, plus all the matches on Stan Sport for a monthly subscription fee.

Nine on Monday announced it would launch Stan Sport, which will be offered as a bundle to Stan’s customers.

The move into sport comes as Stan faces increasing competition from Netflix, Foxtel, Binge and Hayu and gets set to lose the bulk of its key Showtime television programs from January.

Stan, which had 2.2m active subscribers in August, is set to lose a vast slate of Showtime shows such as Californication, Happyish, Nurse Jackie and Dexter. However, its current Showtime deal means it will continue to get new episodes of existing shows on its platform, such as Billions, for the entire run of the show.

Read more: Nine, Stan secure Wimbledon, French Open tennis broadcast rights

9.07am: Sonic flags first quarter earnings spike

Pathology company Sonic Healthcare has unveiled a 29 per cent revenue lift for the first quarter, compared to the same period the prior financial year.

In a trading update released to the ASX ahead of the company’s annual general meeting, Sonic said earnings before interest, tax, depreciation and amortisation had shot up 71 per cent for the period.

9.01am: Medibank ups growth target

Medibank chief executive Craig Drummond has touted a strong start to the new financial year, saying the company grew its market share in the first quarter, though that expectation was yet to be confirmed.

In a statement released to the market ahead of the company’s annual general meeting today, Mr Drummond said the company was “raising the bar” in its aspiration to grow policyholders in fiscal year 2021.

“We now aim to increase market share and achieve total policyholder growth of approximately 2% in a flat market,” Mr Drummond will tell shareholders at the AGM

“While this is a pleasing result, there still remains a level of uncertainty in the economy post COVID.”

He said there were no other changes to the outlook provided in the full-year results announcement.

8.52am: GrainCorp swings to profit, declares dividend

GrainCorp has unveiled a full year statutory net profit after tax of $343m, compared to a net loss of $113m the prior year.

The company declared a fully franked dividend of 7c a share.

“GrainCorp reported a substantially improved financial performance in FY20, despite a third year of drought,” chief executive Robert Spurway said.

“The most significant drivers in the year were the positive impact from the Crop Production Contract, improved performance from our East Coast of Australia grains and international trading businesses, and stronger oilseed crush volumes and margins.”

Grain Corp

8.47am: Xero unveils revenue surge

Accounting software company Xero has unveiled a flat net profit for the first half of fiscal year 2021 of $NZ34.45m and a 21 per cent uptick in total operating profit on the back of subscriber growth in all its markets.

The company said both the Australian market and the International segment surpassed 1 million subscribers during the period, bringing its worldwide subscribers to 2.45m.

The company did not declare an interim dividend.

Eli Greenblat 8.38am: Sales spike for bunnings

Wesfarmers has provided a trading update before its annual general meeting to be held in Perth today, with consumers undertaking home projects and renovations sending sales for its hardware chain Bunnings rocketing since July and similar strong sales growth experienced at Officeworks.

The Perth-based conglomerate however revealed that stock availability in some home products impacted uts Kmart’s sales growth in July and August 2020, with progress made to improve availability in recent months, despite long order lead times and recent industrial action at port terminals creating some challenges.

It also said that it expected costs of $15 million per quarter to maintain a COVID-safe environment across its retail businesses.

The Bunnings chain, which now accounts for the bulk of Wesfarmers earnings following the demerger of Coles, continues to be the star performer for the group with the trading update showing its resilience through the COVID-19 pandemic.

In a trading update issued to the ASX on Thursday morning, Bunnings posted total sales growth for July to October of 25.2 per cent and like for like sales growth of 30.9 per cent.

In Bunnings, strong sales growth has continued in both consumer and commercial segments, Wesfarmers said. Consumer sales remained particularly strong as customers spent more time undertaking projects around the home.

Excluding metropolitan Melbourne stores, which were closed due to stage 4 restrictions in the state, total sales growth of 29.3 per cent was recorded for the year to date.

8.19am: Telstra announces major restructure

Telstra has announced a restructure that will split it onto three separate legal entities.

The three components of the structure will be:

• InfraCo Fixed, which would own and operate Telstra’s fixed line assets
• InfraCo Towers, whcih would own the fixed wireless assets like towers in Telstra’s mobile network,
• ServeCo, which would “own the active parts of the network, including the radio access network and spectrum assets”.

Telstra said it would which Telstra will look to monetise the Infraco Towers business “over time given the strong demand and compelling valuations for this type of high-quality infrastructure”.

“The proposed restructure is one of the most significant in Telstra’s history and the largest corporate change since privatisation. It will unlock value in the company, improve the returns from the company’s assets and create further optionality for the future,” CEO Andy Penn said.

Andy Penn CEO Telstra

7.44am: TikTok wants more time

TikTok and its Chinese parent company are asking a federal appeals court in Washington, D.C., for additional time to work out a potential divestiture of the popular video-sharing app, amid signs that the company is settling in for a longer fight with the U.S. government.

With the Trump administration’s Thursday deadline looming for a restructuring or shutdown of TikTok, it appeared the government was losing at least some of its leverage over the app’s owner.

Already, a federal district court judge in Philadelphia has enjoined enforcement of the shutdown option, taking away the government’s main weapon in forcing a divestiture.

The new suit, if it succeeds, broadens TikTok’s legal assault by asking the courts to overturn the government’s legal basis for ordering the divestiture as well. As of Wednesday afternoon, administration officials hadn’t yet clarified how they intend to proceed.

The new petition, which TikTok and Chinese parent ByteDance Ltd. filed late Tuesday in the U.S. Court of Appeals for the D.C. Circuit, represents the latest in a series of legal challenges by TikTok and its allies that seek to undermine the Trump administration’s crackdown campaign.

Dow Jones

7.34am: New CFO for AirNZ

Air New Zealand has appointed Richard Thomson as its new chief financial officer, replacing Jeff McDowall. Coming from listed retirement group Metlifecare, Thomson returns to the airline having previously worked there from 2004 to 2017. Mr Thomson holds a private pilots licence and “his understanding of the domestic and international aviation markets will be critical as we seize upon the opportunities that will emerge when borders begin to reopen,” says AirNZ CEO said. Mr McDowall will depart the company after the completion of an equity raising in the first half of next year.

7.26am: Oil hit bigger than thought: OPEC

Coronavirus lockdown measures in Europe and weakening consumption in the Americas will result in global oil demand taking a larger hit in 2020 than previously expected, the Organisation of the Petroleum Exporting Countries said Wednesday.

In its closely scrutinised monthly report, OPEC deepened its forecast for a drop in global oil demand in 2020 by 300,000 barrels a day to 9.8 million barrels a day, a 10% drop from last year’s levels. The cartel also softened its forecast rebound in demand for 2021 by 300,000 barrels a day.

Those cuts, when combined with the Vienna-based organisation’s resilient non-OPEC supply forecasts and its cut to its 2021 global growth rebound forecast -- now 4.4% from 4.5% previously -- present a dismal outlook for oil markets in the coming months.

OPEC hedged its forecasts, saying that “further [economic] support, currently unaccounted for, may come from an effective and widely distributable vaccine as soon as the first half of 2021.” Oil prices and equities have shot up this week in the wake of the news that Pfizer Inc.’s and BioNTech SE’s coronavirus vaccine was 90% effective in early tests. That has sparked hope among investors that economic activity will normalise in 2021.

7.23am: Trudeau holds firm on Huawei exec

Prime Minister Justin Trudeau on Wednesday held firm that Canada will not bow to pressure to release Huawei executive Meng Wanzhou following a fresh rebuke from Beijing.

Meng was arrested on a US warrant in December 2018 during a stopover in Vancouver and has been fighting extradition ever since.

The case plunged Canada-China relations into crisis, with Beijing detaining days later Canadians Michael Kovrig and Michael Spavor, which was seen in the West as retaliation.

In an interview with the Financial Times, Trudeau said: “China continues to think that they can just put enough pressure on us and we will give in, where that’s exactly the opposite of our position.” “We don’t believe in coercive diplomacy,” he said. “We actually deeply believe that if you start giving in to that kind of pressure you’ll leave yourself worse off for the long term.” “We will not bend on our principles.” On Monday, Trudeau raised the plight of the two detained men during a phone call with US President-elect Joe Biden.

AFP

6.56am: New restrictions in NY

New York state will set a 10pm curfew on gyms as well as bars and restaurants that serve liquor, Gov. Andrew Cuomo said, as COVID-19 cases continued to rise around the state.

Dow Jones

6.14am: Google, Facbook extend ad bans

Facebook Inc. and Alphabet Inc.’s Google plan to continue banning political ads on their platforms for the next several weeks to prevent confusion about election results, according to people familiar with the matter and an email reviewed by The Wall Street Journal.

Facebook told advertisers in an email Wednesday it plans to continue its postelection ban on political ads for “another month.” Google representatives have told some advertisers it is unlikely to lift its ban in November or December, the people said.

“While multiple sources have projected a presidential winner, we still believe it’s important to help prevent confusion or abuse on our platform,” according to the email Facebook sent Wednesday.

The tech companies initially indicated the bans would last a week after Election Day but could be extended.

The Associated Press and other major media outlets on Saturday declared that Joe Biden won the presidential election. President Donald Trump has yet to concede and has alleged voter fraud but his campaign hasn’t provided evidence of widespread irregularities.

The extended ad bans come as Georgia prepares for a pair of Senate run-off races on Jan. 5. Those races will likely determine which party controls the U.S. Senate and whether President-elect Biden will have a Democratic majority in both chambers of Congress when he begins his administration.

Dow Jones

5.38am: Brazil resumes Chinese vaccine trials

Brazilian health authority Anvisa authorised the restart Wednesday of clinical trials of China’s Sinovac coronavirus vaccine, one of the most advanced in the country, after suspending them earlier this week.

Anvisa in a statement said it had evaluated new information about the “adverse event” on Oct. 29 that had triggered the suspension Monday, concluding it was safe to continue the tests.

Brazil’s decision to suspend trials of the Chinese vaccine, which have been fiercely criticised by President Jair Bolsonaro, raised widespread concern among the country’s medical community. The vaccine’s own researchers, including the Butantan Institute, a respected São Paulo-based biomedical centre, had disputed Anvisa’s decision, saying there had been no serious adverse reactions among volunteers and there was no reason to stop the trials. Local press reported that a volunteer had died, but from suicide.

Anvisa said in a statement Wednesday that it had lifted the suspension after the Butantan Institute gave it further information about the October “event,” including a police report detailing the case. It said it had not been given this necessary information previously and had shut down the trials as a matter of precaution, acting in a purely technical manner.

5.36am: Pirelli swings to loss

Pirelli & C. SpA swung to a loss in the first nine months as the coronavirus pandemic hit the tyre sector.

The Italian tyre maker said Wednesday that its net loss for the first nine months was €23.5 million compared with a net profit of €372.7 million in the same period of 2019.

Earnings before interest and taxes were €95.6 million, down sharply from €597.9 million the previous year.

Net sales were €3.09 billion in the period until Sept. 30, compared with €4.04 billion the year prior.

For the third quarter, however, the company posted a profit of €83.9 million, it said, up 6.6% from €78.7 million in the same quarter the previous year.

Sales in the third quarter came in at €1.28 billion, down 1.5% organically from the same quarter of 2019.

Pirelli said it confirmed its efficiencies and cost reduction plans, which contributed to limiting the impact of the fall in demand sparked by the coronavirus pandemic, it said.

The company slightly changed its revenue guidance range for 2020. It now expects revenue to be between about €4.18 billion and €4.23 billion. It had previously guided for revenue to be in the range of €4.15 billion and 4.25 billion.

Pirelli lowered its adjusted 2020 EBIT margin, which is now expected to come in between about 11.5% and 12%, having previously expected it to be in a range between about 12% and 13%.

5.20am: US tech stocks rise

US stocks are rising despite increasing COVID-19 case counts in the U.S.as tech once again takes the lead.

The Dow Jones Industrial Average was up 0.3% in late morning, while the S&P 500 had risen 0.8%. The Nasdaq Composite was 1.6% higher, recovering from two days of losses.

The tech-heavy index has dominated during the Covid crisis, but sold off amid euphoria about a potential vaccine. Its gains Wednesday contrast with losses for Chinese tech names, which took a hit on proposed regulations for the sector.

Yet a vaccine remains months away at best, and the U.S. set a record for coronavirus hospitalisation, with 17 states at peak levels. Markets – ever forward looking – are hopeful that we are drawing closer to a return to normalcy. It helps that president-elect Joe Biden has formed a coronavirus task force and is moving ahead in general with plans to assume the presidency in January, despite the White House’s false claims of widespread voter fraud.

State Street’s chief investment strategist, Michael Arone, wrote that after Inauguration Day, the new administration is likely to move fast to tackle the pandemic, and that while Biden has pledged to listen to health experts, a nationwide lockdown isn’t likely.

Dow Jones

5.18am: European markets climb

Europe’s major stock markets climbed higher Wednesday, extending stunning gains this week that were fuelled by a promising coronavirus vaccine trial and Joe Biden’s US presidential election victory.

London stocks closed with an increase of 1.4 per cent, while Frankfurt was 0.4-per cent higher and Paris added 0.5 per cent.

AFP