Trading Day: Stocks rebound from 8-day low, Tyro hits back

Stocks jump 1.2pc, Bingo shares surge after takeover offer, and Rio gains after strong quarterly result.

Australian stocks were tipped for a positive start to trade. Picture: Christian Gilles

• Super funds deliver positive return for 2020
• Administrators appointed to The Agency Group
• Act big on recovery: Yellen

That’s all from the Trading Day blog for Tuesday, January 19. After dropping 0.8 per cent to 6663.04 points on Monday - its lowest close in 8-days - the index rose 1.2pc to 6742.6 points - its highest close in 8 days, with positive offshore leads, although Wall Street was closed.

Glenda Korporaal 7.55pm: Beware Biden’s China trade bid

Australia will need to keep a watching brief on the policies of the Biden administration to make sure it is not dealt out of trade with China, one of the nation’s top trade experts has warned.

“There is no indication, apart from his political appointments, on which way he will go with China,” said Helen Sawczak, former CEO of the Australia-China Business Council, referring to US president-elect Joe Biden.

“He has campaigned in a very hawkish manner during the election but he has also campaigned in support of multilateral bodies such as the World Trade Organisation and World Health Organisation, which bodes well for more conciliatory policies towards China.

“Australia needs to watch closely what happens on US-China relations.

“Every trade deal the US does with China could help American farmers and mean there is less that China buys from us.

“Any US trade deal with China will have a flow-on effect on ­Australia.”

Ms Sawczak, who is now a senior adviser with investment bank Moelis and a trade consultant, said while the US was one of Australia’s closest strategic allies, when it came to its trade interests it would put America first.

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David Ross 6.04pm: Xinja finalises deposit returns to customers

Xinja will close the book on its banking, the first time an Authorised Deposit-taking Institution has returned deposits to customers in a managed exit of the business.

The failed neo-bank, which was granted its license in 2019, announced it would throw in the towel just a year later after failing to secure ongoing funding or a lending income stream.

At the time of the announcement in December 2020 the bank held deposits worth more than $252m.

The neo-bank had wooed customers with the offers of attractive savings returns but had failed to establish a lending facility to allow borrowing against deposits.

At its height Xinja boasted more than 37,884 customers.

The Australian Prudential Regulation Authority noted the shake-out of 54,357 Xinja accounts since the bank announced it would close.

Tuesday marked the final transfer of $65,809 from 4,4176 Xinja accounts to new or existing NAB accounts.

Xinja will formally relinquish its banking license to APRA over the next few weeks.

APRA formally approved the transfer of deposits from Xinja to NAB using its powers under the Financial Sector (Transfer and Restructure) Act and Banking Act.

“Xinja customers whose deposits have been transferred to NAB can elect to leave their funds there, or transfer them to another bank of their choice,” APRA said.

Before it closed the bank had been chasing a $433m investment by Emirate’s World Investments, reportedly being arranged by venture capitalist Michael Gale.

The investment was announced to much fanfare in March 2020, but failed to eventuate.

At the time Xinja said Emirate’s World Investments would investment $160m immediate, with the remaining $273 in multiple tranches over two years.

Several other neo banks have arrived on the Australian financial scene in recent years, including Up, 86400 and, Volt.

The failure of Xinja comes as the first major blow to the Australian banking landscape since St George and RAMS banks were bought by Westpac as they staggered from the hammerblow of the Global Financial Crisis.

Chris Griffith 5.55pm: Calling time on the COVIDSafe app

The COVIDSafe app has delivered an abject lesson that with computer solutions, complexity isn’t better than simplicity. The Australian today revealed that state and territory health departments have been barely accessing data from it over summer.

Government Services Minister Stuart Robert and his team did the right thing exploring adapting Singapore’s TraceTogether app to unravel the transmission of coronavirus in the community. The app enables phones to sense the distance to other phones using Bluetooth signals.

The Singapore government rendered the code for the TraceTogether app open source and free to adapt. It was a starting point for developing COVIDSafe. When the app launched in April, it was one of the key pillars in the federal response to the virus. Prime Minister Scott Morrison described it as enabling us to get back to relative normality.

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5.30pm: Yellen wants more aid for less pain

Janet Yellen, President-elect Joe Biden’s choice for Treasury secretary, plans to tell lawmakers that the U.S. risks a longer, more painful recession unless Congress approves more aid and urge them to “act big” to shore up the recovery.

Ms. Yellen is set to testify Tuesday before the Senate Finance Committee, which is considering her nomination, according to a copy of her prepared remarks that was viewed by The Wall Street Journal.

“Economists don’t always agree, but I think there is a consensus now: Without further action, we risk a longer, more painful recession now -- and long-term scarring of the economy later,” Ms. Yellen will say. “Over the next few months, we are going to need more aid to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers on the job.” Mr. Biden’s nomination of Ms. Yellen positions the 74-year-old labour economist to lead his administration’s efforts to advance the recovery from the destruction caused by the coronavirus pandemic and related shutdowns. She will also play a key role in pushing the administration’s economic agenda on Capitol Hill, a job that will start in earnest Tuesday, said Tony Fratto, a senior Treasury and White House aide in the George W. Bush administration.

The Wall Street Journal through Dow Jones Newswires

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4.38pm: ASX ends +1.2% at 8-day high

Australia’s sharemarket rebounded strongly as S&P 500 futures pointed to a 0.7pc rise in the US market after a long weekend.

After dropping 0.8 per cent to 6663.04 points on Monday - its lowest close in 8-days - the index rose 1.2pc to 6742.6 points - its highest close in 8 days.

It was also the biggest one-day rise in 8 days and the third-highest daily close in 10 months. The index was just over 0.2pc below the 10-month high of 6757.9 it reached last week.

The heavyweight Financials and Materials sectors did much of the heavy lifting, with standouts in the Consumer Discretionary, Health Care, Tech and Industrials sectors.

Westpac rose 1.9pc, BHP rose 0.9pc, Domino’s Pizza gained 8pc after Macquarie upgraded, CSL jumped 1.4pc, Afterpay rose 1.5pc and Bingo surged 20pc on an indicative, non-binding and conditional takeover bid from a consortium led by CPE Capital.

Nufarm surged 8.3pc after Morgan Stanley boosted its price target by 8.3 per cent.

Outside the ASX 200, Tyro Payments surged 25pc after rejecting “false claims” in a short-seller report and updating the market on its terminal connectivity issue.

Results from Bank of America, Goldman Sachs and Netflix are due later on Tuesday, along with US Treasury Secretary-elect Janet Yellen’s Senate testimony.

Bridget Carter 1.10pm: Morgan Stanley, Jarden hired for Peter Warren float

Investment banks Morgan Stanley and Jarden Australia have been hired for the float of the $1.5 billion-plus Peter Warren Automotive business.

The company – owned by private equity firm Quadrant – is planning a non-deal roadshow for investors that will be launched next week.

As reported in DataRoom on Monday, the company is set for a listing around the middle of the year and is estimated to be worth between $1.5bn and $2bn.

More to come.

11.58am: ASX builds gains as US futures rise

The Australian share market has recovered more than it lost on Monday amid expectations of a bounce on Wall Street, takeover activity, broker upgrades and a surge in the Financials sector.

After diving 0.8pc to an eight day low of 6663 on Monday, the S&P/ASX 200 has jumped 1.2pc to a two-day high of 6743.7.

The index is heading for its best daily close since January 8th, when it closed at a 10-month high of 6757.9.

It came as S&P 500 futures projected a 0.5pc rise in the US benchmark when US trading resumes Tuesday after a long weekend holiday.

Bingo jumped 20pc to $3.30 after confirming an indicative, conditional and non-binding takeover offer at a 28pc premium of $3.50 a share cash from a consortium including CPEC and MIRA.

Nufarm surged 9pc after Morgan Stanley boosted its price target by 8.3 per cent.

Domino’s Pizza was up 7.2pc after Macquarie upgraded to Outperform while boosting its target price by 25pc.

In the Technology sector WiseTech rose 5pc, while outside the ASX200, Tyro Payments surged 21pc after rejecting “false claims” in a short-seller report and updating the market on its terminal connectivity issue.

Banks were the biggest drivers with Westpac up 2.5pc, while elsewhere in the Financials sector, Macquarie rose 2.2pc and QBE surged 3.8pc.

But resources also bounced strongly intraday with BHP up 0.6pc and Rio Tinto and Fortescue both up 1pc.

11.41am: RBA to signal QE extension: NAB

RBA Governor Philip Lowe is likely to signal a $50bn extension of its quantitative easing program as soon as February and an official announcement is likely in March, according to NAB.

“While the outlook has improved, the pandemic has still been a large hit to the economy such that exceptionally easy policy is warranted,” says NAB chief economist, Alan Oster.

“We think an extension in the ballpark of an additional $50bn over another 6 months is likely, broadly in line with our estimate that $143bn worth of purchases would be required to get the unemployment rate down to 5 per cent.”

The RBA’s current six-month $100bn QE program is due to cease at the end of April.

But NAB’s Mr Oster says a more significant issue is the yield curve control (YCC) program, where the RBA has tied its 3-year target explicitly to its expectation that the cash rate will not increase for “at least three years”.

“At some stage the RBA is likely to become unable to maintain this position as the recovery unfolds (and) we think the RBA will reach that point around mid-2021,” he says.

“Further, we note that at the current rate, under YCC the RBA will own nearly all April 2024 government bonds by mid 2021, which will interfere with the 3-year yield as a market benchmark.

“As such, we expect the RBA will outline an exit strategy by mid 2021, while being mindful that ending YCC is likely to see yields rise across the curve as the market interprets the RBA’s shift as a signal for higher rates in the future.

“In our view, the RBA should name a bond line which YCC will not extend beyond, that is April 2024, and use its ongoing QE program to help smooth out any sharp rise in yields in response to its exit strategy.”

NAB does expect the cash rate to stay on hold until at least mid-2024, in line with RBA guidance.

However, the trajectory of its forecasts show some risk of a gradual normalisation of the cash rate beginning shortly after.

The RBA is also likely to let the term funding facility (TFF) end at its scheduled date of June 2021, according to NAB. “The program has provided significant liquidity to banks, supporting credit,” Mr Oster notes. “Borrowing costs remain extraordinarily low, such that the RBA is unlikely to see an extension to the TFF as necessary.”

RBA’s Philip Lowe tipped to signal an extension of QE. Picture: Gary Ramage

11.22am: Banks lead ASX surge

There seems to be no stopping the Australian share market’s rebound today.

The S&P/ASX 200 has risen 70 points, or 1pc, to a two-day high of 6733.1.

It has now recovered all of the previous day’s selloff.

But whereas the market fell on good volume yesterday, volume is 30pc below average so far today.

Financials have done the heavy lifting after the initial surge led by the Industrials, Consumer Staples and Discretionary sectors.

Westpac rose 1.9pc while ANZ and NAB jumped 1.4pc, Macquarie rose 1.6pc, QBE surged 4.4pc and Suncorp and IAG gained about 3pc.

11.06am: Super returns show resilience: Chant West

Super funds have delivered a positive return for the 2020 calendar year, demonstrating their “remarkable resilience in the face of major market disruption”, according to Chant West.

The median growth fund, 61pc to 80pc in growth assets, ended the year up 3.7 per cent, which was “an amazing result given the economic damage wrought by the COVID-19 pandemic,” says Chant West senior investment research manager, Mano Mohankumar.

“The 3.7 per cent return might be small compared with the bumper 14.7 per cent result for 2019, but nevertheless it represents the ninth consecutive positive calendar year and the 11th in the past 12 years.”

The top performing growth fund in the year was Suncorp Multi-Manager Growth, which returned an impressive 9.6 per cent while the S&P/ASX 300 share index fell 1.1 per cent.

Others in the top ten include Australian Ethical Super Balanced, Vision Super Balanced Growth, VicSuper Growth, UniSuper Balanced, AustralianSuper Balanced, Aware Super Growth, IOOF MultiMix Balanced Growth, Prime Super MySuper and Equip Balanced Growth.

“2020 highlighted the long-term nature of super and the importance of patience,” Mr Mohankumar says. “Members who sat tight generally did OK (but) sadly, there were many others who panicked when markets fell and switched their investments to cash or a more conservative option.

“Not only would they have crystallised their losses, but they would also have missed out on some or all of the subsequent rebound. And, of course, there were those who withdrew their money from super completely to deal with temporary hardship, and they’ll now be faced with making up considerable lost ground.”

Lachlan Moffet Gray 11.03am: Think Childcare receives second offer

Think Childcare has gone into a trading halt after the Ontario Teachers’ Pension Plan-backed Busy Bees Early Learning submitted a takeover offer last night of $2.10 per share.

The offer is much higher than the rival $1.75 bid offer from Alceon, which has amassed a 19.23 per cent stake in Think through some buying over the Christmas Period.

It also represents a 25 per cent premium on Think Childcare’s last close of $1.68 per share.

Rothschild is acting for Busy Bees while Moelis is advising Think Childcare.

Think Childcare has rival suitors.

10.48am: Capital raisings ‘bonanza’: Bell Potter

Coronavirus-related Australian equity capital raisings since March in 2020 have been a bonanza for investors, according to Bell Potter’s Richard Coppleson.

Of the 163 raisings totalling $40.28bn in 2020, the first 60 raised $21.7bn in just two months and the remaining 103 raised $18.5bn in the next seven months.

Of the first 60 deals, he notes that 55, or 91 per cent, of them were above the issue price by an average of 25pc by May 18.

“Those deals, if held, have continued to be a massive bonanza for investors,” he says.

Of the first 60 raisings, 93 per cent are still trading above the issue price and the average gain is 112 per cent.

For the next 103 deals from May 18 May to December, the average discount was 12.5 per cent versus 17.7 per cent for the early and more distressed raisings.

Those deals are up 38 per cent, or just over a third as much as the rise in the first 60.

Of those, just 70 per cent are above issue price.

“So those who participated in the early raisings have made a killing and was a huge help for many who didn’t buy much stock in March-May but did take up as many of these deals as they could,” Mr Coppleson says.

“Without these deals a number of fund managers - those who stayed long cash for too long - would have had even worse results than the ones they reported.”

He also noted there were 12 deals where over $1bn was raised and they were worth $18.4bn or 45 per cent of the total $40.2bn raised.

“Interestingly 5 of the 12 are up less than 10 per cent versus issue price,” Mr Coppleson notes.

The best was Oil Search with a 103 per cent gain, followed by NAB which rose 71 per cent.

“This shows that the ‘most distressed’ raisings have massively diluted the existing holders via the massive amounts they raised,” Mr Coppleson says.

He notes that the rise in stock above their “heavily discounted” offer prices means “any new shareholder is cheering all the way to the bank.”

But while institutional shareholders have been “looked after handsomely” he’s concerned that “retail investors have “suffered and been massively diluted”.

“They are really are missing out on the real rewards here,” Mr Coppleson says.

While the average stock is up 65 per cent after raising equity last year at an average discount of 14.4 per cent, retail shareholders have been ‘equal’ in the distribution of all these riches”, Coppleson says.

He notes that retail shareholders on average only got a “miserable” allocation of 21 per cent of the new shares on issue.

Lisa Allen 10.38am: Administrators appointed to parts of The Agency Group

Voluntary administrators have been appointed to parts of listed prestige real estate firm, The Agency Group, over outstanding secured debt.

In a statement Magnolia, trading as MCL105 Pty Ltd, said it had appointed BDO as voluntary administrators for the outstanding secured debt.

Magnolia said a security agreement was entered into by Magnolia and The Agency Group (AU1) nearly one year ago.

“Despite raising additional finance and offloading assets, the debt remains outstanding after repeated demands for payment,” Magnolia said.

“Magnolia has lost confidence in the board and the unknown financial position of the AU1. As such, BDO has been appointed as voluntary administrator over AU1 only, not over any subsidiaries.”

Magnolia said the appointment would allow for an independent review of The Agency Group without disrupting the trading businesses.

Magnolia said it was determined to protect the best interests of creditors. It is expected that the business will continue to trade during this appointment period.

10.25am: ASX rebounds 0.8pc

Australia’s share market has bounced strongly from an eight-day low after positive offshore leads, while the US market remained closed.

The S&P/ASX 200 rose 0.8pc to 6712.8 in early trading after diving 0.8pc to 6663.04 on Monday.

The Industrials sector led gains with Bingo up 20pc on a 28pc premium takeover bid from a consortium including CPEC and MIRA.

The Consumer Staples sector was also strong with Woolworths up 1.3pc, Coles up 0.9pc and Treasury Wine up 1.8pc.

Consumer Discretionary was another standout with Domino’s Pizza up 5.1pc on an upgrade from Macquarie.

Financials outperformed with QBE up 3.8pc and Westpac up 1.3pc.

Resources lagged with Rio Tinto down 0.6pc.

Lachlan Moffet Gray 10.23am: Bingo shares surge after offer

Shares in waste collection and management company Bingo Resources have surged by 21 per cent to $3.32 following a 28 per cent premium takeover bid from a consortium led by private equity firm CPE Capital.

Earlier in the session the share price reached an intraday high of $3.39, up 24 per cent, which is just 10 cents below the company’s all-time-high of $3.49 last February.

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Cliona O’Dowd 10.00am: Tyro rejects short-seller criticisms

Tyro has come out swinging following the attack made by short-seller Viceroy Research against the payments terminal firm, saying it rejects the report which contains “significant false claims and assertions”.

Among the 10 key factual misstatements Tyro argued were in the report included the damning assertion from Viceroy that 50 per cent of Tyro’s merchant terminals were offline as of the date of writing late last week.

“At no time have 50 per cent of Tyro’s terminals been offline,” the company said in an update to shareholders ahead of the market open.

“As advised to the ASX today, 15 per cent of Tyro’s merchants remain impacted,” it added.

The report released by Viceroy on Friday followed a software issue in Tyro’s Eftpos terminals that has caused havoc for thousands of businesses since January 5.

The under-pressure fintech last Wednesday revealed that 30 per cent of its more than 32,000 merchants had been affected by the outage.

Viceroy declared in its report that it was short Tyro and questioned the company’s disaster planning, given a large proportion of its customers had been hit by software glitches in its payment terminals.

Eli Greenblat 9.55am: Maggie Beer posts record sales

Maggie Beer Holdings, the food group that produces ice creams, pastes and other foods under the branding of the famous TV cook, has achieved record sales in the first half with net sales up by 20 per cent and its online platform doing a roaring trade in food sales.

Cheese and cooking stocks were a standout performer, reflecting the boom in home cooking through COVID-19.

The company released a trading update to the market on Tuesday in which it revealed Maggie Beer products e-commerce sales had lifted by 167 per cent in the first half, helping group sales for Maggie Beer Holdings to post a 20 per cent increase in sales, or $4.6m.

It said group EBITDA had improved by $2m, and all three businesses - Maggie Beer, Paris Creek Farms and Saint David Dairy - had returned positive trading EBITDA for the first half.

Paris Creek Farms sales rose 11.4 per cent while Saint David Dairy recorded a 5.4 per cent improvement in sales for the first half.

The turnaround in the Paris Creek Farms business continues, the company said, with double digit net sales growth and a positive trading EBITDA for the first half, while Saint David Dairy continues to perform solidly, despite the impacts of the COVID-19 restrictions still being felt across the hospitality and food service sectors of Melbourne.

Online was a strong platform for growth for Maggie Beer products, as its new e-commerce platform, together with the continued refinement of its digital marketing strategy allowed the business to capitalise on the busy Black Friday and Christmas shopping periods.

The traditional go-to-market retail channels and core portfolio also performed above expectations with key lines of fruit paste, pate, cheese and cooking stocks achieving positive growth, Maggie Beer Holdings said in an ASX statement. Cheese and cooking stocks were the best performing categories with increases in net sales of 76 per cent and 44 per cent respectively.

9.39am: ASX set to rebound 0.5pc

Australia’s share market is set to rebound from an eight-day low, based on futures.

Overnight futures relative to fair value suggest the S&P/ASX 200 will open up 0.5pc near 6700.

But charts favour a test of support in the 6585-6600 area after last week’s false break above the December peak near 6757.

The index dived 0.8pc to an eight-day low of 6663 in thin trading on Monday while the US markets were closed for Martin Luther King Day.

European markets gave slightly positive leads and futures suggest Japan’s Nikkei 225 will rise about 0.5pc and China’s CSI 300 will rise about 1pc.

Bingo shares should surge on a 28pc premium takeover offer for $3.50 share cash from a consortium including CPEC and MIRA.

But there will be profit-taking near the record high of $3.49 since the offer is highly conditional, non-binding and indicative.

Broker upgrades may spark gains for Domino’s, Atlas Arteria and United Malt, while Bendigo and JB Hi-Fi were downgraded, albeit with target price upgrades.

Focus turns to results from Bank of America, Goldman Sachs and Netflix later on Tuesday, followed by US Treasury Secretary-elect Janet Yellen’s Senate testimony.

Lachlan Moffet Gray 9.32am: Woolworths in hemp deal

Listed hemp oil, seed, protein ball and snack bar producer Australian Primary Hemp has announced a deal with Woolworths for the supermarket chain to carry their flagship Mt. Elephant hemp baking products from March this year.

The deal is forecast to bring $2.31m in annual sales for the hemp producer and comes after the company announced a similar deal with convenience store chain 7-11 that is expected to produce annual sales of $1m-$1.4m.

The company also announced last night it would enter a trading halt pending the announcement of a capital raise. Its share price has doubled to $0.38 cents per share since last November.

In the September quarter the company achieved sales of $332,159, up 37.1 per cent on the previous quarter, with underlying net cash outflows of $373,000.

Woolworths has signed a deal with hemp goods producer Australian Primary Hemp. Picture: Gaye Gerard

Lachlan Moffet Gray 9.03am: WAM lifts Amaysim offer

WAM Capital has upped its offer for Amaysim Australia, increasing both script and cash consideration after Amaysim revised its potential distribution by half a cent.

The WAM offer for Amaysim, which has been fully endorsed by the latter company’s board, includes a cash consideration of $0.70 cents per share, or a script consideration of 1 WAM share for every 2.675 Amaysim shares, or a combination of both.

The offer is subject to two conditions: that shareholders approve the planned $250m sale of Amaysim’s mobile business to Optus, and that there is no adverse regulatory action against the company.

The offer is expect to close on March 30.

Nick Evans 8.51am: Rio in strong finish to horror year

Rio Tinto closed out a horror with a strong performance from its flagship iron ore division, which shipped 88.9 million tonnes of ore into a roaring market for the steelmaking commodity, setting the stage for new chief executive Jakob Stausholm to kick off his reign as the Rio boss with a bumper dividend.

Rio released its December quarter production report on Tuesday, saying its Pilbara mines shipped at a 355 million tonne a year rate in the December quarter, taking the company’s annual shipments to 330.6 million tonnes. The mines Rio operates in the Pilbara produced 334.4 million tonnes of iron ore for 2020, up two per cent compared to 2019.

And the strong finish to the year ensures Rio was raking in the cash when the price was strongest. Rio said on Monday its product sold for an average $US91 a tonne from the port, $US12 a tonne ahead of the $US79 a tonne realised in 2019.

Analyst consensus had tipped Rio’s annual Pilbara shipments at 329.5 million tonnes, and production at 332.2 million tonnes.

The final result is in the middle of Rio’s annual shipment guidance of 324 to 334 million tonnes, and represents a strong finish to a horror year for the company – one so bad that the pandemic that closed economies across the globe played only a cameo role on the list of Rio’s woes.

8.44am: What’s impressing analysts today?

Atlas Arteria raised to Buy: GS

BHP PLC Cut to Hold: SBG Securities

Bendigo & Adelaide cut to Sell: GS

JB Hi-Fi cut to Neutral: CS

United Malt raised to Buy: Jefferies

Challenger target price raised 54pc to $7; Neutral rating kept: Citi

Premier Investments target price raised 30pc to $24: Equalweight rating kept: MS

Centuria Industrial REIT started at Overweight: $3.50 target price: MS

Centuria Capital Group started at Overweight; $2.75 target price: MS

Aventus Group started at Equalweight; $2.70 target price: MS

Centuria Office REIT started at Underweight: $2.00 target price: MS

Suncorp target price cut 10pc to $10.30: Overweight rating kept: MS

Domino’s Pizza raised to Outperform; target price raised 25pc to $90.30: Macquarie

8.29am: Bingo confirms $2.29bn takeover offer

Waste manager Bingo Industries said it is in talks with a consortium led by private equity firm CPE Capital over a takeover proposal valuing its equity at $2.29 billion.

The takeover offer, foreshadowed by The Australian, is called an “unsolicited, highly conditional, non-binding, indicative proposal”.

Bingo said the proposal by CPE Capital and partners including Macquarie Infrastructure and Real Assets is worth $3.50 a share in cash. That represents a 28pc premium to Bingo’s last traded price of $2.74.

Bingo said the proposal “also references a scrip alternative that is under development that would provide all shareholders with the option of electing to receive a mix of cash and unlisted scrip consideration at a lower upfront price than the cash proposal, with the potential for higher consideration over time, contingent on certain earnings thresholds being achieved post completion of a transaction.”

Independent directors of Bingo are discussing the proposal with the consortium and have allowed due diligence to take place.

Bingo said the proposal has a minimum and maximum acceptance condition that would likely require major shareholders, including Chief Executive Daniel Tartak and director Ian Malouf to accept the cash and unlisted scrip alternative.

Dow Jones Newswires

8.05am: Disneyland Paris postpones re-opening

Disneyland Paris, Europe’s biggest tourist attraction, said it now expects to reopen on April 2, seven weeks later than planned, because of the ongoing COVID-19 crisis.

Disneyland Paris said on Twitter it could not honour the original February 13 target date for reopening the theme park, and that even the April date could only be met if health conditions permitted.

The park, which employs 17,000 people, closed between March 13 and July 15 last year, and has been shut again since October 30.

According to a union source, its management expects a return to pre-pandemic levels of activity only in 2022.

The Disney group has announced 32,000 job cuts at its theme park activities worldwide by the end of the first quarter, mostly in the United States, because of the impact of the coronavirus.

Disneyland Paris remains shut because of the pandemic. Picture: AFP

AFP

7.40am: Turners upgrades full-year earnings guidance

Car sales and finance company Turners Automotive Group says it now expects full-year net profit before tax to be between $NZ33m and $NZ35, after trading “exceeded expectations”.

In November, Turners said net profit before tax was “expected to be towards the upper end” of the $28m to $31m NPBT range provided in September.

It said finance has led the majority of the uplift, with new lending volumes tracking well ahead of the prior year. The seasonal spike in finance arrears had also been more muted than previous years.

7.25am: Yellen to urge Congress to ‘act big’ on recovery

Janet Yellen, President-elect Joe Biden’s choice for Treasury secretary, will tell lawmakers that the US risks a longer, more painful recession unless Congress approves more aid and will urge them to “act big” to shore up the recovery.

Ms Yellen is set to deliver her remarks to the Senate Finance Committee, which is considering her nomination, according to a copy of her testimony reviewed by The Wall Street Journal.

“Economists don’t always agree, but I think there is a consensus now: Without further action, we risk a longer, more painful recession now -- and long-term scarring of the economy later,” Ms Yellen will say. “Over the next few months, we are going to need more aid to distribute the vaccine; to reopen schools; to help states keep firefighters and teachers on the job.”

Mr Biden’s $US1.9 trillion coronavirus relief package, unveiled last week, provides for another round of direct stimulus payments, extended and enhanced jobless benefits, funding for schools and first responders and the creation of a nationwide vaccination program. It also includes longstanding Democratic priorities, such as raising the federal minimum wage to $15 an hour and expanding paid leave for workers.

Republicans have decried the size and scope of the measure, arguing it would spend more than the economy needs. Some Republicans and Democrats have also expressed concern about the growing national debt, which at $US21.6 trillion exceeds the annual output of the US economy.

Ms Yellen aims to address those concerns in her testimony: “Neither the President-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big.”

Treasury secretary nominee Janet Yellen. Picture: AFP

Dow Jones Newswires

7.00am: ASX tipped to open higher

Australian stocks are poised for a positive open as global markets were largely steady, despite doubts about the passage of US President-elect Joe Biden’s flagship stimulus policy.

Shortly before 7am (AEDT) the SPI futures index was up 37 points, or 0.6 per cent.

Wall Street was closed for a holiday.

Yesterday the S&P/ASX 200 closed down 0.8pc to 6663 - its lowest close since 6 January - despite slightly stronger than expected China economic data.

The Australian dollar was lower at US76.79c as the greenback strengthened.

Spot iron ore is up 0.5 per cent to $US173.60 a tonne, while Brent oil is down 0.6 per cent at $US54.75 a barrel.

Gold futures are up 0.4 per cent at $US1836.80 an ounce.

5.55am: US futures steady

Global stocks were mixed and US stock futures held steady, as investors awaited a busy week of corporate earnings, economic data and central-bank decisions.

Futures tied to the S&P 500 were flat after the benchmark stocks gauge posted its biggest one-week loss since late October. U.S. stock and bond markets are closed Monday for Martin Luther King Day.

Stocks have wobbled in recent days after a strong start to the year fuelled by hopes of a vaccine-induced economic recovery that could be aided by further fiscal stimulus under the incoming administration. Though many investors expect the rally to continue, they say stocks are likely to remain bumpy in the coming weeks amid signs that high coronavirus case rates are hurting economic activity.

Dow Jones

5.50am: Tesla starts delivering China-made model

Tesla delivered its first made-in-China Model Y compact crossover vehicles, the latest milestone in the American company’s drive into the world’s largest market for electric cars.

A local Model Y buyer said he attended a Monday event at a Tesla store in Shanghai to mark the start of deliveries and received his vehicle. Tesla on Monday said via Twitter that “Model Y deliveries in China have officially begun.”

Tesla, which broke ground at its Shanghai plant two years ago, rushed to start producing cars there and expand capacity. Manufacturing cars locally helps the Palo Alto, California-based electric vehicle maker save on shipping costs and avoid import duties for the Chinese market.

The Model Y is the second Tesla vehicle that the EV maker is producing at Shanghai after the Model 3 sedan, which the company started delivering a year ago in China -- which was marked with a visit to the plant by Chief Executive Elon Musk. As it ramped up production of the sedan last year, it was also building the assembly line in Shanghai for the Model Y.

The Model 3 was the best-selling electric vehicle in China last year, with more than 138,000 sold, according to the China Passenger Car Association -- an eighth of the 1.11 million EVs sold nationwide.

People look at a Tesla Model Y car at a Tesla showroom in Beijing. Picture: AFP

Dow Jones

5.40am: European stocks steady amid Biden stimulus doubts

European stock markets were steady despite doubts about the passage of US President-elect Joe Biden’s flagship stimulus policy.

London’s benchmark FTSE 100 index was down by 0.2 per cent at the close, while Paris was slightly higher and Frankfurt added 0.4 per cent.

“With so much good news priced in over the last couple of months, stock markets have been running on fumes,” said Craig Erlam, senior market analyst at Oanda Europe.

New York markets were closed for Martin Luther King Jr. Day. Some Asian markets slipped lower following a recent rally, though Hong Kong and Shanghai rose on data showing China’s economy expanded by a forecast-beating 2.3 per cent last year.

While the reading was the weakest in four decades, it showed growth was picking up again after a devastating start to 2020 as swathes of the country were shut down to contain the deadly coronavirus.

The US dollar was mixed against other major currencies, while Bitcoin held steady and oil prices declined.

Traders began to focus on corporate results, Biden’s inauguration on Wednesday, and the chances that his huge spending plan can get through Congress.

“European markets have stumbled into a new week, with Biden’s stimulus promises doing little to help sentiment given doubts over just how much of that package will be approved in Congress,” said Joshua Mahony, senior market analyst at online traders IG.

“Speculation over whether Biden will be able to garner enough support to pass his full stimulus package remain a key concern for markets,” he added.

While broadly welcomed on trading floors, the $US1.9-trillion stimulus proposal failed to fuel fresh gains because it has already been priced in for the most part.

Concern about a frightening spike in new virus cases kept a lid on buying sentiment meanwhile, as governments are forced to impose lockdowns as they battle to get vaccine programs off the ground.

On the corporate front, shares in French supermarket Carrefour fell by 6.9 per cent to 15.46 euros after Canadian convenience store chain Couche-Tard pulled out of a mega takeover bid.

Elsewhere, newly-created European carmaker Stellantis made its debut on the Paris and Milan stock exchanges.

Stellantis -- created by the merger of France’s PSA and US-Italian rival Fiat Chrysler -- is now the world’s fourth-biggest automaker by volume. Its brands include Peugeot, Citroen, Fiat, Chrysler, Jeep, Alfa Romeo and Maserati.

On Monday, its shares gained 6.9 per cent to 13.44 euros in Paris, and were 7.6 per cent higher at 13.52 euros in Milan. The group is to make its New York stock market debut on Tuesday.

Stellantis, the car giant created by the merger of France's PSA and US-Italian rival Fiat Chrysler, made its debut on the Paris and Milan stock exchanges. Picture: AFP

AFP

5.30am: Total takes stake in Adani arm

French oil giant Total said it would pay $US2.5 billion for a 20 per cent stake in India’s Adani Green Energy Limited (AGEL), a major solar energy producer, as it diversifies away from fossil fuels into renewables.

Along with the 20 per cent direct stake comes a 50 per cent holding in a portfolio of solar energy assets operated by AGEL, part of the Adani group, Total said in a statement.

The two companies have had a partnership accord since 2018, when Total acquired a stake in Adani Gas Limited.

India relies heavily on coal but has been moving into renewables and natural gas in an effort to reduce damaging pollution levels and costs.

Total described AGEL as the world’s biggest solar energy developer. It operates 3.0 gigawatts of renewable energy assets, with another 3.0 GW under construction and 8.6 GW in development.

AFP