Trading Day: live markets coverage; ASX lifts amid corporate flurry; plus analysis and opinion
The sharemarket posts gains as China comes back online, while Australia’s largest citrus player hits an all-time high.
Welcome to Trading Day for Monday, October 9.
Samantha Woodhill 5.00pm: Stocks step up as gold stocks shine
The local sharemarket closed higher, recovering slightly after losses last week.
The benchmark S & P/ASX200 was up 28.6 points, or 0.5 per cent, at 5,739.3 points. The broader All Ordinaries index was up 27.7 points, or 0.48 per cent, at 5,805.1 points.
“What we’re seeing today is the expression of that confidence, now that Hong Kong, Shanghai are back from holidays and a lot of investors and traders who were away for school holidays have returned to their desks in Australia,” CMC Markets Chief Market Strategist Michael told The Australian.
He said last week’s falls were “curious” given the positive leads from global markets.
“The light volumes that we saw suggested that it was just a drift and that it had more to do with holidays than any concerns about the Australian economy,” Mr McCarthy said.
Commonwealth Bank gained 0.54 per cent, closing at $76.71. Westpac added 0.68 per cent to close at $32.36 and ANZ rose 0.75 per cent to finish at $29.70. NAB climbed 1.18 per cent to $31.71.
4.55pm: Warburg moves into Centuria register
Warburg Pincus entity ESR is buying up to 14.9 per cent of Centuria through Credit Suisse in what is said to be a strategic stake in the company.
Shares are being acquired at $1.48 each.
The stock (CIP) closed at $1.30.
It comes after the private equity-backed entity raided the register of Propertylink (PLG) last week.
ESR now owns almost 20 per cent in Propertylink, which Centuria itself launched a takeover bid for but was rejected.
More to come from DataRoom
Bridget Carter 4.49pm: Credit Suisse Warburg’s Centuria agent
Credit Suisse is in the market buying up to 15 per cent in Centuria (CIP) for Warburg Pincus.
More to come from DataRoom.
Bridget Carter 4.45pm: Warburg Pincus eyes Centuria stake
Warburg Pincus is in the market for 15 per cent of Centuria (CIP).
More to come from DataRoom.
Andrew White 4.20pm: Coal to fire amid gas ‘absence’
Gas prices are likely to stay high for the next decade because of the long lead time on bringing on new supply, former resources minister Ian Macfarlane warned today
In comments painting a more rosy outlook for coal-fired power, the Queensland Resources Council chief executive said that until there was enough gas to supply seven liquefied natural gas export trains plus the domestic market, there would not be a path to lower prices for gas.
The high price for gas, which is used to generate up to 15 per cent of electricity and increasingly sets the price for power, would help underwrite the use of coal for a generation.
4.15pm: Costa eyes record on dual sweetener
Costa Group sealed a record closing high of $5.62 after it jumped almost 3 per cent, investor sensors conditioning to a sweetening of the citrus market after it was spruiked yet again to investment bank clients.
After a site tour of Costa’s South Australian citrus “assets”, Goldman Sachs chimes in with sentiment penned by JPMorgan late last month that the investor community may have underestimated the size and quality of Costa’s domestic citrus offering, particularly when 70pc of product is exported — mainly to Japan — and sold at a premium to local market pricing.
“Competitive advantages include: scale, quality of assets and fruit, access to water and the fact that the orchards are located in the only major ‘fruit fly free’ citrus growing region in Australia,” said Goldman analysts, keeping their “buy” ratings and upping their 12-month price target 6pc to $5.95.
Costa Group is the largest Aussie citrus player by Goldman’s estimates, holding 16 per cent of market share.
JPMorgan swung 180 degrees on Costa last month, upgrading it to “hold” from “lighten” after making similar observations, but remained cautious light of Costa’s share price action of late, pitching its 12m target price at a discount to its last trade.
“The potential for higher citrus export pricing to offset margin declines in the berry category leads to our change in view, as we now see no clear negative catalyst,” said JPMorgan analysts last month.
“We are also aware that next week’s site tour could be a positive catalyst for investors to gain a better understanding of the opportunities in citrus.”
And so it seems, at least for Goldman — the market still slapping a discount on Aussie citrus play by its forecast.
CGC closed up 2.9 per cent on $5.62
4.00pm: CBA vows ‘vigorous’ defence
Ben Butler and Michael Roddan write:
Lawyers mounting a class action against the Commonwealth Bank say an apology for the bank’s money laundering scandal delivered by boss Ian Narev is welcome — but not enough.
“It’s a good thing, but in the end what would have been a better thing would have been if the bank had behaved responsibly towards its shareholders in the first place,” Maurice Blackburn head of class actions Andrew Watson said today.
He was speaking after the class-action suit against CBA — potentially Australia’s largest ever — was filed today in the Federal Court, alleging the lender breached anti-money laundering legislation thousands of times — read more
CBA closed up 0.5 per cent at $71.76
3.20pm: Gold bugs’ glimmer of hope yearn
Listed gold miners litter the top performing stocks on the ASX as the underlying commodity finally catches a break after a month-long slide to its October 6 lows of $US1263.84/ounce.
Its US dollar-denomination certainly hasn’t helped a bull case over the last month as Federal Reserve rate hike resolve firms and currency traders gradually batter the hatches in terms of greenback exposure:
The typical knee-jerk reaction of global markets to seek a robust, near-tangible safe-haven investment in times of distress was on show this morning, according to ANZ senior economist Joanne Masters.
“Safe-haven buying spiked after tensions on the Korean Peninsula took a sharp move higher,” said Ms. Masters, “this saw the precious metal recover those early losses and end the day higher.”
In tandem, ASX-listed gold miners rose:
However, longer-term investors would be forgiven for averting their eyes on this occasion, while gold bugs hanker for signs of a sustainable pick up from at least one of the many pressures on the gold market.
Spot gold last $US1283.41
John Durie 3.15pm: Worley gets on with business
There is a certain irony in WorleyParsons buying Amec Foster Wheeler’s UK oil and gas assets to help the target complete a global merger with Scottish based Wood Group.
The UK competition regulator insisted on the sale to clear the $US2.7 billion deal and Worley’s Andrew Wood was a willing buyer.
This also marks a resurgence in Wood’s business, which had gone from $12.9 billion booming mining and oil consultancy in 2007 to a struggling company in early last year when it was valued in the market at just $780 million.
3.00pm: The sour rationality for big brands
Kellogg’s Cornflakes from Woolworths versus Cornflakes from Aldi.
The big brand costs 2.7 times more, but fund manager Django Davidson can’t taste the difference.
On the one hand it shows why investors are in love with global brands that use advertising to boost their profits, but it also shows what’s at stake if consumers start acting more rationally.
In Sydney for investor meetings this week, Davidson, a founding partner of British-based fund manager Hosking Partners, outlined his “Death of the Brand” hypothesis to The Weekend Australian.
Hosking Partners is a long-only global boutique equity fund managing $US9 billion ($12.3bn), including more than $US3bn for Australian Super funds.
In a nutshell, large branded suppliers of consumer staples are a busted flush.
2.15pm: Worley’s ‘sensible’, well-priced UK play
WorleyParsons’ acquisition of AmecFW’s UK oil & gas assets from WoodGroup is “sensible” and “reasonably priced” according to Macquarie.
“This gives WOR a leading capability in the UK North Sea maintenance, modifications and operations (MMO) market, which has a relatively small amount of competitors,” the broker says.
“WOR previously didn’t have a presence in the UK North Sea and this acquisition increases WOR’s MMO exposure to 18 from 7 per cent previously.”
Macquarie notes that the UK North Sea is relatively low growth and mature but should benefit from gradual improvement in global oil & gas capex.”
Macquarie has an “outperform” rating and $13.18 target on WOR.
WOR remains in a trading halt at $14.24
Alan Kohler 1.55pm: Marx, Phillips and a frictionless ideal
Yesterday was the 100th anniversary of Leon Trotsky’s election as president of the Bolshevik-dominated Petrograd Soviet and the formation of the third coalition government of Russia following the abdication of Nicholas II in March.
That led directly to the October Revolution of 1917. On October 23 the Bolshevik majority in the soviet voted for armed uprising and two days later Trotsky and Lenin led the final assault on the Winter Palace and the capital fell to the Bolsheviks.
It’s easy to forget now, with the benefit of hindsight that includes the ignominious collapse of the Soviet Union in 1991, what an optimistic moment that was.
The Russian Revolution had arisen from the Utopianism of Karl Marx, which in turn came out of the French Enlightenment and the inequality of the industrial revolution. In the early 20th century communism seemed the best hope for the world, and for decades after that western intellectuals were still on board.
1.35pm: Buffet’s bet on fossil fuel highway
Holman W. Jenkins Jr. writes:
A sucker is born every minute, and Warren Buffett just proved it. He agreed to spend an undisclosed sum of his shareholders’ money to buy a controlling stake in Pilot Flying J, the truck-stop chain that sells food, coffee and diesel fuel to truckers. After all, aren’t truckers about to be replaced by robots, and diesel by battery power?
The sucker in this scenario, we add, is anyone who believed such futuristic forecasts in the first place.
Said Mr Buffett last week on Bloomberg TV: “Who knows when driverless trucks are going to come along and what level of penetration they have?”
He might have added that Bloomberg itself has been a key offender in overhyping vehicle advances. It won lots of play for its estimate in July that electric cars would overtake fossil fuel-powered cars in affordability by 2025. Little mentioned was the fine print: its forecast depends on regulators being willing to pile on enough taxes and mandates to cancel out the superior cost-effectiveness of petrol-powered cars — read more
The Wall Street Journal
Andrew White 1.15pm: Energy industry pushes for CET
Energy industry leaders have warned the Turnbull government that it will need a “transition mechanism” such as the clean energy target for the electricity system, as Energy Minister Josh Frydenberg gave the clearest sign yet of abandoning further subsidies for clean power.
Former energy minister Ian Macfarlane, AGL Energy chief executive Andy Vesey and Australian Energy Regulator chair Audrey Zibelman said the CET would be a useful means to stimulate investment in new generation capacity.
Mr Frydenberg told the National Energy Summit in Sydney that the government was considering the CET recommended by Chief Scientist Alan Finkel against a backdrop of fast-falling costs for renewable generation and would prioritise reliability and dispatchability over emissions reduction.
1.10pm: Wheatstone starts pumping gas
AAP
Woodside Petroleum says the Wheatstone project in Western Australia has started producing liquefied natural gas, with the first cargo to be shipped in the coming weeks.
Woodside holds a 13 per cent stake in the Chevron-operated project, which has been plagued by cost blowouts and construction delays.
Production is expected to start from the second train in six to eight months, Woodside said, taking full capacity to capacity of 8.9 million tonnes per annum — read more
WPL last down 0.3pc at $28.93
12.45pm: DATA: China Caixin PMIs fall
Private sector statistician Caixin PMI data showed both composite (51.4) and services (50.6) activity growth slowed across China in September, while official data released September 30 showed expansion against relevant reads in prior periods.
Fifty (50) on this scale indicates steady growth in activity on the month prior, while that above or below this number indicates expansion or contraction respectively.
The Australian dollar fell by 0.2 per cent on the release of the data to trade 0.1 per cent higher at US77.72 cents.
12.40pm: ASX200 posts broadbased gains
The local sharemarket lifts as buyers flood back into Aussie shares in the first session following the resumption of China activity after a week of national holidays.
The S & P/ASX200 index remains 0.8 per cent in the black at 5756.4
Rio Tinto (+1.6pc) and Telstra (+1.7pc) lead gains, while the Big Four banks all trade at least 0.8 per cent higher.
Mantra shares trade 17.5 per cent higher at $3.80 after it confirmed a takeover offer from Accor, while Costa Group is on track for a record closing high at $5.67 after a favourable Goldamn Sachs report.
The Australian dollar trades 0.2 per cent higher at US77.78 cents ahead of Caxin China PMI data released at 12.45pm (AEST) after a national Golden Week holiday slowed down acitivty in our largest trading partner last week.
Bridget Carter 12.18pm: Suncorp readies life insurance sale
Listed insurer Suncorp will send out information memorandums tomorrow for the potential sale of its life insurance operations, which some estimate could be sold for several hundred million dollars.
About four parties are said to be circling the business that is subject to a strategic review and potential sale through Luminis Partners and Nomura.
More to come from DataRoom.
SUN last $13.35
Richard Gluyas 12.11pm: NAB’s Apple Pay gap
There have been curious developments over the Tasman in relation to Apple Pay, with National Australia Bank’s BNZ unit announcing today it will offer the service to customers by the end of this month.
Yes, that’s the same NAB that tried to enlist the Australian Competition and Consumer Commission in a nasty spat with Apple over access to the iPhone’s near-field communication antenna.
Success would have enabled the bank to offer its own digital wallet to iPhone users in competition with the Apple’s wallet, but without using Apple Pay.
Bridget Carter 11.48am: AMP reveals US rail acquisition
AMP Capital has revealed the purchase of ITS ConGlobal — an operator of intermodal railroad and auto terminals.
It comes after The Australian’s DataRoom flagged on September 25 that AMP’s infrastructure arm was poised to embark on a major acquisition in the US.
In a statement today, AMP Capital described the acquisition on its largest ever North Americal deal, buying the operation from Carlyle Infrastructure Partners — more to come from DataRoom.
AMP last up 0.4 per cent at $4.81
John Durie 11.43am: Worley taps $303m UK foothold
Engineering group WorleyParsons has entered the UK’s North Sea market with the acquisition of Amec Foster Wheeler’s UK oil and gas assets for $303 million.
AFW UK Oil and Gas is being sold to answer competition concerns raised by the Wood Group’s £2.2 billion takeover of rival Amec Foster Wheeler.
The deal will lift WorleyParsons’ earnings and accelerate its efforts to build a global business offering maintenance, modifications and operations — read more
WOR last $14.24 in trading halt.
Rachel Baxendale 11.36am: Pollies double down on clean energy
Bill Shorten has renewed Labor’s commitment to a 50 per cent renewable energy target after Energy Minister Josh Frydenberg all but ruled out proceeding with the clean energy target proposed by Chief Scientist Alan Finkel.
Speaking at the National Energy Summit in Sydney, the Opposition Leader said Labor had 69 votes in a House of Representatives where the government has a majority of one.
“We are ready to vote for a clean energy target,” he said.
11.20am: Mantra shares soar on Accor bid
Mantra shares jumped 18pc to a 16-month high of $3.81 after resuming trade after the company confirmed a takeover bid by Accor.
Mantra has allowed due diligence to Accor after its indicative, non-binding bid to buy the hotel chain for $3.96 a share.
Investors are selling into the rally because the takeover proposal is indicative and non-binding, but there has long been potential for competing bids from other hotel chains like Marriott Hotels.
If there were to be a competing bid it would most probably be better than $3.96.
The other possibility is that Accor could now try to raid Mantra’s share register.
The 23 per cent premium offered by Accor doesn’t seem over the top given the share price history and long-term outlook for Australian tourism.
Moreover, the share register is wide open since the only major shareholders are Super funds.
MTR last up 16.4pc at $3.77.
11.05am: Kim promotes sister to politburo
North Korean leader Kim Jong-un has promoted his sister to a senior ruling party post and praised the country’s nuclear weapons program in a weekend speech, calling it a “treasured sword”.
Kim Yo-jong, 28, has been made an alternate member of the party’s powerful politburo, the decision-making body presided over by her brother, the official KCNA news agency said.
The promotion was announced along with those for dozens of other top officials at a party meeting led by the leader on Saturday — read more
AFP
10.40am: Court rules ResMed patents breached
A German court has ruled two ResMed European patents are subject to infringement by Fisher & Paykel’s Simplus, Eson and Eson 2 mask products.
ResMed will now defend those patents before the European Patent Office.
RMD last up 0.2 per cent at $9.94
10.35am: Select Harvest confirms bid snub
Select Harvests Ltd. confirms it has rejected a $5.85-a-share cash offer from Mubadala last month as too low and highly conditional, and refused to allow the fund access to its books to carry out due diligence.
“It is possible that Mubadala may revise its indicative proposal or withdraw its indicative proposal, but to date no revised proposal reflecting a higher headline value has been received,” Select Harvests said in a regulatory filing.
Select Harvests separately said it planned to raise around $65 million, including by issuing new shares at $4.20 each, to reduce debt levels that had grown with the acquisition of Jubilee Orchards in the 2017 fiscal year and other developments. Management said gearing — a measure of a company’s debt relative to equity — would fall to 12.3pc from 37.6pc following the equity raising — Dow Jones Newswires
SHV last $4.20
Michael Roddan 10.35am: CBA class action steams ahead
A class-action suit — potentially Australia’s largest ever — has been filed against the Commonwealth Bank of Australia in the Federal Court following explosive allegations the lender breached anti-money laundering legislation thousands of times.
Proceedings, brought by class action specialist Maurice Blackburn, have now begun after the case was filed in the court on Monday on an open basis, alleging the lender failed to keep shareholders up to date while making “misleading and deceptive” statements about its compliance with anti-money laundering laws.
The class action suit include shareholders of CBA who purchased shares between mid-July 2015, when it is understood the bank first learned it had been failing to send transaction reports to the anti-money laundering agency Austrac, and early August 2017, when the agency filed its allegations in the Federal Court — more to come.
CBA last up 0.6 per cent at $76.77
10.27am: ASX200 lifts as buyers return
The Australian share market has opened higher, seemingly shrugging off last week’s slightly lower close on Wall Street and renewed worries over North Korea. At 1015 AEDT on Monday, the benchmark S & P/ASX200 index was up 21.9 points, or 0.38 per cent, at 5,732.6, while the broader All Ordinaries index was up 21.5 points, or 0.37 per cent, at 5,798.9 points.
In futures trading, the SPI200 futures contract was up 19 points, or 0.33 per cent, at 5,716 points — AAP
Producers note: Trading volume in the top 200 remains 50 per cent below average for early Monday.
Rachel Baxendale 10.23am: Frydenberg down on clean energy target
Energy Minister Josh Frydenberg has all but ruled out a clean energy target, saying the transition to lower greenhouse gas emissions cannot come at the expense of the reliability and affordability of our electricity system.
Mr Frydenberg told the National Energy Summit in Sydney that emissions in the electricity sector had fallen over the last two quarters as a consequence of the closure of coal-fired power stations and flatlining demand, but said this could not continue if it made power less reliable or affordable.
10.10am: Newcrest scurries to lift CEO incentives
Newcrest will increase long-term incentives for Sandeep Biswas in a bid to keep the chief executive with the gold miner.
Mr Biswas, who pocketed $6 million in 2017, will receive a lift in long-term incentive grants from 150 per cent to 180 per cent of total fixed remuneration from November, Newcrest said in its annual report on Monday. The company said the change, which is subject to shareholder approval, is intended to “recognise the highly competitive global market for executive talent, particularly among the global gold mining companies with which Newcrest competes” — AAP
NCM last $21.55
10.10am: Mantra receives $1.2bn Accor takeover bid
Mantra has entered into a trading halt after it received a $1.195 billion takeover bid from French hotel giant Accor.
It comes after The Australian’s DataRoom reported today that Accor was in exclusive due diligence to buy the listed Australian hotel operator.
Mantra told the Australian Securities Exchange Monday that it received an indicative and non-binding proposal from Accor in relation to a potential “control” transaction via scheme of arrangement at $3.96 per share.
The offer is $4.02 per share less the financial fiscal 2017 dividend that has already been paid and including a potential special dividend.
Accor is working with investment bank UBS.
Mantra has granted Accor access to due diligence to determine if a transaction can be agreed and recommended unanimously by the Mantra board.
Mantra shares remain in a trading halt and are due to resume trade at 11.10am (AEST).
MTR last $3.23. — more to come from DataRoom
Bridget Carter 10.03am: Mantra confirms Accor takeover bid
Mantra (MTR) has confirmed reports in The Australian’s DataRoom column today that it has received a takeover proposal from Accor.
More to come.
9.56am: ASX200: China, traders to bring clarity
Local index futures trade tips the share market to fall at the open after Wall Street ended its streak of record highs and investors keenly eye clarity from developments in Asia-Pacific.
SPI futures tip the S & P/ASX200 index to fall 6 points, or 0.1 per cent from its last close at 5710.7.
Ahead of the first local session following China’s Golden week holidays, a spike in the spot price in gold indicates slight risk aversion ahead of fresh signs from our largest trading partner after a week-long halt to activity.
“After a week of light volumes and fluky markets the return of investors from holidays could see Asia Pacific markets chart their own course today,”
“Volumes should lift in trading today after autumn holidays across Asia,” said CMC chief market strategist Michael McCarthy, “in Australia many investors are returning from school holidays. Manufacturing data around the globe last week showed clear expansion …[seeing] shares, copper and oil all gain ground.”
“Whether Asia Pacific markets follow these leads will be answered in trading today.”
In corporate news, Worley Parsons has entered into a trading halt after penning a deal to purchase UK oil and gas services business AFW, while investors eye hotelier Mantra shares on increasing speculation of a takeover by Accor.
Currency watchers await China’s Caixin PMI read for September after official data showed an increase in manufacturing and non-manufacturing activity.
The Australian dollar trades slightly higher at US77.72 cents ahead of the release.
Bridget Carter 9.52am: Netwealth eyes $879m float
Netwealth has set its price range at between $3.10 and $3.70 per share for its initial public offering, taking its overall value to up to $879.2 million.
The price equates to between 27 and 32.2 times the group’s forecasted net profit for the 2018 financial year.
Netwealth will raise between $214.8m and $256.4m through the issue of 69.3 million securities when it lists in the coming weeks on the Australian Securities Exchange and the group will be worth between $736.6 million and $879.2m once floated.
The expectation has been that the float of the wealth manager will be well supported after receiving the tick of approval following the analysts marketing in recent weeks — more to come from DataRoom
9.35am: Austal wins US navy ship contract
WA-based ship builder Austal has won a contract to build the US Independence Class, Littoral Combat Ship to be built at its shipbuilding facilities in Mobile Alabamam as its second LCS contract win this calendar year.
The exact value of the award is confidential, but is under the US congressional cost cap of A$750 million per ship.
ASB last $1.62
Bridget Carter 9.32am: Netwealth IPO price range set
Netwealth sets IPO price range at between $3.10 and $3.70 per share.
More to come from DataRoom.
9.30am: Acquisitive Growthpoint lifts guidance
Listed-RENT Growthpoint has revised its FY18 funds-from-operations (FFO) and distribution guidance after its recent acquisition of four Perth warehouse lots, an 18.2 per cent stake in Industria RENT and “favourable leasing outcomes” over the first-quarter of FY18.
Growthpoint has increased its FFO forecast 3 per cent to “at least” 24.3 cents-per-share (cps), and full-year shareholder distribution guidance 1 per cent to 22.2 cps.
GOZ last $3.19
9.15am: Worley grabs UK energy name
Worley Parsons has entered into a trading halt this morning after it said it has penned an agreement to purchase UK oil and gas maintenance, modifications and operations provider AFW for $303 million.
The stock will be suspended from trade pending the outcome of its $322m capital raising initiative for the purchase, also announced this morning.
WOR last $14.24
8.50am: Goldminer Breaker catches suitors’ eyes
Bridget Carter and Scott Murdoch write:
Breaker Resources Group has become a hot topic in the gold mining industry, with some predicting the $100 million listed group will be the next to be swallowed in a takeover.
Evolution Mining, Northern Star and Saracen Mineral Holdings are all the kinds of companies that would buy it, according to sources, who describe it as attractive due to the good quality and reasonable scale of its main asset.
Goldminers are eager to consolidate but few acquisition opportunities are said to exist in the market — rea d more from DataRoom
BRB last $0.67
8.40am: Pilbara Minerals gets Pilgangoora nod
Lithium producer Pilbara Minerals has been given approval by thee Department of Water and Environmental Regulation for the ongoing operations and ancillary plant of its Pilgangoora Lithium-Tantalum project in Western Australia.
Last month, the miner struck a deal with car manufacturer Great Wall to supply up to 150,000 tonnes a year of source mineral spodumene concentrate from the project for use in the carmaker’s electric and hybrid vehicles.
PLS last $0.78
Sarah-Jane Tasker 8.32am: Medibank invests in home rehab
Health insurance giant Medibank is beefing up its push for more home care with a $4 million investment in knee and hip rehabilitation, to shift patients out of the expensive hospital setting.
Andrew Wilson, Medibank’s group executive of healthcare and strategy, said the insurer wanted to provide more healthcare choices for its customers, no matter what their needs were.
“If you look around the world, more and more care is being delivered in the home,” he said.
The Medibank executive added that one of the insurer’s key strategic pillars was to promote choice — read more
MPL last $2.97
8.30am: Accor closes in on Mantra
Bridget Carter and Scott Murdoch write:
Speculation is mounting that global hotel chain Accor is in the final stages of negotiations to buy listed hospitality company Mantra Group.
The hotel industry is abuzz with talk that Accor, the group behind the Ibis, Mercure and Novotel hotel brands, is in exclusive due diligence to buy Mantra, and that JLL’s hotel division is working on the transaction.
Boutique advisory firm Highbury Partnership is understood to be in Mantra’s corner as defence adviser. Highbury worked on its float two years ago with UBS and Macquarie Capital — read more from DataRoom
Richard Gluyas 8.25am: NAB to pioneer data-sharing
National Australia Bank will be the first major bank to share positive and negative credit information about its customers with credit bureaus, saying it will start to roll out comprehensive credit reporting by next February.
NAB’s move, which will increase the amount of information held by companies like Veda, including credit limits and loan repayment histories, will intensify pressure on rivals to accelerate their own CCR plans, ahead of Wednesday’s third grilling of the major-bank chief executives by the David Coleman-chaired parliamentary economics committee — read more
NAB last $31.34
7.50am: ASX set for flat or weaker open
The Australian share market looks set to open slightly weaker, following a slightly lower close on Wall Street and caution after a report that North Korea is preparing to test a long-range missile.
At 7.05am (AEDT), the share price futures index was down six points, or 0.11 per cent, at 5,691.
US stocks on Friday ended slightly lower, ending a six-day run of record highs as the first monthly decline in US non-farm jobs in seven years dampened sentiment and pharmacy shares fell.
The Labor Department’s closely watched jobs report showed non-farm payrolls fell by 33,000 in September as hurricanes Harvey and Irma left displaced workers temporarily unemployed and delayed hiring.
The Dow Jones Industrial Average fell 0.01 per cent, while the S & P 500 lost 0.11 per cent, but the Nasdaq Composite added 0.07 per cent.
Locally, there is no major economic news today, while in equities news, Domino’s will hold its investor day briefing.
The Australian share market closed higher on Friday, boosted by the mining, energy and banking sectors, ahead of key market-moving US jobs data. The benchmark S & P/ASX200 closed up 58.9 points, or 1.04 per cent at 5,710.7 points.
The broader All Ordinaries index ended up 57.1 points, or one per cent, at 5,777.4 points.
AAP
7.05am: Dollar edges up
The Australian dollar is slightly higher against its US counterpart, which ended lower on Friday.
At 6.36am (AEDT), the Australian dollar was worth US77.73 cents, down from US77.64 cents on Friday.
The US dollar slipped after a report that North Korea is preparing to test a long-range missile, reversing earlier jumps after weaker than expected US jobs data for September raised the likelihood of an interest rate hike in December. The Australian dollar made a three-month low at US77.33c after the US data, but later recovered some ground.
The local currency remains vulnerable as long as the US dollar’s recovery continues, Westpac’s Imre Speizer said.
“If the RBA remains firmly on hold, as we expect, and the US dollar rises on delivery of a US Fed interest rate rise in December, then the Australian dollar could fall to 0.76 by year end,” he said in a note.
The Aussie dollar is lower against the yen and the euro.
AAP
7.00am: ASX set to edge lower
The Australian share market is expected to start the week flat or slightly lower following Wall Street’s mixed finish on Friday.
At 6.55am (AEDT) the SPI futures index was down six points.
CommSec chief economist Craig James says trading is likely to begin cautiously today as local investors wait for the release of housing data later in the week.
“Expect to see a modest gain in the number of home loans, with investors already starting to look at Brisbane and Adelaide markets,” Mr James said. Investors were being turned off by affordability constraints in Sydney and Melbourne, Mr James said.
Wall Street saw a mixed close to its markets after a US employment report showed the first drop in the number of jobs in seven years, with the Dow and S & P 500 both slipping from record all-time highs.
The broadbased S & P 500 fell 0.1 per cent to 2,549.33, snapping a six-day streak of record peaks. The Dow Jones Industrial Average dropped a hair to 22,773.67, while the tech-rich Nasdaq Composite Index gained 0.1 per cent to 6,590.18, finishing at a record for the sixth straight session.
Mr James said the US jobs figure was likely an effect of hurricanes Harvey and Irma, and unemployment was actually at a 16-year low and there had also been a rise in wages.
While US stocks closed slightly lower on Friday, the S & P 500 rose 1.2 per cent for the week, the Dow added 1.6 per cent and the Nasdaq gained 1.5 per cent. European markets were also mixed, with the UK’s up and German stocks down.
“In terms of international flashpoints affecting the markets, it’s still North Korea and now the Catalonia unrest,” Mr James said.
“With reports North Korea may be preparing to test another long-range missile, it’s certainly in the back of investors minds.”
On Friday the Australian share market closed higher, boosted by the mining, energy and banking sectors.
The benchmark S & P/ASX200 closed up 58.9 points, or 1.04 per cent at 5,710.7 points. The broader All Ordinaries index also closed up, by 57.1 points, or one per cent, at 5,777.4 points.
AAP
Energy stocks rebound leads ASX higher
The local sharemarket extended gains in afternoon trade, driven by a sharp rebound in energy stocks and buoyant gold miners. Jobs data won't push RBA rate cut in May. BHP gains on steady March quarter. Woodside spikes on LNG deal, oil price.
Energy stocks weigh as ASX closes flat; Sigma’s $297m selloff
Sigma's billionaire director cashes in. Star shares down after roller-coaster start. Zip top gainer. BOQ lifts on profit beat. Asian markets red as Nvidia-led falls loom. China warns of US tariff pressures.