The ASX 200 is up 5 points in mid morning trade after a quiet night (ahead of US/UK holiday). Materials best, Staples, Utilities and banks worst. VOC offer at $5.25, AIZ aircraft, FPH result. WOW finished buy-back. Expect a subdued session. #ausbiz


  • Ex-dividend – Contango Income Generator (CIE) 1.1c, Elders (ELD) 9.0c, Whitefield (WHF) 10.0c,
  • China – Industrial Profits (YTD)
  • BoJ Gov Kuroda Speech
  • Japanese data – Leading Economic Index Final, Coincident Index Final


  • UK and US markets closed tonight


  • Vocus (VOC) – Has received a confidential, nonbinding, indicative proposal from EQT Infrastructure (“EQT”) at $5.25. The Board has granted non-exclusive due diligence access.


  • Fisher & Paykel (FPH) – 10% growth in net profit after tax to a record NZ$209.2 million; 8% increase in final dividend to 13.5 cps (2018: 12.5 cps); 9% growth in operating revenue to a record NZ$1.07 billion, 8% growth in constant currency; 12% growth in Hospital operating revenue, 11% growth in constant currency; Revenue growth of 20% in constant currency for consumables used in non-invasive ventilation. Optiflow nasal high flow therapy and surgical applications, accounting for 62% of Hospital consumables revenue; 6% growth in Homecare operating revenue, 4% growth in constant currency; Investment in R&D was 9% of revenue or NZ$100.4 million; 86% of the company’s revenue was generated from recurring items, such as consumables and accessories.“We expect full year operating revenue for the 2020 financial year to be approximately NZ$1.15 billion and net profit after tax to be approximately NZ$240 million to NZ$250 million. Recent changes introduced by the New Zealand Taxation (Research and Development Tax Credits) Act 2019, a significant reduction in patent litigation costs and forecast currency benefits have been factored into our earnings guidance for 2020.


  • Air New Zealand (AIZ) – Commitment to purchase eight Boeing 787-10 Dreamliner aircraft powered by GE Aviation’s GEnx-1B engines. Contract value US$2.7bn on list prices 9altohugh significant discount. The first will join the fleet in 2022.


  • Suncorp (SUN) – CEO and Managing Director Michael Cameron stepping down but will remain in an advisory capacity until 9 August 2019 following the release of Suncorp’s full year results. Has appointed Group CFO Steve Johnston as Acting CEO. Outlook statement “While the external operating environment remains challenging, Suncorp confirms its FY19 cash earnings are in line with market expectations. As noted at the interim result the external operating environment including natural hazards above allowance, investment market performance and unforeseen regulatory costs will impact the Group’s FY19 reported result and outlook.”



US and UK markets closed on Monday. Pretty quiet overall

  • Domestically – Building permits, CAPEX and private sector credit. The CAPEX number flows through to GDP on June 6.
  • China – Industrial profits on Monday and the official PMI numbers
  • Japan – the key data will be unemployment, retail sales, industrial production, housing starts and consumer confidence on Friday.
  • UK consumer confidence, house prices and consumer credit and lending
  • US – second estimate of GDP (1st estimate 3.2%), PCE price index, Conference Board consumer confidence



GLOBAL MARKETS LAST WEEK. Tech underperformed, iron ore ↑, oil smashed, nickel surprises, Aussie 10 year at 1.52%.

AUSSIE MARKET LAST WEEK – Strong outperformance driven by post election bank rally. IT, Energy and Staples worst. big caps best. Small Ords -ve.





US EQUITIES – S&P 500 +4 (+0.14%), Dow +95 (+0.37%), NASDAQ +9 (+0.11%).

Main themes –

  • Low volume trading ahead of three-day weekend
  • Trade – President Trump said the US could resolve issues with Huawei in a trade deal

EUROPEAN MARKETS – All higher. STOXX600 +0.56%, UK FTSE +0.65%, German DAX +0.49%, French CAC +0.67%


  • The USD is weaker at 97.61.
  • The Aussie dollar is higher at US69.30.

BONDS – 2-yr: +5 bps to 2.16%, 3-yr: +5 bps to 2.11%, 5-yr: +3 bps to 2.12%, 10-yr: +3 bps to 2.32%, 30-yr: +2 bps to 2.75%


  • Oil – WTI futures were up 1.2% to US$58.63 a barrel but over the week are still down 5.9% on the trade war/global growth implications
  • Iron Ore – IRESS has iron ore up US$1.50 at US$105.50. CommSec has iron ore up US$1.20 or 1.2% to US$103.65 a tonne.
  • LME metals – All higher. Cu +0.59, Ni the highlight +4.54%, Al +0.28%


  • US economic data – April Durable Orders -2.1% (consensus -2.0%; prior 1.7%) and Orders ex-transportation 0.0% (consensus 0.2%; prior -0.5%)
  • Brexit – British Prime Minister Theresa May announced that she will resign on June 7. The European Commission responded to the announcement, noting that the resignation does not change the EU’s position on Brexit.
  • Military action – 1,500 troops will be deployed in the Middle East. The deployment will consist of 900 new troops and 600 troops who are already in the region.
  • Westpac and St George are now forecasting 3 RBA rate cuts – June, August and November.
  • Japan’s Prime Minister Shinzo Abe is reportedly considering a visit to Iran in June.

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