The ASX 200 is up 11 points in mid morning trade despite mixed night. GMG result lifts REITS, IT and gold lag. CGC & BWX win the result low & highlights. HSN & BVS notable mentions. Jackson Hole central bank bash ahead #ausbiz



  • Ex-dividend – ARG Argo Investments (ARG) 17.0c, The Citadel Group (CGL) 6.0c, Coronado Global Resources (CRN) 11.5c, Infomedia (IFM) 2.2c, Ingenia Communities (INA) 5.8c, IPH 0c, LendLease (LLC) 30.0c, Steadfast Group (SDF) 5.3c, Super Retail Group (SUL) 28.5c
  • Results – BWX, Goodman Group (GMG), Ardent Leisure (AAD), IRESS Ltd (IRE), Conventry Group (CYG)
  • Japanese inflation


  • US economic data – New Home Sales


  • Commonwealth Bank (CBA) – Executive Leadership Team Update. 2 new appointments. Carmel Mulhern has been appointed to the role of Group Executive Group General Counsel and Governance. Scott Wharton has been appointed to the new role of Group Executive, Program Delivery. Update on Divestment of Australian Life Business. Revised transaction path with joint co-operation agreement, reinsurance arrangements, partnership milestone payments and a statutory asset transfer. The aggregate proceeds for CBA from the transaction ~$2,375m, a reduction of $150m from the original sale price. Implemented in a staged manner throughout FY20, CBA receives ~$750m of proceeds and distributions by the end of 1H FY20 and remaining $1,625m by the end of FY20
  • Brickworks (BWK) – Acquires US brick manufacturer Sioux City Brick for US$32m. Sioux City has two modern manufacturing plants in Iowa, and has a leading position in the Midwest of the US, where it has built a strong reputation for premium architectural products. The acquisition is expected to deliver 3% EPS accretion, post realisation of cost synergies.
  • Boral (BLD) – Has entered into an agreement with a Western Australian consortium to sell its Midland Brick business, including ~800 hectares of associated landholdings, for $86m, subject to customary completion adjustments. Proceeds from the sale will be used to reduce debt and fund strategic growth opportunities
  • BWW – Underlying NPAT -54.5% to $11.0m on revenue +0.5% to $149.5m. 2H19 revenue +19.5% compared to 1H. Outlook – 20-25% revenue and 25-35% EBITDA growth in FY2020.
  • Mayne Pharma (MYX) – Revenues -1% to $525.2m; Reported gross profit+13% to $289.9m, Reported EBITDA +4% to $111.6m, Adjusted EBITDA -20% to $130.9m, Reported Net loss of $280.8 impacted by intangible asset impairments; Net operating cashflow of $106.6m; Launched two specialty brand products in the US, TOLSURA® (SUBA®-itraconazole) capsule and LEXETTE™ (halobetasol) foam and five generic products; Strong growth from Specialty Brands with sales and gross profit doubling; Business positioned for a stronger FY20 driven by growth of TOLSURA and LEXETTE, accelerated growth of Metrics Contract Services, new generic product launches and improved operating performance. Outlook – The Company is targeting eight new product launches by the end of CY20 with a market value of US$1.4b according to IQVIA, of which two are already approved.
  • Ardent Leisure (ALG) – Revenue from continuing businesses +14.4%, EBITDA from continuing businesses and excluding specific items +15.7%; Main Event revenue increased 7.9% and EBITDA +4.0%. The increase in revenue and EBITDA, excluding Specific Items, was primarily driven by additional contributions from centres opened in FY18 and FY19; Constant centre revenue in Main Event -1.0% lfl primarily driven by fewer promotional activities and increased competition; Theme Park revenue increased 0.5% and EBITDA declined $2.5 million, to a loss of $10.0 million for FY20. The decline in EBITDA, excluding Specific Items, was primarily driven by higher safety, repairs and maintenance spend; Net loss of $60.9m in FY19, an improvement from a loss of $90.7m in FY18 primarily due to a reduction in Specific Items1 of $31.8; Destapling and group corporatisation completed in December 2018; US debt refinancing with total facility of US$225m finalised in April 2019; No dividend for FY19, which is in line with Board’s intention to continue to invest in Theme Parks and Main Event to drive recovery and growth for each business.
  • Goodman Group (GGM) – Statutory accounting profit up 48% to $1,627.9m. Includes property valuations, share based payments, derivative and mark-to-market movements. Operating profit +11.4% to $942.3m. Increased outperformance for FY19 driven by strong global contributions from development and management. Outlook – FY20 operating profit of $1,040 million (+10.4%) and operating EPS of 56.3 cents (up 9% on FY19), Forecast distribution of 30.0.
  • Costa Group (CGC) – Revenue +11.8% to $573m. NPAT before SGARA and leasing (NPAT-SL) down $7.2m to $40.9m. Business was tracking broadly in line with the lower end of the revised target range outlined at the company’s AGM. Negative outlook – trading and forecasting remains challenging with potential further downside risk, depending on the impact of the above factors.


  • Domestic – Private Capital expenditure, building permits
  • Chinese industrial profits
  • Japanese industrial production, retail sales, unemployment
  • European inflation and unemployment
  • US – Durable goods orders, consumer confidence, 2nd estimate of GDP, monthly PCE price index.




US EQUITIES – S&P500 -1 (-0.05%), Dow Jones +50 (+0.19%), NASDAQ -29 (-0.36)

Main themes

  • US flash manufacturing PMI for August declined into contraction territory
  • Less dovish commentary from a few Fed officials ahead of Fed Chair Powell’s speech tomorrow

EUROPEAN MARKETS – Mostly lower. STOXX600 -0.40%, UK FTSE -1.05%, German DAX -0.47%, French CAC -0.87%.


  • The USD is little changed at 98.21.
  • The Aussie dollar is lower at US67.59.

BONDS – 2-yr: +3 bps to 1.80%, 3-yr: +4 bps to 1.53%, 5-yr: +3 bps to 1.49%, 10-yr: +3 bps to 1.61%, 30-yr: +5 bps to 2.10%


  • Oil – WTI futures were down 33c or 0.6% to US$55.35. Weekly crude oil inventories -by 2.7mb (prior +1.6mb)
  • Iron Ore – CommSec has iron ore up US$2 or 2.4% to US$85.00 a tonne.
  • LME metals – Mostly weaker. Cu -0.66%, Ni -1.11%, Al -0.62%.


  • US economic data – US flash Manufacturing PMI for August decreased to 49.9 from 50.4, the first contractionary reading in ten years. The Conference Board’s Leading Economic Index 0.5% (consensus +0.2%. prior 0.1% revised from -0.3%). Initial jobless claims -12,000 to 209,000 (consensus 218,000). Continuing claims -54,000 to 1.674m.
  • Jackson Hole symposium – Officials from the Federal Reserve and other central banks have gathered in Jackson, Wyoming for the annual symposium on monetary policy. This year’s theme is “Challenges for Monetary Policy” and Fed Chairman Jay Powell will deliver opening remarks tomorrow.
  • Fed Speak – Kansas City Fed President Esther George (FOMC voter) reiterated her view against the need for a rate cut last month. Philadelphia Fed President Patrick Harker and Dallas Fed President Robert Kaplan (both FOMC voters in 2020) indicated a preference to not cut rates in September.
  • China trade – Chinese buyers purchased a modest amount of soybeans between August 9 and August 15.
  • Italian politics – President Sergio Matterella will hold another meeting with party leaders on Tuesday to see if a new majority government can be established.
  • British politics – Prime Minister Boris Johnson met with German Chancellor, Angela Merkel, yesterday, followed by a meeting with French President, Emmanuel Macron, today. Ms Merkel said that the Irish backstop issue “can be solved”, but many media outlets interpreted this statement as a concession from the EU.
  • European data – August flash Manufacturing PMI 47.0 (expected 46.3, prior 46.5), flash Services PMI 53.4 (expected 53.0, prior 53.2). German August flash Manufacturing PMI 43.6 (expected 43.0, prior 43.2), flash Services PMI 54.4 (expected 54.1, prior 54.5).

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s