MDS Financial Blog

Presented by Michael Hevern
MDSFinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (908Kb).

General Advice Only
*************************************************
In this morning’s wrap…

DOW: down 2.6%
Unemployment 9.5% (26 Year Highs)
Reporting Starts Next Week;

NASDAQ: down 2.6%
Profit Taking

FTSE: down 2.5%
Miners & Energy Weigh;
DAX down 3.8% & CAC down 3.1%

NIKKEI: down 0.6%
Japan: Seven and I (#1 Retailer) Profit down 28%; Sales -11%
Hang Seng down 1.1%

Oil: Down 3.7% ($68)
US Inventories Up; 5 Week Lows
Possible Double Top Setup

Gold: down 1.4% ($930)
Commodities Lower;
USD Higher

SPI down 82 (2.1%)
SPI: Critical Level(s): 3850 to 4050

ASX News

QAN – headwinds – Tiger (domestic SYD to MELB) & Delta (SYD to LA)
BOQ – sells $750m gov’t guaranteed bonds (3 times oversubscribed)
WBC – scraps shareholder benefits package
Materials & Energy stocks to weigh
Banks to weigh
ASX – to open lower
US & UK – poor employment data; light volumes

Morning Wrap ASX News, BHP, Business News, Crude Oil, DOW, shares, stockmarket, technical analysis

Presented by Michael Hevern
MDSFinancial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (965Kb).

General Advice Only
*************************************************
In this morning’s wrap…

DOW: up 0.7% (down 3.2% for Week)
Financials & Tech Lead;
Busy Week Ahead For Economic Data

NASDAQ: up 1.1% (down 1.8% for Week)
Fed to Rate Bias To Upside

FTSE: up 1.5 (down 2% for Week)
Xstrata to Merge with Anglo ($US83bn deal);
DAX down 1.4% & CAC up 0.9%

NIKKEI: up 0.9% (down 3.6% for Week)
Japan: Elections/Spending/Welfare;
Hang Seng up 0.8%

Oil: down 2.6% (down 4.1% for Week)
Breaks $70

Gold: Flat (down 0.4% for Week) ($935)
Commodities Up;
USD Lower

SPI up 7 (0.2%);
SPI: Critical Level(s): 3850 to 4000

ASX News

$50bn – worth of capital raisings YTD
AAC- no to capital raising
BCI – raises $22m
WOR – Egypt/Armenian nuclear power plants
MCC –raising $190m; Profits to double
ASX – to open flat;
US & UK – mixed
30-Jun – just over a week away

Morning Wrap ASX News, BHP, Business News, Commodities, Crude Oil, oil, shares, stock market

Presented by Michael Hevern
MDS Financial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (1154Kb).

General Advice Only

*************************************************
In this morning’s wrap…

DOW: up 1.2% – Breakout?
Choppy Trade Ends Higher; US Durables Goods Orders (+3.4%) & New Homes Sales (+4.7%)

NASDAQ: up 0.8%
Uptrend Holding;
IBM Concerns re Job Cuts

FTSE: down 0.3% – Resistance!
Miners and Financials see Profit Taking;
DAX down 1.4% & CAC up 0.7%

NIKKEI: down 0.1%
Manufacturers Sentiment Worst in 30 Years;
Hang Seng down 2%

Oil: down 2.1% – Below $53
US Inventories Up
On Weakening Demand

Gold: up 1.4% ($936) – Big Picture
Commodities Mixed;
World Currency

SPI: Critical Levels: 3640 & 3440
SPI up 15;
ASX200 At Resistance

ASX News
* Options Expiry Today
* RIO – ACCC approves Chinalco Proposal; FIRB still has 90 days to decide
* Top 200 – Rupert tops Rich List 200 (though wealth halved at $3.5bn); Andrew Forrest * No. 2 (wealth down 70%at $2.4bn); Frank Lowry no. 3 ($1.8bn); James Packer ($1.5bn)
* ANZ – Aims for Top 4 foreign bank in China
* Energy and Golds to weaken
* Financials to see profit taking
* RBA – Glen Stevens talks economy up; Financial Stabilty Review Report today
* ASX – to open flat – US – Mixed

Morning Wrap ASX News, BRW Rich List, Crude Oil, DOW, finance news, ftse, market wrap, shares, stock market, stockmarket

With markets as cheap as they now are, some asset consultants have been suggesting now is the time for super funds to buy, according to The Australian.

Following on from last week’s strong performances on Wall Street, and signals that good value stocks are available in the market, these analysts are recommending careful investment in global equities, top quality debt and credit markets.

As with most of the good news recently, the stress is still on caution. Still of concern:

This article offers a range of opinions, click here to read the full text.

Finance News Today ASX News, investing, investment in credit markets, investment in equities, shares, super funds

Fortescue Metals looks like being the next Australian miner to be picked up by overseas investors.

According to the HeraldSun, the American miner Anglo American and China Investment Corp are in talks with Fortescue Metals Group, and both were seen visiting Fortescue properties last week.

This is the latest of a string of deals which has also seen top Australian miners Rio Tinto and OZ Minerals looking to sell substantial assets to foreign buyers.

This deal would further add to Treasure Wayne Swan’s headache regarding foreign ownership legislation, which he has signalled is soon likely to be tightened.

Rumours of a takeover have bubbled up several times in recent months, causing spikes in the share price and requiring Fortescue to respond to ASX inquiries. Fortescue has not commented on this latest speculation.

Stocks for your watchlist:

• Fortescue Metals Group: FMG.AX (ASX)

• Anglo American PLC: AAL.L (London Stock Exchange); AAUK.O (NASDAQ)

• BHP Billiton: BHP.AX (ASX); BLT.L (London Stock Exchange); BHP.N (New York Stock Exchange)

Further information:

• Herald Sun

Finance News Today ASX, BHP Billiton, Commodities, Fortescue Metals, investor, mining, Rio Tinto, share price, shareholder, shares, stock market

Retail customers are propping up the profits of the big four banks, according to The Age.

CBA has reported a 9% rise in first half profit, due mainly to retail banking offsetting declines in business banking and a jump in bad debt charges.

Among the key figures:

• deposit growth of 22%

• 34% increase in income from home loans

This has led the paper to describe a lively scene of “bank chiefs feasting on their retail customers while sending parcels of caviar and truffles to the likes of Fast Eddy”.

Click here to read the full article.

Stocks for your watchlist:

• Commonwealth Bank of Australia: CBA (ASX)

• Westpac: WBC (ASX); WBK (NYSE)

• National Australia Bank: NAB (ASX)

• ANZ Banking Group: ANZ (ASX)

Finance News Today ANZ, ASX, CBA, investing, NAB, shares, stock market, trading, Westpac

Presented by Michael Hevern
MDS Financial

Click here to watch the presentation.

or

Click here to download the mp3 audio recording (917Kb).

**********************************

In this morning’s wrap…

World Indices

DOW flat, down 0.7%

• traders and investors awaiting resolution of stimulus package

• banks up early but sold late

• McDonalds January sales up

NASDAQ and S&P 500 flat

• US Treasury’s Bank Stabilisation Plan delayed

FTSE up 0.4%

• Banking stocks the focus

• Barclays: better than expected profits

• EU need to address toxic bank debt

CAC and DAX up slightly

NIKKEI down 1.3%

• just above 7900 level

• China steel demand recovering

 
Commodities

Oil down 0.5% ($39.85)

• oversupply and falling demand

Gold down 2% ($897)

• USD strengthening

Silver, aluminium, lead and copper down, nickel flat, zinc up.

Commodities stocks index flat
Gold stocks index down 2.5%
Oil stocks index flat

 
ADRs

Alumina up 3.2%
BHP up 1.3%
RIO sold off significantly
Newmont down 2.8%
Chevron down 0.8%
Exxon down 1.5%
ANZ down 1.2%
NAB up 1.5%

 
Local Market

SPI up 27 points

• no lead from overseas

• critical levels 3420 and 2550

 
ASX News

First Half results from JB Hi-Fi, IOOF, Australian Wealth Management, Ridley, Cochlear.
Full Year results from AAC and Reckon
Aristocrat: double loss estimate
SUN: resumed Ex-entitlement down 21%
RBA: Governor talks at Kuala Lumpur conference
BHP: to see profit taking
RIO: chairman-elect resigns
Gold and Energy likely to retrace
Banks trying to hold current levels
ASX likely to open flat, no direction from the US

Morning Wrap ASX, CAC, Commodities, DAX, DOW, finance, ftse, Gold, investing, nasdaq, NIKKEI, oil, s&p, share market, shares, silver, spi, stockmarket, trading

An article in The Age today describes some interesting signs that the mining industry has cause for optimism.

1. Industry big wigs are tipping that share prices in the iron ore market have bottomed. Contributing factors are Chinese steelmakers’ decreasing stockpiles, and Murchison Metals’ promising Jack Hills project.

 

2. The recent gold boom has resulted in cashed-up Canadian miners looking for investment opportunities, and ASX-listed gold stocks with an African focus are benefiting. Companies mentioned are Perseus Minerals and Mineral Deposits Ltd, but this article suggests there will be many opportunities at this week’s Mining Indaba conference in Cape Town.

 

3. A potentially rich oil exploration well currently being drilled in Tanzania could bring terrific news to Perth-based Key Petroleum, which has a 50% stake in the bordering acreage.

 
Anyone partial to good news should read the full article here.

Stocks for your watchlist:

• Murchison Metals – MMX (ASX)

• BHP Billiton – BHP (ASX), BLT (London Stock Exchange)

• Perseus Minerals – PRU (ASX)

• Mineral Deposits Ltd – MDL (ASX), MDM (Toronto Stock Exchange)

• Key Petroleum – KEY (ASX)

Finance News Today ASX, BHP, Gold, investing, Key Petroleum, mining, Murchison, oil, Perseus Minerals, petroleum, share market, shares, stockmarket

A slump in advertising sales and discretionary spending is being blamed for a massive writedown in profits at News Corp. The economic downturn is “more severe and likely longer lasting” than Rupert Murdoch previously thought.

News Corp posted a first half net loss of $US5.9 billion ($A9.19 billion) for the first half, compared with a net profit of $US1.564 ($A2.43) billion a year ago.

• $US8.4 billion pretax writedown in of assets

• Operating earnings will fall about 30% in 2008/09

• Earnings on the Australian newspapers The Australian and The Daily Telegraph fell 18% in the second quarter from a year earlier

The AFR has suggested that losses may put pressure on the company to break itself up into smaller divisions, however this has been played down by News Corp, and Mr Murdoch has announced plans to cut costs and jobs to deal with the downturn.

In other media news, Standard & Poors downgraded its long-term credit rating of Fairfax Media from stable to negative.

 
Stocks for your watch list:

• News Corp: NWS (ASX and Nasdaq)

• Fairfax Media: FXJ (ASX)

Further Information:

• The Age

• The Herald Sun

• The Australian Financial Review

• Reuters News Feed through Market Analyser

• AAP through The Bourse

Finance News Today ASX, economy, fairfax, finance, invest, news corp, rupert murdoch, sharemarket, shares, stockmarket

Woolworths is thought to be well advanced with a plan to set up a big-box hardware retail business, challenging Wesfarmer’s dominant Bunnings chains.

An article in The Australian argues the move is a smart one for Woolworths, as the market offers hefty margins and is ‘ripe for a new entrant’. The article also suggests Woolies has been looking into Reece Australia.

Earlier plans to merge with Mitre 10, which currently has the second largest share of the $38 billion market, have been abandoned.

Woolies has also recently bought Langton’s Fine Wines Auctions, an upmarket online wine business which it says will complement its existing liquor retail business led by Dan Murphy’s.

Stocks for your watchlist

• Woolworths: WOW (ASX)

• Wesfarmers: WES (ASX)

• Reece Australia: REH (ASX)

Further Information

• The Australian

• The Age

Finance News Today ASX, bunnings, economy, finance markets, invest, investing, reece, share market, shares, wesfarmers, woolworths