Investment Ideas From the Edge of the Bell Curve
The ASX 200 closed down by -0.32% to 7,988.1 as a rally in real estate stocks helped the ASX shrug off strong losses at the opening of trading today to end the session only modestly lower.
Markets opened -1% lower this morning, tracking losses on Wall Street at the end of last week after US jobs data disappointed, fanning concerns the labour market was under strain.
The disappointing US data initially sent all the major banks down more than 1% at the open of trading.
However, these losses were largely unwound as trading entered its final hours, with US futures firming higher ahead of Wall Street’s first session.
As losses among banks tempered late in the session, the rate-sensitive real estate sector moved up, ending 1% higher, the largest upward move of the 11 sectors.
Real estate stocks were helped higher by a 2.1% move in Stockland to $5.20. The company confirmed it was in talks with the Australian competition regulator to divest from a residential community in the Illawarra region of NSW.
Consumer staples were among the worst-performing stocks, weighed down by a 3.9% drop in Premier Investments to $33.85, following a weak trading update that highlighted tough conditions in the second half.
Shortly after the trading update, the company revealed that John Cheston, managing director of Premier Investments’ retailer Smiggle, had been fired due to what the company called ‘serious misconduct and a serious breach of his employment terms.’ No further details were given.
China’s inflation has edged up this month, but not enough to suggest the country’s economy has regained its strength.
China’s Consumer Price Index (CPI) for August was 0.6%, up from 0.5% in July, which was again below expectations.
The small rise was largely due to extreme weather events seen on the mainland, with major floods and droughts hitting different parts of the country and driving up food prices.
Food prices increased by +2.8% on year in August. While stripping that out and looking at core inflation that excludes volatile food and fuel prices was just 0.3% in August, down from 0.4% in July.
The National Bureau of Statistics data also showed that producers are paid less for their goods.
The Producers Price Index (PPI) was down -1.8% YoY for August, compared to the still weak +0.8% rise in July.
The combination of this data hints at continued weakness in Chinese domestic consumption, a pillar of Chinese leader’s plans to rebuild its economy away from property.
It remains to be seen if Chinese manufacturing and domestic consumption will be the one-two punch to pull China out of its economic woes.
Many of its major manufacturers are now being hobbled by anti-dumping regulations and tariffs in emerging markets such as Brazil and Southeast Asia.
Steadfast [ASX:SDF], an insurance broker and provider, has suspended its share trading following an ABC Four Corners report alleging client deception.
The investigation claims Steadfast withheld more affordable insurance options from competing firms, instead promoting pricier policies from its own subsidiary.
In response to these revelations, ACCC chairwoman Gina Cass-Gottlieb has called for a ban on strata insurance commissions.
Before the trading halt, Steadfast’s shares had dropped by 6% to trade at $5.96 per share. The drop halved Steadfast’s earnings for the year.
Here’s the latest from the new Fat Tail Daily video series.
Publisher James ‘Woody’ Woodburn will be sitting down with our Fat Tail Daily editors daily to discuss the key trends and offer unique insights into market movements.
If you have any thoughts about the length, format, or topics you would like discussed, send us an email at support@fattail.com.au with the subject header: ‘Fat Tail Daily Video Feedback’.
Thanks, and enjoy today’s discussion with Alpha Tech Trader and Crypto Capital Editor Ryan Dinse.
This time, instead of talking tech, they’re talking about all things resources.
The resource sector continued its recent downturn with a big sell-off on Friday. People are panicking over China. We’re at a pivotal moment from a psychological point of view, too. Here they discuss a rare opportunity coming up to buy quality miners on the cheap.
The Australian share market is set to start the week off lower as markets sell-off due to concerns of weakness in the US economy.
The ASX 200 is currently down by -0.72% at 7,955.4, with only two of the 11 sectors remaining in the green.
August jobs data from the US last Friday raised the spectre of recession in the US, causing Wall St and now the ASX to sell down today.
On the ASX, discretionary and financial sectors led the losses around midday, with all major banks down and sizable falls from Premier Investments portfolio as well as Super Retail Group.
Energy stocks are also taking a beating in trading today as Crude oil prices climb up from their lowest close since 2021 this morning after huge losses last week.
WTI Crude is now up +1.27% to trade at US$68.52 per barrel after falling nearly 15% in the past month.
Westpac [ASX:WBC] has announced the retirement of CEO Peter King after a three-decade-long career at the bank.
Mr King spent nearly five years at the helm of Westpac and said that the ‘time was right‘ to retire.
Anthony Miller has been appointed as the replacement, taking the role on 16 December 2024.
Mr Miller is currently Chief Executive of Westpac’s Business & Wealth division and has been described as an ‘exceptional leader’, by Westpac chairman Steven Gregg.
Miller was previously Deutsche Bank’s Australia and New Zealand chief executive. He also spent 16 years at Goldman Sachs.
‘In our search for a CEO, we looked for an executive who is customer-focused with a proven record of performance and a deep understanding of the Australian market,’ Gregg said.
Mr Miller is set to earn a base pay packet of $2.5 million per year and will be eligible for an extra $2.35 in short-term bonuses and $3.5 million in long-term performance bonuses.
Miller said he was honoured by the appointment and excited to build on King’s work and ‘unleash Westpac’s true potential‘.
‘I want Westpac to be a bank built on trust and reliability – always there to help our customers through every one of life’s moments,’ he said.
The Cabinet Office of Japan has revised its second-quarter GDP figures, showing slower economic growth than first reported.
The updated data shows the economy expanded by 2.9% in the April-June period compared to the previous quarter, which is lower than the preliminary estimate of 3.1%.
This revised figure also falls short of economists’ expectations of 3.2% growth.
On a quarter-to-quarter basis, GDP grew by 0.7%, slightly below both the initial estimate and median forecast of 0.8%.
These revisions suggest Japan’s economic recovery may be progressing at a more modest pace than originally thought and could also be pointing to expectations of choppy waters ahead for the island nation.
Long-time Smiggle CEO John Cheston was sacked today by the Solomon Lew outfit Premier Investments as he prepared to leave for rival chain Lovisa.
The group accused Mr Cheston of ‘serious misconduct’ but didn’t outline the specific reasons for today’s firing.
However, the move comes in the aftermath of leaked confidential internal documents from Myer, another Premier Investment retailer.
The documents appear to be budgeting and sales documents flowing from a due diligence process underway as the company faces slowing sales.
The board’s statement to the ASX today said:
‘The Just Group Board considers that John Cheston [managing director of Smiggle] has engaged in serious misconduct and a serious breach of his employment terms, and on that basis his employment has been terminated today.’
Back in June, Mr Cheston had been poached by rival retailer Lovisa, run by Brett Blundy, but he was still set to serve out a 12-month notice period with Premier.
Shares in Premier Investments are down by -4.75% in trading this morning, and Lovisa has experienced similar drops.
Charter Hall Retail REIT has joined with super fund Host Plus to bid for ASX-listed Hotel Property Investments [ASX:HPI] this morning.
The pair have lobbed a bid at $3.65 per security, valuing HPI at around $717.5 million. The offer is a slight discount to HPI’s current trading at $3.68 per security and has seen HPI’s board recommend that shareholders reject the bid, saying:
‘HPI believes that its existing portfolio and current strategy, including its organic growth initiatives, offer significantly greater value to HPI securityholders.’
A more detailed explanation is expected from the board soon, but for now, its shares are trading up 5.75% in early trading today.
Good morning. Charlie here.
The ASX 200 opened sharply lower, falling -0.92% to 7,939.8 this morning as markets remain concerned about the potential of a US recession after a lower US Jobs report last Friday sparked fears.
The final jobs figure was 142,000, well below the expected 165,000 number many economists had expected.
Also likely dragging mining stocks lower is the falling Iron ore futures, which are now below US$90 per tonne, the lowest it’s been since November 2022.
The big news on the ASX today is the firing of Smiggle CEO John Cheston by Solomon Lew.
Mr Cheston was already leaving to work for rival Brett Blundy but today he has gotten the boot early as the company accused him of ‘serious misconduct’ as internal documents were leaked that were damaging to Myer, another department store linked to Solomon Lew.
Also announcing his exit today is Westpac’s CEO, Peter King. He will be replaced by Anthony Miller, who will take up the role on December 16.
Westpac Chairman Steven Gregg said in a statement Mr Miller had a vision ‘to return Westpac to a position of leadership and build on the foundational work of the past five years‘.
‘As an internal appointment, Anthony knows what needs to be done and will move at pace, ensuring a seamless transition,’ he said.
Name | Value | % Chg | |
---|---|---|---|
Major Indices | |||
S&P 500 | 5,408 | -1.73% | |
Dow Jones | 40,345 | -1.01% | |
NASDAQ Comp | 16,690 | -2.55% | |
Russell 2000 | 2,091 | -1.91% | |
Country Indices | |||
UK | 8,181 | -0.73% | |
Germany | 18,301 | -1.48% | |
Euro | 4,738 | -1.60% | |
Japan | 36,391 | -0.72% | |
Hong Kong | 17,444 | -0.07% |
Name | Value | % Chg | |
---|---|---|---|
Commodities (USD) | |||
Gold | 2,496 | -0.05% | |
Silver | 27.96 | +0.11% | |
Iron Ore | 89.65 | -2.24% | |
Copper | 4.0147 | -1.55% | |
WTI Oil | 68.33 | +1.00% | |
Currency | |||
AUD/USD | 66.68¢ | -0.02% | |
Cryptocurrency | |||
Bitcoin (USD) | 54,801 | +1.15% | |
Ethereum (USD) | 2,295 | +0.97% |
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Investment ideas from the edge of the bell curve.
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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
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