• The Market is down 48. The Dow Jones finished down 93 — it was down 139 at worst. Now 15519.
  • The S&P 500 closed down 10 and dropped below 1700 at 1697.
  • Federal Governor Evans said we might get a tapering at the September FOMC meeting. This followed yesterday’s Fed Governor Fisher comments that asset purchases would be slowed later in the year if the economy improves “along the lines envisioned by the Committee”. He also talked about quantitative easing “laying the groundwork for misallocation of resources” and fuelling inflation.
  • Gold down on the tapering talk.
  • Good economic numbers out of UK, Italy and Germany. UK Construction PMI, Services PMI, and manufacturing production all better than expected.
  • US Trade deficit was smaller than expected.
  • US$ index down for the third day on the trot.
  • A$ was over 90c briefly yesterday on the RBA statement.
  • Euro at a six week high versus the US$.
  • Financial sector led the fall — down 0.9%. Materials down 1.0%.
  • The A$ is was up on the back of the RBA statement yesterday — briefly topped 90c at 90.07c.
  • Metal prices mostly down … Copper up 0.69%.
  • The Japanese market was up 1.0% yesterday. The Chinese market was up 0.49%.
  • Resources down with BHP down 0.41% and RIO down 1.65% in the US with BHP closing at the equivalent of 39c down on its close in Australia yesterday.
  • European markets mostly down — the UK FTSE down 0.23%, the German Dax down 1.17%, the French CAC down 0.43% with Spain down 0.37%, Italy down 0.44%, Greece up 0.90%.
  • Oil price down $1.26 to $105.30.
  • Gold price down $19.40 to $1283.20.
  • Spot iron ore was up again — by $1.20 to $131.40.
  • US Economics last night Trade Balance: — $34.2 billion . Consensus — $43.4 billion, prior — $45 billion (revised — $44.1 billion).
  • US Economics tonight — MBA Mortgage index, Consumer credit.
  • In Europe tonight — German industrial production. Bank of England Governor Mark Carney will speak about the latest BoE Inflation Report. 


  • 21st Century Fox (FOX) — Has posted an increase in FY profit following its de-merger from News Corporation. Net profit of $US6.82 billion up from $US3.176 billion recorded in 2012. EBIT was $US1.238 billion and 8.3% below consensus forecast of $US1.35 billion. The company said almost three-quarters of the increase in revenue was from growth at the cable network programming, filmed entertainment and television segments, including purchases. They also noted other net income in the period of $US3.76 billion up from $US66 million. Guidance was high single to low double digit figures.
  • Flexigroup (FXL) — Has reported a profit of $72.1 million up 18% and 1% above consensus forecast of $71.4 million. EPS rose 15% to 24c. The final dividend of 7.5c was above an expected 7c. Bad debts fell from 2.9% to 2.7. The company gave guidance for FY14 cash NPAT of $84 million – $86 million which reflects 17%-19% growth.
  • Karoon Gas (KAR) — Has announced a $150 million capital raising to fund exploration plans. The raising will be done at 510c a 8.9% discount to the stock’s closing price Tuesday.
  • Chorus (CNU) — Welcomes government regulatory review discussion document for consultation. The establishment of a clear set of principles will guide the review. CNU is up 5.51%.
  • Cochlear (COH) — 2 buys 2 holds and 7 sells in the research this morning.
  • Seek (SEK) — Weak job Ad numbers yesterday are déjà vu for SEK shareholders.
  • Westpac passes on 28 basis points of a rate cut. ANZ yet to announce.
  • PROPERTY AND YOUR SMSF — The AFR quotes one property analyst saying the RBA is risking a house price bubble — enough to continue the trend of SMSF investors looking to invest in property as an alternative to the stock market.

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Peter Fray
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