This was published 3 years ago
That is all from us today which is the final day for Lucy Battersby who is leaving The Age and Sydney Morning Herald and we wish her all the best.
Thank you for your time and your comments. We will be back tomorrow morning with more Markets Live action.
Good night.
Stock markets ducked for cover on Wednesday after a normally measured Federal Reserve governor warned of a stronger hiking cycle, with the ASX200 taking its biggest fall in four weeks when it opened.
However, the benchmark S&P/ASX 200 recovered during the day to close 37.7 points lower at seven-session low of 7490 points, a 0.5 per cent decline. The improvement from a 1.2 per cent fall in the morning was thanks to gains in banks, travel companies, and consumer staples. Endeavour Drinks reached an all-time higher of $7.61.
MLC Asset Management portfolio manager Anthony Golowenko said comments from Federal Reserve governor Lael Brainard overnight suddenly shifted market sentiment and increased uncertainty.
“She gave a speech targeted primarily on inflation and the uneven impact on low income earners,” he said.
The Insurance Council of Australia has slammed the federal government’s “failure” to match the Queensland government’s investment in mitigation measures to protect communities from extreme weather.
The QLD government announced last month $741 million in funding to protect communities from floods and cyclones by retrofitting buildings and raising homes in flood-prone areas. The state government asked the federal government to fund 50 per cent of the package.
ICA chief executive Andrew Hall said the federal government’s failure to contribute the QLD’s ‘Resilient Residential Recovery’ package was disappointing, as extreme weather continues to plague communities along the east coast.
“As severe rain and flooding continues to impact the east coast the failure of the federal government to match Queensland’s investment in measures to improve household and community protections against extreme weather is disappointing and short-sighted.
Home construction business Tamawood is expecting ongoing delays in the aftermath of the Queensland and NSW floods will reduce its profits.
The Queensland-based business told investors on Wednesday that wet weather was hampering operations and the floods had limited trade availability.
“We do anticipate that these issues will reduce profit in [2021-22],” a company statement said.
The company said it had provided for escalating labour and materials costs in flood-stricken areas in its current pricing.
Oil fell as the European Union eschewed sanctions on Russian oil flows for now and a stronger dollar blunted the appeal of commodities.
West Texas Intermediate sank toward $US101 a barrel after retreating 1.3 per cent on Tuesday. While the EU will press on with additional penalties against Moscow for the war in Ukraine, including a ban on coal, crude won’t yet be targeted. European Commission President Ursula von der Leyen said the bloc will still push ahead with a debate among members on targeting Russian oil.
The U.S. currency held gains after jumping on Tuesday as investors digested the prospect of a swift reduction in the Federal Reserve’s debt holdings, part of stepped up monetary tightening to combat soaring inflation. A stronger dollar typically makes commodities priced in the currency less attractive.
Oil surged by a third in the first quarter to hit the highest since 2008 as the Russian invasion and backlash from the EU and U.S. roiled markets. While the U.K. and Washington have moved to bar Russian crude, it’s harder for the EU to follow suit given the region’s far higher level of dependence. Washington and allies have also tapped strategic petroleum reserves to try to calm prices.
Only two weeks into starting her new job heading Victoria’s revamped casino regulator and Annette Kimmitt is making her mark on Crown Resorts. She famously defied convention last year by questioning the move by the law firm she led, MinterEllison, to represent former Attorney-General Christian Porter over rape allegations.
Kimmitt, whose crusading behaviour particularly around gender advocacy is well documented, left MinterEllison after the blow up with other partners over the Porter matter.
She is clearly prepared to ruffle feathers - a feature not seen before from a casino regulator.
In an unrelated twist, MinterEllison, which had previously represented Crown Resorts, was placed under uncomfortable scrutiny in 2020 during a NSW regulatory inquiry that heard it had advised its client not to undertake a more extensive review of internal bank accounts which were found to have been used to launder money.
Western Areas shares remain in limbo while the board awaits official receipt of the Independent Expert report which has thrown into doubt a friendly $3.36-per-share takeover offer from IGO.
But Morgans has upgraded its price target on Western Areas to $4.45 with an Add recommendation and says any termination of the deal may present a new buying opportunity.
While Western Areas insists the valuation of the friendly merger was based on IGO’s long-term view of the nickel market fundamentals and price, Morgans’ upgrade is based on a refreshed outlook for nickel.
“We refresh our nickel price outlook on the back of recent market strength and tightening supply in the face of rising demand,” says Morgans analyst Mat Collings.
The corporate regulator has decided to extend for a further five years a ‘product intervention order’ on contracts for differences (CFDs) which reduced leverage and aggressive client calls.
The order will now last until 23 May, 2027. This follows analysis by the Australian Securities and Investments Commission (ASIC) of the original order and data from 60 CFD providers after restrictions were first introduced last year.
“ASIC found that the product intervention order has been effective in reducing the risk of significant detriment to retail clients resulting from CFDs,” the regulator said this afternoon.
It found a 91 per cent decline in net losses, from a quarterly average of $372 million down to $33 million, an 87 decline in margin close-outs, and an 88 per cent fall in negative balances.
Commissioner Cathie Armour said this was a “substantial reduction” in harm to retail investors.
“Our extension of the product intervention order for five years will ensure that the leverage ratio limits and other protections can continue to reduce the size and speed of retail clients’ CFD losses,” she said.
Shopping mall giant Scentre faces a potentially bumpy annual general meeting on Thursday morning. It already received a strike against pits remuneration report last year and proxy advisors are advising against the appointment of new director Catherine Brenner.
While the owner of the Westfield shopping centres is confident it can escape a second strike this year - which could force a board spill motion - the mood is as gloomy among investors as the Sydney weather forecast.
It will be the last meeting for the retiring CEO Peter Allen and director Steven Leigh, but the farewell will likely be overshadowed by the discussion on the appointment of former AMP chairman Catherine Brenner as a non-executive director and the remuneration report vote.
Proxy advisor CGI Glass Lewis and the Australian Shareholders’ Association have said they will oppose her appointment, while another governance group, ISS, has given “qualified support” to Ms Brenner’s candidacy.
Mining giant BHP has bought the entire output of the first wind farm in WA’s South West farmlands to cut emissions from processing nickel for electric vehicle batteries.
BHP will purchase from Italy’s Enel Green Power 12 years of power from the first stage of the Flat Rocks Wind Farm to be built near the farming town of Kojonup, 260 kilometres south of Perth.
Seven years ago BHP’s WA nickel operation was deemed too burdensome to impose on South32 when it was created to take all the other assets the mining giant did not want. A burgeoning market for high-quality nickel products to make lithium-ion batteries that justified further investment has turned the division into a still small but now wanted part of BHP.
However, electric vehicle manufacturers such as Tesla that last year signed a nickel supply agreement with BHP want all their inputs to have the lowest carbon intensity possible to add to the environmental credentials of their cars.