Its share price dropped 0.4 per cent at NAB last week when the bank issued a disappointing third quarter update on Tuesday. At the bank, cash profits increased by 6% in the quarter, to $1.8 billion as home and business lending and deposits both rose. Yet, NAB filled to this but did not meet any higher revenue consensus made by analysts, causing a share price tumble. The bank hiked its 2022 cost outlook up by 1% as well, raising the ratio from the range of 2%-3% to 3%-4%. Chief executive Ross McEwan is upbeat for the fourth quarter despite rising rates and runaway inflation, and 70 percent of customers were ahead in repayments on their home loans.
Taiwan has delicate dance on Australia-China issues
China expanded its military drills near Taiwan this week after it warned that Australia was erecting “new obstacles” as it sought to repair a shattered relationship between Beijing and Canberra. On Monday, the Chinese Foreign Ministry spokesman accused Canberra of poking its nose where it doesn’t belong, leaving Australia not only with bloodshot eyes from the dust-up according to Chinese state media but doing it while being “drenched in its own troubles.” This, in turn, crushed hopes that under the Albanese government, the relationship between Australia and China would be restored. In his address, the spokesman said Australia needs to “honour the one-China principle” if it wants better relations with Beijing. The principle accepting that would mean that there is no independent Taiwan, and that Taiwan is a part of China.
Trump hasty to plead the fifth after Florida house raid
Former American president Donald Trump’s Florida residence was on Monday morning raided by FBI agents. Agents busted into Trump’s safe and made off with official White House documents he refused to return. In typical Trump style, the ex-president declared the “unannounced raid on [his] home was not necessary or appropriate” and that “[The FBI] even broke into my safe!” A source familiar with the investigation told Reuters that the raid was tied to classified material that Trump took with him from the White House after his presidency ended. His silence came as he asserted his constitutional right under the fifth amendment not to answer any of the questions during New York State’s civil investigation on Wednesday, speaking under oath. Despite Trump criticizing other politicians over invoking the right, it was an unexpected move. At one rally in Iowa in 2016, the then president devoted significant airtime to what he said was Hillary Clinton’s exploitation of her constitutional rights. “If you’re innocent, why are you taking the Fifth Amendment?” You tell us, Trump.
Oz Minerals left swipes BHP It's a no, says Oz Minerals.
Australia’s darling iron ore, miner Fortescue Metals Group, had submitted a takeover proposal to Oz Minerals last Friday that was promptly dismissed by the copper miner come Monday morning. Oz Minerals board has rejected the 8.1 billion dollar offer, claiming the deal is heavily undervalued and not in the interests of shareholders. Oz Minerals chief executive and managing director Andrew Cole described (PDF) the company’s assets to shareholders and their response to BHP's bid: "We do not believe the proposal from BHP sufficiently recognises [the companies] assets." The miners’ closing price on Friday would have been a 32 percent premium to the $25 per share offer. But there are still other offers, which might be more than it wants to risk, including one that it would have a chance to raise itself,” he said to analyst Jon Mills. “We believe it’s more probable that BHP increases its bid, as was the case with Noront Resources in 2021,” says Mills. Oz Mineral shareholders Will Wait and Hope to see if BHP returns with deeper pockets.
US inflation stats have the investors excited
The Nasdaq rebounded on Wednesday from earlier lows this year. New figures showed that inflation for July was up by 8.5% year on year. That’s down from 9.1% in June. Other data also revealed how there hadn’t been a month-on-month increase in inflation during July, compared with June’s month-on-month 1.3% price rise. The lower-than-expected inflation has provided investors with some hope that the Fed will not overdo its rate increases. The technology-heavy Nasdaq Composite jumped 2.9% on Wednesday after the inflation numbers were released, bringing its gains to more than 20% since it hit a low point in June.
Market Wrap
The local market went some of the way to relinquishing some of this week’s gains despite a strong performance from the energy sector but still ended in the black for the fourth straight week.
The S&P/ASX200 benchmark index on Friday closed down 38.5 points, or 0.54 per cent, at 7032.5 points, while the All Ordinaries index lost 36.6 points, or 0.5 per cent, to 7288.8.
"Very mixed day today, I think energy was the most noticeable one, stocks were up, that was probably on the back of oil and a lot of the other commodities picking up overnight," CMC Markets analyst Azeem Sheriff told AAP.
The energy sector soared 2.3% for its best day in almost three weeks after the International Energy Agency boosted demand estimates. Woodside rose 3.7 per cent to $32.77, Beach Energy rose 3.1 per cent to $1.85 and Whitehaven Coal closed 2.5 per cent higher at a record close of $6.62.
“All the other sectors weren’t all that great. Eight out of 11 sectors are in negative territory and I think that comes into the broader context of global market sentiment, and both US but also Asian markets are kicking in,” Mr Sheriff said.
But there was plenty in the way of company-specific news as other Australian companies reported their full-year results.
IAG rose 1.1 per cent to $4.66 after conveniently beating consensus forecasts with a full-year profit of $347 million, against a loss of $427 million a year ago, but also lowered its dividend after a one-of-a-kind year for natural perils claims.
Coking coal producer Stanmore Resources rose 10.9 percent to a two-month high of $2.24 after the coking coal producer reported its first-half revenue had surged 15-fold to $1 billion on surging coal prices and the acquisition of two mines.
Sleep apnoea device maker ResMed fell 3.0 per cent to $33.60 despite releasing fourth-quarter net income of $US 195 million, compared with the expected $US 193.7 million, while revenue rose 4 per cent to $US914.7 million.
Baby Bunting Group fell 4.9 per cent to $4.62 million after it posted a full-year profit of $19.5 million that missed forecasts, while Australia's biggest baby goods retailer said sales rose 8.3 per cent to $507.3 million.
The ACCC won’t oppose Woolworths’ $243 million buyout of special deals site MyDeal, sending Woolies shares up 0.1 per cent to $38.05.
MyDeal shares were 1.0 per cent higher at $1.045, with Woolies offering to buy them at $1.05.
The ASX200 finished the week up 16.9 points, or 0.24%.
