Nothing was safe, with all sectors down except energy. Other records piled up as well: the worst quarter for the S&P/ASX 200 since March 2020, worst three months for Bitcoin (and copper prices) since 2011. Optimists point out that the S&P 500 then surged through the latter half of 1970. History does not repeat, but some will wish it rhymes.
Honeybees in Australia reminded to ‘check in’ at hives
Honeybees in Australia are under lockdown after a parasite attack. Restriction zones have been established across Newcastle to control an outbreak of the Varroa parasite, which has decimated honeybee populations around the world. Honeybees are important for a number of crops including almonds and their absence would make harvests a threat.
Tyro chief executive resigns
The fintech chief executive Robert Cooke announced his six months’ notice on Wednesday. Cooke will move to Star Entertainment Group as chief executive in place of the outgoing Matt Bekier. Tyro Payments is falling to the bottom of the ASX league tables, down 75 percent since January, so Cook is strapping on the parachute. He steps in as Star faces a falling share price (down 25% this year) and angry regulators. Investors will be praying he can bake up a fix.
Netflix digs deep for Asia
After a punishing 2022, Netflix is counting on Asia to come to its rescue. Tony Zameczkowski, senior corporate body, added that the streaming giant would also continue to expand its investment in Asia, which includes funding locally produced films. Netflix’s focus on Asia comes as the company has taken steps to cut costs earlier this year. Last week it followed through with layoffs of about 300 employees (about 4% of staff) worldwide. In May, 150 more were axed. The streaming giant’s stock price has plummeted more than 70 percent this year as it struggles with slowing revenue and a shrinking subscriber base.
Bendigo and Adelaide bank in talks with Suncorp
There are already some RUMORS as a potential merger between Suncorp’s banking division and Bendigo and Adelaide bank. In a statement on Monday, a Suncorp spokesperson acknowledged the media speculation, adding the group ‘periodically reviews its strategic options in relation to each of its business services and it is currently doing so in respect of its banking operations’. Analysts have mixed sentiments about how valuable spinning out Suncorp’s banking arm would be. It’s also not the first proposed deal among these parties. As far back as 2018, The Australian reported that Suncorp had approached Bendigo with a bid of $14 a share (a 21% premium to the market price) but the offer was refused. How the tables turn.
Dye and Durham drive a hard bargain for Link
Link’s admirer is having second thoughts. On Monday, the Canadian cloud-based software company reduced its bid from $5.50 to $4.30 in a letter, a significant 22% markdown. Link’s board is likely recalling that last year it turned away offers from the likes of KKR, Carlyle Group and US software provider SS&C Technologies all over $5. Shareholders probably are. Dye and Durham also intend to submit an “undertaking” to Australia’s competition watchdog, the Australian Competition & Consumer Commission (ACCC), to secure the necessary approvals after the competition regulator expressed doubts in June. Shares rose after the news. According to Dye and Durham, it has agreed not to amend or change the deal any further while it awaits clearance from the ACCC. Let’s see.
It was feeling a bit sell offy on the ASX today: Market Recap
The Australian share market has fallen into the red, as a broader sell-off in mining and energy stocks late in the session had investors jittery over the prospects of a slowdown in global growth.
The benchmark S&P/ASX200 index fell 28.2 points, or 0.43%, to 6,539.9 on Friday. The index fell 0.6% for the week.
Earlier in the session investors took little notice of a decline on Wall Street overnight and softer US consumer spending that suggested price pressures remained strong. But demand-tracking commodities like oil and copper continued to run under pressure, contributing to broader losses in the mining and energy sectors.
It follows a 10.2% loss on Australian shares in the fiscal year ended June 30.
“High inflation and aggressive policies by central banks worldwide to reverse the stimulus measures seen during the COVID period have contributed to the weakness of the Australian sharemarket for the past year,” CommSec Chief Equities Economist Craig James said.
The local market should recover over the next 12 to 18 months on the back of a strong domestic economy and an easing in inflationary pressures, he expects, but adds investors need to stay alert to the noise in the market.
Energy stocks were hit the hardest on Friday after oil prices fell more after declining 3% overnight.
Woodside and Santos, the leaders in the sector, dropped 4.4% and 2.8% respectively, while Beach Energy and refiner Ampol fell over 1% each.
Mining stocks pushed the market lower after iron ore prices faded further on top steel producer China’s demand constraints. Gold stocks were mixed, with top miner Newcrest losing 3%, while Evolution Mining and Northern Star rose.
Financial stocks surrendered some of their earlier gains in the ambiguous climate over how pronounced the rate hike will be when the Reserve Bank announces its decision after the meeting of its board next week. Two of the big four banks, CBA and NAB, finished nominally higher.
