*PLEASE NOTE: Transcripts are autogenerated and may contain errors.
SPEAKERS
Henry Jennings
00:12
Good morning and welcome to the Marcus Today Breakfast Briefing. My name is Henry Jennings and it is Friday, November the 26th. And as usual, with all the information contained in this briefing, it is general advice only. So please do your own research. Contact your own Financial Advisor regarding any of the thoughts, ideas or insights in this briefing. If you need to, you can always pause the PowerPoint slide here and read our disclaimer in full. If you're listening to this on a podcast, you can head on over to our website, marcustoday.com.au, you can sign up for a two week free trial if you're not yet a member of the the Marcus today community, but you can also read the disclaimer there. Alright a little bit of a quiet night last night with the US closed for Thanksgiving. And as a result, our SPI futures showing only a four point gain 0.5% 7411.
01:07
Eyes on Europe though the stock 600 was up two points or point four two of a percentage 482. This is despite the Coronavirus issues that are now before called or taking hold in a Europe at the moment. So those lock downs and some restrictions and concerns about Coronavirus have been hitting travel stocks in the European and UK markets but the stock 600 still hanging in pretty good.
01:35
Here you can see the STOXX 600 And after a bit of a swoon some concerns about that Coronavirus. They did get some encouraging corporate results in the European markets and as a result we did say that European market picked back up and closed slightly higher on the day.
01:35
FTSE also doing pretty well. FTSE very much a mining kind of index very dominated by mining shares are point three 3% 24 points 7310 and the German index as well. Up 0.25 of a percent 40 points to 15,918. So with the US closed last night, pretty quiet as well for the oil price. We had Brent crude down three cents and WTI down 36 cents. US gold also obviously closed last night. We did have iron ore down just around 3.2% yesterday still above $100 though 100 US dollars a tonne $3.35 down on the Aussie dollar below 72 now 7188 So a bit of a fall there. Other commodities last night, as you would expect with the US markets closed in London we did see a pretty tepid session for metals. We had copper down 0.8% nickel down 0.6 aluminium at 0.85 zinc down 0.15 lead up 0.7 and tin down 1.2%. In UK trade for bhp we had bhp down point three of a percent and Rio down or 1.1% in the UK trade. The US of course closed last night.
03:22
As far as major stories go with with the US closed. The world of course does revolve around the US in terms of financial markets anyway. And so there will be a shortened session on Friday too. So expect tomorrow. Well, this evening for the US to be a quiet session as well SPI really not doing much up those four points. STOXX 600 up 0.4 we do have rising case numbers in Europe. That is the focus defensive stocks finding favour on the back of these COVID concerns. bond markets of course in the US are work closed and the US dollar though Money Never Sleeps there was trading near a five year high against the Japanese YEN and consolidating in the 18 month high against the Euro.
04:09
As far as a market goes today, not a lot happening and I suspect we're going to be another drifty kind of day. With the US closed. We do have October retail sales that much anticipated New Zealand November consumer confidence and we do see Chinese October industrial profits.
04:27
In Europe one of the winners and one of the things that did help the European index was Remi contract jumping 13.4% to a record high. It raised its full year profit outlook as strong demands for its premium Cognac continues. Now of course, TWA Treasury Wine Estates is very interested in strong demand for a premium product so that may help the sentiment a little bit for Treasury Wine TWA. So we'll wait and see how that one goes.
04:55
10 year yields Well, obviously with us close pretty stable 1.2 3% Australia 1.86% Germany -0.25. Interestingly looking at the Baltic Dry Index The BDI, which is a measurement of the cost of shipping dry goods around the world, it has fallen around 50% from its October peak Iron Ore very much to blame for that, which accounts around 20 to 30% of the dry bulk trade. So Iron Ore weighing on the BDI as well,
05:29
Yesterday we saw the ASX final report was out, which was a slight negative for the exchange and a slight positive for Chi-X. And it did also highlight the fact that when the ASX went down last year, that brokers need to be able to switch to the Chi-X market and continue to trade so slightly negative for the ISX but not a massive negative I think only around 9% of their revenue actually comes from trading
06:03
Ever Blues Adam Blumenthal has resigned from Crespo CPH and Cogan got hit with a second strike yesterday. And the Australian shareholders Association has urged the small shareholders not to assume that the Sydney Airport deal is a done deal and to read the fine print and make sure that their voices are heard.
06:26
Also today in the newspapers haven't seen anything official from the company but Magnus Battery, MNS has withdrawn its claim that it could be worth up to 10 billion on the sum of parts valuation that the company was talking about. Its AGM so they've had to withdraw that because it is just conjecture.
06:48
Telstra could face a Papa New Guinea Super Tacks on its new digital business around 37 million bucks. And the company called Gillian, which is a UK Australian joint venture, which is in the zinc bromide battery market. It's going to be listing on the London Stock Exchange a market with a valuation around 285 million. They claim that their battery storage product is now going to be a big thing and will be alternative I guess the lithium ion battery but maybe only for home energy storage rather than vehicle batteries.
07:30
Question of the day to day will ANP ever find a bottom? We've had yet another impairment this morning from the a&p we'll ever find the bottom certainly is one of the perennial underperformers and I've written an article which is going to be in Ausbiz, for the close of business email that goes out which I would strongly recommend you have a look at because it's a great, great closer businesses a fantastic podcast that they do every afternoon. And ANP is one of those perennial under performers, and there's a bunch of A's that have been underperforming. So will the imp ever find a bottom?
08:11
Well, that's it for me today. Thanks very much for listening. You can head on over to the Marcus Today Facebook Discussion Group, we'd love to have your thoughts ideas over there. It's a fantastic group 3500 members on that group. So even if you don't like Facebook, it's still worthwhile is one of the few things that I find on Facebook that is worthwhile.
08:30
And if you're listening to this on a podcast, as you know, we've already spent well we've split our podcasts into for so you can sign up for 1, 2, 3 or 4, the Marcus Strategy podcast that On the Desk podcast and my On the Couch podcast and this podcast itself, the Breakfast Briefing and the End of Day podcast as well.
08:52
But that's it for me. Thanks very much and have a great day.
