Next Week At A Glance – 9-13 Sep 2024

This story features STAR ENTERTAINMENT GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: SGR

For a more comprehensive preview of next week’s events, please refer to “The Monday Report”, published each Monday morning. For all economic data release dates, ex-div dates and times and other relevant information, please refer to the FNArena Calendar.

The week that was in Australian Finance:

-Australian market followed US markets which tumbled on growth concerns post subdued US factory data surveys and awaiting Friday’s jobs report. Tuesday was the worst day to start September since the global market sell off on August 5.

-The Australian share market looks set to be down over -1.2% over the last week, with the materials sector falling over -5% and energy sector off by over -7%. Real Estate and Information Technology are positive for the week.

-In total, from the price of US$100.55/t on September 2nd to US$91.33/tonne on September 6th, iron ore futures fell by over -8%. This significant decline was attributed to weak economic data from China, dwindling profits for Chinese steel mills, and ongoing property sector woes in the country, all of which contributed to a pessimistic outlook for steel demand in the world’s largest consumer.

-Global oil prices fell -5% on Tuesday to the lowest level in nine months on signs of a deal to resolve a dispute that has halted Libyan production and exports. Global growth concerns weighed on the commodities complex.

-Australian June quarter GDP came in better than feared.

-Traders are awaiting further indications about the likely path of US interest rates, which is causing some caution in the markets.

-The Australian dollar recently hit a six-month high of US67.7c. This strength is influencing various sectors on the ASX, particularly companies with substantial overseas earnings.

-Michele Bullock retained a hawkish stance’ flagging another rate hike if needed and stating RBA rate cuts are off the agenda.

Corporate news in the week that was

-Star Entertainment ((SGR)) (in trading halt) has asked lenders to relax rules on loan repayments

-China Investment Corporation is reportedly looking to sell its $5bn stake in Goodman Group ((GMG))

-EML Payments ((EML)) has completed the sale of its Sentenial business unit for EUR32.75m to GoCardless with the proceeds to be used to pay down debt

-The AFR reports solar farm owners in south-eastern states are switching off plants to protect their profits as extreme winds, abundant solar generation and low demand create an oversupply

-Woolworths Group ((WOW)) sold its remaining stake in Endeavour Group ((EDV)) for $383m to fully acquire PFD Food Services

-Betashares has entered the superannuation industry by acquiring Bendigo Superannuation ((BEN))

-Qatar Airways is nearing a deal to buy a minority stake in Virgin Australia, pending regulatory approval

-CommBank ((CBA)) is selling its ultra-high-net-worth advice business, with Gresham managing the sale and preparing to solicit bids

-Aussie Broadband ((ABB)) has sold its 12% stake in Superloop ((SLC)) for $99.8m after a Federal Court order to reduce its stake

-Myer’s ((MYR)) new chief Olivia Wirth will shut most Sass & Bide boutiques, bringing the fashion label exclusively into its department stores ahead of a proposed merger with apparel brands owned by Solomon Lew’s Premier Investments ((PMV))

-A research update on the lithium sector by Citi states every Australian lithium mine is losing money except for WA’s low-cost Greenbushes while an update by UBS is forecasting over-supply for longer with African supply ramping up

-Blackstone has come out the winner from the AirTrunk auction with a $23.5bn deal ((MQG)) ((GDC))

-Macquarie Group ((MQG)) is evaluating CommBank’s ((CBA)) ultra-high-net-worth business

-Orora ((ORA)) is selling its North American packaging business, Orora Packaging Solutions (OPS), to Veritiv for $1.78bn

-POSCO will invest $40m in Black Rock Mining ((BKT)), increasing its stake to 20% and securing long-term offtake agreements for the Tanzanian graphite project

-Apollo Global is selling a 10.6% stake in Challenger ((CGF)) for about $460m

-Private hospital operator Healthscope is seeking rent relief at 38 hospitals

-Home Affairs Minister Tony Burke has received draft cybersecurity laws

-Vanguard’s Australian office has laid off about -40 employees, mainly from marketing

-Cettire ((CTT)) is putting together a defence team consisting of Arnold Bloch Leibler, Hamilton Locke and Highbury Partnership

-The Australian reports Macquarie Group ((MQG)) may rake in $1.3bn in performance fees from the AirTrunk sale

-Apollo Global Management has halved its stake in Challenger ((CGF))

-Optus and TPG Telecom ((TPG)) have received regulatory approval to proceed with their regional network and spectrum sharing agreements, while keeping separate networks in metropolitan areas

-Atlas Arteria’s ((ALX)) bid to raise tolls on the Dulles Greenway was rejected by regulators

Next week at a glance

-Monday September 9: Japan 2Q GDP; China Aug CPI/PPI

-Tuesday September 10:NZ Manufacturing activity; Australia Aug NAB business confidence; China Aug trade balance; US Aug NFIB

-Wednesday September 11: UK July trade balance; US August CPI

-Thursday September 12: Australia August unemployment rate; Euro ECB policy rate

-Friday September 13: NZ August PMI; US University of Michigan Sentiment 

Corporate Calendar Please visit the FNArena calendar for a more extensive list

-Monday September 9: Ex-divs, CSL ((CSL)) 220c; Hub24 19.5c (1005 franked); Super Retail Group ((SUL)) 87c (100% franked); Viva Energy REIT ((VEA)) 6,7c (100% franked)

-Tuesday September 10: Ex-divs, Eagers Automotive ((APE)) 24c (100% franked); BlueScope Steel ((BSL)) 100c (30% franked); News Corp 10.68c; SG Fleet ((SGF)) 24.33c (100% franked))

-Wednesday September 11: Ex-divs, Adairs ((ADH)) 7c (100% franked); Brambles ((BXB)) 28.9c (35% franked); IGO Ltd ((IGO)) 26c (100% franked)

-Thursday September 12: Ex-divs, BHP Group ((BHP)) 109.21c (100% franked); Breville Group ((BRG)) 17c (100% franked); Nine Entertainment ((NEC)) 4.5c (100% franked); Perpetual ((PPT)) 53c (100% franked); 

Investor Briefings: Brambles and IGO

-Friday September 13: Ex-divs, Car Group 38.5c (50% franked); Cleanaway Waste Management ((CWY)) 2.55c (100% franked); Lovisa Holdings ((LOV)) 37c

For a calendar of earnings result releases and a summary of earnings results to date, refer to FNArena’s Corporate Results Monitor (https://www.fnarena.com/index.php/reporting_season/)

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