Next Week At A Glance – 4-8 Nov 2024

This story features WOOLWORTHS GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: WOW

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:

-The Australian volatility index rallied almost 17% this week as the investor mood turned soured, with across-the-board profit taking in all sectors, except Info Tech which managed an almost 2% rally (net) on the week.

-It was a “Spooky” week with the ghouls and goblins out to scare the market with worse than forecast AGM trading updates, earnings downgrades and soft quarterly reports. Woolworths Group ((WOW)) led the consumer staples sector down over -5%, as the local behemoth struggles with tricky customers and inflation. Wesfarmers ((WES)) was positive-ish on Bunnings but scant on details, while flagging macro headwinds for businesses and consumers.

-JB Hi-Fi ((JBH)) continues to buck the retail consumer trend, as does Universal Store ((UNI)). Some welcome broker target prices were in the offing for ongoing sales growth momentum.

-Gold miner Newmont Corp ((NEM)) dropped a clanger of an earnings reset and Gina Rhinehart seems to have saved Mineral Resources ((MIN)) from the debt spiral with a deal to buy the company’s oil exploration assets. Embattled CEO & Founder Ellison awaits the board’s governance decision on Nov 4.

-Australian Sept quarter CPI couldn’t save the market and retail sales limped along. All eyes will most likely be on the Melbourne Cup coming Tuesday with the RBA likely to stay put at its next cash rate meeting. No Christmas rate cuts on the cards this year it seems.

-The elephant in the room, let’s make that for the entire world, is Tuesday’s US election. US Treasury markets have been pricing in a Trump sweep, but pollsters aren’t so sure. Are we staring down the barrel of a 2000 contested election, a la George Bush/Al Gore? Yes, says economist David Rosenberg who expects a contest on “steroids”, ending up in the Supreme Court. Who knows, but the twists and turns of the past few weeks seem unlikely to abate with uncertainty set to rattle markets.

Have a great weekend, from your FNArena Team!

Corporate news in the week that was:

-ANZ Bank ((ANXZ)) has flagged a -$196m one-off accounting charge to its second half statutory profit due to its Suncorp bank buy. It will be equivalent to -2bps reduction to ANZ’s level 2 common equity tier 1 capital

-Platinum Asset Management’s ((PTM)) board is evaluating competing bids, including an improved offer from Regal Partners ((RPL))

-Federation Mining, backed by AustralianSuper, has bid for Siren Gold ((SNG))

-Star Entertainment’s ((SGR)) lenders may extend its December deadline to raise $150m to ensure continued operations.

-RBA Governor Michele Bullock is considering individual board votes and mandating speeches for members to boost transparency, even if Chalmers’ overhaul fails to pass parliament

-Myer’s ((MYR)) acquisition of a portfolio of brands owned by retail billionaire Solomon Lew’s Premier Investments ((PMV)) was finalised this week

-Paladin Energy’s ((PDN)) acquisition of Fission Uranium faces approval uncertainty, while operational issues at Langer Heinrich Mine impacted production

-Metcash ((MTS)) extends Drakes supply deal but faces lower profits due to soft sales and margin pressures in hardware

-Raiz Invest ((RZI)) has exceeded $1.5bn in funds under management, achieving nearly 32% annual growth, boosted by stock market performance and AI-driven marketing

-Mosaic Brands ((MOZ)) enters administration with FTI Consulting after restructuring talks failed 

-Xero ((XRO)) has been hit with Fair Work lawsuit over alleged pay discrimination and bullying claims by a female engineer

-Senate crossbench considers inquiry as pressure mounts on prime minister Anthony Albanese over Qantas Airways ((QAN)) flight upgrades scandal amidst aviation oversight role

-Bloomberg reports the commercial real estate crash is even hammering AAA-rated office bonds, forcing investors to absorb losses on properties previously deemed rock-solid

-Aspen Group ((APZ)) is offloading shares in Eureka Group ((EGH)) after an unsuccessful acquisition attempt

-Dexus ((DXS)) is selling its 9.7% stake in Melbourne and Launceston airports

-Good Drinks Australia ((GDA)) has requested to delist from the ASX, pending shareholder approval at the AGM on November 28

-Whitehaven Coal ((WHC)) is reportedly preparing to bid for the $3bn Kestrel coal mine while skipping the $4.5bn Anglo American coal sale

-Southern Cross Austereo ((SXL)) is advancing the sale of regional TV assets to pay down debt

-Flight Centre ((FLT)) is acquiring Cruise Club UK to boost growth in the UK leisure market

-Bowen Coking Coal ((BCB)) struggles to raise $70m as its shares remain suspended, with the settlement date for its shortfall offer extended to November 4

-Burrendong Minerals seeks to raise $5m for a December IPO on the ASX

-ACCC chair Gina Cass-Gottlieb has called for banking competition reform

Next week at a glance

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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