Australia…1 Hour In…ASX200 Up 124 Points

By Scott Phillips | More Articles by Scott Phillips

Reserve Bank Governor Lowe is speaking this morning regarding the Australian economy. It is still going on as I write. A few of the major point he has made are;

– Possible economic downturn not as severe as first thought.

– Expects further declines in employment.

– Economic stimulus is working.

– Economy will need support for at least a year.

– The end of wage subsidy will be a critical point.
– Negative interest rates extremely unlikely.

– UNLIKELY TO RAISE RATES FOR A FEW YEARS

In the markets:

– Atlas (TH); the toll road owner is to do a capital raising of $420m.

– Banks; can’t stop them. ANZ +6% CBA +3.9% MQG +3.7% NAB +6.3% WBC +5.6%

– Bendigo and Adelaide Bank (+7.3%); outlined a provision of $148.3m for potential future impacts on account of the COVID-19 pandemic.

– CSL (+1.3%); upgraded to Buy by a big US broker this morning.

– Mesoblast (+3%); 3Q result saw a 113% increase in revenue.

– Newscorp (+2.2%); said the bulk of its regional titles will go digital meaning the loss of between 650 and 1000 jobs. I have a list of which papers will stay and which will go digital if you want to see it. It’s a long list……..

– Southern Cross (+7%); copped a speeding ticket from the ASX after rising from 13c to 27c in 2 days. Said it is unaware of any new information.

Scott Phillips

About Scott Phillips

Scott has over 35 years experience in Australian equities, starting as a “chalkie” and trader on the Stock Exchange Trading Floor and spending the last 25 years advising and trading for International Institutions. He has been an Executive Director at JPMorgan and Nomura, a Governor of the Australian Stock Exchange and was recently awarded a Lifetime Achievment award by the Australian Stockbrokers Association. Now at Ascot Securities, Scott focuses on advising Family Offices, offshore Soveriegn Funds as well as a growing book of domestic Professional Investors.

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