ASX dips 05 at open Pilbara Minerals up 84 but BHP falls 2
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BHP, the nation’s biggest mining company, has taken another step in the push to slash emissions across its global supply chain, with a new goal for suppliers and shippers to be carbon-neutral by 2050.
In the latest sign of big emitters responding to society’s escalating pressure on climate change, BHP on Tuesday announced the expansion of its existing goals to lower its indirect carbon footprint, known as Scope 3 emissions, by requiring other participants in its value chain to achieve net-zero.
BHP is putting more environmental goals into its operations.
“We are committed to playing our part through meaningful action in our value chain, continued support for low-carbon technology solutions and advocating for policy outcomes that enhance the global response to climate change,†BHP chief executive Mike Henry said.
However, BHP’s new goals, targeting the operational emissions of its shippers and its suppliers of goods and services, have drawn immediate criticism from some shareholder campaigners because they fail to include the Asian steel mills that burn its coals and iron ore, which make up the biggest share of its Scope 3 emissions.
“Despite record underlying profits of $US17 billion, BHP has committed just $US65 million to decarbonising steel production,†said Dan Gocher of the Australasian Centre for Corporate Responsibility (ACCR).
Read the full story here
Software design startup Canva has hit a $US40 billion ($55 billion) valuation after securing a new round of funding, making it the most valuable private consumer software company ever.
The Sydney-based company is now worth more on paper than ASX telecommunications giant Telstra, with its co-founders Melanie Perkins and Cliff Obrecht’s 30 per cent stake in the business now worth more than $16 billion.
Canva co-founders Cameron Adams (left), Cliff Obrecht and Melanie Perkins have seen their business hit a $55 billion valuation.
The tech juggernaut announced a $US200 million capital raising on Wednesday morning, led by investment firms T. Rowe Price, Franklin Templeton, Sequoia, Bessemer Venture Partners, Greenoaks Capital, Dragoneer, Felicis Ventures and Australian venture firms Blackbird Ventures and Airtree Ventures.
Having more than doubled its value since its previous capital raising in April, it’s now the world’s fifth most valuable startup after TikTok owner ByteDance, payments fintech Stripe, Elon Musk’s space travel venture SpaceX and buy now, pay later firm Klarna Bank, according to data from research firm CB Insights.
Canva was founded by Ms Perkins, Mr Obrecht and Cameron Adams in 2013 with the aim to allow anyone to easily design products such as greeting cards, posters, websites and presentation slides.
Read the full story here
In the second death at an Australian mining site so far this month, contractor Mastermyne this morning reported a coal miner was fatally injured when roof of the Crinum mine near Emerald in Queensland partially collapsed last night.
The miner died around midnight last night.
“This is a tragic event and our immediate thoughts are with the family, friends and workmates of our employee†Mastermyne managing director Tony Caruso told shareholders.
The company said another worker has been safely extracted from the mine and was airlifted to hospital as a precaution. Local authorities have commenced an investigation and mining operations have been suspended until further notice.
The death comes just ten days after an underground miner was killed at OZ Minerals’ Prominent Hill copper-gold mine in South Australia.
Mastermyne announced recently it had been contracted by mine owner Sojitz to operate the Crinum underground mine for the next seven years. Production was expected in early 2022 with up to 180 permanent employees.
Sojitz bought the mine near Emerald, Queensland, in 2018 from a BHP-Mitsubishi joint venture BMA for $100 million. Once restarted, Sojitz said Crinum would have capacity to produce up to 3 million tonnes of coal for 20 years.
Mastermyne shares closed at $1.10 yesterday.
Stocks going ex-dividend today from the ASX200 are CIMIC by 45.6¢, which closed at $21.16 yesterday, and Costa Group by 4¢. Shares last traded at $3.19.
Rating changes courtesy of Bloomberg
Accent Group: Raised to Overweight at Morgan Stanley; new price target of $2.60, last traded at $2.05
New Hope: Cut to Neutral at Goldman; price target of $2.50, last traded at $2.32
Pilbara Minerals: Raised to Buy at Canaccord; price target of $2.60, last traded at $2.26
ResMed: depositary receipts rated New Equal-Weight at Barrenjoey; price target of $39.50, last traded at $39.10
If you thought dividends have caused a bit of market turbulence in recent weeks, hold on to your hat.
According to Commsec, distributions to investors is about to hit its peak.
The broker says ASX200 companies paid around $5.5 billion in dividends to investors between mid-August and September 17, but the distributions will reach a peak starting next week with more than $15 billion cash handed to investors.
It is dividend season for shareholders!Credit:Peter Braig
CommSec estimates that over $41 billion in dividends will be paid in coming weeks compared to just $25.8 billion for the interim reporting season in February and $21.6 billion during the 2020 reporting season.
In the February 2020 season, the last season untainted by COVID concerns, it was $27.5 billion.
“A feature of the August reporting season was the abnormally high dividend payouts of the mining sector, supported by record-breaking commodity prices and profits,†says Commsec.
But the iron ore plunge is not expected to end the dividend bonanza.
“Some analysts are forecasting record annual dividend growth of around 17 per cent, more than triple the average annual growth rate,†says Commsec’s chief economist Craig James.
“According to the latest Bloomberg estimates, forward 12-month dividend per share (DPS) annual growth is 45.5 per cent, after plunging to -33.5 per cent in August 2020 â€" the biggest payout cut since 2009.â€
Telco Uniti Group says it will stick by its executive director Vaughan Bowen after he was charged with insider trading by the corporate regulator on Tuesday.
In a statement to the ASX at 6.30pm last night, Uniti noted the allegations regarding Mr Bowen’s alleged personal trading of shares in Vocus Group in June 2019.
“The Company understands that Mr Bowen emphatically denies the allegations and will be vigorously defending the matter,†it says.
Vaughan Bowen founded M2 Telecommunications, which merged with Vocus in 2015. Credit:Photo: Josh Robenstone
“The Company also notes that this matter does not relate to trading in Uniti shares.â€
Uniti says its board, chaired by former head of Broadcasting Australia Graeme Barclay, does not intend to make any changes to Mr Bowen’s role and position as an executive director at Uniti, “which will continue, until the outcome of this matter has been determined.â€
Uniti’s managing director is Michael Simmons, who has worked with Mr Bowen for many years as a board member of M2 Telecommunications and Vocus.
Mr Bowen, who founded M2 Telecommunications and was chairman of Vocus for six months in late 2017 to 2018 after the two firms merged, is now facing jail time.
ASIC alleges he sold $25.7 million worth of shares while in possession of information that bidder EQT had pulled its $3 billion takeover offer for Vocus in June, 2019. Vocus told the market that day, but after trading closed. Shares dropped over 17 per cent when trading started the next day .
Uniti shares, which will recommence trading this morning, have more than doubled this year to a high of $4.39.
Bonds rallied and stocks declined on Wall Street, setting the Australian market up for a weak start after a less-than-forecast increase in inflation was seen as giving the Federal Reserve more flexibility when it comes to pulling back on stimulus.
The US market had started higher on Tuesday (local time) after the US inflation data came in better than economists had expected, but reversed course within the first hour of trading, falling broadly and dragging major indexes lower for the week as investors dealt with another day of choppy trading.
The S&P 500 fell 0.7 per cent as of 5:49 AEST. The benchmark index’s 11 sectors were all in the red, with banks and industrial and communication companies weighing down the index the most. The Dow Jones Industrial Average fell 0.8 per cent to 34,579 and the Nasdaq fell 0.5 per cent.
The ASX is set to follow the US market and open sharply lower, with futures at 5:53 am AEST pointing to a fall of 34 points, or 0.5 per cent, at the open. The Australian dollar was down 0.7 per cent.
US consumer prices rose a lower-than-expected 0.3 per cent last month, the smallest increase in seven months and a hopeful sign that inflation pressures may be cooling. Investors initially reacted well to the data and stocks gained ground early on, but the gains quickly faded.
Bond yields eased following the Labor Department’s report. The yield on the 10-year Treasury fell to 1.28 per cent from 1.32 per cent late on Monday. It had been rising overnight to about 1.34 per cent shortly before the report was released.
“It appears that the continued rally in Treasuries is due to speculation that some people have that the CPI data pushes off the Fed†tapering, said Blake Gwinn, strategist at RBC Capital Markets. Gwinn said he doesn’t agree with that view, and continues to see the Fed’s announced the start of its reduction in asset purchases in November or December.
The CPI figures offer some validation of views among Fed officials and the Biden administration that high inflation will prove temporary. The report could also help blunt criticism from Republicans that President Joe Biden’s economic stimulus is spurring damaging inflation as he seeks to sell a $US3.5 trillion ($4.8 trillion) long-term tax-and-spending package that’s also running into opposition from moderate Democrats.
Read more here
AP, with Bloomberg
Good Morning and welcome to another day on Markets Live.
Your editors today are Lucy Battersby and Colin Kruger.
There is some Westpac Consumer Confidence numbers coming out at 10:30am, which is expected to drop just slightly to 102 points. And shortly after consumer inflation expectations is expected to be about 3.2 per cent. The UK gets a huge dump of inflation data this evening.
This blog is not intended as financial advice.
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