ASX to open higher after Wall St rally
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The federal government should reveal the full list of big companies that gained help from the $88 billion JobKeeper wage subsidy, according to a clear majority of Australians who want to know the amounts paid out of taxpayer funds.
An exclusive survey shows that 68 per cent of voters support calls on the Australian Taxation Office to reveal the top 10,000 companies and the amounts they received after a political storm over “wasted†payments to people who did not need help.
A majority of Australian voters surveyed want the top JobKeeper recipients revealed.Credit:Fairfax Media
Only 8 per cent of voters oppose the disclosure while another 24 per cent are unsure, as the Senate prepares for a debate within weeks on whether to force tax officials to obey a formal order to release the employer names and payments.
ATO commissioner Chris Jordan has declined a Senate order to produce the documents on the grounds he cannot release confidential tax information, but independent Senator Rex Patrick is insisting that taxpayers deserve to know where the funds went.
In a stand-off to be decided when Parliament resumes on October 18, Treasurer Josh Frydenberg has claimed public interest immunity by claiming that releasing the figures would undermine confidence in the government being able to keep things confidential.
“Some are now calling for the details of JobKeeper recipients to be disclosed. To do so retrospectively would be a breach of faith. Taxpayers provided their information to the Tax Commissioner in confidence,†Mr Frydenberg wrote on September 10.
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JOHN ELLIOTT 1941 - 2021
To some, John Elliott, who died on Thursday, will be remembered as a brilliant star who exploded across the corporate firmament during the 1970s and 1980s â€" a white knight who saved the Melbourne business establishment and built a corporate empire virtually from scratch.
Sadly, perhaps more will recall a corporate buffoon who lost the plot and became a media tart. The footy loving Elliott was one of the country’s great characters, a man who brought colour and personality to the often grey world of business. He often said it was his ability to “never look back†that kept him going.
John Elliott at Elders IXL in 1989.Credit:Unsourced
Others might say it was an inability to reflect. Elliott would have said “pig’s arse†â€" a favourite expression that attached itself to his public persona â€" to this. But in latter years his own life became a bit of a “pig’s arseâ€.
One of the few things Elliott did publicly lament was that he never found a seat to propel him into national politics. The congenitally gregarious former federal president of the Liberal Party, once one of its largest fundraisers, was convinced he had what it took to become the country’s leader.
Indeed, in May 1986, when Elliott and Robert Holmes a Court were negotiating over the future ownership of Australia’s largest company, BHP, the urbane West Australian corporate raider appealed directly to Elliott’s inner politician. “We’d get to buy the shares,†said Holmes a Court, summing up his offer, “and you’d get to be prime minister of Australia.â€
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Shareholders in Vita Group are set to receive a special dividend of up to 45c per share after the group seals a sale of its retail telco business to Telstra for $110 million.
Vita has been a long time operator of a collection of Telstra-branded stores, but earlier this year Telstra confirmed it intended to bring its retail network back to a company-owned model.
Vita is moving from mobiles to beautician services. Credit:Shutterstock
That meant Vita had to negotiate with the telco giant to end its dealership agreement and sell the stores back. Shares tanked 30 per cent on the day Telstra confirmed it intended to bring everything in-house.
Vita confirmed this morning it has brokered the terms of that deal, and will be paid a cash consideration of $110 million for the store network. Telstra will take on the employment responsibilities for staff and managers who work in those stores as well as staff in their Sprout tech accessories business.
That of course raises the question: when a listed company that operates tech retail stores sells those retail stores… what does it do next?
Vita has been preparing for this moment and from 2017 started giving the business a facelift through the purchase of skincare and beauty treatments businesses.
The company confirmed this morning it will be paying out between $65 and $75 million of the Telstra sale to shareholders and will hold onto around $35 million to invest and grow its Artisan Aesthetics Clinics business.
The deal is subject to Vita shareholder approval.
Shares last traded at 92.5c.
Modular builder and caravan maker Fleetwood Ltd has flagged a downgrade as lockdowns hit its business.
While it sees a light at the end of the tunnel for lockdowns, it warns investors that any recovery will be slow and cautious.
COVID has also hit Fleetwood’s traditional caravan and RV business. Credit:Getty
“The ongoing border closures and uncertainty around when domestic travel will recommence has also started to impact our RV business both here in Australia and in New Zealand. Foot traffic has declined across our retail channels, while online and click and collect channels are showing signs of slowing as people wait for greater certainty about when they can travel,†says Fleetwood.
While it sees a clear impact on its first half results the company says it cannot quantify the impact at this time.
“We are aiming to be able to provide a clearer outlook at our Annual General Meeting, scheduled for 17 November,†the company says.
Commenting on the situation, Chief Executive Officer Bruce Nicholson said: “Our strong balance sheet and prudent approach to managing our costs and cashflow in the short term mean that Fleetwood is well placed to work through this difficult time.â€
The company has reportedly tried to sell its caravan and recreational business this year, from which it originated, to focus on its pre-fabricated building business.
Shares last traded at $2.39.
The Federal government’s Clean Energy Finance Corporation (CEFC) and the Commonwealth Bank have emerged as significant investors in Macquarie-backed global exchange Xpansiv, which focuses on ESG-inclusive commodities.
As investors turn up the heat on companies to go carbon-neutral, Xpansiv is pitching its platform as a handy tool for businesses to get a clearer picture on carbon offset financing and trading, as well as, the carbon footprint of traded commodities.
Xpansiv’s trading volumes have exploded as corporations seek to fulfil carbon-neutral commitments. Credit:AP
With a potential float on the ASX in the offing, Xpansiv has doubled its planned capital raising from private investors, from $US50 million to $US100 million, due to demand.
“It is our pleasure to welcome high-quality investors, including Clean Energy Finance Corporation, Commonwealth Bank of Australia, Hartree Partners, Wilson Asset Management, and many others who have participated along with Xpansiv’s current investors,†Xpansiv executive chairman Will Stewart said.
Xpansiv is also backed by rich lister Will Vicars, BP’s venture capital arm, S&P Global, American billionaire and private equity pioneer Thomas H. Lee and Jack Klinck, a former executive at State Street and BNY Mellon.
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Adacel (ADA AU): Adacel Raised to Buy at Bell Potter; PT A$1.50
Premier Investments (PMV AU): Premier Investments Raised to Buy at Bell Potter; PT A$31.25
Sandfire (SFR AU): Raised to Outperform at RBC; PT A$7.50
Wall Street rallied for a second day as investors embraced the Federal Reserve’s bullish economic outlook while downplaying the risk of contagion from turmoil in Chinese debt markets. Yields jumped worldwide after the Bank of England also moved closer to raising rates and oil prices increased.
The S&P 500 registered its biggest two-day gain since July, jumping 2.2 per cent, with the Fed signalling on Wednesday (local time) that it’s on track to start scaling back asset purchases this year as the recovery takes hold. The S&P 500 index rose 53 points, or 1.2 per cent, to 4449. The Dow Jones Industrial Average rose 507 points, or 1.5 per cent, to 34,765 and the Nasdaq rose 1 per cent.
Despite the bullish day for US stocks, the Australian sharemarket looks set for a lacklustre start. ASX futures rose 4 points, or 0.05 per cent, to 7352 as of 6:34 am AEST. The price for iron ore, the nation’s biggest export, traded almost unchanged at $US108.67.
All the major US markets rallied overnight.Credit:AP
“A hawkish Fed was surprisingly welcomed by equity markets as it was seen as a confirmation of continued strength and ‘substantial progress’ made by the economy in recovering from the COVID shock,†said Anu Gaggar, global investment strategist at Commonwealth Financial Network.
“While we are far from the end of QE and near-zero rates, the tide seems to be beginning to change. So far, the market had welcomed bad news as good news, but a market reacting to signs of an economy able to stand on its own without the monetary policy crutches is a refreshing change.â€
Nearly every stock in the S&P 500 rose. It’s now up 0.4 per cent for the week and has recovered from a sharp sell-off on Monday. The turnaround is more pronounced within the Dow, which is now up 0.5 per cent for the week after having been down 1.9 per cent for the week as of Tuesday.
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Good Morning and welcome to what should be another big day on Markets Live.
Emma Koehn and Colin Kruger are editing the blog today.
This blog is not intended as financial advice.
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