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ASB Securities
Morning Brief

Monday, 06 November 2023

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New Zealand Headlines

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Australian Headlines

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International Headlines

New Zealand Headlines

 
ASB Securities : NzHeadlines

New Zealand Market Report: The index closed at 11,118.92, up 74.48 points or 0.67% and gained 3.24% for the week after four successive days of rises. It was the best week of trading since early July last year.
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Reserve Bank to prepare and maintain a plan for dealing with every deposit taker in case it fails. This week's bi-annual Reserve Bank Financial Stability Report (FRS) highlights just what a slow burner the Deposit Takers Act (DTA) will be.
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First home buyers are being warned they may never be able to save a deposit for an average priced home. A report shared exclusively with 1News predicts the average Auckland house price deposit will be $1 million by 2045.
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Kiwis have shared their regrets about buying their first home as the cost-of-living crisis continues to bite. The regrets were sparked by a Reddit post titled "Anyone regret buying their first home?", which has seen over 230 people respond to it.
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Many Kiwis consider loans as they wish to make home renovations or purchase a car. While applying for a loan can be straightforward, this may not always be true considering your credit score. Our credit score can affect our financial life and leave us paying more.
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Metro Performance Glass Limited will release its results for the 6 months ended 30 September 2023 at 8:30am (NZDT) on Wednesday, 29 November 2023, followed by a briefing for investors, analysts and media at 10am (NZDT).
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South Port New Zealand’s 2023 net profit of $11.71 million, which was down 8.7% on 2022, was “a better result” than had been expected earlier this year, shareholders were told at the company’s annual meeting at Bluff.
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Costco 'definitely interested' in opening more NZ warehouses
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China’s economic slowdown is already weighing on farms across New Zealand, many of which will be making a loss as a result of higher input costs and interest rates. Global warming-related storms have battered much of the North Island in the past year, with a disproportionate effect on those who work the land. Now, a drought and emissions pricing loom, with some worrying they will have a devastating effect on rural communities.
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Cycling and walking advocates are dismayed the transport agency has stopped funding projects to encourage walking, cycling and using public transport. Waka Kotahi said it was pressing pause on projects worth hundreds of millions of dollars, until it gets clear direction from the incoming government.
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Youthline Moves To 24/7 Counselling Service, With Support From ASB
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From Today FM to The Project, what’s going wrong for NZ media? There’s been the closure of Today FM, the canning of The Project, restructuring at all major news providers and a staggering report showing that MediaWorks faces an uncertain future. There are now even concerns that the cracks are starting to show in listener numbers for radio – a medium long viewed as the cockroach of media.
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Industrial Action To Begin At Fisher & Paykel Healthcare
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Opinion - Rachel Klaver: How talking about yourself can bring in more business. During the pandemic, many business owners accidentally nailed a part of their digital marketing that we often completely ignore.
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Opinion - David Hargreaves: Just as the Reserve Bank appears to be turning the inflation battle in its favour, here comes the double trouble of rampant immigration and a refreshed housing market
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Australian Headlines

 
ASB Securities : AuHeadlines

Australian Market Report: The Australian sharemarket built on its bright start after retail sales numbers boosted optimism following a rally on Wall Street overnight, where investors are hoping the US Federal Reserve may finally be done with raising interest rates. The S&P/ASX 200 rose 78.5 points, or 1.1 per cent, to 6978.2 at the close, with all sectors except energy trading in the green. The Australian dollar was sitting at US64.34¢.
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The future of finance is one global mega force we see affecting returns. It includes a changing U.S. corporate funding landscape, with less reliance on bank lending. That long-term trend has been bolstered by higher interest rates: Interest paid on bank deposits has lagged rate hikes, igniting competition for deposits. These shifts are good for savers, we believe. A more diversified funding pool makes the financial system safer and benefits borrowers overall, even if it means higher funding costs.
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Prime Minister Anthony Albanese is facing calls to return from China with something of tangible benefit to the nation, as he becomes the first Australian leader to visit the country since 2016.
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Treasurer Jim Chalmers has warned the government will have to cut back on some infrastructure projects to help trim inflation. Economists from the International Monetary Fund (IMF) urged the federal government to scale back on its record $30bn a year of public infrastructure spending, warning the economy was running far above capacity.
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Christmas mortgage squeeze looms as RBA prepares fresh interest rates hike: Economists
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Where Wilson Asset Management sees value in the current market
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The boss of investment behemoth Macquarie Group has blamed a drop-off in commodity market volatility and a sleepy deal-making environment for its sharp fall in profits, even as the group announced a $2 billion buyback. Macquarie on Friday posted a first-half net profit of $1.4 billion, down 39 per cent on the same period last year.
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Remote work is poised to be one of the most prominent industrial relations issues for the next decade as more employers seek to limit the ability to work from home. New research has shown that employers are pushing harder for workers to get back into the office than ever before, even considering differentiating between the pay of in-office and at-home staff.
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The graphite lesson… expect more critical metal shortages. Former geologist, James Cooper, warned investors ahead of China's shock announcement of export restrictions on graphite... So what's next?
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Glencore exits Australian copper but future still bright for nation's critical minerals sector, expert says
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Control of Red Hawk Mining rests on one phone call
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Kalgoorlie-Boulder drilling contractor Topdrill will use state-of-the art heritage site protection technology in its operations after signing a deal with Perth-based GeoMoby. Geomoby says it is the first time a large exploration drilling contractor will begin to incorporate its Protect technology fully into its operations.
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Looking to get in on the uranium boom with one ASX share investment?
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Wine producers have praised the government’s decision to walk away from a European Union free trade deal, arguing EU negotiators tried to “change the rules of the game midway through the game” to undercut the country’s multimillion-dollar industry. EU negotiators, locked in discussions with Trade Minister Don Farrell, pushed for prohibitions on Australian producers using the prosecco name in a bid to preserve it for growers in the prosecco region of Northern Italy.
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The men who built pubs and liquor juggernaut Endeavour Group into the world’s largest poker machine operator have triggered a public spat over the future of a business that they say has lost its way. There was no hiding the stakes, or the emotion, at the recent Endeavour Group shareholder meeting.
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Paradigm’s set for a proper knees-up if its arthritis fighter is the real deal. Despite improving sentiment in the life sciences sector, investors are savagely discounting pre-clinical drug developers with a long path to approval.
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Australian venture capital firm Flying Fox Ventures is shifting its focus to decidedly ‘unsexy’ startups, its partners say, as local investors tweak their strategies in the wake of the tech downturn of the past 18 months. Flying Fox has led a $1.4 million (£750,000) investment round into UK-based accounting start-up Mayday, which founding partner Rachael Neumann said is part of a deliberate bias towards funding ‘boring’ companies that nonetheless have strong demand for their products.
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Air fares likely to stay stubbornly high as travel-hungry Australians’ tastes change. Higher prices see the phenomenon of ‘revenge travel’ turn into a willingness to spend more on bigger trips, industry watchers say
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Opinion - Steve Knott: Industrial Relations bill could smash the economy. Premier Roger Cook was right to urge Prime Minister Anthony Albanese to carefully consider the damage his extreme industrial relations changes could have on WA’s resources industry. Until recently, debate over the Albanese’s Closing Loopholes legislation has largely ignored a factor that could smash the economy.
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International Headlines

 
ASB Securities : WorldHeadlines

U.S. Market Report: Wall Street's main stock indexes rallied on Friday as bond yields fell sharply after data showed signs of slowing U.S. jobs growth and an uptick in unemployment, boosting hopes that the Federal Reserve is done with its interest rate hiking campaign.
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European Market Report: European stocks fluctuated over the course of the trading session on Friday before eventually the day modestly higher. The markets got a boost in mid-day trading following the release of the U.S. Labor Department's closely watched monthly jobs report.
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Asian Market Report: Asian stocks rallied on Friday as the Fed's steady monetary policy approach coupled with labor market data released this week and a lower-than-expected supply of longer-dated bonds raised hopes that the U.S. central bank has finished raising rates.
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Brent crude futures slip amid easing Middle East concerns and U.S. job growth
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November is typically the best month for stocks. A quirk among mutual funds may explain the weird phenomenon and point to big gains into year's end
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Here’s how America’s economy could begin to weaken. Welcome to an economic version of the chicken-or-the-egg dilemma: With interest rates at their highest level in 22 years, what will weaken first? The job market or spending?
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OceanaGold (OTC:OCANF) Corp, through its subsidiary OGPI, has revised its annual gold production guidance for its Didipio mine in the Philippines. The new estimate is now set at 135,000 ounces, an increase from the initial forecast of 120,000 to 130,000 ounces.
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US asset managers launch new round of job cuts as investors seek safety. Charles Schwab, Prudential and Invesco announce cost controls as industry turns cautious after 2021 hiring spree
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BofA notifies customers of temporary industry-wide deposit delays
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Ozempic has taken the world by storm thanks to how it can help people lose weight, but it could also mean so much more for the economy. Ozempic is a brand name for semaglutide, a diabetes drug that also has weight loss effects.
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Clean energy is the future, but stocks aren't acting like it. Here's why.
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Tyson Foods is voluntarily recalling about 30,000 pounds of its dino-shaped chicken nuggets after some consumers reported finding small metal pieces in their patties.
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After a $1.8 billion verdict, the clock is ticking on the 6% real estate commission
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The Washington Post has named veteran media executive Will Lewis to serve as its new CEO and publisher. Lewis is joining the newspaper at a moment when one of the American news industry’s most storied outlets is struggling against the economic headwinds facing U.S. media companies. News of Lewis’ appointment was announced by the Post on Saturday.
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Another Google Antitrust Battle Reaches Court in Epic Games Case. The Fortnite creator accuses Google of stifling app competition, a challenge on top of a federal suit claiming the tech giant abuses its search dominance.
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Sports betting, online casino boom fuels big DraftKings revenue gains as rivals vie for market share
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FOMO fuels venture-backed fraud trials. Several trial witnesses have described in recent days how they were pressured into investing in a business and then found out its leader was also apparently misusing funds and defrauding them. And no, it's not disgraced crypto mogul Sam Bankman-Fried's trial, but one taking place across the country, in California.
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Elon Musk unveils Grok, an AI chatbot with a ‘rebellious streak’. Boss of X said tech being tested is inspired by Hitchhiker’s Guide to the Galaxy
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UK's faulty labour market means rates must stay high - BoE's Haskel
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A former fracking site in the North Yorkshire village of Kirby Misperton, once a lightning rod for environmental protests, may soon be a new frontier in Britain’s clean energy revolution. For the first time in the UK, an abandoned gas well could begin a second life as a source of geothermal energy.
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Irish corporate tax receipts fall for third month in October
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Telecom Italia (BIT:TLIT) (TIM) directors on Sunday gave a go-ahead to a multibillion euro sale of the telecoms group's prized domestic fixed-line access grid to U.S. fund KKR, two sources with knowledge of the matter told Reuters.
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China will accelerate the issuance and use of government bonds, state-run news agency Xinhua reported on Sunday citing an interview with new finance minister Lan Foan. The finance ministry will steadily promote the resolution of local government debt risk and increase efforts to better leverage the role of special bonds to boost the economy, Xinhua cited Foan as saying.
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CIIE 2023: Premier Li Qiang promotes Chinese consumers as fix for global economy amid push to improve trade ties
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China pledges to expand market access at annual trade fair amid foreign criticism
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The Global South, with 85% of the world’s population, has drifted out of the Western sphere of influence, as the United States and its allies discovered when countries with 70% of the world population rejected United Nations sanctions against Russia after February 2022.
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IPhone Maker Foxconn’s Sales Decline as China Begins Probe
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South Korea to re-impose stock short-selling ban through June to 'level playing field'
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Saudi Arabia’s economy has jolted into reverse, after the world’s largest crude oil exporter slashed output to prop up prices. Saudi gross domestic product, the broadest measure of its economy, shrunk 4.5% year-over-year in the third quarter of 2023, the country’s official statistics agency said this week. That’s the largest contraction since the Covid-19 pandemic in 2020.
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