Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Want to invest ethically for a brighter future?
(but still make lots of money)?

Want to invest ethically for a brighter future? (but still make lots of money)?

 Take Rask’s FREE Ethical Investing course today.

  • Online & 100% free
  • ETFs, shares & Super
Want to invest ethically for a brighter future? 
(but still make lots of money)?

 Take Rask’s FREE online Ethical Investing course.

S&P/ASX 200 to rise – Scentre (ASX:SCG) & URW shares in focus

The S&P/ASX 200 (ASX: XJO) is expected to brush aside a negative lead from overseas markets and open higher on Friday. Here’s what’s making headlines.

ASX 200 recap, unemployment surprises

Thankfully I’m not an economist, with my prediction that unemployment figures would be worse than the 7.7% expected proven wrong on Thursday. The unemployment rate unexpectedly fell from 7.5% to 6.8% in August with around 111,000 jobs gained, a large portion in part-time or gig economy roles. With most experts expecting unemployment to peak above 9%, there is likely to be further pain ahead, particularly given hours worked increased just 0.1% over the same period.

The result wasn’t enough to offset a weak global lead, the ASX 200 falling 1.2% on Thursday, with most pressure coming from a 3.3% fall in the iron ore price. Rio Tinto Limited (ASX: RIO) fell 3.4% and Fortescue Metals Group Limited (ASX: FMG) down 6.4% were the biggest detractors.

National Australia Bank Ltd (ASX: NAB) was one of the few winners, leading the banks, finishing 0.9% higher on signs the economic slowdown may not be as bad as initially expected.

Unibail-Rodamco-Westfield and Scentre on different roads

Shopping centre owners Unibail-Rodamco-Westfield (ASX: URW) and Scentre Group (ASX: SCG) management have chosen two very different options as they seek to reposition and recapitalise their businesses in a difficult operating environment.

Scentre unexpectedly opted to issue a $3 billion subordinated note, being part debt, part equity, at an interest rate of 4.75% and 5.12% respectively. Management is replacing expensive equity with more expensive debt, as they seek to avoid a more heavily discounted capital raising. The net tangible asset value remains stubbornly high, at $3.66 per share, with the market price of $2.30 suggesting there is more weakness to come. That said, Scentre shares finished 2.2% higher on the news.

In Europe, URW opted for the more traditional route, announcing a $3.5 billion discounted capital raising as part of their RESET strategy, combined with $4 billion in asset sales to offer more breathing room. URW shares finished 5.3% lower.

Clearly management of both companies remain hopeful of a return to normal, yet with retail in the doldrums even before COVID, I’m not as optimistic.

No news is bad news from the Fed

Profit-taking continued in the US technology sector, the Nasdaq 100 falling 1.3% overnight and the S&P 500 similarly down 0.8% after the Federal Reserve offered little commentary on its bond-buying policy; markets are waiting with bated breath for more fiscal stimulus.

Tik Tok and Oracle Inc. (NASDAQ: ORCL) appear to have agreed on updated terms from the White House for the sale of their US assets.

US employment data remains stronger than expected with jobless claims falling 33,000 in the week, supporting the consumer sector.

Elsewhere, the Bank of England surprised investors by suggesting it may consider negative interest rates at future meetings, with its cash rate stuck at 0.1% and concerns about labour market weakness; this despite official data reporting unemployment of just 4.1%. The news sent European financials including Barclays (LON: BARC) and HSBC (LON: HSBA) down over 2%.

This article was written by Drew Meredith, Financial Adviser and Director of Wattle Partners. To get in contact with Drew, click here to visit the Wattle Partners website.

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW or entering your email below.

Note: the report is 100% free.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Afterpay, Zip Co, Sezzle…

Is BNPL the opportunity of a lifetime or is the sector a ticking time bomb?

Rask's analyst has just finished a 7,500-word report, The Ultimate BNPL Sector Report, taking a deep dive into this booming ASX sector. It shines a spotlight on each of the major players. You can get the full analyst report for FREE by CLICKING HERE NOW.

Note: the report is 100% free.

Disclosure: At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Keep reading:

Rask Media’s Ultimate BNPL Sector Report

Afterpay, Zip, Sezzle… is this the opportunity of a lifetime? Or is BNPL a ticking time bomb? This 7,500-word analyst report takes a deep dive into the BNPL sector and shines a spotlight on each of the major players in this booming market. 

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

As we emerge from COVID-19, some tech companies are growing faster than ever. Rask’s investment analysts have identified 3 growth stocks set to benefit. Big time.

Enter your email below to access this report for free, including the names, ticker codes and analysis.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.