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    21 September, 2023

So the US central bank stepped up its tough talk to combat inflation and signalled another rate increase this year.

Australian bond futures are now fully priced for a rate rise to 4.35 per cent by March next year and also imply a small chance of a follow-up increase.

Your move RBA…

Click here to read more.

Across Markets…

The sharemarket fell more than 90 points on Thursday, after still-hawkish rhetoric from the US Federal Reserve sparked a broad sell-off.

The S&P/ASX 200 closed down 98.10 points, or 1.4 per cent, to 7065.2, its lowest level since July 10.

The benchmark is now about 3 per cent down since the start of the week, after falling for four straight sessions.

All 11 sectors finished lower, with financials and energy sectors were among the worst hit, down 1.7 per cent and 1.9 per cent, respectively.

Oil and gas heavyweight Woodside dropped 2.6 per cent as the West Texas oil fell below $US89 a barrel.

Commonwealth Bank, NAB, ANZ and Westpac all tumbled more than 1.5 per cent, with Westpac the worst hit of the big four, dropping 2.5 per cent.

The health care, real estate and materials sectors also fell more than 1 per cent.

In company news, Transurban dropped 3.7 per cent after theACCC blocked its bid for Melbourne’s EastLink toll road.

Shares in Qantas dipped 0.4 per cent to $5.31 and hit its lowest in 11 months. Chairman Richard Goyder said during a TV interview he was not stepping away from his position at the embattled airline and that major shareholders were “supportive”. Shares have plunged 10 per cent this month.

Fonterra’s ASX-listed shareholders fund gained 4.5 per cent after the New Zealand dairy giant unveiled a full-year dividend of 50¢ a share, including interim dividend of 10¢ a share.

Brainchip fell 11.1 per cent adding to steep losses this week after the company dropped out of the S&P/ASX 200 on Monday.

Source: AFR

Pic of the day

Local Equity News

Leading Australian mobile satellite technology innovator Beam Communications (ASX: BCC) has welcomed news that arbitration has commenced to clear up recent issues related to its ZOLEO joint venture.

Equally owned by Beam and Canada’s Roadpost Inc., the ZOLEO joint venture is responsible for the highly successful ZOLEO product range, with around 80,000 subscribing customers and business turnover of around $41 million in FY23.

ZOLEO’s intuitive and seamless global messaging service has provided consistent and significant recurring revenues to the joint venture participants since 2018.

However, in recent months the Beam board has raised concerns over an increase in differences of opinion between the JV partners as to the direction ZOLEO should take.

In response, Beam’s board put forward a proposal that, it believes, was in the best interests of both Beam and ZOLEO Inc., that the ownership of the JV should reside with just one of the JV’s existing shareholders.

After a period of negotiation between the parties failed to result in an agreement, it has now been decided that the matter should enter into arbitration.

Beam chairman, Simon Wallace, said that although partners in any joint venture may sometimes have opposing views as to the respective priorities of each partner, the ongoing lack of alignment between the owners of ZOLEO Inc. was entirely unacceptable to Beam.

CLICK HERE TO READ MORE

Source: Small Caps

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If you would like more information on future Peak deals, please don’t hesitate to get in touch.


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