The Fresh Juls

Wong Wong baby boy

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Mummy & daddy working hard everyday and mummy is carrying you around while working! She's the best and strongest woman in the world. Baby Juls you must be like your mummy in the future.

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Australian Market - Mid Day

The Australian sharemarket has been falling since yesterday. All Ordinaries (XAO) dropped 33.0 pts or 0.7% to 4,615.70, the S&P/ASX200 (XJO) fell 28.3 pts or 0.6% to 4,540.80, the S&P/ASX50 (XFL) fell 25.1 pts or 0.6% to 4,525.10. All sectors down, except the Consumer Staples, Telecomms, and Utilities.

Big four banks losing ground, Commonwealth Bank of Australia (ASX Code: CBA) dropped to $49.33, National Bank of Australia ((ASX Code: NAB) fell to $24.29, ANZ Banking Group ((ASX Code: ANZ) fell to $21.25, Westpac (ASX Code: WBC) picking up to $21.36.

Qantas heading rock bottom, Qantas (ASX Code: QAN) hit its lowest since July 2009 trading at $1.91.Competitor Virgin Blue (ASX Code: VBA) announced a long-term partnership with Singapore Airlines today, allowing access to each other's network in which VBA will have access to an addition 70 destination. VBA trading up at 29 cents.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.

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Economic Insight - Weekly petrol price

According to the Australian Institute of Petroleum, the national average Australian price of unleaded petrol fell by 1.8 cents per litre to 140.4 cents a litre in the week to June 5. The metropolitan price fell by 2.2 c/l to 138.6 c/l, while the regional average price fell by just 1.0 c/l to 143.8 c/l.

Petrol prices are falling, not rising, which great news to retailers who then can pass on the small discounts to consumers, which in turn might increase consumer spending and help with employment.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Economic Insight - Job ads declining

The ANZ job advertisement index reportedly declined by 6.5% in May, with internet jobs down 6.6% and newspaper jobs ad down by 2.7% This is the second consecutive month for the drop in job ads. First back-to-back monthly drop since 2009.

This clearly highlights the fact that the economy is slowing down and that businesses are affected, consumers are not spending, housing market slowing and employers are not employing.

Inflation pressures easing up, the annual rate fell 0.3% to 3.3%. The underlying rate was flat in May to stand just 2.4%, within the Reserve Bank's target band of 2-3%.

It is a chain of effect, if this continues the Reserve Bank might just have to continue staying on the sidelines for interest rates.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Australian Market - Open Day

What can I say? OH MY GOD! The Australian market opened with a board of red AGAIN.

The All Ordinaries (XAO) dropped 25.9 pts or 0.6% to 4,622.80, the S&P/ASX200 (XJO) fell 23.1 pts or 0.5% to 4,546.00, the S&P/ASX50 (XFL) fell 20.8 pts or 0.5% to 4,529.40.

All sectors fell, except Consumer Staples, Telecomms and Utilities sectors rising, 18 pts, 6.1 pts and 1.2 pts respectively.

Miners, BHP down at $42.63, RIO down at $79.12. Big four banks, CBA down trading at $49.19, NAB down trading at $24.39, ANZ down trading at $21.22, WBC down trading at $21.33.

Qantas is going down, crash landing. Qantas is having staffing issues with rough negotiations with pilots considering industrial actions. Qantas (ASX Code: QAN) opened at $1.94, now trading at $1.915. There is panic on the dance floor.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.

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"The fearful unbelief is unbelief in yourself - Thomas Carlyle."

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Overseas Market

The US employment trends index dropped downwardly from 100.1 (previously 100.5 compared to a year ago) in April to 99.7 in May.

The US sharemarkets plunged again yesterday, investors are frightened about the slowing economy. The Dow Jones fell 61 pts or 0.5% to 12089.96, the S&P500 fell 13.99 pts or 1.08% to1286.17, the Nasdaq dropped 30.22 pts or 1.1% to 2702.56.

US dollar trading back up and gaining back some of its recent losses against major currencies. Euro dollar easing near US$1.4655 to US1.4560, closing at near US$1.4670. Aussie dollar closed near at US107.05cents. Japanese yen closed near at JPY80.15.

European shares also declining, for the fourth straight day, the rising concerns about the economy is surfacing. The European Central Bank will be meeting on Thursday. Both miners up, BHP Billiton up 0.9% and Rio Tinto up 1.0% in London Trade. FTSEurofirst index dropped 0.6%, German DAX fell by 0.3%, the UK FTSE rose 0.1%.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Economic Insight - Consumer spending

The Australian culture is changing rapidly. The shift from the old Aussie consumer to the new-age Aussie consumer has caused retailers and businesses to re-focus the new consumer trends.

The old school Aussies like to spend like there's no tomorrow, reluctant to save and put purchases on credit cards, love a beer and smoke. That is out! The new-age Aussies save rather than spend, pay for purchases with their own money, stay home more often and use public transport to cut cost of living. In addition, beer consumption reportedly decreased, Aussies are drinking less and smoking less. They are embracing a healthier lifestyle.

Five years ago, real consumer spending growth average 2.9% yearly. For the year to March, consumer spending grew by 3%. People are spending, but it is the shift that is the concern, consumers are more cautious, conservative and price and value conscious; also healthier choices are made.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Australian Market - Mid Day

Mid day and the Australian sharemarket is still on the weak run. All Ordinaries (XAO) fell 22.10 pts or 0.5% to 4,644.500, the S&P/ASX200 (XJO) fell 19.40 pts or 0.4% to 4,563.70, the S&P/ASX50 (XFL) fell 16.30 pts or 0.4% to 4,545.30.

Oil and Gas producers down, miners down due to weak commodities prices last week. The financial sector slightly confusing, with the big fours some up some down. National Australia Bank (ASX Code: NAB) up to $24.45, Commonwealth Bank of Australia (ASX Code: CBA) up to $49.67, ANZ Banking Group (ASX Code: ANZ) down to $21.23, Westpac (ASX Code: WBC) down to $21.29.

Today is the Dumpling Festival in several Asian markets, thus several of them are closed today.

The Aussie dollar is stronger, buying US107.4cents.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.

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"Make the most of all that comes and the least of all that goes. -W.G.P."

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Falling property prices affecting small businesses

Small businesses should starting looking for alternative sources of cash funding. A decline in property prices are likely to cause small businesses to suffer cash flow issues. Many small businesses secure loans against property. Given the slowdown in the property market, small businesses are exposed to huge risk.

National auction clearance rates are not available, only state snapshots are available to give an indication of how the market is going. According to the Real Estate Institute of Victoria, the fifth week in a row, demand has decreased at auctions in Melbourne last weekend. The clearance rate was 59% for 829 auctions, last year 990 auctions were held with a high 72% clearance rate.

The slowdown in property market is likely to affect the cash flow, as the property might have to undergo a revaluation that will reduce credit available. The significant reduction in borrowing strength, small businesses might be pressured to stop spending, inventories will go down, deferring payment to suppliers and employees; a ripple effect to individuals.

Small businesses should consider banks. Banks are saying that they will focus on a credit facility supported by cash flow, not only based on property value where making a decision to lend.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Australian Market - Open Day

The Australian sharemarket opened the day with lots of negativity.

As of 10.31am, the All Ordinaries (XAO) dropped 17.7 pts or 0.4% to 4,648.90, the S&P/ASX200 (XJO) fell 16.9 pts or 0.4% to 4,566.20, the S&P/ASX50 (XFL) fell 17.5 pts or 0.4% to 4,544.10.

All sectors falling ranging from 0.3-0.9%. Not really good news as the consumer spending trends reported deep decreases and shifts.

Mining sectors not doing well as well, BHP Billiton (ASX Code: BHP) down to $42.92, Rio Tinto (ASX Code: RIO) fell to $79.40. Surprisingly, Fortescue Metals Group (ASX Code: FMG) rose to $6.45.

Big fours banks feel as well, ANZ Banking Group (ASX Code: ANZ) fell to $21.21, Commonwealth Bank of Australia (ASX Code: CBA) fell to $49.47, National Bank of Australia (ASX Code: NAB) dropped to $24.25, Westpac (ASX Code: WBC) fell to $21.25. However, Macquarie Group looking positive amidst the panic rose up to $32.73.

Looking out at Qantas (ASX Code: QAN), it has plunged to $1.985, reaching dangerous levels of 2008 where it was at $1.38. The recent volunteer redundancies and uncertain industrial actions by pilots for job security, could have caused the panic and people pushing the sell button.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.

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If you can't beat them, join them - Westfield accepts online challenge

Online shopping is now estimated to account for 3 to 4 per cent of retail sales, or at least $8 billion a year. Westfield executive, Michelle Vanzella knows the opportunities and threats posed by internet retailing. Michelle Vanzella, mother of two, is a frequent online shopper as well for children clothing, school needs and gifts.

The retail industry has suffered quite a blow from the increase in internet shopping. Also due to the rise in Aussie dollar, customers have gone to buying their stuff online from overseas sites that is cheaper due to strong exchange rates and the exemption from GST.

Westfield launched a fully transactional e-commerce site, westfield.com.au. The retailers who signed up with the site, only has to pay a small listing fee as well as a commission on every sale estimated to be between 20-30%. If there is no sale, there is no commission, unlike rent which is payable monthly.

Michelle Vanzella believes that the online sales will eventually catch up with rental income and that they will reach an equilibrium. Then both retailers and consumers will participate in both channels.

All information provided is not to be taken as personal advice, please speak to a professional financial adviser or stock broker for the appropriate strategies.

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Groupon goes for float

Groupon, the top online coupon provide, CEO Andrew Mason, has filed to raise US$750 million (AU$700 million) in an initial public offering. Seizing the opportunity in the rise of web-company share sales and giving investors a chance to bet on the surging daily-deal market.

The float is reported to be handled by Morgan Stanley, Goldman Sachs Group and Credit Suisse Group AG. Groupon will trade under the ticker GRPN.

After rejecting a US$6 billion takeover bid from Google, Groupon went to talk with bankers and has valued the company as much as US$25 billion. The company benefits from pioneering the market for daily deals and is set to generate approximately US$3.9 billion in sales in 2015, almost 3.4 times more compared to 2010.

Linkedin professional networking site was the first major US social media company to go public last month, Groupon CEO Andrew Mason seems positive about the float and believes that it will benefit the company in future bigger acquisitions.

So smaller daily deal sites, get ready your books for sale and start thinking what car you want to get and which penthouse you like.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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China wants to trade settlements in Yuan

Recently reported, senior Chinese government officials have suggested to major Australian miners to ask for payments in yuan rather than US dollars.

Most major commodities are currently priced in US dollars, any move by Rio, the world's third-largest miner by market capitalization and the second-largest supplier to the seaborne iron ore trade would encourage other miners as well as large Australian companies who trade heavily with China to consider settling invoices in yuan.

The implication of the rise and importance of the yuan has got major companies thinking but still the uncertainty of a switch and the potential risk in currency hedging might not initiate any immediate plans or change.

Once the change begins likely after 2025, or if earlier, the appreciation of yuan will be drastic, demand will be high and the yuan might be a natural hedge then.

All information are not to be taken for personal advice, please speak to your financial adviser or stock broker for proper strategies.

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Overseas Market

After initial open many markets fell, the Toronto Stock Exchange's S&P/TSX composite index fell 96.4 pts or 0.71% to 13,423.10, straight fourth fall in the past six weeks. The US stock markets retreated as well for the fifth straight week, the Dow Jones industrial average fell 125.75 pts  or 1.03% to 12,122.80, the Nasdaq composite index dropped 27.31 pts or 0.98% to 2,746.00.

US unemployment data was released for last month, disappointing. The US Labor Department reported 54,000 more jobs, however well below economists' expectation of 165,000. The unemployment rate increased 9.1% from 9.0%, whilst economists were expecting it to fall to 8.9%.

Traders and investors were panicking and frantically pushing the sell button. Thankfully for the first positive US economic news in weeks, the ISM Non Manufacturing jumped to 54.6 in May compared to 52.8 in April. The figure is well above 50, thus indicating slight growth and recovery is in the way.

* Non-Manufacturing ISM Report On Business® data

Again though good news on the expansion in the sector. The US dollar still dropped against the euro and the Japanese yen, but rose against the British pound. Oil for July delivery fell 18 cents to $100.22 a barrel, the uncertainty caused Gold futures for July delivery rose $9.70 to $1,541.90 an ounce. With the panic, people are started to hedge their risks to Gold, thus the increasing demand pushing prices up.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.

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Australian Market - End Day

It has been a roller coaster ride these past three days for many, with the Australian sharemarket rising slightly and then falling this week. The All Ordinaries (XAO) closed 16.60 pts lower or 0.4% down to 4,666.60, the S&P/ASX200 (XJO) closed 17.30 pts lower or 0.4% to 4,583.10, the S&P/ASX50 (XFL) closed 17.40 pts lower or 0.4% to 4,561.60. All sectors fell except the Industrials, Health Care, Information Technology and Telecomms sectors.

After Qantas (ASX Code: QAN) reported offering voluntary redundancies, its share plunged by 2.87% to $2.03. QAN current P/E ratio is 11.11, sector at 15.23, All Ords at 13.64.

Foster's Group (ASX Code: FGL) rose 3.5% to $4.43 after speculation that a Mexican brewer and North American company are making a joint bid for Fosters. Interesting..

Commodities prices fell in the London Metal Exchange (LME), Materials sector dropped today as well. Both BHP Billiton (ASX Code: BHP) & Rio Tinto (ASX Code: RIO) dropped 0.7% and 0.42% respectively. Big four banks did not do well also, only survivor - Commonwealth Bank of Australia (ASX Code: CBA) which rose by 0.22% to $49.51, National Bank of Australia (ASX Code: NAB) fell 0.53% tp $24.30, Westpac (ASX Code: WBC) fell 0.47% to $21.35, ANZ Banking Group (ASX Code: ANZ) fell 0.33% to $21.37.

Have a good weekend.

All information provided is a general account of the day’s trading, not suggesting to buy, sell or hold any particular stock.