13 SEP 21 – Monday Market Highlights – Transcript

SUMMARY KEYWORDS

retail sales, week, uranium, market, increasing, expected, data, buy, month, sprott, rba, asset purchases, merger, released, announced, growth, price, provide, oil, inflationary pressures

SPEAKERS

Fraser Jack, Roland Houghton

Fraser Jack 

You’re listening to the Monday market highlights brought to you by Milford.

Roland Houghton 

Good morning. It’s Monday the 13th of September, and I’m rolling from Milford. The usppi index was released on Friday, increasing 0.7% month on month exceeding expectations of 0.6% growth. This took annual growth to 8.3%, which is the largest annual increase since 12. month data was first calculated in November 2010. There are a few other interesting data points within this release such as trade services increasing by 1.5% month over month, goods prices increasing 1% food increasing 2.9% and transporting a warehouse and shooting up 2.8%. This data does suggest inflationary pressures are not yet easing. The uranium spot price has been surging in recent weeks on the back of the Sprott uranium trust quite aggressively buying millions of pounds of uranium and the spot market. investors can buy units in the trust and Sprott then has to go buy pounds of uranium equivalent to this inflow and the past three weeks alone that bought approximately 5% of annual production. They also announced they’re increasing the size of the trust by another $1 billion dollars. The spot price of uranium is up 31%. Over the past three weeks, which has seen many uranium miners rally quite aggressively. paladin, for example, is up 80%. In the past month alone, the RBA met last Tuesday, and decided to stick to its original tapering timetable, and will reduce asset purchases from $5 billion a week to $4 billion a week this month. This was a bit of a surprise the market who had expected the RBA to maintain the $5 billion a week of asset purchases given the Delta outbreak. However, the RBA noted that the outbreak is expected to delay but not derail the recovery and that we should be returning to growth late the December quarter. Turning to equities, there was a lot of news flow in the payment space. Last week, PayPal announced the acquisition of a Japanese buy now pay later provider called peytie. This cost approximately 2.7 billion US dollars and pay pal highlighted it would accelerate the Japanese prisons. It’s of course possible. They’ll export this technology into some of the markets they operate in. Amazon’s intentions to enter the point of sale market were uncovered as Amazon looked to provide a solution to retailers that will allow them to process online and offline transactions, while also providing data analytics around inventory and other business functions. their intentions are to take on the industry giants such as Shopify and square square fell 4% on the day This was leaked. Domestically, the much anticipated Santos and oil search merger was officially announced which will create a $21 billion company. As a reminder, oil search shareholders received 2.6275 Santos shares for every one share of oil search they own sent us expects to unlock 90 million 215 million per annum of synergies post the merger. Looking to the week ahead, the US has a few key data points coming out this week. The CPI data is released on Wednesday, with the market expecting 0.4% month a month increase in prices, which is a slight deceleration on the 0.5% experience in July. Retail sales data will also be released on Friday and the market expects retail sales to fall by negative 0.8% month on month largely driven by big reduction automotive purchases. x auto Retail Sales are expected to decline as small as 0.1% month on month. Thanks for listening. We’ll see you next week.