The Australian share market climbs for the fourth day in a row to a nine-month high on optimism about a pull back in rate rises in the US, and China's reopening economy.
And Virgin Australia's owners are considering relisting the airline on the stock exchange as the aviation industry recovers from the pandemic.
Disclaimer: this blog is not intended as investment advice.
Key events
Live updates
Markets snapshot 4:30pm AEDT
By Sue Lannin
ASX 200 index: 7,388 up 0.8 per cent
All Ordinaries: 7,605 up 0.9 per cent
Australian dollar: 69.92 up 0.2 per cent
Nikkei 225: 25,828 down 1.1 per cent
Shanghai Composite: 3,249 up 1. 7 per cent
Hang Seng: 21,836 up 0.4 per cent
Dow Jones: 34,303 up 0.3 per cent
S&P 500: 3,999 up 0.4 per cent
Nasdaq: 11,079 up 0.7 per cent
FTSE 100: 7,844 up 0.6 per cent
Spot gold: $US1920.24 steady
Brent crude: $US84.64 down 0.8 per cent
Iron ore: $US120.40 down 4 per cent
Unions call on Virgin Australia to reward workers for sacrifices
By Sue Lannin
Here's some comments from unions on Bain Capital's decision to look at relisting airline Virgin Australia on the stock exchange.
The Australian Services Union says Virgin management is refusing to discuss a pay rise after workers accepted a pay freeze in 2019 to help the company survive.
Imogen Sturni, branch secretary of the Australian Services Union private sector branch, has called on Virgin Australia to give workers a fair pay rise during upcoming enterprise bargaining negotiations.
"Virgin staff welcome the announcement from Bain Capital that the 'business is in great shape' and look forward to management coming to the bargaining table to negotiate a fair deal and a fair pay rise to meet the rising cost of living."
"Virgin weathered these turbulent years thanks to the hard work and sacrifices of its staff - it's time for Virgin management to pay them fairly."
Transport Workers Union national secretary Michael Kaine says its time for Virgin to reward workers for their dedication to the airline.
"With a float now on the cards, workers must be rewarded for their crucial role in the company's success," he said.
"We look forward to continuing a co-operative, respectful relationship with Virgin at the bargaining table, rather than Qantas' approach of attacking its workforce."
ASX ends at nine month high on optimism over rates and China
By Sue Lannin
The Australian share market rallied to its highest level since April last year.
And the Australian dollar rose above 70 US cents for the first time since August.
Record first half sales saw sports and car accessories retailer Super Retail Group jump by 7.7 per cent.
Payments firm Tyro Payments jumped nearly 7 per cent on an upbeat profit forecast, while baby products retailer Baby Bunting tumbled 11.6 per cent after seeing a fall in half year profit.
Lithium producer Ioneer jumped by 21 per cent to $0.55 on the news that the US Energy Department said it would lend the firm up to $US700 million to build a mine in Nevada.
Commodity prices have been surging on the prospect of a slowdown in the pace of US interest rate rises and China's reopening including gold, oil, and iron ore, although oil and iron ore prices pulled back today.
Nearly all sectors ended higher on the benchmark index with energy stocks, healthcare, industrials, tech, and financials doing the best.
The ASX 200 index rose 0.8 per cent to 7,388 to the highest in nine months.
The All Ordinaries index put on 0.9 per cent to close at 7,605.
Big miner BHP rallied to a record high of $50 thanks to optimism about China's demand for commodities.
But the big miners pulled back on the news that China was cracking down on the iron ore market and after revelations that nearly 60,000 people have died from COVID-19 in hospital in China since last month.
Fortescue Metals (-2.1 per cent) and Rio Tinto (-0.1 per cent) declined, but BHP (+0.1 per cent) recovered some lost ground.
The big banks rose with ANZ (+1.6 per cent) doing the best.
Woodside Energy rose 1.6 per cent to $37.30.
ASX top movers
By Sue Lannin
Nearly all sectors gained on the ASX 200 today as the benchmark index rallied to the highest point in nine months.
Energy stocks drove the gains, but healthcare, industrials, technology stocks and banks were also good performers in a wave of optimism for 2023.
Sports and car accessories retailer Super Retail (+7.7 per cent) did the best as it posted record half year sales, while lithium miner Core Lithium -6.2 per cent) did the worst on the benchmark index.
Can the Albanese government drive down carbon emissions?
By Sue Lannin
The Federal Government's new rules to reduce global warming begin in July with big polluters forced to cut their allowable emissions by nearly 5 per cent each year to 2030.
But will its overhaul of climate change policy work? Green groups think the changes don't go far enough.
My colleague Gareth Hutchens takes a look:
Wholesale inflation in Japan surges 10 per cent
By Sue Lannin
The Nikkei 225 index has tanked in Japan amid speculation that the Bank of Japan may have to allow longer term interest rates to rise again by tweaking its yield curve control at its meeting this week because of rising inflation.
The Nikkei fell below 26,000 point mark, and is now down 1.2 per cent to 25,802.
Last month, the Bank of Japan shocked markets by doubling the range for the 10-year Japanese government bond of -0.5 per cent to 0.5 per cent.
In data released today, the Bank of Japan said wholesale prices in the country jumped 9.7 per cent over 2022 as higher import costs added to inflation and squeezed corporate profits.
The annual rise in wholesale prices was the largest since 1981.
The price of goods traded between companies in December surged 10.2 per cent, the second largest annual gain on record.
The yen's sharp decline against the greenback has inflated the cost of energy imports, raw materials and food.
with Kyodo
Small business owners warned not to rely on Gen Z for cybersecurity
By Sue Lannin
Small business owners could be putting their businesses at risk by relying on younger family members or employees to manage their cyber security.
A new survey has found two-thirds of Australia's small business owners believe being tech-savvy means you have good cyber security skills.
But as Gareth Hutchens reports, the survey found members of Gen Z were more likely to underestimate the cyber security threats faced by small businesses they owned or were employed by.
On the other hand, Gen Xers and Millennials in their 30s took cyber security the most seriously.
Iron ore prices fall as China crackdowns on pricing, COVID deaths surge
By Sue Lannin
Bloomberg reports that China’s top economic planner will tighten supervision of iron ore pricing after the steel making
ingredient’s surge in recent months.
The National Development and Reform Commission will crack down on illegal activities including spreading false information, hoarding and price gouging to keep the iron ore market stable, the agency said in a statement.
Some information providers were summoned by the NDRC over publication of old or false news that confused the public and had an adverse impact on the market, according to the statement.
The companies were told to carefully verify their data and
ensure they don’t drive up prices.
Iron ore prices have rallied, fueled by optimism over higher demand as China's economy recovers from COVID-19 disruptions.
Iron ore futures in Singapore closed on Friday at $US125.50 a tonne, the highest since June.
However, prices fell 4 per cent today in Singapore to $US120.40 a tonne, after Beijing revealed that nearly 60,000 people with COVID-19 had died in hospital since China abandoned its COVID zero policy last month.
Authorities in China are also seeking to bolster their influence over iron ore pricing in the longer term by consolidating purchases on behalf of about 20 of the country’s largest steelmakers.
A new state-owned company called China Mineral Resources Group is poised to become the world’s biggest buyer of the commodity, possibly later this year.
with Bloomberg
Is annual land tax fairer than stamp duty?
By Sue Lannin
First home buyers in New South Wales who bought a property in the past two months can chose between paying stamp duty or an annual land tax on properties worth up to $1.5 million.
People who bought in November can opt into the scheme, which starts today, and get a refund if they paid stamp duty.
Revenue NSW estimates that up to 2,500 will apply for a refund.
My colleague David Chau spoke to Domain's chief of research and economics, Nicola Powell, about the pros and cons of the scheme.
Aussie dollar above 70 US cents
By Sue Lannin
We're into the third week of 2023 and there's so much optimism so far, despite pending recessions in many countries.
The hopes that the US Federal Reserve will dial back its interest rate rises has weakened the greenback and seen the Australian dollar rise above 70 US cents for the first time since August last year.
It jumped to 70.19 US at 1.31pm AEDT.
China's reopening has also boosted confidence with BHP hitting a record high of $50 this morning, before pulling back on news that China is targeting false information in the iron ore market.
CommSec says the ASX 200 reached an eight and a half month high today and is around 3.2 per cent away from its record high reached in 2021.
Bain Capital considers re-listing Virgin Australia on ASX
By Sue Lannin
Back to the story about how private equity firm Bain Capital is looking at returning Virgin Australia to the Australian Securities Exchange.
Virgin was saved from collapse by Bain Capital during the pandemic after it was forced to lay off a third of its workforce and go into voluntary administration.
But now fortunes have turned around for the aviation industry with demand for travel surging.
In a statement, Bain Capital says it will seek advice on a potential future IPO (initial public offering) and re-listing of Virgin Australia.
The airline was public listed on the ASX for 16 years before it went into voluntary administration in 2020 and was bought by Bain Capital for $3.5 billion.
Former Jetstar chief executive Jayne Hrdlicka was appointed chief executive.
Bain notes that "importantly, no decisions have been made as to when, or even if, any IPO will happen."
Bain Capital Sydney based partner, Mike Murphy, said Virgin Australia was "in great shape."
"In the coming months we will consider how to best position Virgin Australia for continued growth and long term-prosperity."
"Prior to covid, Virgin Australia had a proud history as a public company."
"While there is currently no set timetable, at some point in the future, if any IPO does happen, Bain Capital would welcome public market investors joining as as shareholders in what is a great Australian company."
"Bain Capital has made a long-term commitment to support Virgin Australia's growth and sustainability."
"It is Bain Capital's current intention to retain a significant shareholding in a future IPO of Virgin Australia."
ASX top movers at 12:45pm AEDT
By Sue Lannin
Here are the best and worst performers on the ASX 200 over lunchtime.
Super Retail Group (+8.6 per cent) is doing the best, while Core Lithium (-6.6 per cent) is doing the worst.
ASX trading at six week high
By Sue Lannin
The Australian share market is continuing its buoyant run so far this year with investors hoping that a fall in inflation in the US will see the US central bank slow down the pace of its interest rate rises.
There is also optimism about China's reopening despite Beijing saying 60,000 people have died of COVID-19 since early December.
The ASX 200 index has gained nearly 0.8 per cent to 7,383 with nearly all sectors higher today.
Energy stocks drove the markets thanks to another rise in oil prices on Friday, while big banks also holding up with ANZ (+1.4 per cent) doing the best.
Big miners are trading around a nine month high, but slipped after iron ore prices fell with Fortescue Metals (-2.4 per cent) losing ground.
Baby products retailer Baby Bunting fell (-11.9 per cent) after it reported a fall in half year profit.
Medical device firm Polynovo (+1.2 per cent) shares gained after it saw record half year sales of $27.3 million.
Super Retail Group (+8.7 per cent) and Tyro Payments (+6.9 per cent) are among the top movers after trading updates.
Baby Bunting shares slump as profit falls
By Sue Lannin
Nursery retailer and baby care shop Baby Bunting has seen half year pro forma net profit fall by 59 per cent to $5.1 million dollars from a year ago because of lower profit margins and weaker sales than expected in December.
That's despite an overall 6.6 per cent rise in sales for the half year to $259 million.
Baby Bunting shares fell 11.2 per cent to $2.69 at midday
Private equity firm considering floating Virgin Australia
By Sue Lannin
Virgin Australia was one of the biggest casualties of the COVID-19 pandemic in Australia.
It was bought by private equity firm Bain Capital after going into voluntary administration as the pandemic hit the aviation industry.
Now Bain Capital is looking at re-listing Virgin on the Australian Securities Exchange through a public float, also known as an initial public offering.
It says it would look to seek advice on the best timing and structure to return the airline to the ASX "when the timing its right."
Here's a look back at how Virgin Australia survived the pandemic from my colleague Nassim Khadem.
Super Retail shares jump after record half year sales
By Sue Lannin
Another stock performing well today is Super Retail, owner of retail chains Rebel Sports, Supercheap Auto, and boating, fishing and camping goods reatiler BCF Australia.
Super Retail says sales reached a record level, increasing by 15 per cent for the first half of the 2023 financial year.
It predicts half year revenue will come in at nearly $2 billion and normalised profit before tax to be between $212 million and $218 million.
Chief executive Andrew Heraghty says the company had delivered "an outstanding first half."
"All four core brands traded strongly over the peak cyber sales and Christmas holiday trading period as customers embraced the festive season, contributing to a record first half sales performance," he said.
"Effective and targeted promotions and a disciplined approach to cost management has ensured that this top-line growth has translated into a strong first half earnings."
Super Retail shares lost 14 per cent in 2022.
Super Retail shares rose 9 per cent this morning to $12.48.
Tyro Payments shares surge on strong half year profit
By Sue Lannin
Australians love their digital payments, even more so since the pandemic, and payments firms have been one of the big winners.
Tyro Payments has seen a strong first half of 2023 with a 37 per cent increase in the value of transactions to $21.7 billion compared to $15.8 billion the same time a year ago, according to preliminary figures lodged with the ASX.
Unaudited revenue jumped by nearly half to nearly $217 million, while normalised profit rose 40 per cent to $95.2 million for the first half of the year.
It's lifted its earnings guidance for 2023 with forecast transaction value of between $42.5 billion to $43.5 billion, and sees gross profit of up to $191 million.
Tyro will release its audited half year profit on February 28.
Tyro shares rose as much as 11 per cent to $1.52.
Tyro chief executive Jon Davey says it's been a good first half, although the firm is preparing for a slowdown.
"The first half of FY23 has been exceptionally strong, however in forecasting the second half of FY23, we are taking a cautious approach and have allowed for some softening of consumer trading conditions due to rising interest rates and other macro-economic factors," he said.
Has Australia's housing boom hit the end of the road
By Sue Lannin
Home prices in Australia have seen the largest decline on record since the Reserve Bank started increasing borrowing costs since May last year.
And that means big problems for Australia's highly indebted households, who owe around $2.3 trillion, and who are facing the fastest rise in interest rates on record.
Australia has been kicking a can full of economic problems down the road for decades, mainly related to housing debt.
My colleague, Michael Janda, asks is 2023 the year we reach the end of the road?
ASX market movers
By Sue Lannin
All sectors are higher on the ASX 200 index in the first half hour of trade with industrials, technology stocks and consumer firms leading the way.
Energy firms are higher as oil prices rose again on optimism about China's reopening and weaker inflation in the US in December.
Retailer Super Retail Group (+7.3 per cent) is doing the best after a trading update.
ASX opens higher on hopes for rate rise pullback
By Sue Lannin
Australian shares have opened higher boosted by miners, banks and real estate stocks.
The ASX 200 is up 0.2 per cent to 7,344.
Bauxite miner, alumina refiner and aluminium smelter Alumina (+2.3 per cent) is doing the best on the benchmark index, while Champion Iron (-2 per cent) is doing the worst.
