Commonwealth Bank (CBA) the big drag on the market this morning, down 3.5%. Although the ASX was scrapping itself up solidly in the green this morning, is falling back and sitting flat now, with the big 4 makor banks trading in the red. The IT sector again outperforming the rest this morning, up 1.3%, with energy also performing well up 1%.
Commonwealth Bank's trading update shows that underlying operating income for the quarter has decreased by 4%, and underlying operating expense increased by 3%, driven by regulatory and compliance project spends.
Some budget reaction:
The National Australia Bank says last night's budget was not "a big spending pre-election give away" but provides more scope for both sides of politics to spend more. "On the forecasts, there really aren't a lot of differences between NAB and Treasury – at the margins we are a touch weaker in 2019/20 on growth and nominal GDP but there is not really much in it. "The underlying cash deficit is expected to fall from $33.2bn in 2016-17 to $14.5bn in 2018-19, then achieving a tiny surplus in 2019/20 (ahead of schedule but…) and building to near 1% of GDP in the out years."
Of course the main news is Trump ditching the Iranian deal, although it has been telegraphed for a fair while.
Trump said the U.S. will withdraw from the landmark 2015 accord to curb Iran’s nuclear program and that he would reinstate financial sanctions on the Islamic Republic, casting the Mideast into a new period of uncertainty. He called the accord a “one-sided deal that should have never ever been made.” (Here’s what’s at stake in the withdrawal.) Meanwhile, North Korean leader Kim Jong Un was watching the decision closely, with potential repercussions for his upcoming summit with Trump, according to China’s former ambassador to Pyongyang.
Timmy down the road has agreed to supply the DT forum with more of his "Jooce". All of HLL's whiskey is now gone, have found something called 'I cant believe it's not whiskey". Also some coffee called subtly called "punch in the face".
