The Good Morning Report – 17th November

5 Things that Grabbed my Attention

1. The big pullback in OIL is giving bond investors a false sense of security.

2.  AMP gave a pretty miserable update on it's banking business, sending the stock tanking 15% lower. What a train wreck....My long held AVOID rating on FINANCIALS is definitely serving it's purpose.

3. The Karoon (KAR) capital raising is getting done @ $2.05....Now you can see why there was a mad rush for the exits by those who knew about the deal before it was formally announced.

4. UK government is ramping up subsidies to the wind industry by 66% - the extra cost will be paid for by the people via higher electricity prices.....Western governments are forging ahead with environmentally damaging and inflationary policy....BUY XMET

5. Australian Agriculture (AAC) downgraded the value of cattle herd by $175 mil resulting in the NTA falling from $2.59 to $2.39...With the stock trading @ 43% discount to NTA it is still a BUY : last sale $1.355

ASX Market Update

ASX 200 down 47 points to 7058

Australian Agriculture (AAC) rallied 3% despite posting a Net Loss after Tax of $105 million. Now that sounds like a horrible number, but it was the direct result of the company writing down the value of it's cattle herd by $175mil (it can be written back up in the future). I think the stock is CHEAP as it still trades at a significant discount to NTA of $2.39. BUY last sale $1.355

Random Observation

This is just the interest bill...LOL!!

Governments around the world are projected to spend an all-time high total of $2 Trillion on their debt interest expense this year. That total is projected to rise 50% by 2027. pic.twitter.com/Ba411c57GE

— Barchart (@Barchart) November 16, 2023

The Day Ahead

• Our SPI is down 11 points
• Bitcoin down 4.5% to $35,829

Movements affecting our resource stocks today (USD)

• BHP in the US down 0.36%
• Newmont up 0.5%
• Gold up 1% to $1984
• Paper Silver up 1% to $23.81
• Platinum down 0.3% to $898
• Copper down 0.65% to $3.69
• Brent Crude down 4.5% to $77.50
• Iron ore up 0.5% to $130.7

Asian Market Update

Japan down 0.28%, China off 0.7% and Hong Kong fell 1.3%

While FORD & GM are pulling back on EVs due to heavy losses and lower than expected demand, here we have Hyundai pressing ahead.

Hyundai breaks ground on $1.5B EV plant in South Korea

Hyundai plans to begin mass production from the plant in the first quarter of 2026, with construction expected to end in 2025.
ULSAN, South Korea -- Hyundai broke ground on Monday on a 2 trillion won ($1.52 billion) plant… pic.twitter.com/cgV5fpx2cJ

— Automotive.Station (@automotive_sts) November 13, 2023

Global Market Update

US Market

DOW down 45 points to 34,945

Xi's Top Table at the CEO Dinner$AAPL $BLK $BX $BA $AVGO $FDX $FLGT $GILD $HON $LVS $MA $NKE $PFE $QCOM $V#China 🇨🇳🇺🇸 pic.twitter.com/xg2FVM9o1T

— CN Wire (@Sino_Market) November 16, 2023

America's top executives spent the night sucking up to the Xi Man - master of the Universe.

European Markets

Germans up 0.24%, Brits fell 1% and Frenchies off 0.57%

AirBus Albo and Blackout Bowen would be salivating at the thought of doing this to us down under. Read Holger's full tweet:

Good Morning from #Germany, where the real estate market here is showing a big split. Prices for older properties (measured by the Europace House Price Index for Existing Homes) have dropped to their lowest point since Feb 2021, but the prices new buildings keep going up and are… pic.twitter.com/jysIY3Z6LB

— Holger Zschaepitz (@Schuldensuehner) November 16, 2023