Good morning, and welcome to today's ASX 200 live coverage! We've got a lot to unpack, so let's dive right in.
First up, a nationwide mobile outage has hit Telstra, causing disruptions across the country. Acting CEO Michael Ackland will face the media shortly, and it's a situation that has impacted emergency services and rail passengers. This is a significant event, and it's a reminder of how reliant we've become on our mobile networks. Personally, I think it's fascinating to consider the potential ripple effects of such an outage and how it might affect critical infrastructure and daily life.
Moving on, Adairs is expecting a statutory loss due to a large impairment against its Focus on Furniture unit. Despite group sales growth, the company's underlying EBIT has taken a hit. What makes this particularly interesting is the contrast between the performance of Adairs and Mocka, which saw significant growth, versus the decline in Focus on Furniture. It raises questions about the challenges of managing diverse business units and the impact of market shifts on specific brands.
In more positive news, Ioneer has signed non-binding MOUs with two Korean partners, bringing its Nevada lithium-boron project closer to a final investment decision. This project is unique, hosting the only known lithium-boron reserve in North America, and it has the potential to create hundreds of jobs. However, it's important to note that these MOUs are non-binding, so there's still uncertainty ahead.
Sovereign Metals, on the other hand, has seen Rio Tinto opt out of its operator role at the Kasiya project. This move frees up Sovereign to pursue a US-focused strategy, targeting critical minerals like titanium, graphite, and heavy rare earths. It's an interesting shift in strategy, and it will be intriguing to see how Sovereign navigates the US market and its supply chains.
Now, let's talk about some impressive numbers. Cogstate has posted record sales contracts, with a significant increase in net sales and contracted future revenue. This is a great sign of growth and forward visibility for the company. Similarly, Ramelius has hit its FY26 guidance for the sixth consecutive year, a remarkable achievement in the mining industry.
Predictive Discovery's Kiniero mine has been a standout performer, operating well above its nameplate capacity and boosting group output and cash. This is a great example of process optimization and improved gold recovery. Alkane's mines have also delivered strong results, with production near the upper end of guidance and a significant increase in cash and bullion.
In other news, Greatland has appointed Nick Strong as COO to lead its Telfer and Havieron operations. Strong brings a wealth of experience from companies like Northern Star, Rio Tinto, and Newcrest, which is a significant boost to Greatland's leadership team. ResMed, meanwhile, is divesting its MatrixCare software arm to focus on its core businesses, a strategic move to reallocate capital and innovate.
Turning our attention to the markets, we've seen some interesting movements. Yields are up, with the US 2-year yield in a strong uptrend. Oil prices have spiked, returning to pre-war levels, while rare earth and strategic metal stocks have been under pressure. Copper prices have held up relatively well, but the Global X Copper Miners ETF has taken a hit. It's a reminder of the volatility in commodity markets and the impact of global events.
On the global front, Wall Street is flooding SpaceX with buy ratings as its quiet period ends. Despite the stock trading below its June high, analysts are bullish on long-term growth prospects. SK Hynix's US listing is also oversubscribed, with strong demand from global investors. Amazon, on the other hand, is raising $25 billion in a bond sale, which has impacted existing tech bonds and highlighted growing concerns over AI-related debt.
In M&A news, Vertex has made a significant move, acquiring Crinetics for $10 billion in its largest-ever acquisition. This deal brings in promising endocrinology assets and is likely to have a positive impact on the healthcare sector. US stocks slipped as chip selloffs continued and oil prices surged, impacting yields. Renewed US-Iran hostilities in the Strait of Hormuz have driven energy supply fears, with crude prices spiking and gold slumping.
In Asia, tech stocks sold off, with Samsung's record quarterly profit failing to impress investors. It's a sign of rotation out of crowded memory names and into defensive sectors. The Asian tech gauge is trading at a high multiple, indicating potential for further shifts in investor sentiment.
So, that's a wrap for now! We'll keep you updated throughout the day with more ASX coverage. Remember to check back for the latest news and insights. Until then, have a great day!
