Podcast – AWF, Michael Hill | US Earnings Ahead

12 July 2019

Global markets were mixed overnight as  Federal Reserve chairman Jerome Powell – in a second day of testimony signalled again the potential for a cut in interest rates, but a tweet from President Donald Trump admonishing China for not buying enough US agricultural products hit sentiment.

​As we touched on earlier this week, corporate earnings will keep investors bus​y with the first major US companies reporting profit results tonight. ​

​In this week's stock market movers podcast, the episode dominated by AWF Madison, but also talk about Michael Hill and Paysauce. ​To listen CLICK HERE​

Stock in Focus: Michael Hill (MHJ:NZX / MHJ:ASX)

​​​​​​​​​​​​​​​​​​​​​​​​Michael Hill shares ​have struggled in a retail environment that is no doubt tough and will likely remain tough for some time.  Adding to woes,  its shares fell sharply yesterday after the company flagged ​another ​a hit to its profits​.​

The jewellery retailer is expecting $10 million to $25 million to be wiped from its profits in 2020 due to a remediation program after discovering it had been underpaying staff following a review.​ ​Michael Hill International said an initial review of its Australian retail employment contracts and rostering practices showed non-compliance with some industry requirements over the past six financial years​.​

​We do not currently have full research coverage on Michael Hill and are working on initiating coverage shortly. 

Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​The Australian share marke​t was higher yesterday (ASX 200 index +0.39%)​. In stock news, Whitehaven Coal shares rose firmly on Thursday after reporting it had received better than expected prices for its thermal coal in the three months to June​. Gold miners advanced after the price of the precious metal hit a one-week high following US Fed Chairman Powell's dovish testimony.​

The New Zealand market ​added to gains on Thursday (NZX 50 index +0.​35​%) joining a rally across Asia, as renewed prospects for deeper rate cuts in the US made equity investments more appealing. Dairy stocks also firmed​, ​buoyed by broker upgrades and expectations tight global supplies will support ​dairy ​prices near-term.​
In stock news, t​he Commerce Commissio​n cleared ​Infratil's​ $3.4 billion purchase of Vodafone New Zealand in partners​t​hip with Brookfield Asset Management.​ ​Outside the benchmark index, fleet management technology company Eroad ​was higher as June-quarter unit sales rose 6 percent, driven by strong growth in the US. Sales in New Zealand were as expected but sales to small- to medium-sized customers in Australia were soft.


3 Things Markets Will be Watching this Week

  1. ​​​​​​​US Corporate earnings season kicks off this week. ​ 
  2. US Fed chairman Jerome Powell will testify before Congress on Wednesday and Thursday.
  3. In ​Australia, a business confidence survey on Tuesday will give its first report for a full month since the Coalition’s surprise Federal election victory.

Have a Great Day,


​In this week's stock market movers podcast, the episode dominated by AWF Madison, but also talk about Michael Hill and Paysauce.

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