rba governor

Mortgage fatigue is preventing Australian borrowers from getting a better deal on their loans – and it’s costing them thousands of dollars.

Find out more about The Front podcast here and read about this story and more on The Australian's website or search for The Australian in your app store.

This episode of The Front is presented and produced by Kristen Amiet, and edited by Tiffany Dimmack. Our regular host is Claire Harvey. The multimedia editor is Lia Tsamoglou, and original music composed by Jasper Leak.

See omnystudio.com/listener for privacy information.

Mortgage fatigue is preventing Australian borrowers from getting a better deal on their loans – and it’s costing them thousands of dollars.

Find out more about The Front podcast here and read about this story and more on The Australian's website or search for The Australian in your app store.

This episode of The Front is presented and produced by Kristen Amiet, and edited by Tiffany Dimmack. Our regular host is Claire Harvey. The multimedia editor is Lia Tsamoglou, and original music composed by Jasper Leak.

See omnystudio.com/listener for privacy information.

The Aussie share marked is eyeing a flat start to today’s session, after rising 1.4% Monday to Thursday. The lack of gas behind us today, comes as global markets closed mixed overnight, while U.S. futures are now suggesting a slight gain tonight.

In terms of economic news, we saw green shoots emerge in the U.S. showing its economy is clawing back. U.S. weekly job claims rose less than expected. What’s key is the number of those filing for benefits is now under 1 million for the first time since the pandemic started.

 What to watch today:

• On the economic front, the RBA Governor will give a speech later today and New Home sales numbers are out for July.
• On the company news side, we mentioned Mesoblast (ASX:MSB) yesterday, well it’s back in focus today with the FDA advisory committee underway voting on MSB product’s efficacy in treating graft versus host disease in children with blood cancer, so keep an eye on the FDA’s vote due Friday 14th. MSB is a speculative buy for Bell Potter with a $6 target.
• Companies reporting today: Baby Bunting Group (ASX:BBN) and Adacel Technologies (ASX:ADA), both Bell Potter buys will report results. Other companies reporting including Newcrest Mining (ASX:NCM), Abacus Property Group (ASX:ABP) and Charter Hall Retail REIT (ASX:CQR).

 Local trading ideas:

• Breville Group (ASX:BRG) was downgraded from a buy to a hold by Bell Potter with a $26.00 price target. UBS also downgraded BRG but expects its share price to continue to grow to $29.50. Breville has a strong balance sheet and is continuing to expand into Europe as planned. It also delivered a better than expected financial year result despite COVID-19.
• Macquarie downgraded AMP’s (ASX:AMP) price target to $1.30 following its financial results being handed down. While Bell Potter again went out on a limb, maintaining its buy rating and actually increased AMP’s price target to $2.60, expecting 70% share price growth.

The Aussie share market is eyeing a 0.7% lift at the open, following a positive night in the U.S. on hopes of further economic stimulus there. 

Across the ocean, UK’s Oxford University with AstraZeneca reported a strong immune response in a large early-stage human trial, according to medical journal The Lancet. 

What to watch today: 

• The RBA Governor will give a speech later today and the RBA minutes will be released. 
• The Government is expected to announce that JobKeeper and JobSeeker payments have been extended for another six months, but both payments will be reduced as the Government has found they could act as disincentives to work as the economy recovery. This is on top of the new $2 billion job package that was announced to help the unemployed and school-leavers. So stay tuned to the Prime Minister and Treasurer’s announcements. 
• Quarterly results today are due out for BHP (ASX:BHP) and Oil Search (ASX:OSH).

Local trading ideas:

• Following South32’s (ASX:S32) quarterly results being handed down, UBS reiterated the stock as a buy with a with a $2.60 target following yesterday’s close of 2.3% lower at $2.17. South32 ended FY20 better than expected, with yearly production records set by Brazil Alumina, Hillside Aluminium and Australian Manganese. 
• Fleet leasing business Eclipx Group (ASX:ECX) had a cracking day on the ASX yesterday up 7.3% to $1.40 after announcing the sale of Right to Drive for up $26.5 million, to be completed on 17 August 2020. UBS reaffirms Eclipx Group as a key buy with a $1.45 target, with upside to earnings. 
• Bell Potter upgraded Catapult Group (ASX:CAT), a wearable software athlete tracker company, with a $1.50 target. Yesterday it closed 11.4% higher at $1.42 after delivering FY20 earnings stronger than expected, also generating free cashflow of $9 million which was well ahead of the estimated $100,000.