Phil King thinks Zip is the best way to buy now, pay later; Telstra faces industrial action as it won't (can't?) give payrises that match inflation; growing concerns over China's "great wall of debt"; and the Royal Commission into aged care operators gets underway. Here's what's happening in markets today.
What I'm reading this morning
Regal's Phil King likes Zip over Afterpay
With Afterpay up more than 100% over the past year, and Zip Co rising just 30%, Regal's Phil King reckons Zip offers good value at current levels.
Telstra facing industrial action over pay dispute
Telstra CEO, Andy Penn, faces a difficult proposition as thousands of employees are set for a potential strike. The telco is unwilling to agree to a 1.5% per year payrise for three years - which the union points out is below inflation rate.
China's "great wall of debt"
Fears are growing of a debt-driven slowdown in China, as economists point out that the Chinese governmenmt might not be able to sell its massive holdings in US treauries.
Aged care Royal Commission gets underway
With the banking Royal Commission over, it's time for the aged care industry to have its time under the microscope.
Stocks to watch
- Confession season is underway, as Sims Metal Management (SGM) announced updated earnings guidance this morning.
- Sandfire (SFR) confirmed this morning that it was assessing a bid for MOD Resources (MOD).
Key market data
- ASX Futures: 5849 (-0.28%)
- AUD/USD: 0.7166 (-0.03%)
- ASX200: 5879.6 (+0.5%)
- S&P 500: 2670.71 (+1.32%)
- China A50: 11,029.99 (+2.11%)
- Australia 2-yr bond:1.904 (+0.63%)
- Australia 10-yr bond: 2.336 (+0.95)
- US 2-yr bond: 2.601 (+0.01%)
- US 10-yr bond: 2.788 (+0.21%)
- Gold (USD/oz): 1,280.9 (-0.02%)
- Copper (USD/lb): 2.712 (+1.02%)
- Brent Oil (USD/bbl): 62.62 (+2.35%)
- 62% Iron Ore (USD/t): 76.1 (+1.33%)
Upcoming releases and events
- HIA New Home Sales for December this morning
- Chinese GDP, Fixed Asset Investment, Industrial Production, and Retail Sales are all released this afternoon Sydney time
- The World Economic Forum in Davos starts on Tuesday, however, it'll be missing both the USA and UK this year
- New Zealand CPI on Wednesday morning Sydney time
- Australian unemployment figures released on Thursday morning.