← Go back Nov 11, 2023
Australian shares are expected to open slightly lower despite gains in New York. ASX futures were down 0.3 per cent to 7073 after 6.30am AEDT. Origin Energy's chairman and chief executive are trying to rally last minute shareholder support for the $20 billion Brookfield takeover, which is reportedly being delayed after opposition to the deal from its largest shareholder, AustralianSuper. The price of oil dropped by almost 5 per cent but paired back losses. The price fall was linked to Saudi Arabia's dissatisfaction over the production levels of other OPEC oil-producing members. Follow the day's financial news and insights from our specialist business reporters on our live blog. By Nassim Khadem ASX 200 futures: -0.3 per cent to 7073 points Australian dollar: -0.2 per cent 66.38 US cents S & P 500: +0.4% to 4,556.2 points Nasdaq: +0.5% to 14,270.5 points FTSE: -0.2% to 7,469.5 points EuroStoxx: +0.3% to 457 points Spot gold: -0.4% to $US1,990/ounce Brent crude: +0.1% to $US75.64/barrel Iron ore: $US129.55/tonne Bitcoin: +1.4% to $US37,322 By Nassim Khadem New research from CommBank reveals that more than two in five Australians (44 per cent) are planning to shop the Black Friday/Cyber Monday sales, a figure which jumps to 6 in 10 for Aussies under 40. The survey of more than 1,000 Australians found that of those planning to shop the sales, 78 per cent are hoping to grab a bargain on essentials, while just over half are planning to buy gifts for others. According to the research, over 9 in 10 are looking to deals and discounts as a way to help with the cost of living, with more than three in five saying they are keeping an eye out for discounts more than they used to. And you can read more about Black Friday sales and the impact on inflation in this story today by me and my business colleague David Chau: By Nassim Khadem Trading in Origin Energy has been temporarily paused ahead of an expected formal announcement that the energy giant is delaying the vote on Brookfield's $20 billion takeover offer. Origin is expected to adjourn today's meeting as the board considers a new offer from suitor Brookfield, after signs that the buyout offer would not be approved by shareholders who had been expected to vote on the deal later today. Origin is expected to issue a formal statement shortly. By Nassim Khadem Origin Energy is expected to adjourn its meeting for the buyout offer from EIG and Brookfield from today to a later date. Origin and its advisers worked through the night on Wednesday to assess the bid, but are expected to request more time. The company said it will release a statement before the market opens. Origin shares closed on Wednesday at $8.42, a big discount to the $9.43 a share offer. Australian Super, which has a 16.5 per cent stake in Origin, said it believes the offer substantially undervalues the company's ability to profit from the shift to renewable energy, and has indicated it will vote against the deal. Without the support of Australia's largest superannuation fund, the consortium is struggling to get the takeover deal through. The deal would be Australia's second largest buyout in 2023 after Newmont Corp paid $17.8 billion for Newcrest Mining. Jamie Hannah, deputy head of investments and capital markets at VanEck Australia, which voted its 0.3 per cent stake in support of the deal, told Reuters: "I'm not confident of it going ahead. As much as we've voted for it, I don't know if the numbers stack up. If everyone thought it was going ahead the share price would be higher." Macquarie analyst Ian Myles wrote in a recent note: "With Australian Super interest increasing 16.5% in Origin, the probability is that the EIG/Brookfield scheme will fail." By Nassim Khadem Markets have increased pricing for another Reserve Bank of Australia rate hike in February after a hawkish speech from governor Michele Bullock. Markets are now pricing the chance of a 25 basis point rate hike in February 2024 at about 40 per cent. Markets and economists think there's a slim chance the RBA will move at its December meeting. In a speech on Wednesday night, the Reserve Bank's new boss did not back away from tough talk, saying the bank must use its "blunt" tool of interest rates to hammer out inflation for the collective welfare of Australians. Read more on that from my business colleagues Michael Janda and Gareth Hutchens here: By Nassim Khadem What started off as an American shopping tradition has become a retail highlight around the world, with millions of Australians set to take part in the sales this year. Data from the Australian Retailers Association (ARA), in partnership with Roy Morgan, shows that Black Friday and Cyber Monday sales are expected to account for more than a quarter of all holiday purchases this year. It forecasts shoppers will spend $6.36 billion across the four-day Black Friday/Cyber Monday weekend (24-27 November). That's 3 per cent (or $188 million) higher than last year. ARA chief executive Paul Zahra says while cost of living pressures including higher interest rates could see more subdued pre-Christmas spending, Black Friday will give retailers a much-needed boost. Westpac senior economist Matthew Hassan says it will be a "penny-pinching" Christmas. He says while shoppers are likely to take advantage of sales over the Black Friday period, Christmas spending is expected to be weaker this year. And you can read more on this story today by me and my business colleague David Chau: By Nassim Khadem Origin Energy's chairman and chief executive are trying to rally last minute shareholder support for the $20 billion Brookfield takeover, which is in doubt following opposition to the deal from shareholder AustralianSuper. Chairman Scott Perkins and chief exceutive Frank Calabria have been speaking with major shareholders in recent days hoping to gain their support. Investors had been scheduled to vote on the deal later today. Origin shares closed on Wednesday at $8.42, a sizeable discount to the $9.43 a share offer, in a strong sign the market expects the deal to fall over. In an update this morning, Origin's board said it "continues to unanimously recommend that shareholders vote in favour of the scheme" at the upcoming meeting. And each member of the board said they'll vote in favour with any shares they hold or control. The total cash payment, which values the Origin Energy share price at $9.43, is comprised of: -AU$6.20 per Origin share held on the scheme record date -US$1.86 per Origin share held on the scheme record date (current implied value of AU$2.84) -A fully franked special dividend of 39 cents per Origin share In supporting the deal, the board noted the offer price "is at the top end of the Independent Expert's valuation range of $8.45 to $9.48 per share as of 30 June 2023". But major shareholder AustralianSuper, which holds about 17 per cent of Origin Energy shares, doesn't agree with that valuation. The super fund expects that Origin Energy's share price will climb much higher than the offer price over time. Other super funds including Aware Super have reportedly backed the Brookfield offer, saying Origin is "well-placed to take a leading role in the energy transition". By Nassim Khadem Oil prices fell after a key ministerial meeting of Organization of the Petroleum Exporting Countries (OPEC) and its allies was pushed back to November 30. Oil giant Saudi Arabia could be struggling to convince other members to cut output. It had been expected by some analysts that OPEC+ could announce a deeper cut at the group's meeting, which was originally scheduled for the weekend November 25-26. But the market is now questioning whether other OPEC+ producers are willing to join in Saudi Arabia's efforts to lift oil prices. Most analysts had expected that OPEC's top producer, Saudi Arabia, would extend its voluntary cut of 1 million barrels per day (bpd) into 2024, following a weak period for oil demand in the first quarter of every year. To learn more about OPEC and how it controls prices read my analysis from earlier this year here:
Read more: abc_net
