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06/08/19
       
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EFG Int. & Shaw and Partners US Future Leaders Fund presentation
DJ Carmichael was pleased to attend the Perth presentation of the US Future Leaders Fund on Monday, 29 July 2019

EFG International and Shaw and Partners hosted 12 events across six states in five business days to roadshow the EFG Asset Management (EFGAM) US Future Leaders Fund. The roadshow culminated in a presentation to 140 attendees at the Westin Hotel in Perth on Monday, 29 July 2019.
 
EFGAM’s New Capital Funds are a series of high conviction strategies designed to produce long-term and sustainable alpha opportunities. The goal of the US Future Leaders Strategy is to identify the next Facebook, Apple or Starbucks; discovering companies that are poised to dominate multi-billion dollar markets over the next decade.
 
Shaw and Partners’ CIO Martin Crabb gave a comprehensive equity market outlook touching on topical themes including the impact of all time low interest rates, the slowing economy and the China Growth Pulse on domestic markets. Donald Klotter, Global Head of Institutional Sales at EFG International then spoke about the New Capital Funds’ investment philosophy, the EFG Future Leaders scholars panel and how they identify rapidly-growing businesses with the opportunity to develop into future mid/large cap companies, primarily via organic growth.
 
If you are interested in further information about the US Future Leaders Fund, Shaw and Partners or EFGAM please contact your DJ Carmichael Investment Adviser on 08 9263 5200.
Markets Summary
Markets Review
Local Market
 

The Australian share market suffered its biggest loss since December 10, with every sector deep in the red after signs that China is striking back against the US in their escalating trade war.

The benchmark S&P/ASX200 index finished down 128.3 points, or 1.9 per cent, to 6,640.3 points on Monday, while the broader All Ordinaries was down 135.5 points, or 1.98 per cent, to 6,710.6 points.

It was the S&P/ASX200's worst loss since a 129-point, 2.3 per cent loss on December 10, 2018.

The market was steadily lower throughout the session and closed very close to the day's lows.

The plunge came after China let the yuan tumble to its weakest level in a decade and asked state-owned companies to suspend US agricultural imports, in apparent retaliation for US President Donald Trump's vow to impose additional 10 per cent tariffs on Chinese exports on September 1.

The Australian dollar slid 0.45 per cent to 67.71 US cents, from 68.45 US cents on Friday, its lowest level against the greenback since 2009.

The Aussie has declined 4.3 per cent in the last two-and-a-half weeks, having bought 70.75 US cents on July 18.

The tech sector had the worst losses on Monday, declining 5.2 per cent as a whole in its worst day since it declined 7.8 per cent on August 11, 2010.

Machine learning dataset company Appen was the worst-performing ASX200 component, losing 10.6 per cent to hit a nearly two-month low of $26.87, while Afterpay Touch fell 7.8 per cent to a five-week low of $23.50, and logistics software company WiseTech Global plunged 8.1 per cent to a one-month low of $29.30.

The big banks were in the red, with Westpac down 1.2 per cent to $28.47, Commonwealth down 0.8 per cent to 81.21, ANZ down 1.7 per cent to $27.31 and NAB down 1.3 per cent to $28.15.

In the heavyweight mining sector, BHP dropped 3.6 per cent to $37.38, Rio Tinto was down 3.5 per cent to $91.49, South32 fell 4.0 per cent to $2.86 and Fortescue Metals was down 7.2 per cent to $7.09.

Major goldminers Newcrest and Northern Star were down 1.0 per cent and 1.3 per cent, respectively, but smaller goldminers were among the few companies to post gains, as the price of the yellow metal rose 0.5 per cent to hit another multi-year high.

Against the US dollar, gold was selling for $US1,456 an ounce, its highest level since early 2013, and against the Australian dollar it was at $A2,145 an ounce, its highest level ever.

Evolution Mining gained 1.9 per cent, Resolute Mining was up 4.3 per cent, and Dacian Gold was up 7.3 per cent.

Oil Search was up 2.8 per cent to $7.14 after cabinet ministers in Papua New Guinea agreed to stand behind a controversial liquefied natural gas deal with a consortium that includes Oil Search.

Wesfarmers gained 0.8 per cent to $39.16 after the competition watchdog said it would not stand in the way of the Kmart and Target owner's $230 million acquisition of deals website operator Catch Group.

Cryptocurrencies were buoyant, with bitcoin up 9.1 per cent to $US11595 or $A17,075 on Sydney exchange the Independent Reserve.

In all, though, losses were the order of the day, with property trusts - down 0.7 per cent - the only sector not to decline at least a percentage point.

The Reserve Bank of Australia is also set to announce its latest decision on interest rates on Tuesday afternoon, with traders giving about a 50-50 chance of third rate cut.

International Markets
 

While stocks pared losses in the last hour of trading on Monday to finish off their session lows, the benchmark S&P 500 fell about 3 per cent to notch its biggest one-day percentage decline since December 4. The index has fallen for six straight sessions and is now about 6 per cent below its record closing high on July 26.

A weaker yuan and a stronger US dollar pose challenges for US companies that do substantial business in China by effectively raising the cost of their goods for Chinese customers.

Adding to the tensions, China's commerce ministry said Chinese companies have stopped buying US agricultural products and that China will not rule out imposing import tariffs on US farm products that were bought after 3 August.

Shares of S&P 500 technology companies, which are heavily exposed to Chinese markets, dropped 4.1 per cent.

Apple shares slid 5.2 per cent as analysts warned that the newly proposed tariffs may hurt demand for the iPhone, while the Philadelphia semiconductor index dropped 4.4 per cent.

The Dow Jones Industrial Average on Monday fell 767.27 points, or 2.9 per cent, to 25,717.74; the S&P 500 lost 87.31 points, or 2.98 per cent, to 2,844.74; and the Nasdaq Composite dropped 278.03 points, or 3.47 per cent, to 7,726.04.

The Cboe Volatility Index, an options-based gauge of investor anxiety, rose 6.98 points to 24.59, its highest in about seven months.

Top US meat processor Tyson Foods was one bright spot. Its shares rose 5.1 per cent after the company beat quarterly profit estimates.

Source: Morningstar
Recce Pharmaceuticals Ltd (RCE) – ASX Release

Recce to give Opening R&D Address at 2019 World Antibiotic Resistance Congress

Dr John Prendergast will showcase the potential of New Synthetic Antibiotics

SYDNEY, Australia, 1 August 2019: Recce Pharmaceuticals Ltd (ASX: RCE) (Company), the Company pioneering the development of a new class of synthetic antibiotics, today announced that it will be delivering an Opening R&D Address at the World Anti-Microbial Resistance (AMR) Congress in Washington D.C., 7-8 November 2019.

The two-day World AMR Congress is the largest commercially focused conference with AMR at its centre, engaging more than 600 attendees from over 40 countries. It attracts key stakeholders from the pharma and biotech industry who are involved in the development of antimicrobial drugs and diagnostics, including healthcare payers, regulators and partners.

André Singer, General Manager, World Anti-Microbial Resistance Congress says: “We are proud to provide this platform for promising antibiotic programs to be introduced to the AMR community, such as Recce Pharmaceuticals’ synthetic polymer program which has the potential of transforming the way superbugs are targeted, through a new class of broad-spectrum antibiotics.”

Recce Chairman Dr. John Prendergast will give the 20-minute Opening Address, during which he will highlight the urgent need for new antibiotics to address AMR. The presentation will also afford the opportunity to provide an overview and update of Recce’s antibiotics pipeline as well as answer “How synthetic antibiotic development can change the antibiotic treatment model”.

“While addressing the key hurdles in antibiotic R&D such as push and pull incentives needed to reignite the sector, it is crucial to showcase ground-breaking antibiotic programs targeting a critical unmet medical need despite the current challenges to bring these therapies to the market” says Singer.

CLICK HERE to view the full announcement
Finance News Network
DJC has recently partnered with the Finance News Network to bring the latest market news, company updates, interviews and more to our website.

The tabs are updated throughout the day and can be found on our home page or by clicking on the following link: https://www.djcarmichael.com.au/stockbroking/fnn

 
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This Research Report expresses the personal view of the Author. DJ Carmichael Pty Limited, including authors of this report, its directors and employees advise that at the time of publication they hold or may become entitled to securities of the issued capital of the company and/or earn brokerage and other benefits or advantages, either directly or indirectly from client transactions in stocks mentioned in this report.

DJC acted as Lead Manager $1.8m Placement in February 2019 for Recce Pharmaceuticals Ltd., and it was paid fees for those services. Recce Pharmaceuticals Ltd. DJC and or its advisers hold an interest of 106,429 in Recce Pharmaceuticals Ltd. DJ Carmichael Pty Limited and its staff hold 1,800,000 Recce Pharmaceuticals Ltd. unlisted options exercisable at $0.168 expiring 15/02/2023.
 
Recommendation Definitions:

SPECULATIVE BUY – Potential 10% or more outperformance, high risk
BUY – Potential 10% or more outperformance
ACCUMULATE - 10% or more out-performance, buy on share price weakness
HOLD – Potential 10% underperformance to 10% over performance
SELL – Potential 10% or more underperformance
Period: During the forthcoming 12 months, at any time during that period and not necessarily just at the end of those 12 months.

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