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Key Points

  • ASX futures are down 93 points, or 1.5 per cent.
  • Oil prices have recorded their biggest decline since the GFC.

Monadelphous worker dies after workplace accident

A worker from engineering company Monadelphous has died following a serious accident at the company’s workshop facilities on Saturday.

Emergency services were called to the scene however the employee passed away.

“We are deeply saddened by the loss of our colleague in the close-knit community of Kalgoorlie,” said Monadelphous managing director Rob Velletri.

“We extend our sincere condolences to our employee’s family, friends and colleagues during this very difficult time.”

The company said it would be conducting an investigation into the accident and working with relevant authorities.

Clean TeQ preferred for Townsville plant

William McInnes

Clean TeQ has been advised it its the preferred contractor to deliver a recycled water re-use plant at the Cleveland Bay Purification Plant in Townsville.

Final award of an engineering, procurement and construction () contract from Townsville City Council is still subject to a range of conditions.

However while discussion are ongoing, in order to maintain the targeted deliver schedule, the council has engaged Clean TeQ on an initial scope of work valued at $920,000 for detailed design and procurement of long-lead items for the project.

The company said it will update the market once there is more information regarding the final contract.

Perenti’s Barminco wins $200m Canada contract

Robert Guy

Perenti subsidiary Barminco has won $200 million of work to modernise Barrick’s Hemlo mine in Canada.

Barminco will undertake mine development, and production and haulage using equipment provided by Barrick.

The company will employ 300 people and work starts in April.

crashes on no-deal as virus fallout mounts

, Vesna Poljak, Angela Macdonald-Smith, Jacob Greber

Russia’s refusal to meet OPEC’s push for production cuts unleashed a 10 per cent fall in the price of crude and threatens to revive the as the coronavirus’ global spread inflicts mounting damage on commodity and equity markets.

As far as Russia is concerned, from April 1 there is no output deal between it and OPEC, energy minister Alexander Novak declared, alluding to the end of years of energy diplomacy under the OPEC-plus supercartel.

Barrick's Hemlo mine

Russia prevailed despite a new push by Saudi Arabia’s oil minister, Abdulaziz bin Salman, to reassert the kingdom’s authority. AP

It set off the biggest one-day plunge for oil since the global financial crisis, sending Brent crude down 9.4 per cent to $US45.27 a barrel.

Australian investors are faced with a nightmare start for shares on Monday, on track for a loss of 1.5 per cent from Friday’s closing bell and pushing deeper into correction territory after losing 13.2 per cent since the record high of February 20. On Wall Street, the S&P 500 fell 1.7 per cent, sunk by panic selling in and energy services.

In London trading, BHP fell 5.25 per cent and Rio Tinto 3.9 per cent. A rethink in the oil price will have knock-on effects for the S&P/ASX 200 energy sector: Origin Energy, for example, has assumed an oil price of $US68 a barrel over 2019-20 when estimating the cash distribution it will receive from its APLNG project.

And has said each of its core assets is free cash flow positive at less than $US40 a barrel, but it requires a price of $US60 a barrel to fund growth projects while maintaining gearing, in the absence of asset sales.

Real the full story at afr.com.

Air New Zealand scraps earnings guidance

William McInnes

Air New Zealand has scrapped its earnings guidance for the full year 2020, citing the increased uncertainty surrounding the duration and scale of the coronavirus outbreak.

The airline said it had taken numerous steps to mitigate the impact of the reduced demand but now believed the financial impact was likely to be more significant than it had previously estimated.

contractor

Air New Zealand has scrapped its earnings guidance. Bloomberg

It added that the situation was evolving at such a rapid pace, the airline was currently not in a position to provide and earnings outlook to the market.

Across its network, Air New Zealand has reduced capacity by 10 per cent. Asia capacity has been reduce by 26 per cent, Tasman capacity is down 7 per cent, Pacific Islands are down 6 per cent and its domestic network has been reduced by 4 per cent, with a 10 to 15 per cent reduction set to take place in March and April.

“Air New Zealand is a strong and resilient business operated by a world-class team with deep experience having navigated prior shocks to our business and industry,” said chief executive Greg Foran.

While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of Covid-19.”

Shares weaken again; oil prices slump

Here are the overnight market highlights:

  • AUD +0.3% to 66.36 US cents
  • On Wall St: Dow -1% S&P 500 -1.7% Nasdaq -1.9%
  • In New York: BHP -3.1% Rio -1.7% Atlassian -5.2%
  • In Europe: Stoxx 50 -3.9% FTSE -3.6% CAC -4.1% DAX -3.4%
  • Nikkei 225 futures -1.9%
  • Spot gold +0.1% to $US1673.83 an ounce in New York
  • Spot gold is up 10.3% year to date
  • Brent crude -8.9% to $US45.53 a barrel
  • US oil -10.1% to $US41.28 a barrel
  • Iron ore -2.6% to $US90.19 a tonne
  • Dalian iron ore -2.2% to 650 yuan
  • LME aluminium % to $US a tonne
  • LME copper % to $US a tonne
  • 2-year yield: US 0.51% Australia 0.39%
  • 5-year yield: US 0.61% Australia 0.39%
  • 10-year yield: US 0.76% Australia 0.67% Germany -0.71%
  • 10-year US/Australia yield gap: 9 basis points

Read Timothy Moore’s Before the Bell here.

Good morning

Good morning and welcome to Markets Live for Monday.

This blog is not intended as investment advice.

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