Welcome to Monday, and likely another day of carnage on the markets. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 Index (Index: ^AXJO) (ASX: XJO) has again opened lower, this time losing 1% at the open. That follows big losses on Wall Street on Friday, with the Dow Jones down 0.7%, The S&P 500 losing 1.2%, and the tech heavy NASDAQ dropping 2.3%. Heavy losses appear set to continue too, with US futures markets predicting further falls when Wall Street opens tonight, our time.
Foolish investors don't need to panic – in fact, selling out now could be the worst time to do so. Here's how The Motley Fool's Bruce Jackson says investors can play the market correction.
- It seems airlines and power companies are being blamed for ripping off consumers.
Utilities that supply gas and electricity have been blamed for 'gold-plating', or excessive spending on infrastructure for the past six-years, despite demand for electricity actually falling.As Fairfax Media columnist Michael West explains in this article, an analyst from Queensland's Energex has turned whistleblower, explaining to the press how the company conspired to push up prices.Now it's the airlines turn to feel the heat. Jet fuel prices have dropped dramatically in the past few months, and while airlines have been quick to increase surcharges as prices rose, they have also been slow to reduce them when prices fall.
Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH) are among the airlines being urged to drop their fuel fees. Virgin charges $680 in fuel surcharges for a return flight from Sydney to Los Angeles, while Qantas charges around half that for return flights to the US.
- Coca-Cola Amatil Ltd (ASX: CCL) may be in trouble with its major shareholder, The Coca-Cola Company (TCCC). It seems TCCC has big plans for Indonesia, and wants CCA to spend more capital on growing its foothold in one of the world's most populous nations. The negotiations between the two could be tense, and in a worst case scenario, CCA could lose its Indonesian licence. Shareholders will likely be watching very closely.
- Tweet of the Day
The iPhone 6 May Not Have Broken Sales Records in Australia according to our data @getpocketbook https://t.co/ELWk1uewRE
Pocketbook (@getpocketbook) October 12, 2014
Telstra Corporation Ltd (ASX: TLS) and JB Hi-Fi Limited (ASX: JBH) get huge free kick from Apple's new iPhone 6 models. - Stock of the Day – brought to you by Owne Raskiewicz – Telstra Corporation Ltd (ASX: TLS). The giant telco's share price has slumped 5% in a month, and more falls could come. But maybe this might be the right time to consider an investment in a high dividend yielding stalwart – the current yield is 5.6% – well above rates available on term deposits.
