ASX 200 falls on Tuesday

The S&P/ASX 200 Index (ASX:XJO) dropped today. The Zip (ASX:Z1P) share price rose after a partnership with Harvey Norman Holdings (ASX:HVN).

The S&P/ASX 200 Index (ASX: XJO) ended 0.4% lower today to 6,631 points as iron ore miners fell backwards.

Here are some of the highlights from the ASX:

a woman

Zip Co Ltd (ASX: Z1P) partners with Harvey Norman Holdings Limited (ASX: HVN)

The Zip share price went down 1% and the Harvey Norman share price rose 0.2% after it was announced that the two businesses are going to work together.

Zip will be partnering with Harvey Norman, Domayne and Joyce Mayne franchisees to offer Zip's buy now, pay later payment solutions.

Peter Gray, who is the co-founder and chief operations officer, said: "We are thrilled to partner with such iconic brands. We look forward to providing customers with additional choice and better ways to pay as they shop with confidence at Harvey Norman, Domayne and Joyce Mayne."

Zip said this partnership with Harvey Norman continues to deliver on its strategic vision of providing customers with convenience and choice in how they choose to pay, while also driving towards Zip's mission to be the first payment choice everywhere and every day.

APRA lifts dividend restrictions

The Australian Prudential Regulation Authority (APRA) has provided updated capital management guidance to authorised deposit-taking institutions (ADIs) and insurers. It has lifted the limit where it told banks to retain at least half of their earnings.

From the start of 2021, banks won't have to hold onto a minimum level of earnings retention.

APRA Chair Wayne Byres said an improved economic outlook and the capital strength of the banking system have enabled a change in APRA's capital management guidance.

He also said: "A decade-long process of increasing capital levels and bolstering resilience in the banking system has put Australian banks in their current position of strength, allowing the sector to support customers and the broader economy at a time of crisis.

"The results of APRA's extensive ADI stress testing provide reassurance that the banking system remains well positioned to absorb the impact of a severe economic shock and retain the capacity to continue supplying credit into the economy.

"While the reduction in the number of loan repayment deferrals and improved economic outlook have allowed APRA to relax its July guidance for ADIs to retain at least half their earnings, the boards of ADIs and insurers are expected to maintain a prudent approach to capital management and dividend payouts."

The Commonwealth Bank of Australia (ASX: CBA) share price dropped 1%, the Westpac Banking Corp (ASX: WBC) share price fell 0.5%, the National Australia Bank Ltd. (ASX: NAB) share price almost fell around 0.7% and the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price fell 0.9%.

Pushpay Holdings Ltd (ASX: PPH)

The Pushpay share price didn't move today because it went into a trading halt.

Pushpay is doing an underwritten bookbuild to facilitate a sell down of shares held by interests associated with co-founder Chris Heaslip (former CEO and former director) and interests associated with executive and 'visionary' Chris Fowler.

The sale is for 54.68 million shares, which is almost 5% of the issued Pushpay capital, comprising 41.67 million shares held by interests related to Chris Heaslip and 13.01 million shares associated with Chris Fowler.

After the transaction, Mr Heaslip's interests' stake in Pushpay will reduce from 4% to 0.2% and the Fowler interests' stake in Pushpay will reduce from 2.4% to 1.2%.

Pushpay said that the sale will provide further free float and liquidity and is underwritten at a floor price of NZ$1.75 per share, which is a 7.4% discount to the last closing price.

As part of the announcement, Pushpay re-iterated its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) guidance for FY21 of US$54 million to US$58 million. However, the company said that uncertainties and impacts surrounding COVID-19 and the broader US economic environment remain.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and ZIPCOLTD FPO. The Motley Fool Australia has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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