1. It’s show-and-tell time in the US
US company reporting season rolls into an important week for the stock market with big names such as Netflix, IBM and Goldman Sachs doing their profit show-and-tells. US stocks fell 16% in the June quarter and our market dropped over 12%, so what actually happened to the profits of US companies over that time will be on show over the next two weeks. Our companies tell their profit stories in August. If these US companies provide a positive surprise, their share price will rise. On Friday, Citi reported well and its share price shot up over 13% in a day!

2. Union chases 8% pay rise
With inflation expected to surge higher later this month, a major union, the Australian Manufacturing Workers Union, wants an 8% pay rise. In June, RBA governor Philip Lowe told us wage rises above 3.5% would be fine for some workers but pay increases in the 4-5% range would make it harder to return inflation to 2.5%. If Dr Lowe can’t lower inflation, interest rates will have to go higher. So if other unions follow the Manufacturing Union Workers’ 8% pay claim, it could be terrible news for anyone with a mortgage.

3. ANZ on shopping spree
Last week, ANZ was looking at buying accounting software business MYOB. Now it looks like the bank will buy Suncorp bank for $4.9 billion. Suncorp will keep its insurance business but has been looking for offers for its banking division for some time. It’s expected that ANZ will need a capital raising of $3.5 billion to pull off the purchase. With MYOB in its sights, it looks like the bank is on a real shopping spree.

4. Covid cases rapidly trending upwards

5. ASX to rise following Wall St push
ASX futures were up 57 points or 0.88% to 6559, with the AUD +0.6% to 67.93 US cents.

On Wall St: Dow +2.2% S&P 500 +1.9% Nasdaq +1.8%.

In Europe: Stoxx 50 +2.4% FTSE +1.7% CAC +2% DAX +2.8%.

Brent crude +1.9% to $US101.02 a barrel.

Iron ore -3.6% to $US96.60 a tonne.

10-year yield: US 2.92% Australia 3.40%.