The big news of the day is of course the $3.4 billion sale of Foxtel by its owners News Corp and Telstra to a private company owned by a UK billionaire who made his fortune from Soviet-era privatisations.

Here’s a very excellent analysis of the ups and downs of the one-time super profitable monopoly by the very excellent Nassim Khadem.

Thanks for the question Phillip, and apologies for getting back to it in a rather tardy fashion.

Well yes, “a bit of a problem” is one way of looking at it, particularly given Friday’s breakdown which delayed clearing transactions dating back to Wednesday until Sunday.

It also meant brokers had to find hundreds of millions, if not billions of dollars to cover the transactions while the ASX mechanics were under the hood of the CHESS jalopy.

Yes, the ASX has been planning a major overhaul of its 30-year-old Clearing House Electronic Subregister System (CHESS).

Sadly, planning doesn’t necessarily equate to “successful execution”.

The planning dates back to around 2015. After numerous failures and stuff-ups the project was scrapped late in 2022.

Unfortunately, back in February 2022 the ASX issued a statement to the effect that the test-run on the new you-beaut CHESS replacement was humming along, describing the project as “world leading technology.”

The securities and investments regulator ASIC took a very dim view of the fiasco and has hauled the ASX into the Federal Court alleging it had failed in the basic legal requirement to keep the market informed – very embarrassing for a market operator charged with ensuring its participants uphold that very strick rule.

Anyway, the ASX has given up its plans to redevelop its own CHESS software and is getting one built in India.

All going well, it should be delivered in 2029, eight years later than the original start date.

The ASX 200 has continued to climb over the day and is now up 1.4% – let’s hope all this buying doesn’t blow up the ASX’s clearing software again and all the transactions can be completed within three days.

At 8,180 points it’s still about 1% below last Monday’s close, but let the trend be your friend.

It’s 3% down over the month, but up 7.8% year to date.

Colleague Daniel Ziffer has hammered out his take on the 2024 economy and indulged in a bit of crystal ball watching for 2025.

Well worth a read.

Veteran telco analyst Paul Budde has watched the ups and downs of Foxtel over three decades and believes DAZN’s purchase of the pay-tv and streaming platform will be a big win for particularly sports fans and the sports themselves.

“The DAZN-Foxtel deal is more than a corporate transaction; it is a defining moment for Australian media and sports,” Mr Budde wrote in his blog this this afternoon.

“For fans, it promises better access, improved services, and a renewed focus on diverse sports content.”

Here are some of Mr Budde’s key observations.

Pricing strategy

“Unlike many traditional broadcasters, DAZN positions itself as a competitively priced brand, aiming to make premium sports content accessible to a broader audience. Subscription rates vary by region, reflecting factors such as competition, content offerings, and local economic conditions.

“Foxtel’s traditional premium pricing model has long been a point of contention, particularly in an era dominated by more affordable streaming alternatives. DAZN’s entry into the Australian market, potentially offering competitive or lower rates, could dramatically shift consumer expectations and reshape the pricing landscape.”

Ownership

“Founded in 2015 and headquartered in London, DAZN’s mission has been to democratise access to sports through a subscription-based, digital-first model.

“It’s backed by Sir Len Blavatnik one of the world’s richest individuals.

“Blavatnik’s influence cannot be overstated. As the driving force behind Access Industries, he has provided DAZN with the financial resources and strategic vision needed to secure high-value sports rights and expand globally.

Innovation

“DAZN, often referred to as the “Netflix of sports,” is a global over-the-top (OTT) streaming service that has redefined how audiences consume live and on-demand sports content.

“DAZN has leveraged cutting-edge technology to offer seamless streaming experiences, positioning itself as a disruptor to traditional pay-TV models.

“DAZN’s technology and innovation promise to enhance the viewing experience, while its global network could provide new opportunities to showcase Australian sports on the world stage.

Future

“Foxtel’s offerings are likely to diversify further, blending sports and entertainment content to cater to a wider audience. Moreover, the continued involvement of its local management team, led by Patrick Delany, ensures that the brand’s deep understanding of the Australian market will remain a guiding force.”

Blue Sky Kids Land and its two directors have been fined $5.1 million, after a long-running case prosecuted by Fair Work over migrant worker exploitation.

The fine is the third highest secured by Fair Work, topped only by the $15.3 million fine against Sushi Bay and the $10.3 million in the Commonwealth Bank and CommSec case.

The company, which is now in liquidation, was found to have  paid workers as little as $10/hour between October 2015 and June 2018, and to have deliberately hindered investigations by Fair Work into the wage theft.

The four workers impacted were then recent migrants aged in their 40s, and they spoke limited English.

“Individual wages underpayments ranged from $14,744 to $45,140,” Fair Work says.

“The workers gave evidence of the impacts of the underpayments, with one stating that she and her husband struggled to pay their mortgage and had to defer starting a family.”

Here’s part of the Federal Court judgement:

The respondents’ contraventions were many and varied. The nature of them is apparent from the declarations. They took place over a number of years. All of them were deliberate and all were serious, some more serious than others. What is more, the contraventions occurred in circumstances in which the respondents either knew or were wilfully blind to their legal obligations.

The two directors couldn’t immediately be reached for comment.

While Blue Sky Kids Land is in liquidation, there is still an online sales website for kids clothing with this name, with an online sales representative picking up today when ABC called.

“The Fair Work Ombudsman presented evidence in court indicating that a number of Blue Sky Kids Land retail outlets in Sydney were now being operated by separate companies which employed Mr Gu and Ms Yang to perform similar managerial roles, and that these companies had been the subject of underpayment complaints from workers,” Fair Work alleges in its press release today.

Do you know more? Email me on terzon.emilia@abc.net.au or em.terzon@proton.me

The ASX 200 has exceeded the modest expectations of futures trading this morning.

At 1pm AEDT, the index was up 1.1% to 8,154 points.

Gains are widespread with all sectors in positive territory.

The banks are in demand with ANZ up 2.0% and the CBA picking up 1.9%.

Most of the miners have made gains with exception being Rio Tinto, down 0.3%

The big mover so far is bio-med business Polynovo, up 7.7% on an impressive sales update.

The loser also comes from the bio-med space, Clarity Pharmaceuticals, down 5.7%

DAZN ( pronounced Da-Zone) is a privately owned media empire which streams to 200 different markets around the world and includes major sports such as European football, boxing, Formula 1, NBA, NFL and MMA among its products.

It was founded in 2016 by Sir Leonard Blavatnik.

Sir Len, as he is known, grew up in the then Soviet controlled city of Odessa and made his initial fortune amidst the collapse of the Soviet Union taking up large stakes in privatised aluminium and oil companies.

Forbes recently valued his net worth at $US32 billion with assets including the ownership of the bulk of the Warner Music Group via his private investment business Asset Industries.

Under the deal, Foxtel will maintain its head office in Artarmon.

“We are committed to supporting and investing in Foxtel’s television and streaming services, across both sports and entertainment, using our world-leading technology to further enhance the viewing experience for customers,” DAZN CEO Shay Segev said.

“We are also committed to using our global reach to export Australia’s most popular sports to new markets around the world, just as we have done with the NFL, and we will continue to promote women’s and under-represented sports,” he said.

Foxtel says its $3.4 billion sale to UK sports streaming business DAZN will strengthen the business and allow it to compete with local and international streamers.

Foxtel Group CEO Patrick Delany said the deal was a significant step forward in Foxtel’s transformation as a sports and entertainment streaming provider.

Mr Delany will continue as CEO following DAZN’s acquisition.

“DAZN is a global leader in sports, and being part of a dynamic global streaming group will create new growth options for the Foxtel Group and new value for subscribers and partners,” Mr Delany said.

“When the transaction completes next year, DAZN’s ownership will provide us with access to global reach and the infrastructure and technology to support our continued transformation and allow us to continue to compete effectively with the global streaming giants.”

News Corp (65% stake) and Telstra (35% stake) have been exploring ways of getting out of Foxtel for years as competition from new streaming services, both local and international, heated up.

A plan to list Foxtel fell apart in 2016 as subscriber numbers tumbled and another plan to float the business in 2021 also failed due to lack of interest from the market.

Foxtel has 1.4 million customers on its heritage cable TV business and another 3.2 million subscribers on its newer streaming platforms such as Kayo Sports and Binge.

While Foxtel earned $200 million last year on revenues of $3 billion, it is encumbered by about $1.2 billion in debt as costs, such as sports broadcast rights, skyrocketed in recent years.

At 11:30am AEDT News Corp shares were up 0.9% to 27.86 and Telstra had edged up 0.1% to $3.99.

• ASX 200: +0.7% to 8,124 points (live prices below)
• Australian dollar: flat at 62.50 US cents
• S&P 500: +1.1% at 5,931 points
• Nasdaq: +0.9% to 21,289 points
• FTSE: -0.3% to 8,085 points
• EuroStoxx: -0.2% to 501 points
• Spot gold: +0.2% to $US2,625/ounce
• Brent crude: +0.1% to $US73.00/barrel
• Iron ore: -0.1% to $US103.65/tonne
• Bitcoin: -1.5% to $US95,123

Prices current around 11:00am AEDT

Live updates on major ASX indices:

The ASX is off to a cracking start, opening 0.7% higher.

Gains are being made across the board with the industrial and financial sectors leading the way.

The banks are all higher with the CBA up 1.8%

The miners are mixed after another fall in iron ore prices on Friday – BHP (-0.4%) and Rio Tinto (-0.3%) have slipped while Fortescue is up 0.5%).

News Corp is up 0.9% and Telstra is up 0.4% after they announced they would be selling their jointly owned Foxtel pay- TV business for $3.4 billion.

The biggest gain on the ASX 200 so far is uranium miner Deep Yellow which is up 7%.

The biggest loser so far is lithium miner IGO (-3.2%) on a production update that include the news it would be suspending its annual dividend.

Pay channel Foxtel has been sold by its two shareholders News Corp and Telstra for $3.4 billion.

The new owner will be the British sports streaming platform DAZN Group.

The transaction is expected to be finalised later next year.

News and Telstra started Foxtel in 1995 with 20 channels, but it has struggled in recent years due to competition from other online streaming channels and the escalating cost of buying sports broadcast rights.

The first electrons started flowing from France’s new Flamanville 3 nuclear reactor over the weekend.

The reactor in Normandy, right on the French Manche/English Channel coast, produces 1.6 gigawatts, making it the largest in France and one of the largest in the world.

It’s the first nuclear reactor to be connected to the French grid since 1999.

Despite being built on a brownfield site next to two other reactors, the project has been beset with problems.

Construction started in 2007 and was due to be completed in 2012.

The thirteen-year blowout saw the original budget of 3.3 billion euros ($5.5 billion) escalate to 13 billion euros ($22 billion), although the French Court of Audit found the total cost is more like 19 billion euros ($32 billion).

So just what is and when is this Santa Claus period that so excites the market?

When does the “Santa rally” start and end?

The etymology of the phrase is credited to the founder of the US-based Stock Trader’s Almanac Yale Hirsch who defined it as, ” the last five trading days of the year combined with the first two of the following year”.

So, from a purist’s point of view, we haven’t opened the rally window just yet.

December 24 will be the S&P 500’s fifth last trading day of the year.

What happens?

The Almanac notes since 1950, the Santa Rally has delivered an average gain on the S&P 500 of 1.3%

“Despite all of the high frequency trading and algorithmic trading and the velocity of the market these days…patterns [like the Santa Claus rally’ continue to persist,” Jeffrey A. Hirsch, Yale’s son and current editor of the annual Stock Trader’s Almanac noted.

Is it an immutable law of investing? 

Nope. There are plenty of times the sleigh has crashed such as 1999 when the S&P 500 dropped 4%.

There was only a minor bingle last year when the market lost 0.9%.

Why does it happen?

Assuming it is a real thing, Investopedia lists a number of unproved theories about the “Santa Claus Rally”.

These include:

• increased holiday shopping
• seasonal optimism
• end-of-tax-year considerations
• less institutional trading since many cut back on activity during the holidays.

Is that all?

The Santa Claus period, when combined with the following first five trading days of January and the performance of January overall, is also seen as a harbinger for the year.

When those three indicators are positive, the year has ended higher more than 90% of the time in the past 50 years, according to the Almanac.

As always, nothing in this blog should be seen as investment advice — particularly when the word “harbinger” is used.

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Perhaps it’s no surprise, but it wasn’t a great weekend to sell a home, particularly in the big markets of Sydney and Melbourne.

On pretty low volumes, around half the Sydney properties up for auction were passed in.

Melbourne fared slightly better with a clearnace rate of 62% according to the property portal Domain.

A much shorter than usual diary for this week — basically there’s nothing much apart from some second tier US data in coming days.

None of them worth as much as a keystroke.

Fortunately, the RBA has come up with a stocking stuffer.

It will release its board minutes (Tuesday) from earlier this month.

But don’t rip through it too quickly, savour it like a Christmas feast, as the next data drops will be house prices on January 2 and the monthly inflation indicator out on January 8. Sigh.

After enduring its worst week since before the November presidential election, Wall Street at least finished Friday on a positive note.

The big three indices — the S&P 500, the Dow and the Nasdaq — all gained more than 1% after marginally weaker-than-expected inflation data eased concerns about future interest rate cuts from the Fed.

Before the Personal Consumption Expenditure (PCE) Price Index — the Fed’s preferred measure of inflation — came in showing a 2.4% rise in November, the market had glumly pushed back its expectations of the next cut to December 2025.

It’s now priced in for March, with a third cut in the series before October.

The late session surge looks like flowing through to the local market with the ASX 200 futures up 0.2%.

That will be a relief given the index dropped almost 3% last week, its worst weekly performance since April.

European markets missed the inflation news and closed lower, with the Eurostoxx index weighed down by the capitulation of the Danish drug maker, Novo Nordisk (-21%) on disappointing results on its next generation anti-obesity drug.

President-elect Donald Trump’s demands that Europe buy more US gas and oil, or face tariffs didn’t help the sentiment either.

Oil prices were little changed on Friday, ending the week down around 2.5%.

Gold was also a beneficiary of the soft US inflation data gaining around 1% on the day but was 0.9% down on the week.

Bitcoin remained under $US100,000 after slipping last week on Federal Reserve chairman Jerome Powell’s comments that the bank is not allowed to own any digital currency, nor was he looking at a change to the law to make it possible.

Good morning and welcome to another week on the ABC markets and finance blog.

Stephen Letts from ABC business team limbering up for a blow-by-blow coverage of the day’s events, where every post is hopefully a winner, but none should be construed as financial advice.

In short, futures trading points to a 0.2% rise on the ASX 200 this morning.

It is perhaps not a Christmas miracle, but somewhat lucky nonetheless there will be any trading at all today.

The ASX’s CHESS software crashed on Friday meaning the transactions going back to Wednesday couldn’t be cleared, leaving them in limbo until someone figured out how to reboot the 30-year-old system late Sunday afternoon.

Fingers crossed for today.

As always, the game’s afoot, so let’s get blogging.

• ASX 200 futures: +0.2% to 8,079 points
• Australian dollar: +0.2% to 62.50 US cents
• S&P 500: +1.1% at 5,931 points
• Nasdaq: +0.9% to 21,289 points
• FTSE: -0.3% to 8,085 points
• EuroStoxx: -0.2% to 501 points
• Spot gold: +1.0% to $US2,621/ounce
• Brent crude: +0.1% to $US72.94/barrel
• Iron ore: -0.1% to $US103.65/tonne
• Bitcoin: -1.8% to $US94,839

Prices current around 7:30am AEDT

Live updates on major ASX indices: