Good morning,

The World is waiting for the Greeks to vote..Athens has started the summer party early and the question is will the Government last long enough to vote..the rioters on the streets may have other ideas..as a result Equity markets will pull back until the Tear Gas clears.

We enter the results season here with gusto this week and hope that the news is sufficient to keep our market bubbling along..I suspect that the events in Europe will be dominant but the themes of the big resource companies of increasing costs is the worry. Both BHP and Rio have flagged the rise in costs and BHP is being coy about its latest Magma Copper moment in the shape of Petrohawk..Looks like once again they have paid way too much for something..like RIO..expect the gorillas to ease back with FMG reporting this week..expect to see the same..

The market will fall around 1-1.5% and if you were worried about missing out on the rally the next few days may be fruitful…we are back to risk off trades so expect TLS to remain firm and also other yield stocks…the bank bashing will continue and so they may come under pressure but it looks like the RBA as become irrelevant from an interest rate perspective…so why does Glenn get $1m a year!!

Results today include BKN JBH and BEN

LEI numbers just out

Leighton Holdings says its first-half profits have jumped 57 per cent and that it’s well-positioned for 2012.

Leighton Holdings booked a net profit for the six months to December 31 of $340 million, up 57 per cent from $217 million in the previous corresponding period.

The company confirmed its expectations of an underlying profit after tax of between $600 to $650 million, excluding gains from sales and impairments, for the 12-month period ending 30 June 2012.

We also have jobs numbers later this week.

Good one Zambia in the African Nations Cup..nail biting finish and RIP Whitney…too young and too tragic…

Have a good Monday…time to ease out of a few things maybe?

Clarence

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