Good morning,

Canberra will be the focus today as Gillard should win and see Rudd move to the back benches at least for now…hopefully someone can get on with the important job of running the country..NOT beating Tony Abbott!

In market news, the oil price continues to push higher which will benefit oil companies..my current small cap favourite is COE..Buru(BRU) was but they have run nearly 50% in three weeks…I am thinking of selling mine…been a good run!!

The major issue with oil price is it will increase inflation, costs for business and hit consumer sentiment..hopefully it will not kill any nascent recovery.

Markets will be quiet today with low volatility overseas and reporting season continuing this week..Bank downgrades on Friday should not cause too much of an upset but small weakness is possible…

Themes from the reporting season are increasing costs at resource projects, high Australian dollar and structural change in markets like Banking..

If you are interested in COE, I am happy to send through the report I wrote on this one.

Back on the TV on Wednesday!!

Clarence

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