Good morning,

Expect a quiet and subdued opening today with the SPI down 16 from Friday. The US markets appear to be running out of steam around this 13,000 as are we around 4250-4300…As they say in all the best Scotland Yard mysteries, we have nothing to go on!

However it is a big week this week on the economic front with the RBA meeting tomorrow, no rate change expected but then who cares about the RBA anyway. They seemed to have detached from reality ,a little like Joe Hockey! There is the background but at the moment largely, and I do mean largely in Hockey’s case, irrelevant!

The printing machines continue to run at full pelt around the World and US debt is now above its GDP..and still they borrow at under 2%..good game! ECB has now joined the party and is looking at taking the lead..fiat money will continue to be under pressure as the ECB has resorted to accepting old Mars bar wrappers from European banks as collateral!

Loads of EX Divs this morning including QBE ,MND and LLC so that will knock a few points off for starters. I have enclosed some research on AGO which is worth a read..Iron Ore still holding up well.

And if the RBA needed to see any more evidence on the economic slowdown.

Activity in the Australian services sector contracted in the February in a further sign the mining boom is not filtering through to other part of the economy, a private survey shows.

The Australian Industry Group/Commonwealth Bank Australian Performance of Services Index (PSI) fell 5.3 points to 46.7 points in February.

A reading below 50 indicates a contraction in activity.

Much of the contraction was driven by a fall in new orders across the sector – down 8.5 points to 45.6 – while sales of services and selling prices were also lower

A few other things to consider:

BBG-Gordon Merchant has bought a few extra making a takeover increasingly hard unless he is happy!

Chelsea have sacked their manager finally..that’s 5 in 6 years

Chinese National Communist Party Conference this week as Wu and Wen give way and try to promote their legacy-New man Xi Jinping

More capital raisings by SGT and NAB overseas this time though in the credit markets (see below)

Clive Palmer a National Treasure! Should be buried.

Elle is back on the market! She has my number!

National Australia Bank (NAB)

National Australia Bank sold US$2.5-billion in a two-part debt deal in the US credit markets, according to a person familiar with the matter. The bank sold US$1.5 billion of 2% coupon, three-year notes at 2.01%, or at 1.6 percentage points over Treasurys, and US$1 billion of 2.75% coupon, five-year notes at 2.789%, or 1.9 percentage points over Treasurys. They are expected to be rated Aa2 by Moody’s Investors Service and AA-minus by Standard & Poor’s. The notes are being marketed using rule 3(a) 2 of the Securities Act, which require notes to be guaranteed by a US-licensed financial company. These notes are guaranteed by the bank’s New York branch.
Singapore Telecommunications (SGT)

Singapore Telecommunications said it priced US$700 million of 5.5-year notes at 2.375%. The notes, maturing in 2017, were more than four times oversubscribed, SingTel said. SingTel said the notes, rated Aa2 by Moody’s Investors Service and A+ by Standard & Poor’s, will help it optimise its debt structure and broaden its sources of funding.

Have a good day

Clarence

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