Good morning,

Yesterday BHP came out and said they are seeing decreased demand from China in Iron Ore…the Chinese car sales have disappointed as well and so down we went. Commodities were hard hit with Gold in the firing line again as was oil after Saudi said that it could increase production and help ease prices back. The Dow fell back 70 points and we look set to follow lower with BHP and RIO down 4% in London. Expect the pullback to be towards 4200 when its buy time again.

It’s very hard to see our market make any substantial gains on its own as we remain hostage to apathy from international investors and a falling out with local about the joys of Equities. The high Aussie dollar continues to decimate our industries and the RBA’s Uncle Glenn looks like he is living in cloud cuckoo land..or the Shore as some people would cruelly say..his focus on killing inflation with high currency and high rates is hurting big time. The other issues that are holding us back are the Carbon tax and the Mining tax..although with the mining tax the Gillard Government is not alone in trying to harness more of the current boom..look at Indonesia..they are taking 50% of the company as well!!

Expect our market to do worse than the SPI and slip 40 points ish..

A few things to ponder

1.

 

2.David Jones has come out with a shocker but they are going to fix things by embracing a thing called the internet and become an ‘omni channel’ store…good for them..maybe a little too late..but numbers don’t look good.

 David Jones predicts its full-year profit will fall as much as 40 per cent as it battles weak consumer sentiment and spends more to tap the shift to online shopping.The dim outlook comes as the upmarket retailer outlines its new strategic plan, including the opening of six new stores, bringing the national total to 42. The expansion will cost about $70 million to $80 million per year in capital spending.

It also released first-half results which showed profit fell 19.6 per cent from a year earlier to $85 million. First-half revenue shrank 6.7 per cent to $1.011 billion.

3.Clive Palmer has officially lost the plot ( and it’s a good plot)..CIA and the Greens in bed, I mean come on..would you go to bed with Bob Brown.

4.Kathmandu announced their profit has slid as well..dream over?

5.RBA has said that it doesn’t see a need to adjust monetary settings..well take a look down main street guys..I would say there is a huge need!

6.BHP announces it sees decrease prospects in Iron Ore in China whilst investing a heap more on Iron Ore expansion..Bipolar or what!

7.And if you have bought a new ipad watch out ..dont put it on your lap… The newest version of the market-leading tablet computer ran as hot as 116 degrees Fahrenheit.

8. Packaging maker Amcor has paid $19.8 million for a flexible packaging business in India. Amcor said the acquisition of Uniglobe would expand its presence in India to five manufacturing sites.

9.Dollar slipping..I reckon parity here we come..now that will help the market!

Back on TV tomorrow…pearls of wisdom await the viewers of this program..not that anyone watches except my Mum of course!

Stay Classy Sydney

Clarence

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