Good morning,

As D-Day looms once again for the RBA, most economists see no change in rates today..I believe he will cut..not sure what Uncle Glenn is scared of to be honest. The East Coast economy is in the toilet and the mining boom is careering ahead just ask BHP shareholders how good it has been. The high Aussie dollar coupled with pathetic confidence amongst consumers is making it tough in the high street. Just have a look at the number of empty shops..still the rents are ridiculous but that’s another issue. News yesterday of the new housing slowdown was enough to knock the stuffing out of the euphoric early rise. The index was up nearly 40, testing the crucial 4375 level before down she went and closed down for the day…anyone with half a brain can see that the economy is being killed by the dollar and confidence in the Gillard Government. So come on Glen surprise us all (except me) and cut the headline rate..send a signal and let’s get this dollar down ..book your US holiday while you can!

Last night we saw the Dow go to a four year high as the manufacturing base in the US continues to reap the benefits of a low dollar and with Uncle Ben continuing to keep interest rates low the World’s biggest economy will continue to trundle along..Dow will hit 14,000 this year!

As usual with booms there are winners and losers and mining services seem to be the big winners at the moment. One to look at which is unloved is SWK .Much like LDW was unloved this one has big potential and would be worth a look.

Also AMX a West African Gold explorer looks interesting as it has had a few corporate approaches and a change of personnel…expect some moves on them in the next few months..but around 1.00 to 1.05!

Commodities higher overnight so expect a good start to the day before reality bites and the RBA announcement this afternoon…

Things to think about.

1.Manchester United go 5 points cleat..in the bag Alec? (“It’s getting tickly now – squeaky-bum time, I call it”.(Sir Alex Ferguson on the 2002/2003 end of season title race. A phrase now used very often in newspapers at all levels of football.)

2.Kell and Rigby go to the wall…gonna be some contractors hurting..more bankruptcies to come.

3.Another US school massacre..so sad.

4.Ding Dong Avon Calling..gets a tap on the shoulder to be taken out at $10bn..thats a lot of lippy!

5.APA/HDF may be in trouble as regulator raises some objections.

6.TLS will reveal its capital management strategy on April 19th

7.MTS announces write down..don’t really know why anyone does a takeover as they always pay too much and have to write it down two years down the track..still keeps Investment Bankers in Biz!And another 480 people consigned to the job centre.

8.Budget softening continues with Swanny gonna sell us down the river!

9.Euro jobless rate hits 15 year high..young exodus from Southern Europe..last one out turn off the lights.

10. In another sign that recession is gripping the region, a key survey showed that manufacturing activity dropped to a three-month low in March, with the “malaise” spreading to top economies Germany and France.

11.One Steel to announce their new name….maybe None Steal!

12.And Bob Carr announces the war on Drugs a failure….what’s he been smoking !

Thought for the day

“Life is a dream for the wise, a game for the fool ,a comedy for the rich and a tragedy for the poor”..

Sholom Aleichem

Have a good day

Clarence

xxxx

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