Morning,

Operation Oliver Twist was back on last night as the market screamed out for more! More? Well at least the Fed did something to give the US bulls some comfort…The Dow eased slightly and Zombie markets rallied a touch as a Greek Government takes shape…there is another Zombie summit in a week or so..more talk, a little less action..Elvis wouldn’t be impressed!

The solution to Euro crisis is Political not Economic..they must put in place plans to unite their financial systems with a Euro Bond ,a central bank that imposes their will on countries and runs the show and Germany to accept higher rates to bail out the other countries…but trouble is no one will give up sovereignty and control of their finances..they just wait for the bailout!

Our market yesterday was once again anaemic and full of apathy as we limp towards the end of financial year close…volumes were once again dismal and brokers are retiring faster than journalists at Fairfax!

 

Expect to see a small positive day today with the RIO news on Iron Ore expansion helping resource sentiment. Yield stocks like the banks and TLS will continue to attract fans and will be well supported…I still expect to see us try for the 4200 level before we get all nervy again…

 

The market here is all about media and Zombies…the times they are a changing…Packer is getting out of media and into more gambling..expect to see more moves on Echo Entertainment..especially now young Jamie is cashed up from selling his Foxtel stake…the money has been spent on The Star so if they can get other things right then maybe it will do ok..the problem though is Sydney is an expensive destination..more so than Macau..not that the high rollers pay of course but still it costs money to subsidise gamblers..my cab driver the other day was telling me how he gets free hotels in Vegas because he plays the pokies…food is free or cheap and all he pays for is the airfares and he just plays the pokies..imagine what the whales get from Vegas these days and from Macau…Sydney will need to attract this whales to justify the expense of the ad campaigns alone…

 

Things to ponder….

1.The changing face of Australian Media…finally they are admitting that the web has changed things..doh!

2.Cyprus may be on the bailout list…had to believe I know but they punch well above their weight in debt(mainly to Greece) and look like a Mediterranean Iceland… just add another to the list of walking wounded..Spain,Italy,Greece Cyprus..Portugal ,Ireland…pattern here?

3.RIO commits to Iron Ore expansion despite all the misgivings about the mining tax and Australia being such a  bad place to do business..must be making too much to let the opportunity go by..

4.The Old Lady of Threadneedle Street(The Bank of England) is talking stimulus again..shame the Government is still talking austerity!!The push me- pull you economy…and we can talk to the animals, squawk to the animals..

5.Fed cuts forecast for US economy…now at 1.9% from 2.4%..not good news for jobs growth but the Fed can only do so much…

6.APN buys another group buying business for $36m..how many group buying businesses are there already…that’s a $36m write off waiting to happen…

7.SPI up marginally but will not push ahead and Oil and other commodities down so will hinder a little…

8.BBG placed in a trading halt today…capital raising!!Well done guys..surfed that one really well….not..wipe out!!!

9.Oil at an 8 month low of $82 a barrel…good time to fill up perhaps….Aussie dollar at 7 week high as US dollar weakens…

10.Expiry day today..Winter solstice..the days are getting longer from now on..9 weeks til spring and we get an extra minute a day!

 

Remember at this time of year it’s a good idea to have a look at some tax issues…

 

An interesting take from one client….‘I talked to my stockbroker the other day and he said he was going to concentrate on the big issues from now on. He sold me one outside JB HiFi yesterday.’

 

And more job cuts in Japan..

 

In the last 7 days the Origami Bank has folded, the Sumo Bank has gone belly up and the Bonsai Bank announced plans to cut some of its branches.

Now, Mitsubishi Bank has stalled due to excessively high gearing.

Sony Bank have seen a big reduction in volume.

Yesterday, it was announced that the Karaoke Bank is up for sale and will likely go for a song.

Today, shares in the Kamikaze Bank were suspended after they suddenly nose-dived into the deck, ruining the carrier trade.

Samurai Bank is trying to soldier on following sharp cuts.

Ninja Bank is reported to have taken a hit and almost turned turtle, but they remain in the black and should survive.

Furthermore, 500 staff at Karate Bank have got the chop

Analysts report that there is something fishy going on at the Sushi Bank where it is feared that staff may get a raw deal.

Have fun

Clarence

XXX

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