Morning all,

 

Yesterday we witnessed what happens when a a market darling falls from grace..ILU came out with a big profit warning and promptly got absolutely smacked..down 25% by the end of the day..Brokers are now running around after the fact and downgrading their numbers..der! Anyway it seems strange that the open short position on Thursday was 90,000 shares yet on Friday it jumped to 1m shares..then the downgrade..coincidence..must be financial markets are open and transparent aren’t they ?Aren’t they? I would be looking at starting to pick this stock up when they have a 7 in front of the number..

 

Back in the home of market manipulation, the LIEBOR scandal continues to rumble around with Paul Tucker from the BOE giving evidence yesterday..no real bombshells as yet but many calls for wholesale bank changes in the UK…they are now talking of ANZ’s Mike Smith being in the frame to run Barclays…not a positive for ANZ if it happens..

 

The SPI was barely changed last night and suspect we are in for another quiet day…as they say when you run out of toilet paper…not much to go on! Doldrums beckon with more risk to the downside than upside at the moment..

 

TLS has long been one of my favourites but I must admit I was a seller around 3.70..now pushing towards 3.80..theres safety in this one..good yield and they are putting up prices on their data packages on mobiles…not we are all addicted to smartphones its time to make us pay for that addiction!!$4.00 beckons I suspect!!!!

 

 

Things to make me go all Tomkat!

 

1.”Two-thirds of likely voters say President Obama has kept his 2008 campaign promise to change America — but it’s changed for the worse, according to a sizable majority

2.Chinese inflation numbers muted leaving some scope for easings..

3. Iron ore exports from Australia’s Port Hedland fell 4.4% in June from May to 21.5m tonnes, the Port Hedland Port Authority said. Total shipments were up 16% on year from 18.6m tonnes in June 2011.

4. Australia’s job market showed signs of further weakness in June as employment advertising in newspapers and on the internet fell 1.2%, adding to a 2.6% drop in May.

5.Volume again abysmal with $2.5bn…brokers laying off staff continues as cost cutting bites…it will get worse…

6.Tom and Katie agree on who gets custody of the brain..Suri!

7.TLS in the news denying they are looking at Chanel Nine..in fact no body really is looking at Channel Nine or TEN these days..

8.FMG looks to have lost a long term friend with news Leucadia National has been selling down their holding..

9. Three top Federal Reserve policymakers on Monday laid the groundwork for a third round of bond purchases, saying the US recovery was weak and unemployment far too high.

10.Alcoa kicks off the US reporting season with slightly better than expected numbers..doesnt help clarify whats happening out there though..Apple continue to push higher now 614 bucks..faceplant back to 32.20..VIX at 18!

11. Norway’s government ended a 16-day dispute between offshore oil and gas workers and their employers, averting a lockout that had threatened to halt production from western Europe’s largest crude exporter.

 

And finally….

 

A father is explaining ethics to his son, who is about to go into business. “Suppose a woman comes in and orders a hundred dollars worth of material. You wrap it up, and you give it to her. She pays you with a $100 bill. But as she goes out the door you realize she’s given you two $100 bills. Now, here’s where the ethics come in: should you or should you not tell your partner?”

 

Back on Sky TV this afternoon at 4.30 with words of wisdom…obviously not from me!

Have a good day

Clarence

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Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.