Morning sports fans,

We finally had some positive news to celebrate or at least not negative. Chinese GDP numbers came in at 7.6% which was enough to set off a big bear trap and push the Dow up 200 pts. Even news from JP Morgan that the loss from their “Whale’ in London was bigger than initially thought wasn’t enough to spoil the party..After all the market knew all along that the loss was going to be much bigger so wasn’t like anyone was surprised. Stock rallied hard as the market hates uncertainty and with the traders gone its hopefully a fresh start although JP Morgan now have to explain how they are going to make the money that division used to make..that is before the Whale blew it up!!

 

Good short squeeze in commodities as well will help our resource stocks today.

News late on Friday that Big Nath has bid for Whitehaven Coal will also be buzzing around the market..it is highly conditional though as he needs to finalise the $5.25 bn that he needs to buy the thing…Barclays,UBS and others are helping the big fella out and he has a month to have a look over the books and sort it out..Expect the stock to have a big jump but I remain sceptical myself…could be wrong and the shorters will be severely punished!!!

Maybe this move by Nath will cast some optimism on other takeover targets..one that I do like is BBG.Talked about it before but happy to go through my reasons again if you are interested.

Investors are still seeking out safety and yield..TLS looks still attractive and some analysts are now talking about exciting growth opportunities…research report enclosed but no reason to sell as I suspect they will go through $4.00 in time..

The SPI is up 33 points with Gold up 26 bucks…expect a good opening then we will settle back and watch…usual story I am afraid but 30 points should cap the day..once again as talking Heads once sang..”we’re on the road to nowhere!”

Things that make me go all Captain Ahab!

1.The Australian Financial Review said Seven West Media, which owns top-rated free-to-air TV broadcaster Seven Network and The West Australian newspaper, may launch the raising as early as today about $1.30 a share, a 20 per cent discount to its close on Friday at $1.62.

2.Chinese Government are talking things up with a few announcements over the weekend..positive comments on the stockmarket,positive comments on bank stress tests and reduced trading fees etc..

3. Aust Govt 10yr bonds @2.79%

4.Outgoing Chairman of Barclays dobs in his mates “As other banks settle with authorities, and their details become public, and various governments’ inquiries shed more light, our situation will eventually be put in perspective”

5.UK Olympic security should be interesting…all how about the killjoys who pulled the plug on a Hyde Park concert with Springsteen and McCartney jamming!!!He is the Boss …what gives!!

6. Whitehaven Coal Ltd (WHC AU) will be in focus this morning as news that a Tinkler-led group made a conditional bid of A$5.20 in cash for each share, Sydney-based Whitehaven said in a July 13 statement. That is 51 percent more than the last closing price, 16 percent higher than the average price of the past three months and values the company at A$5.3 billion ($5.4billion). Tinkler holds 21.3 percent of Whitehaven according to Bloomberg. Short Interest in WHC using the total shares out equates to 1.7% or ~12m shares, which is only 1.7x 3m Average Daily Volume.

7.Egyptian protestors chant ‘Monica Monica’ to Hilary Clinton on her visit to Cairo…seems they do have a sense of humour!

8. Chancellor Angela Merkel gave no ground on Germany’s demands for more European control over member states in return for joint burden-sharing as she conceded that the bloc has yet to master the debt crisis.

9.DJs are going to give you your own Style Adviser when you go shopping in their stores…really..you are joking aren’t you…good response to the retail slump!!

10.LIEBOR scandal is now starting to gather momentum across the pond with US authorities looking at charges by September..this one will not go away.

Back on Sky TV tomorrow afternoon and maybe even Friday as well..I am that media tart!!

And finally

Two Englishmen Meet a German Tourist at the London Olympics                                                          

 

A German competitor was lost, and wanted directions to the Olympic village in Stratford, London. He was standing outside East Ham tube station when he saw two lads walking by so he stops them and asks, ‘Entschuldigung, koennen Sie Deutsch sprechen?’

The two lads look at each other blankly and stare back at the German.

‘Excusez-moi, parlez vous Français?’ He tries.

The two continue to stare.

‘Parlare Italiano?’ Still absolutely no response from the two lads.

‘Hablan ustedes Espanol?’ The London lads remain totally silent.

The German Olympian walks off extremely disappointed and downhearted that he had not been understood. One of the boys turns to the second and says, ‘You know, maybe we should learn a foreign language!’

‘Why?’ says the youth, ‘That German guy knew four languages, and it didn’t do him any good!’

And in the true spirit of the upcoming Olympics a classic from David Coleman(1976).. ‘And there goes Juantorena down the back straight, opening his legs and showing his class’.

 Clarence

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