Morning all,

With the US closed last night it going to be a quiet day..focus will be on the RBA which will leave rates unchanged this month despite things slipping a little..they will wait for further evidence of softening of the economy before moving one more time before Xmas…we seem to be in a perverse parallel universe at the moment where bad news is good and good news bad,…all the news from China, Zombieland and the ‘Land of the Free’ is getting worse but the hope is that will enable the Central Bankers to unleash Hell as our Russ would say..

Our market yesterday was a rollercoaster of emotions with the bulls winning out in the end…at least slightly..volumes remain underwhelming and the market still feels like it wants to go up albeit at a slow pace and a grind rather than a whoosh!!

Expect our market to remain underpinned despite going Ex Div …we all want the bazooka from the Central Banks and  will be disappointed if they don’t pull the trigger..my biggest concern at the moment is economy is slowing as the resource boom looks to be slowing big time..we could end up as a ONE SPEED ECONOMY AND NOT THE ONE SPEED WE WANT!!The Aussie dollar should start to test the parity level in the next week or so..that will help exporters and resource stocks..

One of my favourites has been BRU..since the big ‘lovein’ in WA a week or so ago the stock has come back from 3.20 to 2.60…now my man who is the Buru Guru believes in this story absolutely..I would urge all those who aren’t shareholders to start nibbling away at these levels and accumulate some more stock…he is a oil and gas expert and knows his stuff  ..yesterday’s announcement was treated negatively but was effectively an upgrade to the base case reservoir…BRU is a buy!

Things to make me go Infrastructure spending cuts.

1.FMG has announced this morning that is scaling back its ambitions for its expansion and bringing the Capital cost back from over $6bn to 4.5bn…they are also looking at selling their power station..but still very confident of Chinese demand and a bounce in prices..staff numbers cut too!!

2.’Big Nath’ seems to be having issues finding his cheque book again!!Now he is being sued for non payment..by Mirvac..$17m..this may not end well…

3.BHP has not asked the SA government for an extension of the agreement covering royalties for the $US20bn-plus Olympic Dam expansion, amid expectations it could take years for the miner to finalise a viable new investment plan.

4.Michael Clarke Duncan dead at 54…sad news …

5.Super Trawler cleared to fish in Australian waters…this should be stopped although I understand Tony Burkes problem…he was very good on Q & A last night too…we should have more pollies like him..Angry Anderson on the other hand …..and I have finally worked out that Twitter is great whilst watching #qanda..funniest one was from someone who said they didn’t remember seeing this episode of Spicks and Specks!!

6.Nicola Roxon (AG) now supports the Feds looking at all our internet traffic..gonna need a big server and some serious privacy controls on this one..expect a few IT/Cloud companies are licking their lips on this one..Macquarie Telecom springs to mind…and Next DC.

7.IRON ORE still below $90 a tonne…slips again last night!!!

8.Gold holding up well and gold shares in the spotlight!

9.This gem from my friends at www.zerohedge.com….. ‘Tomorrow the Battle of Frankfurt begins. Make no mistake in your thinking as America ends its holiday weekend; it will be a battle and there will be bodies littering the field of engagement. Spain and the rest have aims, plans, schemes if not hopes and ambitions in direct opposition to Germany and her side. The outcomes prayed for are a demand for money and a resistance to those demands. The pleas of Spain are about to be answered; first from the ECB and then from Germany’s acceptance or rejection of the Draghi plan. The “Game of Muddle” will be ended and real answers to real insistences will be given.’

And finally… Babies are born without knee caps. They don’t appear until the child reaches 2-6 years of age.

Have a good day

Clarence

XXX

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