Morning all,

Weak leads from overseas last night with the jolly old IMF downgrading World growth and Australia and China more interestingly for us here. Christine Lagrade trimmed economic forecasts from 3.5% to 3% and cut global growth to 3.3% from 3.5%Hardly Earth shattering but the slowdown continues. We will get to see the US corporate season kick off in the next few weeks with quarterly earnings numbers..Gold also weakened after the US jobs figures on Friday and the dollar is heading to parity.Interestingly for the miners Iron Ore picked up after the week long break in China and hit $110 which is good news for FMG,BHP,RIO and AGO to name a few. Expect that to give us some strength but generally the market will continue to consolidate its recent gains.The US market had its quietest night and smallest range for some time so don’t expect great things here today. I would suggest a slight down day…despite the SPI slightly up.

‘Zombieland’ has unlocked its war chest of 500bn Euros as Spain continues to debate whether it asks for a bailout now or later… they are talking leveraging up the fund using complicated financial strategies…Goldmans will probably advise as they did such a good job with managing the Greek economy…

Good to see the Banks passing on the rate cut in whole..at least in deposit rates!!!This will give the banks a little more margin and profit and will mean investors continue to chase high yielding stocks like the banks and TLS…hard not to…

Idea of the Day:

BDR :Do like this story..the stock hit $1.01 but has eased with the Gold price..I would look to buy this one at 90/93cents for a run to 1.20..this is a soon to be producing Gold mine in a stable Brazilian environment. Cash costs will be around 400 per oz(after Iron Ore Credit) and production to increase from 180,000 oz to 220/240,000 by year 4/5..good exploration results and commissioning good well…

Gold stocks should start to be accumulated for the next leg up before Xmas…..PRU, RSG, RRL, PVM, PIR, GRY, SBM, SLR, NCM, NST and BDR. All worth a look!!

Things to make me go all Iron Orey

1. The price of China iron jumped when it returned to trade after a week-long public holiday. It rose $US6.20 to $US110.40

2.The Australian Shareholders Association has advised investors to vote against the re-election of Billabong founder Gordon Merchant to the surfwear group’s board following his decision to block a takeover offer earlier this year.

3.BHP’s iron ore division is on alert, which chief executive Marius Kloppers due in Port Hedland on Wednesday with a large entourage, with some having posited that this could include the rest of the BHP board which typically meets in the second week of each month .The company has confirmed that job cuts are afoot within the flagship iron ore division.

4.The QLD government has generated a $400m profit after selling more than half its stake in railroad group QR National at a premium despite the worsening outlook for commodity prices, achieving $1.5bn, or $3.47 per share, for the sale. One-third of the stock was placed over the weekend with a small group of sovereign wealth funds and pension funds. The government plans to sell the remaining $1bn to QRN via a buyback in November.

5.Mining contractor Sedgman is seeking to have three of Big Nath’s private companies wound up after he failed to meet an agreed payment schedule for a $2m debt.

6. Genting HK, one of casino owner Echo Entertainment’s two suitors, has raised its stake to 5.2%. It began to add to its 4.2% holding, after sister company Genting Singapore sold out of its 4.8% stake last month.

7. Greece’s international creditors warned late Monday the government in Athens must show it can deliver on agreed reforms by October 18, the start of next week’s two-day EU summit….like that’s going to happen!!!

8.Athens prepares for Moaning Mertle…is she prepared for Athens!!!Gonna be trouble!!

9.Apple slumps…been saying it for a while…iphone 5 is not a game changer..saw one yesterday…going from a 4 to a 5 not worth the effort..4G is good though …TLS on to a winner with that…Apple down 2.2% to 638!far cry from 700 the other day..

10.A teen in the UK has had her stomach removed after drinking a cocktail with liquid nitrogen in it…are you mad!!!why would you do that!!

And finally….A guy is walking past a big wooden fence at the insane asylum and he hears all the residents inside chanting, “Thirteen! Thirteen! Thirteen!”

Quite curious about this, he finds a hole in the fence, and looks in. Someone inside pokes him in the eye.

Then everyone inside the asylum starts chanting, “Fourteen! Fourteen! Fourteen!”

Have a great 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.