Morning all,

Overnight we saw equity markets trade higher although the news wasn’t so positive in commodity land. The US had some better news on retail and ignored the manufacturing number from NY…the SPI was 25 points higher so expect a 20 up day with the miners lagging a little.Gold was also whacked last night despite the South African Gold Industry grinding to a halt due to industrial issues..Today could be a good day to start accumulating some of these Gold stocks..it is disappointing that they have not come back more after the vertical run they have had recently..patience is required on these to maximise the pullback…no need to rush but start to pick away.

We have another Presidential debate coming up and hopefully Obama will be better prepared..the problem for the markets is a Romney win would put Uncle Bens job in jeopardy…if we get a change in philosophy to QEIII the markets may be a little disappointed….as it is there are an increasing number of US analysts calling the market to go through the all time high next year..such bullishness in an economy growing at a massive 2% despite the money thrown at it.

 

Here in little old Australia yesterday we have a lacklustre day to end all lacklustre days..volume was pathetic!!again…and the market did nothing from the benign Chinese numbers..if you are looking at a Chinese recovery as the new leadership takes hold then look no further than IZZ as a way to play a lower Aussie Dollar and a higher Chinese equity market…

Idea of the day:

Telstra(TLS):

News from the AGM today was positive with the company focussing on dividends and the growth in mobile devices..this one still yields 7.1% fully franked is doing all the right things in a business that is getting bigger and bigger and they have the best product in the market..what is not to like…everyone should own some TLS ..if you don’t remedy it soon!!

Things to make me go all BBY!

1.Minutes of the RBA meeting will be released today..expect the dovish tone to continue..11.30am

2. Origin: production resumed at the Yolla gas project in the Bass Strait but part of it upgrade has been delayed. The Yolla gas field has been upgraded from an unmanned offshore platform to a manned platform, and delays had caused a longer than expected halt to production,

 

3.Scottish First Minister, Alex Salmond, has signalled the start of a two-year campaign to persuade Scots to embrace independence, after agreeing a referendum deal with the British Prime Minister, David Cameron.

4.The Spanish government is prepared to make a rescue request that would allow the European Central Bank to begin buying its debt, but the issue is being delayed by the needs of other countries in the single currency. Madrid has now found a formula that it feels comfortable with to make a rescue request – a significant shift in position compared to before the summer – and is waiting for external factors, such as the way it would influence other countries such as Italy, to be resolved.

 

5.TLS AGM today: TELSTRA SAYS MOBILE NETWORK TRAFFIC DOUBLING EVERY YEAR …TELSTRA INTENDS TO PAY DIV OF 28 AUSTRALIA CTS IN FISCAL 2013 ….TELSTRA SAYS TO INVEST A$1.3B IN FY13 TO EXTEND 4G COVERAGE…the big headline for income investors though is this… TELSTRA SAYS NORMAL PRACTICE CONSIDERING DIVIDENDS ON HY BASIS …so what is normal..that will be the question? Maybe more ?

6.FMG Falling iron ore prices in September 2012 forced the company to mothball its Kings development. Work on the asset worth $A1.1bn in WA may now however be restarted, as the commodity’s price is recovering and FMG successfully staged a $A5bn US bond issue in mid-October. Reopening Kings may enable FMG to return to its previous output forecast of 155 million tonnes per annum by mid-2013.

7.China’s inflation was close to the slowest pace in two years in September, giving the government room to ease policies should the economy deteriorate.  Consumer prices rose 1.9 percent from a year earlier while the producer-price index dropped 3.6 percent, the National Bureau of Statistics said on its website today.

8.Channel Nine on the brink of collapse…with a huge game of chicken been played between tier one creditors and tier two ….this will not end well I suspect…if you want to gauge the health of the Free to Air stations I find it good to look at the adverst they run..TEN in prime time was running ads for a trampoline!!!Usually these spots are filled with cars ,cosmetics and multinational health products…NOT trampolines…no reason to be in media assets at the moment.

And finally…

An elderly couple was on a cruise and it was really stormy.
They were standing on the back of the boat watching the moon,
when a wave came up and washed the old man overboard.

They searched for days and couldn’t find him, so the Captain
sent the old woman back to shore, with the promise that he
would notify her as soon as they found something.

Three weeks went by and finally, the old woman got a fax from
the boat. It read: Ma’am, sorry to inform you that we found your
husband dead, at the bottom of the ocean.

We hauled him up to the deck, and attached to his bottom was an oyster,
and inside it was a pearl worth $50,000….please advise.

The old woman faxed back: Send me the pearl and re-bait the trap.

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.