Morning all,

As we head towards the US  Thanksgiving holiday things are likely to get a little quieter, as we saw last night. Apart from comments from Uncle Ben on how it wasn’t his job to sort out the fiscal cliff, it was up to Congress. We shall see. The Fiscal Cliff is more like a ‘Fiscal Bluff’ I suspect and there is undoubtedly a need for spending cuts and tax increases especially for the rich but the biggest problem is that it all comes at once…they need to roll this cliff out so that it becomes escarpments along the way!

Anyway for the time being there is some optimism that something will get cobbled together. And so to ‘Zombieland’ where the French have been downgraded…and Hollande’s efforts to turn the economy around have met with derision from ratings agencies. We still have to wait for news on the Greek bailout and the price they will have to pay to get their hands on the money.

In our market today expect a muted response as we head into the Thanksgiving break for the US..it should be stock specific today with AGM’s downgrades and upgardes the focus. Yesterday it was CDD turn to get rolled as it announced problems with it’s US business ..stock was down nearly 20%! Whilst MND bucked the Mining Services doom trend and announced a positive outlook and rallied on the back of it.

Expect a slightly positive day today following on from the move yesterday..we will try to grind higher in the next few sessions as last week was a little overdone..but it will be a struggle..

Idea of the day

CDD

They got hammered yesterday but this is a quality company with a decent yield and quality management who will tell the truth unlike some and do what it takes to sort it out…our analyst is still positive so I am backing her on this one!!

Buy around 6.30…there is a bounce in this one..fingers crossed.

Things to make me go all bugger!!!Bugger ! Bugger!!

1.Chelsea go down to Juventus 3-0…the Russian will not be happy…calls for a new manager! Out of Europe..say it aint so!!!

2.David Beckham is hoping to sign for Avalon Over 35s Div 2 next year..we have put in a bid and are hopeful…certainly will tick the lifestyle box..minimal training lots of socialising and beer after training as well as beach living and loads of easy chances to score…what more could an ageing footballer want.

3.In the US HP fell 15% as it took a huge charge on the takeover of British Software maker Autonomy last year..this one stinks and there is more to it than overpaying and accounting irregularities…hard to see a reason why it would rally…confidence is the lifeblood of companies like HP without it they will be sauce!

4.Good to see the Aussie retailers covering themselves with glory on Clink Frenzy Tuesday…another fail..talk about failed to launch…even DJs couldn’t get it right…there really is no hope for these guys…I mean how hard can it be…

5.Our Uncle Glenn fresh from gloating on making it onto the top shelf of currencies, yesterday hinted that rates may still be cut…nudge, nudge, wink, wink say no more…In fact I reckon we won’t see a rate cut this Xmas ..but he will talk about it a lot!!!that may be enough!

6. The ACCC has launched legal action against 11 HVN franchisees. The regulator alleges that the franchisees made false or misleading representations to customers about their rights to guarantees on purchases. The franchisees allegedly refused to honour manufacturer warranties or provide refunds after a set period.

7.Looks like the government and the regulator are getting serious about High Frequency Trading…good to see…although the ASX will not be happy…their business is being eroded by the day..not one to be long of…technology is going to hurt this one big time going forward..

8.Seems that a cease fire may come in the Gaza strip soon..oil and gold fell but question is will it last and is it a real ceasefire..I reckon you send Hilary ..scary in those sunglasses..she will sort it out!!

9.Intersting article on Bloomberg on the Shadow Banking system in China…involving trusts and schemes offering high yields to investors then investing in property development..Shadow Banking is non-banks offering similar services like loans to people….there has been a study that the Shadow banking sector is $67trillion…bigger than the entire world’s GDP…this is something that we will all hear more of in the months to come!

10.Good housing report from the US shows progress is being made on the economic front….but Ben can’t do it alone..he said so..running out of ammo..Government needs to get in on the act as well. How hard can it be guys!!

And finally……

There were two church-going women gossiping in front of the store when a dusty old cowboy rode up. He tied up in front of the saloon, walked around behind his horse, lifted its tail and kissed the horse full on its bum.

Repulsed, one of the women asked, “That’s disgusting, why did you do THAT?”

To which the cowboy replied, “I’ve got chapped lips.”

Confused, the women continued, “Does that make them feel better?”

“No, but it stops me from licking them!”

Have a good day

Clarence

XXX

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.