Morning all,

With no US markets last night except for a shortened Globex session(up 34),the Zombies were left to their own devices. Slight positive bias I think it’s fair to say but the wonderful Olli Rehn, the top economic official ,said that they were so close to an accord on Greece it wasn’t funny. Just one more meeting of bozo bureaucrats and a nice big hotel bill should do it for now!!Cyprus apparently has battled hard to win a crucial bailout..come on how do you battle hard for a bailout…Anyway with SPI up 4 points we should have a slightly positive day ahead.

Yesterday was a ripper! Despite the late afternoon apathy and low volume it was the first time in a long time that all sectors fired together..see you can do it..stand out surprise in Big ones was TLS which usually falls when everything else is hot but no, hit $4.29 a four year high…gotta love that yield..was on Sky TV last night and mentioned I thought it could go to 4.50 in the next few months…next year may be a bit more wobbly for them as the looming election makes punters consider the downside to Abbott being PM…and there are sure more than just the NBN!!!

The Flash PMI out of China yesterday lunchtime was a positive and shows the Middle Kingdom is turning round…trouble is that the impetus for stimulus(try saying that in a hurry) then recedes..hence the lacklustre performance of the Shanghai market.

A quieter day today with consolidation and book squaring the order of the day +/- 5.

Idea of the Day

LYC:This is one for the brave but I believe that they will be rewarded..as the SAS say ”Who Dares Wins”…so here’s why and in the words of Monty Python

“Our three main weapons are ….”

1.Production is starting…forget the court and the environmental activists and the politics ..100 pallets of Rare earth stuff was delivered yesterday for processing.

2.They are now cashed up and don’t need to tap shareholders on the shoulder again.

3.The stuff they produce is strategic..now is the World happy know in that 90% of rare earths come from China?really a Communist country(or had we forgotten that )I certainly don’t think so ..Japan for one will not be!

4.The placement stock at 75 was ceremoniously dumped by the short term ‘nancy boys’ after they failed to be able to flip the stock for a quick profit…that will finish..

As I said it is Pythonesque as observant readers will notice 4 main weapons but then no one expects the Spanish Inquisition!

Things to make me go all Skyfall

1.Big Bond fan, as readers will know already, and the new film is great..bit different to normal Bond but Shanghai looks wonderful as does the casino in Macau…have to go!!

2.DJs Chairman pulled the pin yesterday ,one day before the AGM…lost his bottle perhaps…bad timing!

3.Here’s another reason why the retailers in this country just don’t get the net…if you needed any more proof after the Click Frenzy debacle,I got an email from AMEX,never usually good ,but this time they were offering me cheap access to myUS where I could order stuff from the US that they will not send to Australia..I have known about this for some time but AMEX promoting it to their members at a knock down rate..it’s a competitive World out there guys…

4.Whilst watching Sky yesterday they read out the short positions in some of our leading shares..quiet scary..7% of FMG..but 21% of JB Hi Fi…amazing numbers…potential for squeezes abound!

5 Whitehaven Coal: Major Shareholder the ‘Big Bogan’ has made a deal with liquidators to retain the jobs of over 200 staff at his horse racing operation, Patinack Farm. A court order to wind up the company was made on 21 November. Most of a debt to WorkCover Corporation of South Australia was paid. The company intends to fund the liquidator so that it can continue to trade and pay all creditors.

6.Glencore International won regulatory approval from the European Union for its multibillion-dollar merger with Xstrata, after it improved its initial offer to ease competition concerns in the zinc market.

7. Santos chief David Knox’s confidence about output and funding has failed to overcome doubts about the company’s $US18.5bn LNG project in Gladstone, with Knox yesterday forecasting an average 6% a year growth in output through the rest of the decade to 80m to 90m barrels of oil equivalent by 2020 at an investor briefing in Sydney yesterday.

8. The federal government plans a tax crackdown on multinationals and has taken the extraordinary step of identifying two companies it believes are using complex structures to shift profits to lower-cost countries, US technology giants Apple & Google

9.AGMs today.. ASL BPT DJS DUE FWD PRU RIA WSA

And finally from a good friend of mine yesterday in Thanksgiving celebration..

Shot my first turkey yesterday! Scared the hell out of everyone in the frozen food section It was awesome! Getting old is so much fun.

Have a great weekend

 

Clarence

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