Morning all,

There seems to be some movement at the station for the word has passed around that Obama and Boehner are talking …the market will like this! Overnight news from Europe was somewhat worrying but then I think we have to accept that ‘Zombieland’ is a write off for some years to come. The issue is going to be the UK in the next year as its rating comes under pressure.

Reading and article on Bloomberg about the Greek situation is very sad. A whole country has been sacrificed in the name of the Euro. Unemployment is preparing to go into orbit at 26% and 56% for under 25s.I am only surprised that the people have accepted the cuts with such restraint! I suspect that eventually they will crack..there is always a catalyst..some Prince gets shot, Poland gets invaded, always something!

Greek Unemployment by the month!

Expect the World’s markets to conveniently ignore the bad news at the moment as things get festive. We will have to wait for the Hangover 3 in the new year.

Our market will try and take back what it lost yesterday…big numbers tonight in the US so watch and wait probably the order of the day!Non Farm Payrolls and Average earnings plus Unemployment rate so it’s going to be volatile.

Once again we will be hostage to US Congress until they agree, which they will!

After yesterday’s shock jobs numbers here it is easy to forget how lucky we are here …5.2% unemployed, 3.1% GDP , interest rates at 3% and in the middle of a mining boom…most countries would give their eye teeth for this result..but no, thanks to the media and high profile retailers squealing with Mr rAbbott we seem to be so pessimistic..I suspect that we may talk ourselves into a downward spiral just to keep our overseas friends company. It does look like however that the Government is softening us up to no surplus! hardly their fault completely as the Commodity boom does slow but they will get pilloried for it nonetheless.

Idea of the day

After my call on LNC the other day the stock has moved from low 70s to low 80s..my target was 85..remains that way.

Also for this BDR fans and I had a few the stock has been a star!It may be time to look at exiting if they push towards 1.20…this was my target over the long term so would be nice to get close to this..

Things to make me go all Lachlan Murdoch.

1.Bet Dad is so proud ,ONE and now TEN…maybe that will be the new shareprice! Somewhere between 1 and 10!

2.Another big theme to come in 2013 will be the export of US gas to Asia. They have 3 buck gas and plenty of it..we have 12 buck gas …now they are going to export to Asia as sure as fracs are fracs so how will that effect our local boys. Well it cannot be good to have that competition. They argue that 3 buck gas in the US becomes 12 after shipping it to Asia. Well not sure myself as they seem to be trialling new shipping routes previously closed due to ice! Someone will solve the high cost of shipping issue and then we will have a fight on! There is even a new study out today suggesting that exporting the gas will be better for the US economy than keeping it at home.

3.MORE than $25 billion in cost blowouts have been recorded across Australia’s fleet of export gas projects, with Chevron’s Gorgon project now officially the biggest overspender of the lot. The $9 billion blowout at Gorgon, which was confirmed on Thursday, follows cost overruns at projects run by Woodside, BG, Santos and ExxonMobil, and means the tally of excess costs now stands above the amount required to build an entire LNG plant.

4.In SWM, Chairman Kerry Stokes bought 16 million shares in the company, according to statement to the ASX. Stokes bought 4m at A$1.60, 21m at A$1.66 which lifts his holdings from 33.16% to 35.22%,

5.The TEN shareholders have offered strong support for their embattled board despite chairman Lachlan Murdoch admitting that the botched execution of the broadcaster’s spring programming was one of the reasons it now needs to conduct a highly dilutive capital raising for the second time in six months. ”Poor execution of our spring programming schedule, compounded by a weak advertising market, has negatively impacted our results,’Our analyst believes this may be a takeover by stealth.I cannot believe they really need that much money to survive, so maybe he is right. All part of a Billionaires club plan to take the company private effectively. If you are a shareholder, you have my sympathies.

6.Good to see Prince Charles joking about the radio station prank call to Kate’s hospital the other day. And in shocking news two caddies fighting on the first day of the Aussie Open..Happy Gilmour would have been happy… “You’re gonna die, clown!”

7.Market darling SIR has decided to tap shareholders on the shoulder for $40m to drill some more holes in their Nova prospect. It should be interesting to see the market reaction. last time they raised they never looked back unlike most others at the moment.

8.Yet another reason to buy or at least hold TLS Australians, it seems, are increasingly addicted to the internet: a report from the communications regulator shows we are sucking down hundreds of thousands more terabytes of data than we were a year ago.

In the year to June 30, 2012, Australians downloaded 421,147 terabytes of data, an increase of 52 per cent, while the total internet subscribers increased to 28.23 million.

Nearly half of us (10.8 million) are going online at least once a day and the typical Aussie spends 82 hours a month on the internet.

I heard on the radio this morning how big a slug of TLS is now owned by overseas instos hunting for yield….will keep things tight in the most crowded trades of banks and other high yield stocks. I continue to like MOC as an attractive high yield stock with a fully franked yield around 8%..not to be sneezed at!!

And finally….

An Englishman an Irishman and a Scotsman were in a pub, talking about their sons. My son was born on St George’s Day,” commented the English man. “So we obviously decided to call him George” “That’s a real coincidence,” remarked the Scot. “My son was born on St Andrew’s Day, so obviously we decided to call him Andrew.”

“That’s incredible, what a coincidence, “said the Irishman. “Exactly the same thing happened with my son Pancake.”

Have a good weekend!

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.