Morning all,

It’s on ..the great resource stock rally..well the start of it anyway..every broker is moving now to suggest that the resource sector is massively oversold. The demise of the iron ore price seems to taking its sweet time and with the moves from Japan to print until they die will ensure cheap Japanese money washes around the world like Mafia bribes. Numbers out from China yesterday on inflation were enough to keep that Dragon at bay and make the prospect of further tightening further down the track. So as Cyprus becomes a distant memory and we focus on the positives which are:

1.US economy is improving albeit slowly

2.Chinese economy is improving albeit slowing

3.Japan economy may improve albeit slowly

4.Central Banks are printing more money than ever..and not slowly either.

And most Americans are more interested in Lindsay Lohan’s latest drug rehab than Zombieland and those guys will drive the Dow up through 15,000 sure as Bitcoin is a bubble!

With the Global bathtub full of money sloshing around it is starting to get into the resource space. If I was short BHP/RIO and FMG right now I would be starting to get a little worried. Even BHP is yielding 3.5% and when interest rates are close to zero that’s tarts to become attractive.

Yesterday’s whooshka in the market was on low volume considering the move, but the pullback maybe turning round and we could see the market continue higher ..Japan was a game changer and don’t forget these guys are one of our biggest trading partners.

We also saw TLS rally hard yesterday as the Government in waiting announced their first real policy! Yay!!Looks like sooner, cheaper ,slower is the way to go. Soothing words from Tony Abbott on no war with TLS shareholders helped sentiment. I would say that despite whoever wins the poisoned chalice of power next ,TLS will be a winner..either they get compensation for losing the copper or they get to charge for using it and of course the massive cost in maintaining it…let’s hope the election doesn’t come down to who has the fastest internet!More policies please Tony!!

Idea of the Day

Talked about it yesterday and above but it may be time to look at resource exposure..BHP RIO and FMG together with WPL perhaps..it wont happen overnight but it will happen!!

And in news out this morning BPT has announced a huge gas deal with ORG into the Gladstone project..should help BPT and other Cooper basin players plus with ultimately help other gas stocks..buy BPT for a rerating on this news..

Things to make me go all ……

1.Few numbers out today..

•             10:30 Australia Westpac Consumer Confidence Index Apr – Prev: 110.5

•             12:00 China Trade Balance (USD) Mar – Survey: $15.15B Prev: $15.25B Revised: $15.23B

•             12:00 China Exports YoY% Mar – Survey: 11.70% Prev: 21.80%

•             12:00 China Imports YoY% Mar – Survey: 6.00% Prev: -15.20%

2. Billabong International: founder and major shareholder Gordon Merchant and fellow director Colette Paull are backing a $287 million takeover proposal by suitors private equity firm Syca¬more Partners and Paul Naude. However the takeover is at least 10-days away from being finalised.Great to see a Company go from $14 to 60 cents….I reckon the stock would be higher if they had walked away!!!

3. Fairfax: the management cull at Fairfax Media has continued with the departure of Metro Media chief operating officer David Hoath as the media company undertakes a corporate restructure.like this one..preferred stock in the sector with APN for turnarounds..

4.Santos: is continuing its push for coal-seam gas in NSW in the face of growing opposition, warning that a failure to develop resources could result in substantial gas and power price increases, manufacturing job losses and increased greenhouse gas emissions.

5.Federal Reserve Bank of St. Louis President James Bullard said payroll growth slumping to a nine- month low doesn’t change his forecast that the jobless rate will decline to about 7 percent by the end of this year.

 “I’m inclined to look past the report because I think there are some mixed messages in there,” Bullard, who votes on the policy-making Federal Open Market Committee this year, told CNBC today in an interview from St. Louis. “We want to kind of wait and see and that’s where I am right now. I wouldn’t change my forecast based on this.”

6.A furnished two-bedroom apartment in Port Hedland, the world’s biggest bulk export terminal, on Australia’s cyclone-battered north-western coast rents for almost the price of a three-bedroom penthouse in Manhattan. The $8,155 a month price for the rental on Anderson Street – that’s typically used by mining companies to house personnel – compares with about $8,500 for three bedrooms with pool access and doorman on the Upper West Side.

7. Whatever you think about our Jules she has finally done something  good, that is apart from call an election…Australia and China have formally committed to annual leadership talks, giving Canberra greater access than the superpower has granted virtually any other Western nation.With countries across the world clamouring for the ear of the world’s second largest economy, Prime Minister Julia Gillard has landed the foreign policy triumph of her leadership, agreeing to a strategic partnership with her Chinese counterpart, Premier and Prime Minister, Li Keqiang.

8.Quick heads up or should that be heads off as its France but this Countries economy is shaping up to be the next disaster to hit Zombieland as the economy slows, loses jobs,GDP goes backwards and the public sector continues to balloon..there is an old saying “Too many houses in Spain ,too many factories in Germany  and too many public servants in France”.. As a result France is the only country which has seen the public sector grow faster than the private sector in every year since 1987!

9.North Korea is now talking about Thermo Nuclear war on the Peninsula..seems the US is starting to take them seriously at least in public telling media that they are a “Direct Threat”…anyone remember that film ‘On the Beach’!!    Remember what Ava Gardner said about Melbourne!!

And finally………………

My husband and I were dressed and ready to go out for a lovely evening of dinner and theatre. Having been burgled in the past, we turned on a ‘night light’ and the answering machine, then put the cat in the backyard. When our cab arrived, we walked out our front door and our rather tubby cat scooted between our legs inside, then ran up the stairs. Because our cat likes to chase our budgie we really didn’t want to leave them unchaperoned so my husband ran inside to retrieve her and put her in the back yard again.

Because I didn’t want the taxi driver to know our house was going to be empty all evening ,I explained to him that my husband would be out momentarily as he was just bidding goodnight to my mother. A few minutes later he got into the cab all hot and bothered, and said (to my growing horror and amusement) as the cab pulled away.

“Sorry it took so long but the stupid bitch was hiding under the bed and I had to poke her bum with a coat hanger to get her to come out! She tried to take off so I grabbed her by the neck and wrapped her in a blanket so she wouldn’t scratch me like she did last time. But it worked! I hauled her fat **** down the stairs and threw her into the backyard….she had better not poop in the vegetable garden again.”

The silence in the taxi was deafening…..

Enjoy your day….no note tomorrow morning as I am on a course but back Friday…say you’ll miss me?

Please?

Clarence

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