Morning all,

Few big things happened last night with first and foremost a Fed Bank Chief speculating that the prop that has been driving the US equity market should be pulled back in the next few months. Dramatic effect on the US dollar..up she went and down went the Aussie Dollar to close to parity…Go Soros!! Anyway it looks like the combination of the RBA cut and the Fed Chief Plosser were enough to set things going in a direction that helps a few of our now home grown industries.Bit late but maybe will help arrest the slide.

The other biggest news yesterday was the relentless growth in the Aussie jobs market..50,000 new jobs created…where?Beats me…not sure which is more accurate anymore the Chinese numbers or the Australian! Still now everyone is confused about why the RBA cut Tuesday and of course is now adjusting their forecasts for no change next month…would the RBA have cut if they had seen those jobs numbers. who knows but it does take a cut in June off the table…

As for our market today I got it so wrong yesterday with my up 30 call..not sure what I was thinking so why listen to me…anyway for what it is worth expect to see another backing a filling day with a 10-20 point fall as we head into the weekend…nothing to really drive us higher but US earnings companies will be in focus and Banks will hold up better than some as the dividends are still attractive..the old 3 divs in 13 months ploy..

Idea of the Day

Good to see my recommendation of MOC running hard yesterday.Only a shame that more people didn’t buy into it but still…not sure I would be chasing it much higher..maybe 2.25 will top them out unless there is some corporate action which is always a possibility I guess.

Now if the US dollar does continue to firm as the stimulus is withdrawn, then it may be a good idea to look at companies with large US dollar exposure..of course it will help resource stocks but also things like RMD and QBE will be rewarded as will NWS…

Things to make me go oooww!!

1.Scary numbers from Greece on Unemployment again..65% of 18-24 year olds are unemployed..27% of the country is unemployed…that cannot be great long term..and they reckon the worse is over..yeah right..still there is a silver lining for some..Greece have the second highest rate of cosmetic surgery per capita in the world but thanks to a slumping economy, surgeons have cut prices by up to 40% and rich Greeks are tucking, lifting, and firming at record rates…hence the old adage..beware of Greeks bearing false gifts!

2.First day on the job for new BHP king,Andrew McKenzie..starting out having a look at the Iron Ore operations in the Pilbara..first big speech will be in four weeks at  Melbourne Mining Club function in London…

3.Budget on Tuesday! Should be a fun night…expecting a few surprises for sure as the Government tries to cling to power or maybe just leave a legacy behind!

4.We really are the lucky country…we are Lucky to have the inept Gillard Government…lucky that we have 5.5% unemployment with 2.75% record low interest rates…2% inflation and 3% GDP with a small deficit!We are so lucky we seem to spend our whole time whingeing about how ‘lucky’ we are!!Really we are very spoilt!! How good could we be with a proper Government with decent leadership which Tony Abbott offers..or he thinks he does!

5.Fortescue Metals has added 3000 workers since getting its $US9 billion expansion project back on track and now employs more staff and contractors than when it made savage cuts in September after the iron ore price plunged. At that time, it cut more than 1000 employee and contractor jobs out of a workforce then 8000-strong.

6.Santos’s: incoming chairman, Ken Borda, has assured shareholders that rewarding them for increased earnings is “top of mind” for the board, confirming the dividend policy will be reviewed next year with the start-up of the $US19 billion liquefied natural gas project in Papua New Guinea. “We’re going to be proactive on that; we’re not going to be reactive,” he said after the annual shareholders meeting in Adelaide on Thursday.

7.RBA will release their state of the country report today..should make interesting reading..South Korea’s ‘surprise’ rate cut overnight was the 511th reduction worldwide since June 2007.

8.And in the US ,the number of people on disability benefit now exceeds the entire population of Greece. The aging of the population has nothing to do with the increase. In 1968 there were 51 workers for every person on disability. Today there are 13 workers for every person on disablity.

9.Sycamore Partners has abandoned a full takeover offer for Billagone and is instead pursuing a recapitalisation deal. Sycamore, which is working with Billagone’s US boss Paul Naude, is now believed to be considering a financing transaction which, if accepted, will result in a recapitalisation through either debt, preferred equity or options. This means the suitor may end up as a lender to the company rather than a shareholder…..Well played Miss Corningstone,well played!!

10.The US has been informed that Russia is going to sell Ground to Air Missile systems to Syria…this situation seems to be going from worse to even worser.

11.Channel Nine seem to be having some issues with the Cricket..should be a positive for TEN if they get the sports rights…cant see it happening but you never know…still like media stocks though in general.

And finally…

More sports commentator gems to finish the week…

Weightlifting commentator at the Olympic snatch and jerk event: “This is Gregoriava from Bulgaria. I saw her snatch this morning during her warm up and it was amazing.”

Greg Norman, pro golfer: “I owe a lot to my parents, especially my mother and father.”

Ringside boxing analyst: “Sure there have been injuries and even some deaths in boxing – but none of them really that serious.”

At a trophy ceremony for a 1998 BBC TV boat race: “Ah, isn’t that nice, the wife of the Cambridge president is hugging the cox of the Oxford Crew.”

Metro Radio, college football: “Julian Dicks is everywhere. It’s like they’ve got 11 Dicks on the field.”

US Open TV commentator: “One of the reasons Arnie Palmer is playing so well is that, before each final round his wife takes out his balls and kisses them…Oh my God, what have I just said?!!”

New theme next week I promise…

Have a great 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