Morning all,

US markets had their worse day in two weeks last night!!Coke wasn’t the one last night as it announced disappointing numbers on the weather and strong dollar..Yahoo disappointed as well…BUT commodities were better with Gold up, Iron Ore up and the Aussie dollar stronger, and would expect some strength from that sector today. Think we are going to see our market ease back a little and the consolidation continue before a decent attempt to go higher..don’t forget we have run nearly 8% since Kev13 returned and the fatted calf was killed and all rejoiced..that is all except Tony Abbott who now looks like a man who has had all his Christmas presents stolen just before he got to open them.They were under the tree when he went to bed…now nothing but a mince pie left and a note…from Julia wishing him good luck!

So as the earnings season in the US winds up to full bore and ours is nearly upon us it will be the focus. Yesterday’s minutes (hours) from the RBA don’t seem to suggest they are rushing to cut rates again imo…I am of the belief that they have done enough ..the Aussie is around 91 cents and they will sit back and watch what that does to the economy to rebalance it…it will take time and they don’t want to cut too aggressively, have no ammo left and a housing boom to consider either. Slow and steady is Uncle Fester at the RBA …he will be patient..he sure was with the Aussie dollar after all…left it til the bulk of Australian Industry was toast before moving decisively to get it down!

Wish we had the election soon…more policy shifts from Rudd decimated the car leasing company McMillan Shakespeare yesterday (down 15%) as Rudd announced ways to plug the carbon tax gap…another industry bites the dust…car sales will suffer because of this latest move…nice one Kev13!

Gonna call it down 15 today but resources to outperform and Golds better! Still like NCM …

Idea of the Day

I have talked about this stock before GEM..childcare centres..they buy cheap, give them a makeover and manage them better with more kids…well today they have issued a profit upgrade I guess and said that they expected to make more than any analyst thought..good stuff..Stock has done well and here at the mighty house of negotiable brokerage we have liked the stock for some time..still do…would expect more gains to come..probably will leap at the open so don’t chase but any buying around current levels at 2.60 ish will be worthwhile..target 3.00!!

Also one other to have a look at my old favourite MOC…lots happening in the mortgage market,RHG being bid for ,Homeloans same and MQG moving into this space through Elton Johns’YBR…MOC has yield stability and good management…still like…

Things to make me go Mickeyleaks!

1.Good to see the Mickey Arthur departure getting juicy on the he said ,she said front. Adds a little more spice to the next test on Thursday at Lords.

2.Yet another reason to like BHP as their production numbers beat expectations and Iron Ore seen to be holding current prices.

BHP BILLITON 4Q IRON ORE OUTPUT 47.7 MT; EST. 43.2 MT… BHP 4Q COPPER OUTPUT 333.2K TONS; EST. 322K TONS.

3.The fun continues at Billagone with the CEO leaving to pursue other interests as the US hedge Fund Altamont Capital moves to take control and install their man in the top job..no doubt Ms Inman will get a massive pay out for doing such a great job over the last 13 months and the under the table takeover will be effected over time.Nicely worked from the US hedge funds!Of course the Aussie banks all sold out of their debt last week so it’s over to you boys..good luck!

4.Goldman announced their profits last night and beat expectations…hardly surprising given they run the World these days..and it means that the average compensation per Goldman employee climbed to a fresh three-year high of $431,956, up 7.1% from Q1, and up a whopping 25.9% from a year ago. Not bad for a tough market.

5.US regulator the Federal Energy Regulatory Commission has fined Barclays $435m (£287m) for manipulating energy markets in California and other states from November 2006 to December 2008.Barclays and four of its traders must also pay $34.9m to the Low-Income Home Energy Assistance Programs of Arizona, California, Oregon, and Washington.

6.One of Ben’s targets is inflation at 2.5%..seems like it is heading in the right direction…Annual US consumer price inflation hit 1.8% in June as clothing, petrol and services costs all increased.

That was up from the 1.4% figure recorded in May but still below the target inflation figure of 2%.

7.Doublespeak even in Chinese if you ask me….China should also develop a “scientific macroeconomic policy framework” to offer markets “stable predictability,” Li told a forum of advisers and executives yesterday, according to a summary of the event published on the government’s website.

8.China’s holdings of U.S. Treasuries (BUSY) rose to a record in May even as net selling by private foreign investors in notes and bonds reached an all-time high, government data showed.China stayed the biggest foreign owner of Treasuries as its holdings increased by $25.2 billion to $1.316 trillion, according to Treasury Department data released yesterday in Washington.

9.Federal Reserve Bank of Kansas City President Esther George, who has consistently voted this year against record Fed stimulus, said the central bank should soon taper its $85 billion in monthly bond buying amid signs of steady gains in the labor market….looks like there is some robust discussions happening at the Fed before Uncle Ben leaves for Princetown…maybe everyone is auditioning for the top job…

10.More strikes in Greece as the Government moves to sack another round of civil servants..this will all end in tears as suspect the people are at breaking point..meanwhile over in Portugal the Government is now being run by Brussels effectively as are other parts of Zombieland..

11.Are these guys taking the  proverbial.. British scientists say they have harnessed the power of urine to charge a mobile phone with enough electricity to send texts and surf the internet. Researchers from the University of Bristol and Bristol Robotics Laboratory in south-west England said they had created a fuel cell that uses bacteria to break down urine to generate electricity…..brings a whole new meaning to battery leakage!!

And finally…apparently yesterday’s joke was a little un PC according to my beautiful wife..so todays’s….comes from her!!Nice political one…and oh so correct!

Judy Rudd an amateur  genealogy researcher in south east Queensland ,  was doing some personal work on her own family  tree. She discovered that ex-Prime Minister  Kevin Rudd’s great-great uncle, Remus Rudd, was  hanged for horse stealing and train robbery in  Melbourne in 1889. Both Judy and Kevin Rudd  share this common ancestor.

The  only known photograph of Remus shows him  standing on the gallows at the Melbourne  Jail.

On  the back of the picture Judy obtained during her  research is this  inscription:

‘Remus Rudd horse  thief, sent to Melbourne Jail 1885, escaped  1887, robbed the Melbourne-Geelong train six  times.

Caught by Victoria Police  Force, convicted and hanged in  1889.

So Judy recently e-mailed  Prime Minister Rudd for information about  their great-great uncle, Remus  Rudd.

Believe  it or not, Kevin Rudd’s staff sent back the  following biographical sketch for her genealogy  research:

“Remus Rudd was famous in  Victoria during the mid to late 1800s.  His  business empire grew to include acquisition of  valuable equestrian assets and intimate dealings  with the Melbourne-Geelong  Railroad..

Beginning in 1883, he  devoted several years of his life to government  service, finally taking leave to resume his  dealings with the railroad.

In  1887, he was a key player in a vital  investigation run by the Victoria Police  Force.  In 1889, Remus passed away during  an important civic function held in his honour  when the platform upon which he was standing  collapsed.”

NOW That’s how it’s  done, Folks!

That’s real POLITICAL  SPIN!

Have a Great day..

Clarence

XXX

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