Morning all,

What a spectacular weekend in Sydney. Felt like Summer! Certainly seemed that way in the Property sector with a housing boom back on..now if we can just get these annoying Pollies off the screen we will all feel warm and fuzzy all over!

Looks like the Global asset switch is happening. Sell US equities and Buy Zombieland. As we head into the tapering season when Ben pulls back on the free money throttle the signs of life in the Euro economy are forcing value players back in to the DAX,FTSE and CAC…this is set to continue..US had its worse week since its last one..

Gold was a little star again on Friday hitting 1370..and with the Aussie down here the Champagne corks will be popping? Nah not yet but better than 1270!

Results continue in full swing this week with a few out already,AMC,BSL,CFG,DXS,AZJ….

Would expect a modest easing today as we try to stabilise around 5100..Iron Ore a little weaker so that will crimp BHP and RIO whilst a stronger Aussie at 92 will hold back teh resource stocks a little..also we have some big ex divs today including CBA and TLS so that knocks 20 points off for a start!!

Idea of the Day

Not going to mention Adslot again but they are looking pretty good, going to be firmer today too…

One I have pushed in the past and some brave souls bought them is APN. Figures were out on Friday and it is starting to turn under the wise hand of Michael Miller. Looks like the Radio business is going pretty well and cost reductions are working. Our analyst is a fan too..suspect there is a relatively easy 20% in this baby in the next month or so as it draws some love from the investment community.

Things to make me go mmmmm!

1.I am not a huge shopper nor strangely is my wife but on Saturday we found ourselves at a large shopping Mall in Sydney. The place was absolutely deserted. Now it may have been the weather, may have been the fact that we were there at 2.30pm on a Saturday afternoon but was like a Chinese Ghost city! And I know that some of the investment community have looked at Dick Smith under its new Private equity team but the shop was filled with tumbleweed and scarily actually nothing to buy even if I had wanted to.JBH at least had some people in it but retailing still looks pretty tough out there.

2.And while we are in the subject of retailing,I find it worrisome that the opening of a “Lifeline” shop in Avalon is the stuff neon signs and trailers at the side of the road are made of !Really? It’s a charity shop not Zara!!I think the Aussie Red Cross shop is worried though…

3.Good to see some serious fat fingers at work in China as Everbright Securities ramped the market up nearly 6% and a massive 50% increase in volume as an Algo Computer went beserk. Apparently no human error was involved. Really,didn’t someone program the thing in the first place? Anyway Everbright may need a new name!!

4.Thanks to Peng for spotting this one..The InTempo, a 47-storey residential skyscraper in the eastern coastal village of Benidorm that is currently under construction, was built without space for an elevator shaft. The first 20 floors have space, but a major architectural blunder left out the space for elevators on the top 27 floors.The skyscraper, which will be the tallest residential building in the European Union  and was supposed to open in 2009, but a number of setbacks have continued to delay the opening.

5.Today we got the latest episode in the Greek Tragedy with news  that the Greek finance minister Stournaras asked for the resignation of the Greek privatisation agency chief, Stavridis, following a newspaper report that he traveled on the private plane of a businessman who just bought a state company with Stavridis’ blessings. Things never change do they!

6.Packaging group Amcor Ltd reported a 8.6 per cent rise in full-year net profit before one-off items, and said its business would deliver increased earnings in 2014.Net profit before one-offs rose to $689.5 million for the year to June, from $634.9 million a year earlier.

7.APN News & Media may be forced to follow Rupert Murdoch’s News Corp and embark on a demerger as it grapples with the industry-wide malaise of dwindling print advertising revenue. Despite posting a $12.7 million profit for the half year under newly installed boss, Michael Miller, many in the market remain convinced the company will be forced to hive off its weaker assets or resort to a dilutive equity raise as it transitions to a digital platform.

8.Investec is drastically reducing the size of its Australian operations, with more than 50 job cuts expected over the coming weeks as the bleak conditions in the financial services sector continue to bite. Investec confirmed that it was shutting down its resources and derivatives desk .

9.Australia’s largest freight operator, Aurizon, has posted an 1 per cent gain in net profit after higher earnings were offset by redundancy costs.Aurizon, formerly known as QR National, made a net profit of $447 million for the 2012-13 financial year, up from $441 million for the previous year.

And finally….

I was telling a girl in the pub about my ability to guess what day a woman was born just by feeling her breasts. 
”Really” she said, “Go on then…try.” After about thirty seconds of fondling them she began to lose patience and said. 
”Come on, what day was I born”?


I said, yesterday.”

 

Have a great Monday!

Clarence

XXX

 

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