Morning all,

A lacklustre finish to Wall Street will offer us no clues today but if we follow Canada (up 0.65%) which we should, we should have a more positive day than yesterday.Golds were strong as Canadian producers hit four month highs! However the big key will be the reaction of punters to the BHP result.They were down a bit in the UK and US last night but the US dollar dividend will help us a little.

Would expect the banks to continue in a positive vein with especially NAB drawing fans as its UK business improves. SUN numbers out today and a special dividend announced..although the market did know this was coming…

The big key to where equities are going is interest rates..now in the Us 10 year Treasuries  have soared since May to a yield of 2.88 from 1.62%..as the risk free rate increases the impetus to hold equities diminishes…probably why the Dow is going nowhere at the moment…here we have a different problem as the RBA looks like it may have another easing in its arsenal…at least that was the reading from yesterday’s’ hours’(they call them minutes but seems to be too boring to be just minutes)

So where to for our market..mildly positive start but we are waiting for FOMC minutes and Jackson Hole…

08.08.13: Martin Rowson on the new Bank of England governor

Individual stocks will be volatile on the back of their results of course ..I still feel that we have a run to 5200 in us as the election mess is sorted..I reckon if I started a party for NONE OF THE ABOVE..it would romp home!

Idea of the Day

Looking for a bank with Euro exposure and especially UK economy..look no further than NAB…have long been a bit left behind but perhaps their day is dawning..still like WBC,CBA,NAB,ANZ in that order if yield and safety are your bag baby!

Does seem the UK problem Child is starting to behave a little better as the run off in their loan book continues..currency will help as will improvement in jobs market there leaving bad loans less a issue…Happy to keep buying NAB for a another move upwards.

Things to make me go mmmmm!

Today is Overshoot day when the world goes into ecological debt,– an estimate of the moment in the year when humanity has consumed more natural resources and created more waste than our biosphere can replace and safely absorb over a 12-month period.

Once again overnight the computers have stuffed up..this time it was the mighty house of Goldman sucks which sent a bunch of option orders into the market,once again markets were whipsawed and GS looked to have finished up with some digital egg on their face and a nice hole in their P/L..as an aside though it seems that the NYSE is going to cancel a whole load of these trades unlike what happened when Knight did a similar thing..guess Goldmans are too big to argue with!

In mining news, newly-formed mining giant Glencore Xstrata has written down the value of Xstrata’s assets by $7.7bn (£4.9bn), and reported a drop in revenues.The firm, which was created in May, said the write-down reflected tougher conditions in the mining sector.Revenues in the first half of 2013 fell 2% to $121.4bn. The firm recorded an $8.9bn loss due to the write-downs.

Lots of results yesterday but the big daddy of them all was BHP which was a little disappointing I guess..today we have had .. Seek as it reported a net profit of $141.1 million for the year to June, excluding one-off gains relating to acquisitions. This was up 8 per cent from $130.2 million a year earlier. The company posted a final dividend of 22 cents per share, up from 17.3 cents a year earlier. This will be paid out on October 16.

iiNet has reported a 64 per cent rise in its annual net profit, to $60.9 million for the year to June. The country’s second largest DSL internet provider said it had benefited from the integration of two acquired businesses, Internode and TransACT, throughout the year.

Suncorp has posted a 32 per cent fall in full-year profit in line with its guidance last month.Net income for the year to June 30, was $491 million compared with $724 million a year earlier, hurt by a loss on the sale of its mostly sour loan portfolio. Suncorp’s banking unit recorded a loss of $343 million, compared with a profit of $26 million a year earlier.

It will pay a special dividend of 20 cents in addition to a final dividend of 30 cents.

Germany’s Finance Minister Wolfy Schaeuble finally admitted, officially for the first time, what everyone knows: Greece will need a third bailout. His exact words, as cited by Reuters, “There will have to be another programme in Greece,”

Thems fighting words as Moaning Mertle visits Dachau  in an historic visit and then threatened the rest of Europe if they ever pull out of the Euro with these well chosen words…MERKEL SAYS NATIONS SHARING A CURRENCY WILL NEVER GO TO WAR ….MERKEL SAYS ‘WORTH IT’ TO FIGHT FOR UNITED EUROPE…strange turn of phrase indeed..watch out Greece!

As the great bathtub of global money slooshes around it seems that Zombieland is starting to see some value investors in  as they exit, stage left pursued by a bear, in Asia… On a price-to-book basis, Europe is trading at a 25% discount to its long-term average. Spain is trading at a 45% discount, while Germany is trading at a 15% discount. On a 2014 price-to-earnings basis — a key valuation that shows how much investors are willing to pay for each dollar of a company’s earnings — the Stoxx 50 is trading at 10 times earnings, while the Dow Jones Industrial average is trading at 11.7 times earnings.

And finally…. On Friday, A hooded robber burst into a bank and, at gunpoint, forced the tellers to load their cash into a plain brown bag.

As the robber approached the door, one brave customer grabbed the hood and pulled it off, revealing the robber’s face.

Without a moment’s hesitation, the robber shot the customer.

He then looked around the bank and noticed one of the tellers looking straight at him.

The robber instantly shot & killed her also.

Everyone in the bank, by now horrified, stared down at the floor in silence.

The robber yelled, “Well, did anyone else see my face?”

There was a long moment of dead silence in which everyone was terrified to speak.

Then, one old Australian named Bernie cautiously raised his hand and said,

“My wife got a pretty good look at you !!!.”

Have a great day

 Clarence

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Get a Global take on things at http://www.ntmarkets.com

 

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.

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