No more Summers!
Well it’s going to be a big week with Larry Summers ducking out of the race to replace Uncle Ben. FOMC meeting starts tomorrow too so maybe we will get some Taper tantrums after all. Fridays positive vibes from the US will continue on the withdrawal of Summers as he was seen as a hawk. In fact the futures markets are showing a healthy gain this morning so expect some positivity to emerge in our market although it will be muted ahead of the Fed meeting.
The looming US debt crisis is being ignored at the moment as the Oct 1 deadline looms to raise the debt ceiling and renegotiate the budget. I guess the markets are of the view that as always the Pollies will huff and puff but in the end the credit card limit will be increased and they will be back out there spending.
Metals and Gold eased and the Dollar was stronger so expect a muted reaction from resource stocks.US dollar though is falling now that Lounge Room Larry Summers is out of the running and gold has risen a tad this morning. S&P futures at an all time high!!
The US-Russian agreement on Syria is promising! The World will wait and see whether al –Assad complies but looks like a US strike is well and truly off the table….although I do remember Saddam Hussein doing a similar thing with his weapons of Mass Destruction…oh yeah that’s right he didn’t have any after all!!
Idea of the Day
A friend of mine who writes far better than me on financial matters has pointed out how BHP and RIO have really failed to respond to the continuing strength of the Iron Ore price..FMG on the other hand has soared since its $2.90 low to around $4.50…it seems that most analysts still have predictions of a serious Iron Ore price collapse…this looks somewhat unlikely given the numbers coming out of China and even the Baltic Dry on shipping rates around the World…so with Ore still around 135 bucks a tonne there is going to be some serious humble pie being eaten from commodity analysts and strategists in the coming months…this could be a trigger for upgrades to the big two and good price gains in the months leading up to Xmas…would strongly suggest you have a look at having some exposure to these two in the coming months…
Things to make me go mmmm!!
Happy Birthday Lehmans.It was five years ago that this pillar of the US establishment went under,some would say triggering the GFC! Scarily most of the protagonists in that drama are still movers and shakers on Wall Street. Nothing much has changed on banking regs since then…in fact the US Investment Banks have just got bigger!!Even Too bigger to fail now!!!
And where is Tony Abbott? A week on from his election victory he has been strangely absent. Was hoping that he would hit the ground running..it’s funny it’s one thing to know how to be in opposition its quite another to be in Government…that’s seemed to be Labour trouble too when they started..then of course they got into even more trouble!!!
Looks like “Moaning Mertle” is going to be with us for some time as she has had a good showing from Bavaria!
Greek civil servants will no longer have an additional six days of extra holidays each year. What was the reason for the nearly full week of vacation time? Why using a computer.
Sydney’s auction clearance rates rising to a near record 86% – suggesting that the RBA’s recent wave of interest rate cuts are flowing through.
Atlas Iron is poised to appoint an investment bank to help find an equity partner for its early-stage McPhee Creek mine, in a deal that could value the asset at up to $700 million.
TELSTRA has shrugged off the launch of Optus’s new dual 4G network and has declared it will be able to offer mobile download speeds of up to 300Mbps on its network within 18 months.
FORMER Woodside Petroleum chief executive Don Voelte says he now accepts and endorses Woodside’s plan to process the massive Browse gasfields through revolutionary floating liquefied natural gas technology. Mr Voelte — who lobbied intensely to see Browse processed through an onshore LNG plant on Western Australia’s northwest coast — revealed for the first time that he had reconsidered his position and now believed FLNG technology was the best mode of development for the project.
Not gonna be a fun time for iSelect as ASIC looks to put the microscope under them following their somewhat disastrous float….missed prospectus forecasts are never a good look so early in the life of a new listed entity.
Ralph and Edna were both patients in a mental hospital. One day while they were walking past the hospital swimming pool, Ralph suddenly jumped into the deep end.
He sank to the bottom of the pool and stayed there.
Edna promptly jumped in to save him. She swam to the bottom and pulled him out. When the Head Nurse Director became aware of Edna’s heroic act she immediately ordered her to be discharged from the hospital, as she now considered her to be mentally stable.
When she went to tell Edna the news she said, ‘Edna, I have good news and bad news. The good news is you’re being discharged, since you were able to rationally respond to a crisis by jumping in and saving the life of the person you love… I have concluded that your act displays sound mindedness.
The bad news is, Ralph hung himself in the bathroom with his bathrobe belt right after you saved him. I am so sorry, but he’s dead.’
Edna replied, ‘He didn’t hang himself, I put him there to dry.
How soon can I go home?’
Have a great Monday
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