Am I being too cynical here…the US announces a deal to kick the can down the road again on US debt and the Market celebrates with the biggest day since January and they the debt ceiling then!!Extend and Pretend is alive and well it seems..let’s face it there was never a real threat of default…as I spoke about yesterday..it’s all politics..it will be more politics now between now and Thanksgiving when the new deadline is now…don’t be a turkey I guess……the shutdown is still on though and maybe for another 6 weeks!!! and US employment numbers showed how that is affecting things and it aint good..so Yellen has only been nominated for one day and the market goes ballistic..I am too jaded by these things but undoubtedly we will join in the celebrations..5200 should be doable today before some profit taking kicks in and we drift down a little..up 40 I reckon in the end..computers will just love it!!
As I am writing this OBAMA has said No deal!!!!
Metals up, Oil up ,Iron Ore up..Gold down.Aussie dollar at 94.6 ish…
Idea of the Day
Well I could say buy everything but I am not going to..call me cynical and too pessimistic but this deal if it is done doesn’t really change anything and Wall Street has got too carried away..We will too..If I was a trader I would be looking to sell into the current rally.
An interesting idea we were talking about on the desk yesterday following some comments by a leading fund manager..GNC-Grain Corp..currently being bid for by the US group Archer Midlands at $13.20..stock is currently 12.15..lots of upside..the only fly in the ointment is the FIRB which is now deliberating whether to let this stock go to a foreign company..given that Tony is now in ‘da house’, it has changed things a little given his relationship and suck up potential to the Nationals. I would expect that the bid will ultimately be approved as a sign that Australia is once again open for business…maybe a few caveats …maybe have to go on a study trip to see the effects of the takeover..few expense claims here and there..anyway buy at 12.15 for a takeout price of around 13.20 giving a return of 8.6%…if it doesn’t get the nod well…I will look a little silly and the price will fall back to around 11 bucks I suspect..but then recover…but having chided Jules for sovereign risk and making it hard for International Investors to get excited by a land downunder it’s a bit hard to start turning back not only the boats but Johnny foreigner too..especially if they are clutching wads of lovely wonga!!Decision by 17th December!!No Hurry Joe..none at all!!
Seems that foreigners like our companies more than we do still .. Bega Cheese executive chairman Barry Irvin says the choice is simple for shareholders in takeover target Warrnambool Cheese & Butter Factory. Mr Irvin, a dairy farmer for almost 25 years, has warned an international conglomerate could never match Bega’s loyalty to local dairy farmers, after foreign rival Saputo swooped in on Warrnambool with an all-cash $393 million bid on Tuesday.
Good to see my tip MOC hitting the $3.00 level just about..
Things that make me go mmmm!
Sachan Tandulkar is retiring from cricket..legend…
Libyan leader gets abducted at gunpoint by militants…Ex-Detroit Mayor Kwame Kilpatrick was sentenced to 28 years in prison for public corruption as U.S. prosecutors sought to link his conduct to the city’s bankruptcy, which came almost five years after he left office.
The Three O’ clock ramp is alive and well in the US.
Love it when all the headlines are screaming debt deal imminent…imminently pushed out for 6 weeks that is!!Still National Parks are closed!!Meanwhile in the real world US jobless claims jumped to 374,000 up by 66,000
Interesting to see the reports about how the big auto companies are pulling their biz from Car Sales web site…cannot be good for the site…
Royal Mail IPO in the UK was massively oversubscribed and shows capitalism and stagging is alive and well..expect a good debut to this one..stock issued at GBP3.30
Rio Tinto’s listed uranium subsidiary ERA has kicked off the September quarter reporting period for the group on the sour note widely expected by investors. Output from ERA’s Ranger operation in the NT fell sharply in the quarter because of the exhaustion of open-cut reserves, restricting operations to the processing of lower-grade stockpiles. Uranium production plunged 51 per cent to 610 tonnes
I am so sad for all these lawyers…: The era of super-profits could be over for law firms, as difficult conditions plaguing the industry are likely set to stay even when there is an uptick in economic conditions, experts say. Nick Nichola, the Australian managing partner of K&L Gates, said there had been a “fundamental seismic shift” which is “irreversible” in the way law firms do business.
WBC has announced it has bought Lloyds Australian interests for $1.45 bn..Value creating for them ..apparently.. we shall see…
And finally I know this is the only reason that you have read this far!!!Thanks to Hans for this politically incorrect one…
A wife says to her husband you’re always pushing me around and talking behind my back. He says what do you expect? You’re in a wheel chair.
Did I cross the line? Tell me!
Back on Sky Biz this afternoon at 5.30pm for anyone who is interested!
Have a great weekend…I am off to sunny Melbourne for a 21st…can’t remember the last one of those I went to!
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