Morning all,

It’s all about the data for the Fed

*FED SAYS IT WILL AWAIT `MORE EVIDENCE’ BEFORE QE TAPER

*FED SAYS ECONOMY `CONTINUED TO EXPAND AT A MODERATE PACE’

*FED SEES IMPROVEMENT IN

ECONOMY EVEN WITH `FISCAL RETRENCHMENT

strawberry field

So….Thought it was about time I wrote a little song for this rant in the morning…well at least changed some words…so here we go…

Quantative easing forever! (to the tune of Strawberry Fields)

Let me take you down cos I am going to Quantative Easing

Nothing is real and nothing to get stressed about

Quantative easing forever

Printing is easy with eyes closed

Pumping money all can see

It’s getting hard to make a difference I know

It doesn’t matter much Bernanke

Let me take you down cos I’m going to Quantative easing

Printing is real and nothing to get worried about

Quantative easing forever

No one is printing more free money,

The Dow is high but never low

That is you can’t know it’s gonna end in tears

But they don’t think It’s not too bad

Let me take you down cos I’m going to Quantative easing

Nothing is real and nothing to get stressed about

Quantative easing forever

Always know sometimes that printing is free,

But you know one day we will all scream

I think you know it’s gonna all end badly,

It’s all wrong, when will they see!

Let me take you down cos I going to Quantative Easing

Nothing is real and nothing to get stressed about

Free money printing forever

Quantative easing forever.

Last night the Fed came out with more complicated language to try to justify and explain when QEIII will start to end…however the way the US economy is going we will have QEIV before we get any tapering!!!

Anyway volatile session on the Dow..UK at 5 Month high..gold swooned and then recovered….Aussie Dollar will be delighting Uncle Fester at the RBA as it hit 94.75 overnight…we will give a little back today..it has run really hard!!Too Hard perhaps in too short a time period…we need to catch our breath…5600 by Xmas but need a small pullback towards 5350 perhaps before having another go at it..Banks in focus!!

Idea of the Day

Good to see my recommendation on MKB…up strongly yesterday…ADJ which I recommended back at the beginning of August at 5 cents hit 15 and is coming back a bit..if they get close to 10 it may be worth another look…

Yesterday we saw KAR and met with their management team…fair to say this has not been a stellar performer and is suffering from lack of patience from investors…however the take away that I got from this meeting was that like Rachels hair is it will happen..it’s just taking its sweet time..these guys have plenty of cash but they do chew through it as their wells are pretty expensive to drill….however their track record of 70% success makes them better at it than most….they have blocks in Brazil, Peru and Australia(Browse Basin)..expect farm outs to happen in the next six months as things ramp up..if you are looking for an oil stock with good upside potential this may be the one…

Things to make me go mmm!

Over in the Land of the Long wh IT e Cloud..new listing GEO Op which raised money at $1.00 came on today at $3.50!!!serious stuff..it was just a compliance listing but shows the appetite for tech stocks at the moment especially in NZ with the success of XRO!

NAB figures out today up 9% in full year cash earnings..yet another record profit and a rise in the dividends…bad debts fell by $681m(big help from the UK here)..this is the growth area..dividends up by 7 cents to 1.80 for the year. Prefer WBC still…just like the name more!

Banks get told by the regulator to stop rewarding shareholders with ever higher dividends by APRA..that will take some of the impetus out of them I suspect. You have been very naughty boys!!

Good to see the NSW mining minister moving to sort out the NCM mining lease…whilst it is in court…Eddie would know!

JB Hi-Fi: has reported a pick-up in sales growth for the first quarter of the financial year, but warned that competition was expected to ramp up over the crucial Christmas period. Speaking at the company’s annual general meeting in Melbourne yesterday, CEO Terry Smart reported sales had increased by 8.1 per cent in the September quarter.

David Jones: expects to lift its share of the lucrative $400 million men’s corporate wear market to more than 25 per cent after signing an exclusive agreement to sell German brand Hugo Boss.

Mirabela Nickel’s US noteholders have appointed Rothschild to provide financial advice, sources told Street Talk Online on Wednesday. The Brazilian-focused miner has $US395 million of unsecured notes on issue, due in 2018, with an 8.75 per cent semi-annual coupon. Mirabela failed to make a half-yearly coupon payment of just over $17 million on October 15 and has until November 15 to remedy the situation.

More trouble for LYC I am afraid as a Russian Mega star, Billionaire Alexander Nesis, is in a venture with state-owned Rostec to fast-track production of rare-earths, using thorium-bearing concentrate kept stockpiled for more than 60 years. The partners also plan to bid for Tomtor in the Siberian republic of Yakutia, a deposit that has more than 150 million metric tons of ore containing rare-earths and is among the largest in the world…this guy is good Nesis disposed of the last of the 12 % stake he controlled in Potash Company Uralkali just days before the Russian company broke up a marketing partnership with Belarus, sending stock prices of producers around the world tumbling….lucky or just clever..he is a Russian Billionaire what do you think..must be lucky!

Facebook soared 15% after hours on the numbers with a ridiculous 25% increase Y/Y in daily active users to 728 million. There are now more than 199m active users of FB in the US alone..that is 63m more people than that employed in the USA! Mobile ads the driver..

And in strange news it appears the US spooks were spying on the Pope..seriously..was this guy a threat to US interests..you know what guys the clue to what the NSA should be doing is in the title..National Security Advisers!!Not Bloody Anyone We Fancy Snooping on advisers..that would make it BAWFSOA….

In stunning news too something you don’t see everyday ..US Secretary of Health actually did the unthinkable: she took responsibility. “Hold me accountable for the debacle,” Sebelius said in response to accusations at a congressional hearing today that her deputies failed to do their jobs. “I’m responsible.” Blimey let’s hope this doesn’t catch on too much…Obamacare web site has been down more times than….a scuba diver..was going to be rude..but it’s a kids show right?

Brazils poster child of entrepreneurial ship Eike Batista has filed for bankruptcy as The oil company that transformed into Brazil’s richest man went broke, culminating a 16-month decline that wiped out more than $30 billion of his personal fortune. Their very own Big Nath..only Bigger!!!

And finally…as its Halloween!!

Do zombies eat popcorn with their fingers? No, they eat the fingers separately.

A giant vampire bat came flapping in from the night covered in fresh red blood and parked himself on the roof of the cave to get a good nights sleep.

Pretty soon all the other vampire bats smelled the sweet blood that covered the giant vampire bat and began hassling him about where he got it.

He told them to go away and let him get some sleep but they persisted until finally he gave in. “OK, follow me” he said and flew out of the cave with thousands of flying vampire bats behind him.

Down through the valley they went, across a river and into a forest full of trees. Finally he slowed down and all the other vampire bats excitedly milled around him.

“Now, do you see that tree over there?” he asked. “Yes, Yes, Yes!” the vampire bats all screamed in a frenzy. “Good” said the giant vampire bat, “Because I sure as hell didn’t!” –

Have a spooky day peeps!!!And when the kids come’ trick or treating’ do what I did last year..open the door and shout Boo!!!Scared the life out of them..even better if you do it in costume!!

Clarence

Xxxx

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

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