A quiet end to the week despite good numbers from the Chinese PMI coming in above expectations ,resource shares continue to feel unloved as once again the financials took up the running. The market flip-flopped and despite a weak start rallied back to a positive before apathy took over and we slid back down, conveniently ignoring the Chinese Duck Pancake index that came out earlier. Macquarie Group Limited (A$53.10, +4.2%) led the charge after reporting half year numbers of $501m,an increase in dividend and a share giveaway in the Airport. Westpac Banking Corporation (A$34.58, +0.8%) and National Australia Bank Limited (A$35.63, +0.9%) followed but Australia and New Zealand Banking Group Limited (A$33.72, -0.4%) and Commonwealth Bank of Australia (A$75.80, -0.4%) sat this one out today. Insurers were generally easier with QBE Insurance Group Limited (A$14.55, -1.7%),Insurance Australia Group Limited (A$6.13, -0.8%),AMP Limited (A$4.68, -1.3%) and Suncorp Group Limited (A$13.31, -0.5%) down. However money managers managed to put on a few cents led by Henderson Group PLC. (A$3.64, +2.5%),Bt Investment Management Limited (A$5.10, +2.2%),Investa Office Fund (A$3.15, +1.3%) and K2 Asset Management Holdings Ltd (A$0.73, +2.8%).

Resource stocks failed to launch despite the Chinese PMI and more money being pumped into the system. General weakness across the board in BHP Billiton Limited (A$37.53, -0.3%),Red 5 Limited (A$0.105, -83.1%),Newcrest Mining Limited (A$9.94, -3.5%),Fortescue Metals Group Ltd (A$5.16, -1.0%),RIO Tinto Limited (A$63.54, -0.7%),Arrium Limited (A$1.39, +0.4%) and Orica Limited (A$20.89, -0.9%).Golds continued to suffer with Newcrest Mining Limited (A$9.94, -3.5%) slipping below $10.Again.Nothing to see, move along.

Industrials eased Sydney Airport (A$4.04, -3.6%), not happy Jan, Transurban Group (A$6.97, -1.8%),Toll Holdings Limited (A$5.62, -2.6%),Brambles Limited (A$9.19, -1.2%),Seven Group Holdings Limited (A$8.07, -3.4%),Leighton Holdings Limited (A$17.48, -2.4%),Carsales.Com Limited (A$10.34, -1.5%),Csl Limited (A$68.74, -1.1%) and Telstra Corporation Limited (A$5.16, -0.4%). Gambling stocks rolled snakes eyes today with Aristocrat Leisure Limited (A$4.93, -2.4%),TABCORP Holdings Limited (A$3.54, -1.7%),Echo Entertainment Group Limited (A$2.63, -0.8%),Ainsworth Game Technology Limited (A$4.36, unch). Some serious switching in retail land today as the shorts piled back into David Jones Limited (A$2.90, +6.6%) selling out of high flyers JB Hi-Fi Limited (A$21.22, -2.7%) , Kathmandu Holdings Limited (A$3.26, -3.3%) and Harvey Norman Holdings Limited (A$3.23, -0.9%). Internet stocks like REA Group Ltd (A$40.94, -1.3%),Iproperty Group Limited (A$1.80, -1.1%),Wotif.com Holdings Limited (A$4.42, -0.5%) eased but #XRO# continued their climb into the stratosphere.

Grinners today included Bega Cheese Limited (A$4.83, +9.5%),Drillsearch Energy Limited (A$1.39, +7.3%),#XRO#,Reece Australia Limited (A$28.50, +1.8%),#AIZ#,ARB Corporation Limited (A$11.99, +2.9%) and Beach Energy Limited (A$1.48, +3.5%) while doggies of the day included Southern Cross Media Group Limited (A$1.77, -6.3%),Panaust Limited (A$1.91, -5.4%),Linc Energy Ltd (A$1.37, -4.9%),Amcom Telecommunications Limited (A$1.98, -4.3%),Sydney Airport (A$4.04, -3.6%),Evolution Mining Limited (A$0.81, -3.6%),Independence Group NL (A$3.82, -3.5%) and Kathmandu Holdings Limited (A$3.26, -3.3%).

Volume was miserable at around $3.0 bn with a quiet start to the month and the Cup on Tuesday. Course everyone will say that the RBA meeting is the important event but it isn’t! We all know they will do nothing.

Asian markets especially in Tokyo were hit hard as Sony delivered some bad news lowering its full year profit forecasts by a big 40%.Seems the tapering talk is back.

Stocks and Stories

Macquarie Group Limited (A$53.10, +4.2%) announced a good result today and showed how far they had come since the dim and distant days of the near death GFC. They also announced that they were going to give shareholders shares in Sydney Airport (A$4.04, -3.6%) 1 SYD for every MacBank. Assets under management increased to $385bn from $347bn whilst its interim dividend was $1.00 up from $0.75.

Sydney Airport (A$4.04, -3.6%) seems a little peeved today with the MacBank announcement to say the least.

German media giant Bauer has expanded its presence in New Zealand, striking a deal to buy a number of high-profile magazine titles from APN News & Media Limited (A$0.46, -1.1%).

In house stocks today Imx Resources Limited (A$0.064, +10.3%) made a positive announcement on their Ntaka Hill project intersecting massive sulphides. Whilst energy stock we follow like Karoon Gas Australia Limited (A$4.32, -2.5%) slid as did Cockatoo Coal Limited (A$0.05, -12.3%),Orpheus Energy Limited (A$0.055, -8.3%),Nexus Energy Limited (A$0.075, -3.8%) and Buru Energy Limited (A$1.62, -2.7%).

They say its better RED than dead but not so sure today for long suffering Red 5 Limited (A$0.105, -83.1%) shareholders as they came back on the boards. Should have stayed off Broadway!

David Jones Limited (A$2.90, +6.6%) showed a large improvement today following their sales figures slightly ahead.Looked like a relief rally but was welcomed none the less. Consumers still seem pretty underwhelmed about spending their money in physical department stores rather than online.

Blessed are the Cheese makers as another player has entered the fray.News today that Fonterra has bought a 6% slug in Bega Cheese.Now Bega owns a big wedge of Warrnambool Cheese & Butter Factory Co.Hold.Ltd (A$8.27, -0.4%). Interesting isn’t it. Seems that the battle is on for the prize of Asia’s growing demand for high quality food and dairy products.

The rise and possible bubble continues in tech stocks with new entrant in NZ Geo Op pushing up to 2.70 at one point today before closing at 2.50 up another 13%.

China’s official manufacturing Purchasing Managers’ Index (CPMINMAN) rose more than estimated to an 18-month high and a measure from HSBC Holdings Plc and Markit Economics topped projections. HSBC’s reading for South Korea was above the expansion-contraction dividing line of 50 for the first time since May and Taiwan’s PMI rose to 53 from 52.

Tomorrows News Today

US mortgage giant Fannie Mae is suing nine banks including Barclays and Royal Bank of Scotland (RBS) over losses relating to the Libor scandal. The mortgage financer is seeking more than US$800m in damages.

Meanwhile in the land of the “mega haves and have nothings”, US food aid benefits are being cut from Friday as an extension of the government programme expires, while legislators fight over further cuts. Benefits to the supplemental nutrition assistance program (Snap) will be lowered by $36 (£22) a month for a family of four, officials say. Some 47 million low income Americans will be affected by the cuts.

Andy Coulson and Rebecca Brooks had a six year affair. These are the two main soap opera characters in the UK phone hacking scandal. Just gets better and better! So many scandals out there.

And in news from the front line, members of the Melbourne mining Club are in China at the moment and my mole tells me that the feeling amongst the locals is they have plenty of money to invest in projects overseas and if locals don’t like their own projects they are happy to take them off their hands. They are getting a bit fed up of missing out of the juicy profits from their own booming economy. Seems Cheese may not be the only thing on Overseas buyers lists! Expect more issues for FIRB to come!

In worrying news one large US investment bank is predicting a shortage of wine! Apparently increasing consumption levels in both China and the U.S. combined with declines in European production in 2012 following poor harvests in France, Italy and Spain, has raised the risk of a global shortage, which could lead to higher prices and increased demand for exports. Now that really is a crisis. Tapering is now the least of our worries!

Something to bear in mind that Fonterra supplies 60% of China’s dairy requirements. This is pretty big biz. We have iron ore NZ has milk!

Dotcom2.0 is here! Shares of 58.com, an online classifieds company dubbed the Craigslist of China, rose more than 45% in their trading debut, the company’s shares opened at $21.20 on the New York Stock Exchange on Thursday and touched a high of $24.83, valuing 58.com at about $3.87 billion.