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Morning all

Once again taper talk is back on the agenda courtesy of one of the Fed chiefs, Lockhart. Looking like they may start taking the junkie off the hooch as early as December. Now I haven’t had much experience of drug addiction thankfully but seems the Cold Turkey routine can really take its toll and the more successful way is the gradual reduction in dose until completely free..nicotine patches for smokers. So that is the way the Fed will go..but wouldn’t it be nice to have some clear signals on this..maybe a road map to drug free living..wouldn’t that be nice an clear concise plan!!

Another damp squib sort of day yesterday as the market tries to come to grips with how far we have come..Back on June25th when Kev was anointed as the Messiah to lead us to the promised land, we have run from 4650 to 5400…not bad and probably a little too hard too fast so we need to catch our breath…its natural…lots of things got bought as punters didn’t want to miss out and they rallied far more than they should have..now we are seeing some unwinding of these plus the compunction to buy the banks at any cost for the fat dividends has left the building with Elvis..so catch your breath and start to be more discerning about what you buy ..and what I recommend I guess…we will still be 5600 by Xmas but it still a far way away…although the Xmas decorations are up already!!!

 

Expect another backing and filling day today as we consolidate …Aussie dollar under pressure below 93 will help the resource stocks but suspect that the banks may still be in for some profit taking…bout time…

Idea of the Day

Yesterday we had a briefing from Brockman Resources who have two Iron Ore projects in the Pilbara..fighting for access to rail infrastructure or trying to persuade Aurizon to build yet another railway ..fortune favours the incumbents..as you all know I like AGO continue to do so but would be really really happy to see them come back a bit..under 1.10 they are a special…as for BCK(Brockman)…not very liquid and have a way to go ..one to put on your watch screen for good iron ore exposure but there are a number of question marks over the company on getting that access…Iron Ore is an easy business ..dig up dirt and ship it…if you can’t ship it ..it’s just dirt!!!

BHP…RIO and FMG do hold a very good hand in this game of cards…hard to see that changing though for a while!!

Things to make me go mmmmm!

 tony abbott

Good to see the circus is back in town…well Canberra anyway..and we all did so well without them…great to see as Clive put it yesterday, a load of people who have never done anything tell us how the country should be run!

 

Asciano chairman Malcolm Broomhead has called on the Abbott government to take urgent action on industrial relations reform, arguing that the company continues to be burdened by an over-regulated IR environment. Mr Broomhead, addressing shareholders at Asciano’s AGM yesterday, said while the company supported the federal government’s commitment to reviewing and improving the Fair Work Act. Work choices anyone?

 

Having seen Brockman Resources yesterday and discussed at length how the juniors get access to Port Headland capacity this from the press this morning is a timely reminder of how hard it is to break the strangle hold that BHP/RIO and now FMG have on port access…BHP Billiton: A secret agreement between BHP and the Port Hedland Port Authority could play a key role in which companies are allocated port capacity in the future. BHP and the WA government, which runs the port at the mining town, signed a deal known as the Harriet Point Agreement in the mid-2000s. The deal, which is confidential, is believed to effectively guarantee that any additional users would only be granted permission to use the port if it could demonstrate it would not damage BHP’s efforts to ramp up production to 240 million tonnes a year.

 

Gotta say I hate this one but they will put lipstick on it and dress it up and hope to get it away..personally I would recommend a tour of your local Dick Smith before deciding on the merits of the float..suspect JBH do it much better… Dick Smith: Price deflation is a relentless downward force on investment returns for electronics retailers, and one that potential investors in Dick Smith will need to think about as owner Anchorage Capital kicks off an IPO valuing the business at almost $600 million. The consistent price deflation in electronics and home entertainment items, which has been at 10 per cent plus on an annual basis over the past few years.

 

News yesterday that Big Joe has cleared the way for the Canadians to buy the blessed Cheese maker will bode well for GNC which is due to get the nod or the shake by December 17th…I suspect after saying Australia is open for business yesterday he ewill nod with a few concessions to the Nationals..

 

Talking of pigs with lipstick..NINE(Still the One) will be front and centre in IPO land pre xmas..not sure why you would want to buy anything off Private Equity who are not known for their generosity but lots of lipstick will make it happen…does anyone watch TV these days..don’t know where they get the ratings from…it is all rubbish!!!

 

Iron Ore continues to be the shining star of commodities at the moment.Lots of analysts will have to throw in the towel in the coming months..suspect they will do so over the quiet Xmas period when they hope no one is looking.. News that  Iron ore is extending a bull market on record sales to China that are spurring forecasters from Morgan Stanley to the World Bank to increase price predictions. Shipments from Australia’s Port Hedland, the biggest iron- ore export terminal, to China jumped 43 percent to a record last month, port data show.

 

Scary that in the US where the Obamacare web site cannot handle the volume of health Insurance applicants the web site to handle Gun registrations is fine and dandy!!And more worryingly they are 34 times more interested in guns than Health care!!Land of the Free..home of the Brave!

 

Seems that Spain has been accused of making up its economic data by the EuroStat people who report and monitor these things for the EU. After some talks with the Government though they came away somewhat more satisfied…they did though publish a damming report on the state of Spanish reporting and the lies which was on their web site but now it has been mysteriously removed and an error message in its place…

 

Federal Reserve Bank of Atlanta President Dennis Lockhart, who has backed record stimulus, said he wants to see inflation accelerate toward the Fed’s 2%  goal before the central bank reduces $85 billion in monthly bond purchases.

 

And finally…………….I know this is why people read my waffle..maybe I should put it at the top!!

 

The phone rings and the lady of the house answers,

 

“Hello.”

 

“Mrs. Smith, please.”

 

“Speaking.”

 

“Mrs. Smith, this is Doctor Jones at Saint Agnes Laboratory.

 

When your husband’s doctor sent his biopsy to the lab last week a biopsy from another Mr. Smith arrived as well… We are now uncertain which one belongs to your husband. Frankly, either way the results are not too good.”

 

“What do you mean?” Mrs. Smith asks nervously.

 

“Well, one of the specimens tested positive for Alzheimer’s and the other one tested positive for HIV. We can’t tell which is which.”

 

“That’s dreadful! Can you do the test again?” questioned Mrs. Smith.

 

“Normally we can, but MEDICARE will only pay for these expensive tests once.”

 

“Well, what am I supposed to do now?”

 

“The MEDICARE Helpdesk recommend that you drop your husband off somewhere in the middle of town.

 

If he finds his way home, don’t sleep with him.

 

Have a great day …catch me on Lunch Money on Sky TV at 12.00….you can even ring in and talk to me!

 

Clarence

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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.

Get a Global take on things at www.ntmarkets.com

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

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