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Morning all,

Another soggy lead in for our market as we now wait for the FOMC meeting on the 17/18th to confirm or deny the taper! This seems to be the only macro focus at the moment..of course we have our own problems down here …QBE has just kicked us into a massive rethink..the sad fact is that Aussie company’s earnings haven’t been growing much at all…the banks have been alright but hardly spectacular whilst everything else has been pretty hard work…if we are not careful we are in danger of being punished for our smugness….we seemed to have been gloating a little as the rest of the world melted down post GFC…we are the lucky country after all, we have China and a mining boom…but seems that may be all we have!!Looks like things are going to get worse economically before they get better…we have the MYEFO to come and that will be a shocker…GI Joe will make sure of that and of course blame the other guys…and then we come to Holden…if they pull the pin ,and they will at some stage, it will send a shock wave through the country..this is an icon…like QAN ,The Great Barrier Reef, Vegemite and Men at Work…

The smugness will soon disappear when the job losses are announced…we may just be like all the rest ..fascinated with cheap money and houses..at least we have a string secure banking system and no stupid lending practices..we have that to be grateful for…

Anyway to the market..another down day today although commodities were firm..Gold even had a great night..you never know NCM may even go up!! Expect a test of 5100 which would be pretty soggy indeed..would hope that we get a few buyers emerging but the fact that the Aussie Ten year bond now yields more than the share market is a worry…the massive amounts of SMSF that have chased bank dividends and the like are now buying property …this is causing distortions and a bubble in spots…it also freaks the RBA out and leaves them no room to cut rates…it freaks them out baby!!

News just in though …looks like the Politicians in the US have agreed to a new budget…this will save the January wrangling and give them a longer Xmas break..good news indeed..rare bipartisan deal..

Idea of the Day

Santa is going to have some serious work to do in the next two weeks..could be a bit off in my 5600 at Xmas….one of my favourites  GEM has just announced that they are increasing the dividend by 16%..there is money in childcare..continue to like this one despite the market selling off…continue to accumulate….…for all those 5600 bulls like me ,let’s hope Santa can get his act together soon…every day that goes by it looks more Herculean than ever…

All yes though are on the Fed at the moment …

Things to make me go MMMM!!!

Obama has gone viral after taking happy selfies at the Mandela Memorial.

obama 1386706051296.jpg-620x349

Not sure Michelle looks too happy as POTUS flirts with his Danish counterpart…and where the bloody hell is Kevin Rudd…perfect for him..and no where to be seen…he must be sooooo disappointed….

You know what is really scary …Miley Cyrus is 7/1 to be TIME person of the year!!

Meet the Volckers….the agreement for banks to NOT trade their own money has been passed..of course after so much wrangling and time it has been watered down massively and there will be ways round it but it’s a start…although I suspect the only real winners will be the lawyers…masses amount of compliance and other work to be done…when do they ever lose!!

A new war on costs has broken out between Australia’s two largest miners with BHP Billiton chief Andrew Mackenzie outlining aggressive cost-efficiency expectations for the expansion of the iron ore business in WA, beating Rio Tinto’s. Mr Mackenzie told investors at a briefing in Houston that he had been assured by iron ore boss Jimmy Wilson that the targeted increase in capacity to 270 million tonnes a year from 220 million tonnes a year will be delivered at $US100 ($110) an annual tonne of capacity.

Mirabela Nickel: may avoid the scrap heap if its numerous creditors agree to commit more cash to the troubled miner before Christmas. It’s thought the debt holders are considering issuing a lifeline of under $100 million aimed at tiding the miner over a looming cash crunch.

It can be done…as QAN languished at historic lows..Air NZ just plunged the knife in revealing a 20% profit upgrade!!!! Good job Alan!!Should be on the first plane outta here!!

Here’s a thing..said it before..why does the Government support an industry that uses a tax loop hole to exist in the car business when it will not support the car industry…massive outcry when 70 people get the boot after novated leases biz gets stopped and yet a very different response to all those leftie union workers at Holden..now call me old fashioned but it used to be that manufacturing things like cars was actually a national security issue …in times of war or such like was always good to know that you could make stuff…of course much easier to fight a foreign power with a novated lease isn’t it?

Good to see the Gov is buying BMW’s for its VIPs!!

And on GM a new woman at the helm as the US Government sells out and then Mary Barra gets appointed to the top job…

The symbol of Spanish excess, an airport Ciudad Real some 200 kilometres south of Madrid,is on the block for sale at a bargain price of $100m…was built for a very reasonable $1.5bn and just sits there ..no planes in the middle of nowhere ..they even have to keep painting yellow crosses on the huge runway to stop anyone landing there…apparently Spain has 47 public airports that  do not have any regular commercial flights and 15 move less than 100,000 passengers per year, or less than one flight per day. Another private airport at Castellon on the Mediteranean coast has fared even worse than the one at Ciudad Real. It opened in March 2011 but has not handled a single flight. Obviously some thought it was a good idea at the time!!!

It has started…M&A activity is now picking up a little in the troubled gold sector as once market darling AMX has been approached by Centamin with an indecent proposal…values AMX at about 16 cents or 40m bucks..

To quote Sir John Templeton…

“To buy when others are despondently selling and sell when others are greedily buying requires the greatest fortitude and pays the greatest reward.”

And finally……
The train was quite crowded, and a U. S. Marine walked the entire
length looking for a seat.

There seemed to be one next to a well-dressed middle-aged French
woman, but when he got there he saw it was taken by the woman’s

The war-weary Marine asked, “Ma’am, may I have that seat?”

The French woman sniffed and said to no one in particular, “Americans
are so rude.. My little Fifi is using that seat..”

The Marine walked the entire train again, but the only seat available
was under that dog. “Please, Ma’am. May I sit down? I’m very tired.”

She snorted, “Not only are you Americans rude, you are also arrogant!”

This time the Marine didn’t say a word; he just picked up the little
dog, tossed it out the train window and sat down.

The woman shrieked, “Someone must defend my honor! Put this American
in his place!”

An English gentleman sitting nearby spoke up. “Sir, you Americans seem
to have a penchant for doing the wrong thing.

You hold the fork in the wrong hand. You drive your autos on the wrong
side of the road.

And now, sir, you seem to have thrown the wrong bitch out the window.”

Have a great Wednesday…





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