Up early this morning to do the 6.30am show on Sky Biz..always good to talk to the US guys about what is happening over there…well the big focus is definitely on the US jobs numbers and what it means for tapering…more or less…I suspect that the numbers tonight will be pretty good and show the acceleration of the US economy..low dollar ,cheap energy from shale and free money is making the US into the emerging growth story..all this while China seems to be grappling with its financial system and growth options….No change in rates from the UK or Zombieland last night so the song remains the same…Super Mario ‘has reaffirmed the whatever it takes’ mantra and doggy parts of the Eurp experiment are in demand..Italian and Spanish short term debt is under 1%!!!Still have 12.1% unemployment and other issues but at least things have stabilised…I take Mario’s comments on inflation not being an issue fro some time as confirmation that growth won’t be an issue either..
Here in the land of plenty,the transition from mining to other growth engines is going to prove difficult…everyone who complained about the high Aussie dollar has hung on by their finger nails to this point of the lower dollar but suspect it has come too late for a lot of them..damage has been done and resurrected some of these businesses will prove pretty tough.The new Abbott Government does not seem inclined to help..SPC are the latest to beggar for assistance …not a chance guys…if they aren’t going to save Holden then you guys have no hope…
Another quiet day in store for us with some more slippage as apathy and Alcoa results underwhelm…expect a down 20 kind of day as we await the US jobs number tonight..expect 200,000 new jobs to have been created …thats th forecasst but surprise to the upside most likely…
Idea of the Day
Go to the Winchester have a pint and wait for the whole thing to blow over…
Or….still like my NTC story on the internet of things being the huge opportunity ..refer to yesterdays note and in tech land might be worth a look at a new listing ALA..they finance and develop apps for people with good ideas…small market cap and they are working on a app called Home open..suspect it will make going to home inspections much easier with timings etc and organising but there is not many ways to invest in this space so this open might attract some speccy money….one for the punters!!
Things to make me go mmmmm!!!
Fox is leaving the hen house….Murdochs good businesses are going to give up their ASX listing and move completely to the US..another one follows LNC example..just like LNC expect some serious selling from domestic fund managers who can’t hold overseas shares…it has had a stellar run so profit taking to set in big time…not good news for the ASX and not good for investors that have even less choice now to get set on international exposure…ETFs may be the way to go now…
The BoJ survey – released quarterly – showed the second consecutive drop in both current conditions and the outlook. This is the largest two-quarter collapse in the outlook for the Japanese consumer since 2007.
Is China the new Japan…I was thinking about this a little this morning as I burbled on about stuff on TV..is China going to fall into the same trap as Japan?..for many years the Japanese economic miracle was held up as a shining example to the World ,only to have it smashed before our eyes and decades of lost growth with nil interest rates and a rapidly ageing population,zero immigration and corrupt institutions financing the concreting and urbanisation of Japan…sound a little familiar……well maybe China is going to suffer a similar fate..it won’t be tomorrow or the next day but a omnipotent government with its finger in so many cross shareholding(or China actually owning them) plus a real estate market that is out of control and the inability of banks to own up to their problems ,corruption and nepotism ,is a recipe for implosion…just saying ..something to think about as you tee off today!!!
Sales of Bentleys are soaring 2013 saw the firm sell 10,120 vehicles worldwide – dominated by the Americas – a 19% rise over 2012.
Oil prices in the US are tumbling as production ramps up…by 2015 it will be a bigger producer than Saudi or Russia…this has major implications…US independent of Middle eastern Oil?Forget foreign policy!!
Unfortunately the price of Brent is staying stubbornly high as the spread between WTI and Brent increases…
NJ man Chris Christie has had to apologise as his aides have deliberately changed the traffic over a prime NY bridge to cause traffic chaos as a Demcratic Mayor failed to support him…he was a Republican Presidential hopeful..not any more..gone for all money now!!!
EVER WONDER WHY?
Why the sun lightens our hair, but darkens our skin?
Why can’t women put on mascara with their mouth closed?
Why don’t you ever see the headline ‘Psychic Wins Lottery’?
Why is ‘abbreviated’ such a long word?
Why is it that doctors and attorneys call what they do ‘practice’?
Why is lemon juice made with artificial flavouring, and dish washing liquid made with real lemons?
Why is the man who invests all your money called a broker?
Why is the time of day with the slowest traffic called rush hour?
Why isn’t there mouse-flavoured cat food?
Why didn’t Noah swat those two mosquitoes?
Why do they sterilize the needle for lethal injections?
You know that indestructible black box that is used on airplanes? Why don’t they make the whole plane out of that stuff??
Why don’t sheep shrink when it rains?
Why are they called apartments when they are all stuck together?
If flying is so safe, why do they call the airport the terminal?
Have a great weekend…things should start to get back to normal next week…
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