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Morning sports fans,

What the Lord taketh away the Lord gives back…or something like that..a positive night on the Dow following better than expected retail sales numbers..Zombieland was positive too(after falling 1% earlier) as Drug companies led the way. We had a shocker day yesterday and will NOT make up all that ground..Would expect to see around 40 points as the doubts remain. There does seem to be a growing chorus of disapproval about the prospects for global equity markets…we do need to see some earnings growth not just PE expansion..the US is in reporting season so that will be the focus for the next few weeks …corporate activity is high though and money is sloshing around the system…lots of bids around at the moment as discussed yesterday.

cartoon 123

Over here in our quiet little backwater things are still in summer mode..we have the tennis to watch now instead of the cricket…things are getting back to normal but investors seem to be happy to remain sidelined for the majority…volumes still not great..US rallied last night on pretty thin volumes too…expect a rise in the banks and others whacked yesterday with the resource stocks underperforming with Iron Ore slipping below $130 although dollar below 90 cents does help a little

Gold slipped back on the better US markets and Nickel continued its recent advance on the back of the Indonesian moves to limit exports.

Since 31st December we have fallen 2.5% and are testing the 5200 level…bounce today back to 5250 but think it will be short lived I am afraid before we test the 5200 and maybe 5100 in the next few weeks. 

Idea of the Day

Not a popular sector at the moment, small cap resource stocks..but met management yesterday on a Graphite explorer in Tanzania…nah….you don’t care right…TLS then…this one has been active in building up its war chest and the pressure is on for capital returns or increased dividends…I continue to like this one…Thodey is doing a good job and selling Sensis will help take away some of the distractions…NBN is the biggy..what is happening there..it does seem though that they are in the box seat as they own the copper wires…not sure they are going to buy anything major so all that lovely cash will come to you people in time…does yield 5.3% fully franked…growing a little and more money to come..any weakness is an opportunity…think Confucius said that..or someone like that…maybe !!Anyway if you want to talk graphite more than happy to in the meantime TLS is heading for 550….

Things to make me go mmmmmm!

COCA-COLA Amatil has declared its expansion into the alcohol business and 10-year deal to distribute Jim Beam bourbon and other spirit brands in Australia is safe after Japanese liquor giant Suntory sent shockwaves through the global spirits market with its $US13.6bn ($15bn) takeover of US spirits maker Beam.

Good piece from Richard Fisher one of the more sane Fed members …follow this link if you want to read more…

“…QE [quantitative easing] puts beer goggles on investors by creating a line of sight where everything looks good…” Peter Boockvar

“Fed’s job is to take away the punchbowl just as the party gets going”. This gem from the longest serving Fed Chief in its history, William McChesney Martin

The Greek economy remains 21.3% smaller than it was in the third quarter of 2007…. Greek stocks up 19% in the last 9 days to their highest in almost 3 years;

In the UK… Inflation unexpectedly fell in December, returning to the Bank of England’s 2% target for the first time in four years.The surprise fall drove the consumer prices index to its lowest level since November 2009, when it stood at 1.9%, the Office for National Statistics reported.

And in France President Hollandes approval rating has risen by 2 points following revelations of his affair with an actress. He is now hoping to have more affairs and really become popular!

holland

Striking French Taxi drivers as they protests against the new smart apps that allow chauffeurs to compete…Uber not a popular thing in France it seems …they even passed a law about it..cant hail a cab with it within 15 minutes of signing up…gotta love the French!

Forge Group has eroded more investor confidence by announcing a second writedown in less than two months at a Rio Tinto power station it is building in WA’s Pilbara region. Forge yesterday experienced its biggest one-day drop since a spectacular plunge in late November.

Today we get January consumer sentiment, new car sales for November and lending finance, also for November.

Telstra’s rivals are worried the telco giant could use its multibillion-dollar war chest to ramp up the expansion of its mobile network while boosting sales and marketing activities. Telstra on Tuesday sold 70 per cent of its Sensis directories business to US private equity firm, Platinum Equity, for $454 million.

And finally……………

Thanks to Andrew for this gem…

“Negotiating with Obama is like playing chess with a pigeon… the pigeon knocks over all the pieces, shits on the board and then struts around like it won the game.”

 

Attributed to Vladimir Putin.

 

And to Hans for this one…

 

                                DILEMMA

 

One friend said to the other, “What is a dilemma, actually?”

He replied, “Well, there’s nothing better than an example

to illustrate that.

 

Imagine that you are laying in a big bed

with a beautiful naked young woman on one side and a gay man

on the other.

 

Who are you going to turn your back on?

 

Back on Lunch money today on Sky Biz at 12.00..see you then..

Have a great hump day..

Clarence

XXX

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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