Morning sports fans,
Gotta love doing early morning TV…caffeine in the system at an early hour!
Andrew Mellon who was Secretary to the US Treasury in the Great Depression once said “in a depression assets return to their rightful owners”. Certainly seems that way as the US hovers near all time highs again and Main Street continues to feel little or no benefit…on the box this morning talking to a couple of traders out of Chicago and NY who were saying that things in the real world are not that rosy..depsite the Dow at 16,400, US continues to potter along and that with the Fed Stimulus of $65bn a month…Janet ‘screaming not’ Yellen has a tough balancing act this year…how to keep the US on track whilst trying to get the Fed out of the building before anyone really notices…good luck with that…Obama is now entering Dead Duck land as 2017 is his exit date..more golf with Tiger!
Today we will get our unemployment numbers..consensus is for 15,000 new jobs to have been created…what planet are these guys living on…probably the same one that stole our airline. Expect a far worse number than that with most jobs created in part time and little in full time…and of course now our brilliant government is going to let in a bunch of 457 Visa holders to take away more jobs..it’s all a plan to keep us all in fear and servitude whilst the rich and the powerful get richer and more powerful…as long as they feed us a diet of footy, fast food and shiny cars we will not focus on the elephant in the room …
Expect a bounce today ,Gold was very strong, Iron Ore up too and some short covering although most of the action will be on hold until after the jobs number!!Call it 25 up perhaps? Has dropped around 80 points this week..
Idea of the Day
Every broker is jumping on the buy the iron ore stocks band wagon..biggest opportunity since the last shake out and they are probably right especially as the price rose 2.4% last night ..AGO is worth a look and of course FMG for gearing…still find it amazing that as per SOP in this country we have a cosy duopoly BHP and RIO and this upstart trying to muscle in…. Virgin /Qantas…Coles/Woolies…DJs/Myer….FXJ/News Corp etc…Banks are up to four though plus St George which is really WBC after all…
Still the Baltic Dry Index took a smacking last night with a big fall…this is the index of what it costs to ship bulk stuff around the world.. today’s 8% plunge – on par with the biggest drops in the last 6 years.
Suspect the price will rise a bit more as shorts cover then settle down around 105..
Things to make me go mmmmm!
NZ became the first “developed” Country to raise its rates this morning to 2.75%…now I am not being rude to NZ but really…it’s like Manhattan putting up its rates! Still a new flag on the way too…
Nexus Energy is targeting a long-awaited corporate deal or asset sale in the next three weeks as it tries to avoid potential bankruptcy in the wake of a production outage and to settle an $US80 million ($89m) legal claim.
Sterling Early Education: will seek to raise $200 million on Thursday after making a number of small adjustments to its prospectus forecasts. The childcare roll-up postponed its IPO bookbuild on Tuesday to allow management and adviser two days to review February trading data at some of the company’s centres.
I really scratch my head at the valuations of these internet businesses like Facebook and Candy Crush…this soon to be listed UK company that makes the Candy Crush game is going to be valued at $7.6bn…Nice..
Here is a graphic for the new toilet locks in South Africa.
Thanks Richard and stop texting me when I am on air..the buzzing in my pocket is a giveaway!
I wrote this is my afternoon report yesterday but it still gets me!!! Soon to be a listed public company Virtu which is a high frequency trader has made a startling admission in their prospectus after mistakes were found.. “This material weakness is related to our inability to prepare accurate financial statements, resulting from a lack of reconciliations, a lack of detailed review and insufficient resources and level of technical accounting expertise within the accounting function”This is pretty hinest I will give them that but they are raising $250m to give them a valuation of over $3bn for a computer share trading company. It’s a joke right ..They can’t count ! The world has gone mad!
Higher equity prices will boost consumer wealth and help increase confidence, which can spur spending. — Ben Bernanke, 2010
It’s pretty sad then that the Fed has spent so much for so little return…unless you are on Wall Street that is.
Still the focus on Crimea as the Ras’Putin referendum takes place on Sunday…now call me cynical but isn’t the new interim President of the Ukraine someone who just seized power undemocratically and threw out the old elected President…anyway the US looks like a toothless tiger in all this..sanctions aren’t going to worry RasPutin after all…he has the gas…
Riddle me this one Batman…Australia has a AAA credit rating but our 10 year bond yields around 4.1% yet the Zombie’s ten years from Greece, Ireland, Italy, Portugal and Spain fell to 2.438 percent on March 10, the lowest in the history of the euro area.
Bill Shorten seems to be going all wishy washy in the mining tax…TA wants it scrapped but let’s face it this tax was designed by the miners so they did not have to pay it..they only raised $220 m last year…and with coal and iron where it is now will raise even less this year…who in their right mind would let the user decide what tax they pay…
And Lindsay Lohan has written up a list of her past lovers..much more interesting than the BRW rich list!! Never going to make either!
And finally…..thanks to my co-host on Radio 2NUR… cheers Barry
Students in an advanced Biology class were taking their mid-term exam. The last question was, ‘Name seven advantages of Mother’s Milk.’ The question was worth 70 points or none at all.
One student, in particular, was hard put to think of seven advantages However, he wrote:
1) It is perfect formula for the child.
2) It provides immunity against several diseases.
3) It is always the right temperature.
4) It is inexpensive.
5) It bonds the child to mother, and vice versa.
6) It is always available as needed.
And then the student was stuck. Finally, in desperation, just before the bell rang indicating the end of the test, he wrote:
7) It comes in two attractive containers and it’s high enough off the ground where the cat can’t get it.
He got an A.
Have a great Thursday