Morning all,

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Overnight we saw a good rally in the US following on from better than expected bank numbers and some good news on the economy. After yesterday’s rout in our market expect a bounce although some confidence has left the building. I had been expecting a sort of 20-30 down day not the carnage that was done. Admittedly it was pretty quiet and it was a low volume smash but it was a smash. Banks especially. Expect a good bounce on the open then stupor until the RBA releases its minutes from the last meeting then back to sleep again. Easter is fast approaching and the real investors will have their minds elsewhere.

 

Commodities are looking better at the moment with Iron Ore up a smidge, gold up and Palladium very strong on supply fears from Russia…Unfortunately the Aussie dollar is as strong as Ten men and looks to be heading higher…not good for local biz but helps inflation I guess…we import so much!!

 

Idea of the Day

Last Friday night I was talking on Sky Biz about CCL…it has been a horror show in the last few days and I suggested that punters should have a look at this one…I believe that has been dealt harshly..new CEO’s have a habit of clearing the decks and that seems to be what Alison Watkins has done..the price war with Pepsi that is raging in the aisles of Coles and Woolies has been damaging and needs to be addressed…quickly…but this is a quality stock that peddles sugary drinks for gods sake…debt downgraded to near Junk?Junk food …Junk rating….now the dividend may well be cut but I think around this 9.00 level we should feel better about Coke..Alison has a long road back but Warren Buffet has made a fortune by buying good names in bad times..I think he would like this one!!!

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Things to make me go mmmmmm!!

AC/DC to split and retire…I thought they already had!!

Sydney to have a second airport…

Looking forward to trying to find a job when I am 69 for that last year before retirement!!!

Last night I bought two schooners in Ryans bar..$17.20…no wonder no one wants to come to Australia..that is daylight robbery…it does not even have a roof…we drank outside by a public fountain!!$17.20…and it was nt posh beer !!!In the UK a pint is 3.40 pounds…around 5 bucks…it really is crazy this city…

Rio Tinto’s quarterly iron ore production has fallen shy of consensus expectations, with the miner producing 66.4 million tonnes of iron ore from its global operations.Rio’s copper division – its second most important commodity – performed better than expectations with production of 156,500 tonnes.

Another reason to buy TLS..Telstra: could pocket more than $98 billion over the next 55 years as the company rolling out the National Broadband Network pays the telco giant to access its network of pits and pipes, reports The Australian.

QBE Insurance Group: confirmed that it is undertaking a strategic review of its US-based middle market business, leaving all options on the table including a possible sale of the unit.

Zombieland wasn’t quite so good as we await the next civil war in Ukraine to kick off with every sign pointing that way…Gold should benefit…citizens of Ukraine won’t!!Germans to suffer from gas shortages..

 

Retail sales in the US up 1.1% MoM (beating expectations of 0.8% and with last month’s data revised higher). This is the biggest month-over-month jump in retail sales since Sept 2012…mainly due to the huge rise in car sales!!!Is it sustainable…the biggest growth areas in the US are car sales and Student loans!!!

The U.S. government’s deficit will fall to $492 billion this year, according to the Congressional Budget Office, a steeper drop than originally predicted from $680 billion in fiscal year 2013.The 2014 deficit will be 2.8 percent of the economy, according to CBO, almost 32 percent below fiscal year 2013, when it was 4.1 percent.

 

Better than expected outcome from Citigroup which posted earnings of $1.30 a share against forecasts of $1.14 and revenue of $20.1 billion which also topped estimates. The stock rose 4.6%. The bank index rose 0.7%.

And finally….A child’s prayer for his Grandad…

 

Dear God,

Please send clothes for all those poor ladies on Grandpa’s  computer. 
Amen

 

Have a great Tuesday

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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