Morning punters,

 

 

Despite soaring jobs growth in the US on Friday, the market was marginally weaker… In March 288,000 jobs were created in the US, the most since January 2012 and better than forecasts at 218,000. The February number was revised upwards to 203,000. The unemployment rate plunged to 6.3% from 6.7% and reflected fewer people entered the workforce. Huge growth in part time and low paid jobs…middle management and professional jobs suffering..heres the growth sectors… temporary help services, food services and drinking places, retail trade, and professional and technical services. Also notable are home health-care services (think taking care of old people) and mining (the shale boom):

 

 

The (burger)flip side to these numbers is that despite spending over $3trillion to prop up the economy there are still  over 47 million Americans on food stamps.90 m without a job and the participation rate is the lowest since 1978… 20 percent of all families in the United States do not have a single member that is employed.

 

 

 

 

 

 

 

 

Expect our market to be slightly positive today following WBC but the budget and the commission of audit will continue to weigh on sentiment…I have read many commentators in the press in the last few days that are suggesting that we do not have a spending crisis, it’s a revenue crisis that’s the problem…we need though to attack the problem from both ends..the ageing population and the increasing cost of healthcare thanks to the global pharma companies and everyone’s entitlement to living longer is going to cripple the Western World..it’s not just us that has this problem..with Cancer treatments pushing $1m in some cases in the US we have an issue!!

Iron ore slightly better…Gold $1300 up on Ukraine…

Idea of the Day

WBC have shot the lights out with a huge $3.77bn profit…90 cent dividend but no special..that may disappoint but these guys are making money faster than the Liberal Party these days…they have cited better credit growth from consumers and impaired assets falling…low rates..housing boom…going to last a  while yet…what is not to like..I am sure the market will sell them off though as the lack of special disappoints but as I have said you buy the banks you die with the banks..use weaknesss to top up and build holding…still like the sell calls idea on a good day as the big growth in shareprice rises is over…steady grind now..

M&A comes to town  as Aurizon(Railway people) and Baosteel (Chinese steel) have bid $1.4bn or $3.40 for Aquilla Resources in order to open up the West Pilbara …bid is substantially higher and would expect more bids to come in the market..a few weeks ago I wrote that I liked TWE (Penfolds Barry O Farrell wines) as a takeover target…I suggested that at 3.80 they were a buy..Friday saw the company deny they had been approached by Pernod Ricard…I expect there are a number of players looking at this one and would see them break cover soon…buy TWE …

Things to make me go mmmmmm!!!

Chelsea have blown it and let Manchester City in I suspect…bummer..would have preferred Liverpool than City…still always next year eh Wanderers!!

Things are getting worse in Ukraine by the day with many deaths and violence over the weekend..this is not going to get better and will /has already descended into a civil war…news in the German press that the CIA and FBI have teams in the field advising Ukraine on how to deal with their Russian troublemakers…this has potential to get very ugly if Russia steps in to protect its friends in the east…good for gold bad for people!!

News today that two of our finest and wealthiest have been photographed having a fist fight in Bondi…Mr Packer and Mr Gyngell…now why would these two buddies come to blows….can’t be money…interesting none the less!!!

 

Breaking news as I write this…Bendigo Bank has bought Rural Finance Corp for $1.7bn…equity raising announced of $230m..

 

Pfizer increased its offer for AstraZeneca to 50.00 pounds a share…

Things must be getting silly in the IPO valuations market when a US Pizza company going for 33 years is valued at $187m and it makes loss after loss…really!!$600k in 11  and over $2m for the last two years…hardly going to shatter existing business models like tech stocks!!Valued at 2.3 times revenue…

The junior explorer Apollo Minerals is set to announce its second notable joint venture in three months, securing a major Israeli conglomerate as its partner in an African iron ore project. Apollo is understood to be preparing to announce a deal with a subsidiary of the ­conglomerate that will see $US4 million ($4.3m) invested in Apollo’s Kango North iron ore project in Gabon in return for a 50.01 per cent stake.

Portugal will follow Ireland in exiting its three-year bailout program without seeking a precautionary credit line. This follows a return to raising money through the bond market leaving only the Greeks in the bailout club…

Over 40,000 people made the pilgrimage to worship at the Buffet shrine over the weekend as Charlie and Warren held the annual Omaha fan fest..

And finally…..

 

 

Two Irishmen were waiting at the bus stop when a truck went past loaded up with rolls of turf.

 

 

Shaun said, “I’m gonna do dat when I win da lottery.”

 

“What’s dat den?” asks Mick.

 

“Send me lawn away to be mowed.”

 

Have a great day

 

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.