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Morning sports fans,

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The world is grinding higher…low rates and low growth and low inflation are creating the perfect storm for this squeeze higher..the real problem is where else does all the free money go..equities..yesterday we had a positive day led as always by the banks..will CBA get to 100 bucks?

 

We wait for the RBA this afternoon but they will not move on rates this year I reckon..big announcements this week are from Super Mario where we will get negative interest rates and the US jobs numbers on Friday…we do get GDP numbers from Australia on Wednesday ..experts reckon it’s going to be around 1%..housing seems to be slowing somewhat and building approvals have collapsed as we saw yesterday..now is the winter of our discontent eh?

dick 111

 

So here we are hovering around the top end of the recent market range..the big theme has been and continues to be yield ..the favourites are driving us higher…they are very crowded trades..easy for brokers to recommend as everyone else is buying them..big fat yields help, perceived no risk bets..momentum going well for them..TLS, WOW, WES, banks even WPL..what could go wrong? Nothing of course!

 

Gold hit a 17 month low and looks set to continue its decline..no one seems to care anymore about the civil war in Ukraine.Iron Ore bounced slightly..why oh why is the Aussie dollar so high..beats me..book your trip now!

 

Idea of the Day

Won’t bang on about LYC anymore ..you have had enough I am sure..

Seems that every man and his dog is trying to float something at the moment..investment bankers are pretty busy around the world…lots of bids, lots of mergers,lots of trade sales IPOs and Placements..just be careful with the IPOs that are out there..all that glitters is not gold!

Things to make me go mmmmmm!!!

If I watch anymore Scandinavian detective shows I will be fluent in Swedish and Danish!

Apple launches new operating system…massive world news..just massive! Seems a bit sad really somehow!

Myers has postponed its mid-year sale!! It’s been too hot and the consumer is too over it!!They must be happy business people with Tone and Jokin Joe… sales of fashion and accessories slumped 20.2 per cent in the week after the budget, according to BDO’s Australian Retail Index, while total retail sales fell 5.1 per cent.

Maybe all the investing money is going into IPOs and placements!! Asaleo Care  formerly known SCA Hygiene, plans to raise as much as $690 million in an initial public offering, according to a prospectus lodged yesterday.

About 95 per cent of the extra credit extended by banks since mid-2012 has financed residential or commercial property.

Origin Energy is set to make an $864m entry into Western Australia’s offshore Browse Basin, agreeing to buy exploration ground owned by Karoon Gas in a marked shift of Origin’s LNG export growth plans away from Queensland’s coal-seam gas fields. The purchase of Melbourne-based Karoon’s interest in the ¬Poseidon gasfield was pitched at more than the whole market value of Karoon, sending its shares rocketing 43 per cent higher to $3.51.

US Lame Duck Obama has set the cat amongst the pigeons with his assault on coal and aggressive emissions targets..this is big news..makes US shale even more attractive..

The Institute for Supply Management’s factory index rose to 55.4 from the prior month’s 54.9. Readings above 50 indicate expansion

However things didn’t run smooth as it was initially put out as the wrong number..then amended then amended again…back to pretty much in line with expectations..Dow rallied on the second ammendments.. didn’t apply the right season factors !!

“We apologize for this error. We have recalculated and confirmed that the actual index indicates that the economy is accelerating,” said Bradley J. Holcomb, CPSM, CPSD, chair of the Institute for Supply Management® (ISM®) Manufacturing Business Survey Committee. “Our research team is analyzing our internal processes to ensure that this doesn’t happen again,” he added.

Around the grounds 2/3 of major economic PMI fell in May.

PMI May Global

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In the first quarter, 29 percent of non-investment homebuyers used cash, the highest on record for the period. U.S. home-price gains have restored $3.8 trillion of value to owners since the beginning of the real estate recovery in 2012, according to Federal Reserve data.

 

The baby boomers are buying houses for cash. In 2012, there were a record 61.8 million Americans over the age of 60, according to the Census. That compares with 46.6 million in 2000. About 10,000 Americans turn 65 every day, according to the Pew Research Center in Washington. Between 2010 and 2020, the group of Americans age 65 to 74 will jump 51 percent, according to Census projections.

 

The Nickel story this year has been likened to the great oil shocks of the 70’s.The metal has rallied 39% this year as the Indonesian Government has banned exports in an attempt to attract the value added processes that will give it more reward for its valuable resource..not sure it’s working yet as smelters and refiners haven’t exactly beaten down the doors to setting up in Indonesia. However this is changing as two new refineries are being built in Sulawesi. 72 percent of Indonesia’s mineable nickel reserves are there and the first refinery is due for completion by Xmas and the second in 2015.Meanwhile thousands of jobs have been lost and many mines stand idle.

 

 

And finally….. Quote of the day !!!!“I say to all those who bet against Greece and against Europe: you lost and Greece won. You lost and Europe won.”- Jean-Claude Juncker, former prime minister of Luxembourg and president of the Eurogroup of EU Finance Ministers, 2014.

 

 

A husband went to the police station to file a “missing person” report for his missing wife:

Husband :-I lost my wife, she went shopping & hasn’t come back yet …

Inspector :-What is her height?

Husband :-I never checked.

Inspector :-Slim or healthy?.

Husband :-Not slim, can be healthy.

Inspector :-Colour of eyes?

Husband :-Never noticed.

Inspector :- Colour of hair?

Husband :- Changes according to season.

Inspector :- What was she wearing?

Husband :- Not sure whether it was a dress or a suit.

Inspector :- Was she driving?

Husband :- yes.

Inspector :- colour of the car? . . . . .

Husband :- black Audi A8 with supercharged 3.0 litre V6 engine generating 333 horse power teamed with an eight-speed tiptronic automatic transmission with manual mode.  And it has full LED headlights, which use light emitting diodes for all light functions and has a very thin scratch on the front left door…

… and then the husband started crying…

Inspector:- Don’t worry sir, … We will find your car …

 

Have a great Tuesday

 

Clarence

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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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