A dismal day in equity land with a combination of post results fatigue, bank bashing and the iron ore price weighing on the ASX200. In the end the market slid to an underwhelming close at 5631 down 25.The financials also suffered as wave after wave of experts suggested that the halcyon days for the sector were over. Increased regulations and capital requirements and a slowing local economy will take the gloss off the sector. They are predicting the days of the dividend hungry investor are over. Next years’ hotly anticipated US rate rises will kill the Aussie banks. I remain sceptical. Still the best stable businesses around and the yields are world beating. Anyway small losses in Iron Ore stocks despite the price dipping to fresh two year lows and a weakening Telstra Corporation Limited (A$5.67, -0.9%) all conspired today. There is a lot of fatigue too as reporting season took its toll and now many analysts and decision makers are locked in meetings to discuss the said results.

Broad based losses with Woolworths Limited (A$36.32, +1.0%) bucking the trend as did Wesfarmers Limited (A$43.95, +0.3%) but seems as spring has sprung, the boys at Woolies are going to crank up the home improvement side with Masters . Banks the biggest losers, but other financials joined in Macquarie Group Limited (A$58.14, -1.2%),IOOF Holdings Limited (A$9.44, -1.6%),Henderson Group PLC. (A$4.00, -2.4%) and Challenger Limited (A$7.45, -2.6%) all coming under pressure.

Big winners today included Blackmores Limited (A$31.45, +4.8%),Energy Resources of Australia Limited (A$1.39, +4.1%),(every dog etc) Recall Holdings Limited (A$5.08, +3.7%),Fonterra Shareholders’ Fund (A$5.45, unch),AWE Limited (A$1.83, +3.7%),#SA# and Billabong International Limited (A$0.66, +3.1%) whilst in small caps Panorama Synergy, Macquarie Telecom Group Limited (A$5.90, +17.1%) and Toro Energy Limited (A$0.08, +9.6%)(upgraded by us yesterday) all went well. In the naughty corner wearing the dunces hat were iCollege Limited, Mineral Resources Limited (A$10.02, -4.8%),Wotif.com Holdings Limited (A$3.11, -4.6%),Carsales.Com Limited (A$10.65, -3.7%) and Mesoblast Limited (A$5.55, -3.5%) in the big ones and Unilife Corporation (A$0.455, -6.2%),Lynas Corporation Limited (A$0.16, -5.9%), Metals X Limited and Bougainville Copper Limited (A$0.37, -2.6%) in the littles. Incitec Pivot Limited (A$2.98, -5.4%) held an investor day. Didn’t end well! Dragged Orica Limited (A$20.40, -2.4%) with it. Building stocks mixed as the capital city housing bubble shows no sign of abating. Buyers are now camping out for three days to secure land in NW Sydney. Almost as bad as Apple lovers!

Volume was in line with recent day at around $3.5bns. In fact the volumes are remarkably consistent day in day out. Almost a conspiracy! Aussie dollar perked up at 93.40 and tulips at $509 and the shiny stuff at $1271.

Asian markets were weaker after Japan said no more stimulus, 0.37% down, HK down 0.28% but China up 0.19%.

Stocks and Stories

APN News & Media Limited (A$0.80, +3.9%) rose after their corporate debt was rated by S&P and Moodys.

Fortescue Metals Group Ltd (A$4.05, +1.3%) will smash it’s guidance if the month’s figures were extrapolated over the year. It had promised to export between 155 million tonnes and 160 million tonnes in the 2014 financial year, yet the August performance would imply exports of about 178 million tonnes. Sacrificing price for volume.

Wotif.com Holdings Limited (A$3.11, -4.6%) suffered a small setback in its Expedia experience as the ACCC came back with some please explains. Cannot really see it not happening. There is plenty of competition for the hotel dollar, after all that’s why Wotif is in this position. Lunch eaten by all and sundry. ACCC pretending to do something, nothing to see here, it will happen.

It appears that the Philippines may be next cab off the rank as it looks to introduce a Indonesian style ore ban for Nickel. This metal has been the big success story of the year up nearly40% so far. Western Areas Limited (A$5.03, +2.0%),Sirius Resources NL (A$4.02, +2.6%) and Panaust Limited (A$2.24, unch) all look hot!

Aussie (last) Post today unveiled its latest results. Seems letters are not traveling so well. Who would have thought . The government-owned business made a full-year profit of $116.2m for the 2013-14 financial year, which was 34.5% below its result a year earlier. But the company recorded a net loss during the second half – the first since it was corporatised in 1989.Expect letters days are numbered .Parcels are the way to go.

Today’s economic news was hardly enough to get a press conference out of ‘(Cigar) Smoking Joe’ with retail sales for July rising 0.4 per cent, down from a 0.6 per cent gain in June.

The trade deficit fell to $1.36 billion in July, down from $1.56 billion in June and well below expectations of a $1.75 billion shortfall.

Tomorrow’s News Today

Tonight is the night when Super Mario pulls the rabbit out of the hat. Or not! They need a hero. Is he up to it? The world waits.

Talking of Heroes our man in Mumbai , T.Abbott is spending the next two days trying to cement deals for Aussie yellow cake. Purely for medicinal uses only of course.

Ukraine will be back in the news tonight as the permanent ceasefire doesn’t seem so permanent. And my question is how Russia can discuss a ceasefire when it says it is not involved anyway. Seems bizarre.

The biggest US banks have a $100bn shortfall to make up in order to meet new liquidity rules designed to avert a future crisis according to the Fed.The liquidity coverage ratio requires banks to hold a certain amount of assets that can be quickly cashed in, all together should be interesting in the case of another meltdown.

Over the June 2012 financial year there were 1.9 million individual property investors, of whom around 1.3 million were negatively geared.

Not long til the biggest event to hit the world in a year as Apple due to unveil a new iPhone on September 9th.Never mind about IS, never mind about Russia, tell me the size of the screen and how many pixels it has!

The French have put the brakes on delivering two warships to Russia. Big call given the state of the French economy. Maybe the Russian will retaliate with an embargo on their letters.

In Japan, the central bank has kept monetary policy steady and maintained its upbeat view of the economy, signalling confidence that it can meet its 2 per cent inflation target without additional monetary stimulus.

China continues to pump in money as the People’s Bank of China dumped 7 billion yuan into the financial system in the five days through yesterday, a fourth weekly injection.

Scary stats to finish with. According to the New York Times, more than 30 million Americans are currently taking antidepressants and almost 80% of the world’s prescription painkillers are taken by Americans! And we want a health system like theirs!!

That is all

Clarence

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