“Guess who just got back today?
Those wild-eyed bulls that had been away
Haven’t changed, haven’t much to say
But man, I still think those bulls are great”
Morning sports fans,
The bulls are in da house…everything is sorted as the World’s central banks come riding to the rescue (again) like the 7th Cavalry…the wagons were circled and the barbarians were at the gate but thanks to soothing words from Fed Chiefs, Super Mario ,Chinese PBOC and uncle Tom Cobbly and all……big upwards moves across Zombieland and the US as love comes to town…
I had hoped that we would see one more down leg after my 5200 target was reached but looks like that may not be the case ….as the tablecloth is pulled, there was a big too much damage to the place settings ,so the Fed and others have had to pause a while…as a result the buyers have stepped back in here and we will see that trend continue for a while…weak holders have been shaken and stirred plus bank yields are just too compelling to ignore…even metals have improved so with a weaker dollar it’s on again…we should see 5350 pretty soon, today or tomorrow and then we may have to reassess but the bad news is being pushed to the sports pages again..Wobbalies…
Anyway news this morning on a foreign takeover bid for Transfield shows that maybe we are starting to look pretty attractive to johnny foreigner…low dollar, well lowish, and a market whacked everywhich way but loose may prove tempting to dust off the takeover plans…maybe even MYR will get a look…you never know…
Expect a very solid start to the week….SPI was up nearly 70 so the bears will be back in the cave licking their wounds…gold shares should have a better time too perhaps?
Idea of the Day-Looking for a high risk high return stock-LYC
Big mover on Friday late as the Chinese Government is moving to crack down on illegal rare earth mining in China and on environmental issues…this is a major positive..at anything below 9 cents there is good upside in this one…the placement and entitlement issue at 8 cents is looking pretty good now and I would expect the stock to regain the teens in the next month..not for the feint of heart but should prove lucrative..the new CEO has slashed costs and is focussing on quality of product and premium price rather than quantity..Chinese moves will help and funding now in place…
Things to make me go mmmmmm!!!
The blind leading the blind!!! Fairfax Media has held high-level talks with Network Ten about a billion-dollar merger…
Ooopss…Rio Tinto has been forced into an embarrassing back-down on claims it has an inventory of 45 billion tonnes of iron ore in the ground and that it has Western Australia’s leading iron ore resources and reserves. In a late Friday release to the stock exchange, Rio conceded that a “mineral inventory” of 45 billion tonnes listed in a Perth presentation to analysts on ¬October 9, was not a stock exchange-compliant figure.
From ze German central bank chief…“The biggest bottleneck for growth in the euro area is not monetary policy, nor is it the lack of fiscal stimulus: it is the structural barriers that impede competition, innovation and productivity,”
Strangely the economic world seems to think that printing yet even more money is the way to go…after 6 years and all the printing so far we still have a mess and the solution is …..yup that’s right..print more…use German Taxpayers to bail out Greece..obvious
I had an interesting discussion with Dr Shane Oliver on Sky Business view on Friday night where he defended the ABS measurements of inflation…I suggested that these guys did not live in the real world…just because the price of a plasma TV or a computer comes down doesn’t mean that inflation is dead and buried…for those who pay for food, gas, water electricity, insurance, private health in fact all the necessities they are going up continually..and inflation in asset prices like housing, shares, has been pretty strong…not a fan of economists…dreamers and schemers…and dangerous to boot!!!Did also suggest that a 0.15 move or whatever in the 30 US Treasury bond really didn’t phase a SMSF looking at a near 6% bank yield fully franked..I mean really real world?…Not sure I am on his Xmas card list now…
Germany’s intelligence service believes Malaysia Airlines flight MH17 was shot down by pro-Russian rebels using a missile taken from a Ukraine military base, a German newspaper has reported.
Maintenance and asset management business Transfield Services has received a $1 billion takeover offer from Spanish infrastructure giant Ferrovial. Ferrovial has made a $1.95 a share offer to acquire all of Transfield’s shares, a 30 per cent premium on the $1.50 the company’s shares last traded at on Friday.
The Fear index (VIX) in the US tumbled 12% to 21 having peaked last week around 31..
Jimmy Choo debuted in London on Friday the shares gained 2.9 percent to 144 pence at the close, after earlier advancing as much as 4.1 percent.
And finally…….a few from Mr Dangerfield courtesy of my colleague Andrew Petrie
The wife’s back on the warpath again. She was up for making a sex movie last night, and all I did was suggest we should hold auditions for her part.
My sister-in-law sat on my glasses and broke them. It was my own fault. I should have taken them off.
I spent a couple of hours defrosting the “fridge” last night or “foreplay” as she likes to call it.
Bought the missus a hamster skin coat last week. Took her to the fair last night, and it took me 3 hours to get her off the Ferris wheel.
The other night, my wife asked me how many women I’d slept with. I told her, “Only you. All the others kept me awake all night!”
My missus packed my bags, and as I walked out the front door, she screamed, “I wish you a slow and painful death, you bastard!” “Oh,” I replied, “So now you want me to stay??”
Have a great Monday