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Morning sports fans,
Currency wars. Crude Wars. The game is afoot!
Well read that wrong yesterday..I thought we would get a little bit of a downdraft in the banks after the Murray report but seems the market was expecting far worse. As a result we had a big rally in them..I guess 6 months away and no real surprises plus who knows if any of the recommendations ever get through..remember the Henry Tax Review…nah..not many people do! Let’s face it this toxic government is so on the nose it is hard to see why they would want to take on another powerful industry group…especially when there is no real gain income wise for them..so fair to say the rush of blood to the head yesterday was relief more than anything and I thought we would struggle a bit..wrong..anyway today we should see a weaker day with weak overseas leads and the oil price getting smashed again and with it oil companies…Venezuela is about to go bust…should think that at this rate Russia is not far behind!!!
It’s hard to feel that bullish some days…this is one of those days…the news is all bad …Zombieland a money pit where Dr Do Nothing can’t seem to get anything done ..always manana!!UK starting to wane…Japan the recession is worse than expected..China slowing…Russia about to implode….South America is not looking too flash either…South Africa is having blackouts and economic woes a plenty, in fact the only place where things are good is US..So the question is, can they drag out the rest of the world or will they get sucked into the vortex? Do you feel lucky punk?
Idea of the Day
Now I know it’s the time of year when Santa comes to town and equity markets rally…but this year I am not so sure..I feel that the Reindeer are going to a little shy this year..especially here..Aussie dollar falls helps but I suspect the MYEFO will be bad..they will try to scare us into the reality of the income shortfall and soften us up for the budget in May..there is of course the chance that it will go the same way of the Murray Inquiry and prove to be a bark worse than its bite or at least in the short term but I think this one may go the other way and they may try to scare the bejesus out of us pre Xmas ,so they can justify some really serious measures in the budget…I remain a little worried about the local prospects..concentrate on companies that make their money in AUD…concentrate on companies that benefit from low oil prices and companies that benefit from tourism..
Things to make me go mmmmm!!!
Sometimes we get compared to Canada…let’s hope not…their index has fallen 10% since hitting a high in September…the three pillars of their market are under attack…materials ,energy and financials…in fact it has fallen 5% in three days!!!Now of course that couldn’t happen here ….could it…well at least our banks aren’t under attack ….
Australia is the worst-performing developed nation when it comes to climate-change action, with the government’s scrapping of the carbon price cementing its lowly ranking, a survey by European non-government organisations shows. Australia ranked 57 out of 58 nations reviewed by the survey, only Saudi Arabia was behind us!!!!
The Japanese recession is getting far worse than anyone anticipated… The economy contracted an annualized 1.9 percent in the July to September period from the previous quarter, weaker than the 1.6 percent drop reported in preliminary data….and they look set to vote in the guy that got them there!!!
BHP’s new company formally known as CrapCo is now called South 32..think I preferred the first one…maybe the new name is the price they see Iron Ore going to!!!
Ze Germans have been told by the French to butt out of trying to tell them what to do as it just winds up the right wing nutters!!
I reckon Greece is going to be an issue again….
Chinese market is going gangbusters…seems the crack down on property speculations has just led to massive stock speculation instead…
McDonald’s ,the world’s largest restaurant chain, posted its worst monthly U.S. sales decline in more than a decade and said a health scare in China took a toll on profit this quarter.
ConocoPhillips said it would cut its 2015 capital budget by 20 percent, or about $3 billion, compared with this year, marking the biggest spending cut by a U.S. oil and gas company in dollar terms as global oil prices hit five-year lows.
The Chicago Board Options Exchange Volatility Index, the gauge of options prices known as the VIX, climbed 20 percent to 14.21, the most since October.
Australian oil and gas producer Santos’s credit rating has been cut because of its exposure to the falling oil price.BP cutting staff and Canada’s LNG industry looks like it is gone!
Crude at 5 year lows..Gold starting to stir…
Merck and Co agreed to buy Cubist Pharmaceuticals for $9.5 billion sending Cubist shares up 35%.
Aussie Job advertisements rose a further 0.7% m/m in November to record their sixth consecutive monthly rise (in seasonally adjusted terms).Shame employment us going the other way!!!
No Nativity Scene in Canberra this Year.
There won’t be a Nativity Scene in the nation’s Capital this Christmas season.
This isn’t for any religious reason, it has simply been a case of not being able to find Three Wise Men.
The search for a Virgin continues…..
There was no problem, however, finding enough donkeys to fill the stable.
Have a great day