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Morning sports fans,
Well it looks like ‘Do Nothing’ Mario has brought his bazooka if the semi leaked reports are anything to go by…he is intending, so it’s said, to be spending $50bn a month for the next two years on trying to salvage the great Euro experiment…politicians love this as it ensures they do not have to make any tough decisions just open the spigot although the Germans who are funding this brand of magic are being Draghied screaming and kicking to the party.The official news is not officially out until the official announcement at the official ECB on Thursday so we wait to see whether it really is that big a bazooka or is he just pleased to see me!
Yesterday our market rallied hard making up for lost time and catch up with other markets..expect a little more of the same today…Zombieland has rallied 5 % in two months despite (or maybe because of ) the terminal nature of their economic growth. Expect more of the same today. Big names will dominate as they always do first but there are signs of life in the oil market so we may see some vultures picking over the bones of the oil stocks…We even saw one OPEC official last night say that this new paradigm will not last forever…if I had a petrol tanker I would back it up now to the local Shell station and fill it with $1.00 a litre Unleaded…has no one seen Mad Max???
The other big story last night was the Canadians unexpectedly cut their rates…don’t worry the RBA won’t do anything soon but was enough to smash the Aussie dollar down below 81 cents which I think is good news..not sure in this strange world anymore..I always thought lower oil prices were good news too and low inflation but apparently not it seems…fair is foul and foul is fair these days…
Anyway expect the market to bask in the reflective glory of the Euro wonder of free money for a little while longer until the harsh reality of reporting season is upon us…
Idea of the Day
Talked about this yesterday on Sky Biz when asked about the rise of Aldi…the question from a viewer was, should Coles and Woolies be worried?…now I hadn’t really thought about this in depth before so I had to think quickly, which doesn’t come naturally ,but the answer is a resounding yes!!In fact a big yes as the more I thought(quickly) about it and chatted to the camera I found myself coming up with a theory why the big guys should be really worried…my theory is this….could be complete crap but here goes..
As the big guys move to generic brands and take the ones we love off their shelves(I am looking at you Coles Newport!!!) the difference between a supermarket with ‘Homebrands’ and a supermarket with obscure semi European brands begins to be less and less..in fact the stigma (if I can call it that) of shopping in Aldi also dissipates as the difference in the homebrand quality and the Aldi quality blurs..so why not just buy the cheapest …in fact when it comes to the liquor section there are some stunning wines at Aldi for next to nothing…so I know that it will take a long time for Aldi to really threaten the Coles and Woolies monopoly but as some supermarkets in the UK have found out, like Tesco, it is a competitive world out there and when the going gets tough for consumers then they vote with their feet… Of course the big supermarkets are responding by moving their homebrands up market and getting Jamie Oliver to rustle up some Heston Blumenthal Burgers for a Curtis Stone extravaganza but this is hard when the economy is slowing..anyway just a thought..If I could, I would buy Aldi shares right now!!!
Yesterday I also talked about buying WPL at around $30…not sure it will get there short term and maybe at 32.60 ish nibbling should take place…
Things to make me go mmmmmm!!!
Lovely to see the Media starting to run the Abbott revolt stories..could the LNP really stab him in the back like labour..et tu Brute!
How about this..one hedge fund manager in the US who had $100m under management in March has managed to blow the lot, well all bar $200,00 by being overzealous with his trading in December…and poof …it’s gone…
Our latest IPO lists today..it’s the first medicinal marijuana company to list in Australia and it looks like it is going to go well..lots of press and punters seem to like this sector…must be something they are smoking..PYL is the code…
Vocation is still suspended and it is an absolute mystery to me how the CEO is still in charge..much like the Captain of the Titanic …maybe no one else wants to go down with the ship…not even a name change will help I suspect!!
Can’t we have traffic like this in Sydney all the time!!!
So if Obama says the crisis has passed why is the Fed not raising rates to a more normal level…weird huh! Still with Free money sloshing around the system looking for a home it is hard to not feel like we are rerunning history again with the levels of debt now on Central bank balance sheets…of course they can just print more so what is there to worry about?
The Greek anti austerity party is starting to wind back its hard line on its bailouts as it looks to win the election this weekend…a softening stance will help their cause as no one is too keen to find out what happens if the proverbial hits the fan if the ECB et al withdraw their lovely wonga…so looks like the risk is easing to a full blown Euro crisis…just pump that money Mr Draghi and all will be well!!
Aussie gold has seen a 19% rise from its lows in the last few months whilst their energy costs have fallen dramatically too…now if they just had some money it would be well…expect to see that shoulder tapping as we go forward…
And finally…some breaking news…
A high school teacher was arrested today at Sydney’s Kingsford-Smith
International airport as he attempted to board a flight while in possession
of a ruler, a protractor, a compass, a slide-rule and a calculator.
At the press conference, the Attorney General said he believes the man is a
member of the notorious extremist Al-Gebra movement.
He did not identify the man, who has been charged by the AFP with carrying
weapons of math instruction.
‘Al-Gebra is a problem for us’, the Attorney General said. ‘They derive
solutions by means and extremes, and sometimes go off on tangents in search
of absolute values.’ They use secret code names like “X” and “Y” and refer
to themselves as “unknowns;” but we have determined that they belong to a
common denominator of the axis of medieval with coordinates in every
country. As the Greek philosopher Isosceles used to say, “There are three
sides to every triangle.”
When asked to comment on the arrest, Tony Abbott
said, “If God had wanted us to have better weapons of math instruction, He
would have given us more fingers and toes.”
Fellow cabinet colleagues told reporters they could not recall a more
intelligent or profound statement by a Prime Minister.
Let’s hope this doesn’t come to pass tonight…only last 8 seconds!!!
Have a great day