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Morning sports fans,

 dummy spit

 

Wot no rate cut!!!!

Hope everyone had a great Easter..despite the weather..yesterday we had a rock and roll day with the market convinced early that the RBA was gonna cut rates again..seems they got a little ahead of themselves as the momentum computer traders scrambled over each other to get set …and all for nothing as the RBA held fire and the market tumbled…from 85 up to a negative and then closing 20 odd up…seems the RBA is more worried about the runaway housing sector than the state of the economy…suspect they are wrong but it seems that the effect of rate cuts is having no effect at all…more importantly is the state of the political machinations in Canberra…this has been confidence sapping and with the budget looming it is looks delicate!!The price of Iron Ore is becoming a major issue for Jokin Joe as his revenue take is fast disappearing..yesterday saw Atlas Iron go into a suspension pending discussions with creditors and management on survival…not looking good but they do have some cash although they are heavily in debt too so vultures are looming…seems that Chinese demand has collapsed recently so it’s not just a question of supply now…

So we got so close to 6000 yesterday..so close but couldn’t quite make it…but I expect another go at it just to lock in a high pre budget…I remain of the view that we will go sideways to down in the coming months as we get the leaks from the impending budget, kite flying and the UK election together with an overextended equities market…we need to consolidate the gains and feel a break out either way is unlikely…there is too much money on the sidelines looking for a home for a substantial pullback and things are a bit stretched for a big kick especially given no rate cut …so 5700 to 6000 for the next quarter I reckon and here we are at 5928 so risk is slightly to the downside..usual story is all about the yield…

bass

“Because you know I’m all about that yield,

‘Bout that yield, no trouble

I’m all ’bout that yields, ’bout that yield, no trouble

I’m all ’bout that yield, ’bout that yield, no trouble

I’m all ’bout that yield, ’bout that yield

Idea of the Day-IPP a baby REA?

 

Readers of my musings will long be aware that I like look alike companies…ones that are in their infancy and aiming to emulate their big brothers…one of those is Affinity but another is the wannabe IPP…now these guys are basically trying to be a REA ..they do online real estate adverts in Asia…they today reported their highest collections ever with a $7.5m in sales up 41%  for the first quarter…Malaysia and HK were up 46% and Indio upo 49%..by god I think they may be on to something here…property ads on the world wide web…anyway with a market cap of a mere $520 m compared to REA with $6.5bn,seems there could be some good upside to IPP and even a takeover when they get to critical mass from RA to expand their footprint..seems like a no brainer to me for the longer term…low interest rates+burgeoning middle class in Asia = Property booms and IPP to benefit…

Things to make me go mmmmm!!!!

Greece is asking for more bailout funds so it can pay the debt due on Thursday…so let’s get this straight it is borrowing more money to pay back the borrowed money…and this is sustainable???No wonder they are asking the Germans for War repatriation funds !!Now if they miss the payment they are still NOT in default as they would then be issued with a  30 days to pay notice..of course the issue doesn’t go away  but just starts another game of chicken with more repayments due later in April and a $1bn refunding rollover…meanwhile the Greek government is courting RasPutin and has said it will put its people before debt repayments…could get interesting ..

The cheque is well and truly in the post with Fed Ex buying TNT for $4.5bn.

The Chinese PBOC has relaxed requirements for banks to lend money to buy second properties(no not in Sydney!!) with deposit requirement amended to 40% down from 60% and an exemption from the 5.5% sales tax..Stock market at 7 year high!!

Waiting for the knock on the door for watching the Dallas Buyers Club? Seems 4700 people are going to be getting a letter with “please explain’ after pirating this movie..god knows why..maybe only 4700 people watched it!!Seems that the good old days of downloading stuff from Pirate Bay are over…still with Stan, Presto, Netflix  ,Iview, Catchup and others available for next to nothing why download illegally anyway…Foxtel must be worried stupid…of course it would be nice If the infrastructure to watch tehse shows worked better…seems our speeds are still a joke compared to overseas..or at elast mine is..NBN wont pass my door for years…

The UK election is fast approaching and incumbent PM David Cameron has committed a cardinal sin whilst trying to look like an average bloke…he ate a Hotdog with a knife and fork..who does that …someone who went to Eton? maybe? An out of touch PM? Maybe? or much more likely someone who doesn’t want to drip mustard and sauce over his shirt if he is gonna be on TV!!!Still good to see that Fleet Street is on the big issues!!

hotdog

From an earlier hot dog issue!!!

Brent Oil up but WTI down again as the American Petroleum Institute reported an absolutely massive 12.2 million (almost 4 times larger than the 3.4mm estimate). If this corresponds to the DOE inventory data tomorrow – this is the biggest inventory build since 1985…

And talking oil…Royal Dutch Shell is rumoured to be looking at buying BG…interesting indeed…

Gotta love school holidays..no traffic ,no people…no worries…

Don Mcleans’ Lyrics to American Pie have sold for $1.2m and more importantly he explained some of the meaning behind this great song…famously he was once asked what the song means..he said it meant that he never had to work again!!!Good call…

Once again the FX markets seem to have known about Uncle Festers rate call seconds before anyone else..ASIC to investigate….again…second month in a row…

And a battery breakthrough that could have big implications with research proving the concept of an aluminium battery that charges a phone in one minute!!!More recycles ,cheaper and doesn’t burst into flames like lithium..uses graphite and Aluminium… Key to the new discovery was the choice of material for the other, positive electrode (the cathode) to go with aluminium(cheaply available) for the negative electrode (or anode). Graphite – a form of carbon in which the atoms form thin, flat sheets – turned out to deliver very good performance, while also being similarly lightweight, cheap and widely available….. the future?

And finally….some lovely Irish jokes…with apologies to my Irish friends…

Paddy spies a letter lying on his doormat.

It says on the envelope “DO NOT BEND “.

Paddy spends the next 2 hours

trying to figure out how to pick it up.

———— ——— ——— ——— ———

Paddy shouts frantically into the phone

“My wife is pregnant and her contractions are only two minutes apart!”

“Is this her first child?” asks the Doctor.

“No”, shouts Paddy, “this is her husband!”

———— ——— ——— ——— ———

An old Irish farmer’s dog goes missing and he’s inconsolable.

His wife says “Why don’t you put an advert in the paper?”

He does, but two weeks later the dog is still missing.

“What did you put in the paper?” his wife asks.

“Here boy” he replies.

———— ——— ——— ——— ———

Have a great Wednesday

 Clarence

XXXX

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