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Morning sports fans,

Key unemployment report, scheduled for 11.30 am …market muted til then …then unleash the hounds!!!

hounds

Bad will mean rate cuts, good will mean…probably… rate cuts!!

Forecasts call for a 15k gain in jobs and an unchanged unemployment rate of 6.3%, Also out today are new car sales.(suspect they may be pretty good)

Yesterday we saw the classic sell the banks buy the resource stocks day with the added bonus that resources then reversed somewhat as the Chinese numbers  showed the economy slowing…let’s face it guys ,the worlds’ second biggest economy growing at a rate of 7% ain’t too shabby…there are many countries that would give their eye teeth to be growing at half that!!1Us included!!the stuff that dreams are made of…much has been made of the Chinese slowdown…but put it in perspective…anyway the big story is not the slowdown at all ..the big story is the transition from infrastructure spending to reaping the fruits of their labours and enjoying the consumerism that is the bedrock of western economies…the most important number that everyone overlooked is the fact that now 51% of the GDP is from service industries..this is big..the Chinese economy is growing up and as opposed to ours seem to be managing the transition to a new paradigm far better than we are..guess it helps when you are a communist country…here is something to juggle with…since the beginning of the year there have been 10m new brokerage accounts opened!!!And tourism to Australia is now set to be around 850,000 people a year against 220,00 a few years ago…anyone who doesn’t get the massive change as the growing middle class in China wants better everything, food, air, holidays, phones, cars, wives, etc will miss an opportunity…the next decade will see these numbers just rise exponentially and we need to ensure Australia is the winner!!

As most readers will know I am English and came to this adopted country of mine in 1989 for a two year stint and have been here ever since…serves them right for giving  me a permanent residency from day one!!Anyway I remember a time when the  economy was not based on the price of Iron Ore..no one even cared what the price of the stuff was as we had other industries. Remember those days…nowadays though it seems that the whole health of the nation is dictated by two multinationals digging dirt out of the ground and shipping it to China…how did we get here???Other countries have moved with the times…21st Century Infrastructure like high speed rail, high speed internet, tech innovations, tax breaks for hi tech manufacturing and innovation, renewable energy technology, smart stuff like that …nah…more roads and holes in the ground….shame …where is the vision beyond the electoral cycle…

Anyway I digress…yesterdays’ falls will be reversed as oil jumped, gold jumped and the rest of the equity markets around the world don’t seem quite so spooked by the Chinese slowdown…we so want to have a go at 6000…it’s just a number…the ASX200 if you include dividends is at an all time high…and let’s face it that seems to be all the punters are keen on!!

Idea of the Day-Oils ain’t Oils-STO

 

Those of you paying attention will remember my buy as much petrol as you can at $1.00 a litre back in January!!Oil is now at a 5 month high as US inventories appear to be slowing…our oil stocks have been battered and bruised…STO springs to mind…plenty of upside left in this one…if Oil breaks $56 then next stop is mid 60’s…..STO will be back to $9.00.Get on board…..

 sto chart

 

 

The Bull is definitely back!!Who cares about 6000!!!

 15-04-13-MSCI-WRLD-x-TWIc

 S-P-ASX-200-accumulation-index-Last-Price_chartbuilder-620x349

Things to make me go mmmmm!!!

Yesterday lunch time I was doing Sky Biz when I was rudely interrupted by Mike Smith from ANZ giving a lunch time speech..apparently he is more important than we…really?..anyway whilst Dan Murphy from Sky not the bottle! Watched we wondered why ANZ are the cheapest bank…forget the ratios…once upon a time the three juniors were all 25 bucks…now NAB are 39,WBC 39 and ANZ are 36…the reason I reckon is Mike 007 Smith…he looks like a character from Alex..the typical old school banker, lunch at the club with the boys from the RBA with port and cigars to finish…he is an awful public speaker..and the highest paid Bank CEO in Australia!!!$10m a year..compared to Gail Kelly who was a brilliant performer he was woeful…ANZ need a new man at the helm!! Asian expansion some way to go….

The dog ate my homework excuse from Dr Karl is not good enough…promoting a product for money that you haven’t even read is pretty dumb!!!

Oil prices jumped nearly 6 per cent to a 2015 peak overnight after government data showed crude oil inventories in the United States rose less than expected last week.

Super Mario draws a protest …

protester 5_0

One of his better news conferences? End the ECB Dick Tatorship!!

On the US data front Industrial production for March showed a greater than expected decline of 0.6% and capacity utilisation also came in slightly below expectations

Japan has surpassed China as largest holder of U.S. Treasury securities for the first time since 2008.

Grexit still rumbling around!!UK election looming!!!

PanAust managing director Fred Hess says the copper and gold miner has other potential opportunities in the wings after the company turned down an “inadequate” takeover offer from its largest shareholder.

Big numbers…Telstra has increased its market share in mobiles from 42 per cent in 2010 to 53 per cent in 2014, taking its total subscriber base to more than 16.5 million. The telco’s mobile division is on track to make more than $10 billion in revenue this year

The link between Iron Ore and the Aussie dollar!!

iron ore price

Big waggy finger from the IMF… “Australia will suffer the developed world’s most dramatic surge in debt by 2020, according to an International Monetary Fund report that slams governments for failing to save enough during boom times”. Think they are talking about Howard and Costello here…

Childcare shaping up as the big budget issue..really? Is that the biggest issue facing this country!!! The more we subsidise the cost, the more the cost will rise….der!!!Will be cheaper soon to put the kids on the kids Club on the P&O Lines for three months around the world!!

And finally worth remembering……..As we get closer to the 2016 election year, US citizens must remember that they cannot trust Hillary Clinton to create  American jobs.

The last time she had a meaningful job,

she outsourced it to Monica Lewinsky. …

And Monica blew it.

Have a good Thursday..

Clarence

XXXX

You can find me also on my good buddies site too!

You can find me also on my good buddies site too!

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