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Morning sports fans,

 

It’s all about the Iron Dollar!!

 dollar-under-iron-22362773

Messy day yesterday as banks and others came in for some profit taking as once again we shied away from that magnetic 6000 level…slightly better day today expected? Not sure…the big story is the Aussie Dollar..on a tear..seems that the rumours of its demise have been somewhat exaggerated…busting through 80c ..the RBA will not be happy…they have done everything possible to talk it down..even cut rates and now may do again but the dodgy numbers coming out of the US at the moment have rained on their rate rise parade and put back the timing of Yellen(not screamin’) move to a more normal footing…It’s enough to make Uncle Fester scream in frustration…the rally in the Iron Ore price hasn’t helped the bank either with a new bull market now in place!!At this rate the boys will be ramping up production again!!!

Not happy Jan!!!

uncle sevens

Against all this the Zombies wobbled last night …UK growth somewhat underwhelming to say the least and with an hung parliament in prospect come May it might get a little rocky for the FTSE and the rest of the EU zone…Greece still a worry but you know what nobody seems to care anymore…even the finance minister seems to have given up…or been given up!!

Our market still seems to want to have a go at 6000 and the yield/resource trade is starting to look interesting…especially given the moves from the Chinese authorities to introduce yet another new financial term into the lexicon..”Pledged Supplementary Lending” or PSL…this is the equivalent of the support the ECB put in place under its LTRO support for long term refinancing..or Pump Up The Jam!!Or PUTJ!

So with the Aussie above 80cents, time to book that US trip again…time to reassess the dollar earners..maybe not..sure there is still more downside to come in the Aussie but the pessimists talking 65c may have to eat some humble pie!

Idea of the Day

 

We won’t get fooled again!!

 fooledagian

 

If we see any sustained weakness in the US dollar earners in the next few days it might be a good time to start to accumulate some of these babies…the BXB,QBE,MQG,AMC,RMD,JHX etc…don’t think the Aussie dollar will last too long at these highs…looks like M&A from our American cousins is in the air too…

Things to make me go mmmmm!!!

 

Rule Number 1…never invest in an IPO with an Ex Pollie on the board… The chief financial officer of training and labour firm Ashley Services said the company has been punished more severely than expected on the sharemarket after a profit diowngrade wiped 60% off their price…step up Simon Creen!!!!

 

Seven West Media is seeking to raise at least $150 million in a rights issue through investment bank UBS. It is understood Seven West will offer shareholders new shares at $1.25 each.

 

Iron Mountain are back for Recall…Total Recall…new bid should get the prize… Recall shareholders receive 0.1722 Iron Mountain shares for each Recall share.seems the fall in the Aussie was the icing on the cake for iron Mountain to have another go…

 

Gold is joining in the fun with 3% gains in the last couple of days..another 10 bucks last night but let us not forget that at 80c it is not all good news!!

It’s all about Iron and the Dollar at the moment…even the Baltic Dry index has picked itself off the canvas from 578 to 601 in the last few weeks…this index measures the cost of shipping bulk commodities around the world.

dollar uis

Here’s a thought…the Apple watch to be sour…who in their right mind would pay $500 for an accessory to an iPhone!!!

Just cancelled the trip to Baltimore…WTF is going on with the Police in the US…these guys are dumb as doughnuts it seems…it was so serious that Obama had to change his tee off time…man that is serious…third world!!

Talking all the dumb things…I am a big fan of Twitter…great for news feeds and getting stories ahead of the mainstream papers but massively overvalued…really not sure of their business model and the revenue forecasts…seems I am not the only one as the shares tanked last night after the results with a 18% drop!!!ouch…Hashtag stuffed! Twitter cut full-year revenue guidance to $2.17 billion to $2.27 billion, from the previous range of $2.3 billion to $2.35 billion. Only 300m users..that surprised me…#disappointed #hypedtoomuch!

These words from the CEO of Snapchat..

“When  the market for tech stocks cools, Facebook market cap will plummet, access to capital for unproven businesses will become inaccessible, and ad spend on user acquisition will rapidly decrease – compounding problems for Facebook and driving stock even lower. Instagram may be only saving grace if they are able to ramp advertising product fast enough. Total internet advertising spend cannot justify outsized valuations of social media products that derive revenue from advertising.”

 

Euro Banks still raising money… German lender Commerzbank closed around 5.7% lower after it announced a capital raising.

China eased back yesterday as a possible merger between Sinopec and Petro China was denied by authorities.

US consumer confidence declined slightly in April with the survey at 95.2, below expectations for a rise.

RIP Andrew Lesnie..a genius with a camera and light…

babe

 

And finally…..for the oldies amongst us…

 

Recently, I went to McDonald’s and I saw on the menu that you could have an order of 6, 9 or 12 Chicken McNuggets.

 

I asked for a half dozen nuggets.

 

‘We don’t have half dozen nuggets,’ said the teenager at the counter.

 

‘You don’t?’ I replied.

 

‘We only have six, nine, or twelve,’ was the reply.

 

‘So I can’t order a half dozen nuggets, but I can order six?’

 

‘That’s right.’

 

So I shook my head and ordered six McNuggets

 

(Unbelievable but sadly true…)

 

 

And when I was checking out at the Coles with just a few items ,the lady behind me put her things on the belt close to mine. I picked up one of those dividers that they keep by the cash register and placed it between our things so they wouldn’t get mixed. After the girl had scanned all of my items, she picked up the divider, looking it all over for the bar code so she could scan it.

 

Not finding the bar code, she said to me, ‘Do you know how much this is?’

 

I said to her ‘I’ve changed my mind; I don’t think I’ll buy that today.’

 

She said ‘OK,’ and I paid her for the things and left.

 

 

Back on Sky Biz at 12.00am today…ring me with a question if you like..always happy to chat on air!!

Clarence

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Get a Global take on things at www.ntmarkets.com

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