Another big week for company results. A big week too on the risk front as the US and South Korea start their annual military exercises and the usual response from Kim Jung-Un. The market is likely to be on edge if the rhetoric and missile testing steps up a pace. The turmoil in the Whitehouse continues and again is unsettling equity markets.

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Good news though for miners. Iron ore had a bumper day on Friday up 3.5%. Zinc too doing well with a near ten-year high. Nickel up to its highest since March.

It will all be about resources and results today. The fall on Friday could have been worse and once again we are in the middle of the range of 5700- 5800. Expect some weakness again today as financials drift.

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So far 73 companies have reported. UBS has called it ‘underwhelming especially on guidance’. Clearly there are some concerns out there.

This morning both private equity bidders have walked away from Vocus (VOC) as neither were able to agree a transaction that was acceptable to the board. The bid from both was 350c a share. This will hit VOC hard and shows that a bid from private equity is even less likely to happen. Lots of tyre kicking and not much action. Will affect sentiment towards private equity bids. That is now FXJ and VOC they have walked away from. Two from two and those are just the big ones recently.

Fortescue Metals (FMG) results this morning. Doubled final dividend of 25c up from 12c. Net profit of US$2.09bn up from US$985m. Looks like s light miss on profits but dividend is very good. 45c of fully franked dividends. That is a 8.1% fully franked dividend. FMG is a money making machine and will continue to spit out huge profits and pay very good dividends. Do we live in a world now where the miners are the safe yield stocks? FMG has net debt of US$2.7bn. Cash of US$1.8bn and is focussed on costs and sticking to its knitting. No wonder Twiggy is always smiling.

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