Morning all,
World markets have soared on news from the 19th Zombie summit being slightly more decisive than the previous 18! It appears(and I mean appears) that Moaning Mertle has done an about-face…The moves were even more pronounced as end of quarter window dressing and a massive short squeeze pushed the Dow up 280…If anyone thinks that the latest moves from ‘Ze Germans’ will solve everything wrong with Zombieland, then they are sadly mistaken…however what it does show is the biggest problem is confidence..without confidence the whole financial system is a Emperor without any clothes..good to see the Greeks being the first to ask for the same deal as Spain!!Didn’t take them long did it!
The ASX 200 will blast off today…after a dramatic turnaround on Friday when news first spilled out of the Summit, we will push ahead..all risk assets rebounded with Gold and other commodities having a day in the Bollinger tent!
The question now is after the jump do you go with it or sell into it…personally I am not convinced and remain a seller of rallies..the range is 4000 -4400 on the SPI and so at 4150 (probably after today) there is maybe a little more upside than downside but I am not hoping for anything substantial or lasting until we head into the Autumn in the Northern Hemisphere…
On to stocks in our market..big resources will leap on moves on the LME and elsewhere and we may see a little more interest in the small ones with Gold stocks in demand…SBM may be worth a look after the big falls due to its merger with Allied Gold…at 1.80 I would be a buyer of this one…
Still remain a fan of BBG and expect some dodgy shelf company based in Macclesfield to send the Merchant of Bells a letter of intent to bid, on nice embossed stationary any time soon…nothing like it to flush a few players out..and so what if the company doesn’t exist just call it something Private Equity and Bob’s your father’s brother!
The next big issue that is going to hit markets s the US budget and if the two major parties can break the deadlock on funding it! That’s an issue only a month or so away! But let’s not worry about it just yet!
Things to make me go all Ole.
1.Spain win preferred debtor status..and the Euro Cup by beating Italy 4-0…been a good week for these guys!
2.DJS bid a farce..not sure why the board released the bid approach in the last days of the financial year ESPECIALLY when the letter arrived on May22nd!!!!…maybe helped rescue the share price(up 14%) but it won’t rescue their credibility…I am going to bid for BHP next week…seems easy..register a dud company and send the Board a letter…volia up they go..I am sure the bonus pool for management just went up too…the Fin Review even has a copy of the letter that EB Private Equity sent to DJS….I could just cut and paste..I mean really guys did you not do any due diligence yourselves!!!(Research piece enclosed)
3.Carbon Tax has started…the sky hasn’t fallen in yet…still find it weird that a tax designed to change our habits with energy use is then negated by giving compensation back to people …it’s like taxing Cigarettes and then giving smokers a rebate to keep them smoking!!
4.Diamonds aren’t a banks best friend…that’s two Diamonds now in troubkle..Jamie at JP Morgan and now Bob Diamond at Barclays for fixing the LIBOR rate! Chairman has now resigned and pressure will be on Bob to follow his lead..expect they will get a gig elsewhere though so don’t feel too bad for them…nice $450m fine!!Bank of England will be dragged in as well..Lieborgate!
5.Japan restarts a nuclear reactor…
6.VIX fear index drop 13.4% to 17…the World is now a safe place…SPI up 38 Gold up $45 and Oil up $7.. Spain’s 10-year yield fell 61 basis points to 6.33% …Italy’s 10-year yield fell 39 basis points to 5.81%.
7.RBS meets tomorrow but they will be on Hold especially now that all the Euro Trash have been bailed out!
8.Syria and Turkey continue to fall out.
9.Manufacturing data from China, the world’s biggest exporter, signal the government may need to add stimulus to arrest an economic slowdown that probably extended into a sixth quarter
.
10.Chinese Banks now account for a third of all World bank’s profits!! Eurozone banks accounted for 6 per cent of global profit last year, compared to 46 per cent five years ago and their 45 per cent share of global assets…that’s how much the World has changed!!!
Having watched “Too big to fail” last night I hope that it wasn’t too accurate because it certainly doesn’t show anyone in the Banking system in a good light and the consequences of that window of time will come back to haunt us.
And finally from Die Welt(German Newspaper)
When economic historians in a few years determine the turning point at which the euro zone turned into a debt community, they may refer to the last Thursday night. In those dramatic hours when Angela Merkel after massive pressure from Italian Prime Minister Mario Monti and Spanish Prime Minister Mariano Rajoy buckled – and agreed to an agreement whose scope is now very difficult to estimate.
Happy New Year!!
Clarence
XXX
Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
World markets have soared on news from the 19th Zombie summit being slightly more decisive than the previous 18! It appears(and I mean appears) that Moaning Mertle has done an about-face…The moves were even more pronounced as end of quarter window dressing and a massive short squeeze pushed the Dow up 280…If anyone thinks that the latest moves from ‘Ze Germans’ will solve everything wrong with Zombieland, then they are sadly mistaken…however what it does show is the biggest problem is confidence..without confidence the whole financial system is a Emperor without any clothes..good to see the Greeks being the first to ask for the same deal as Spain!!Didn’t take them long did it!
The ASX 200 will blast off today…after a dramatic turnaround on Friday when news first spilled out of the Summit, we will push ahead..all risk assets rebounded with Gold and other commodities having a day in the Bollinger tent!
The question now is after the jump do you go with it or sell into it…personally I am not convinced and remain a seller of rallies..the range is 4000 -4400 on the SPI and so at 4150 (probably after today) there is maybe a little more upside than downside but I am not hoping for anything substantial or lasting until we head into the Autumn in the Northern Hemisphere…
On to stocks in our market..big resources will leap on moves on the LME and elsewhere and we may see a little more interest in the small ones with Gold stocks in demand…SBM may be worth a look after the big falls due to its merger with Allied Gold…at 1.80 I would be a buyer of this one…
Still remain a fan of BBG and expect some dodgy shelf company based in Macclesfield to send the Merchant of Bells a letter of intent to bid, on nice embossed stationary any time soon…nothing like it to flush a few players out..and so what if the company doesn’t exist just call it something Private Equity and Bob’s your father’s brother!
The next big issue that is going to hit markets s the US budget and if the two major parties can break the deadlock on funding it! That’s an issue only a month or so away! But let’s not worry about it just yet!
Things to make me go all Ole.
1.Spain win preferred debtor status..and the Euro Cup by beating Italy 4-0…been a good week for these guys!
2.DJS bid a farce..not sure why the board released the bid approach in the last days of the financial year ESPECIALLY when the letter arrived on May22nd!!!!…maybe helped rescue the share price(up 14%) but it won’t rescue their credibility…I am going to bid for BHP next week…seems easy..register a dud company and send the Board a letter…volia up they go..I am sure the bonus pool for management just went up too…the Fin Review even has a copy of the letter that EB Private Equity sent to DJS….I could just cut and paste..I mean really guys did you not do any due diligence yourselves!!!(Research piece enclosed)
3.Carbon Tax has started…the sky hasn’t fallen in yet…still find it weird that a tax designed to change our habits with energy use is then negated by giving compensation back to people …it’s like taxing Cigarettes and then giving smokers a rebate to keep them smoking!!
4.Diamonds aren’t a banks best friend…that’s two Diamonds now in troubkle..Jamie at JP Morgan and now Bob Diamond at Barclays for fixing the LIBOR rate! Chairman has now resigned and pressure will be on Bob to follow his lead..expect they will get a gig elsewhere though so don’t feel too bad for them…nice $450m fine!!Bank of England will be dragged in as well..Lieborgate!
5.Japan restarts a nuclear reactor…
6.VIX fear index drop 13.4% to 17…the World is now a safe place…SPI up 38 Gold up $45 and Oil up $7.. Spain’s 10-year yield fell 61 basis points to 6.33% …Italy’s 10-year yield fell 39 basis points to 5.81%.
7.RBS meets tomorrow but they will be on Hold especially now that all the Euro Trash have been bailed out!
8.Syria and Turkey continue to fall out.
9.Manufacturing data from China, the world’s biggest exporter, signal the government may need to add stimulus to arrest an economic slowdown that probably extended into a sixth quarter
.
10.Chinese Banks now account for a third of all World bank’s profits!! Eurozone banks accounted for 6 per cent of global profit last year, compared to 46 per cent five years ago and their 45 per cent share of global assets…that’s how much the World has changed!!!
Having watched “Too big to fail” last night I hope that it wasn’t too accurate because it certainly doesn’t show anyone in the Banking system in a good light and the consequences of that window of time will come back to haunt us.
And finally from Die Welt(German Newspaper)
When economic historians in a few years determine the turning point at which the euro zone turned into a debt community, they may refer to the last Thursday night. In those dramatic hours when Angela Merkel after massive pressure from Italian Prime Minister Mario Monti and Spanish Prime Minister Mariano Rajoy buckled – and agreed to an agreement whose scope is now very difficult to estimate.
Happy New Year!!
Clarence
XXX
Any financial product advice contained in this email is general financial product advice only and does not take into account any one person’s objectives, financial situation or needs. Therefore, before acting on any financial product advice in this email, you should consider, with or without the assistance of an independent adviser, the appropriateness of the advice, having regard to your objectives, financial situation and needs.
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