singapore hotel: Markets Live: Miners lift ASX

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March 27, 2013 – 10:22AM

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Local stocks, led by banks and miners, close higher after offshore markets rose on strong US data.

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5:28pm: Calling it in. Thanks for being with us today, have a good evening, we hope to see you again tomorrow.

Click here for a full wrap of the day’s session.

4:18pm: Among the sectors, financial and materials stocks both rose 0.9 per cent, telecommunications added 1.6 per cent and consumer discretionary pushed up 0.8 per cent.

Gold miners bucked the trend, falling 0.7 per cent.

4:17pm: The Australian Securities and Investments Commission released new market integrity rules this afternoon that will help the government sell bonds directly to retail investors. The bonds are expected to start trading on the Australian Securities Exchange (ASX) in April.

“The rules are one element of the regulatory framework for the retail trading of Commonwealth Government Securities depository interests on public exchanges. The Australian Government has previously announced that it is encouraging retail investors to trade CGS.”

Click here to read the framework.

4:13pm: The market has closed firmly higher, the benchmark SP/ASX200 jumped 44.9 points, or 0.9 per cent, to 4995, while the broader All Ords gained 42.3 points, or 0.9 per cent, to 5007.

4:03pm: One of the 18 companies named as ”upcoming floats” on the ASX has fallen over, with Torque Mining withdrawing its initial public offering this afternoon, writes BusinessDay‘s Peter Ker.

Torque was planned to be a spin-off from Frontier Resources that would inherit the company’s lower priority Tasmanian gold and base metal assets.

Torque was only seeking to raise $3 million, highlighting just how difficult the market for mining floats is at the moment.

Meanwhile, here’s our recent story on one of the other companies currently listed as an upcoming float for the ASX.

3:50pm:The New York Times has published an interesting article on the strained relationship between the US government and the country’s biggest bank JPMorgan Chase.

“As the nation’s strongest bank, JPMorgan Chase used to be known for carrying special sway with regulators. Now it increasingly finds itself in the cross hairs of federal authorities.

At least two board members are worried about the mounting problems, and some top executives fear that the bank’s relationships in Washington have frayed as JPMorgan becomes a focus of federal investigations.”

Click here for the full story.

3:30pm: The Australian dollar has performed well against the euro over the last two months. Especially in recent weeks due to the uncertainty surrounding the Cyprus bailout and now the fallout from that deal.

The Australian dollar is currently buying 81.48 euro cents.

3:19pm:BlackBerry’s share price has more than doubled over the last six months as buzz around its new smartphones has boosted investor confidence, but some traders are betting big that talk of a turnaround is over-hyped.

Nasdaq data shows that short interest in the stock is at record levels and has more than doubled over the course of the last year.

With BlackBerry due to report quarterly results in two days, giving investors their first official clues on demand for its new Z10 touchscreen device, that buildup of bearish bets could send the stock price surging if the company delivers a positive surprise.

BlackBerry, a one-time pioneer in the smartphone market, hopes the device – powered by its newBlackBerry 10 operating system – and other devices soon to follow will turn its fortunes around and help it to win back market share in an ultra-competitive sector. But many traders are clearly unconvinced.

Short interest in BlackBerry’s Nasdaq-listed stock has risen to more than 155 million shares, up from 136.5 million shares a month ago and 60 million at this time last year.

3:07pm: A judge said Paul Ceglia’s claim that he owns a multibillion-dollar share of Facebook should be thrown out of court because the contract on which he bases his lawsuit is fraudulent.

US Magistrate Judge Leslie G. Foschio in Buffalo, New York, yesterday issued a 151-page report finding “clear and convincing evidence” that Ceglia, 39, forged the contract, destroyed evidence and created phony e-mails between himself and Mark Zuckerberg, Facebook’s chief executive officer and one of its founders.

Foschio rejected Ceglia’s arguments that a jury should consider the case and characterized Ceglia’s claim that Zuckerberg hacked into his computer to plant evidence as “beyond absurd.”

Overnight, Facebook’s shares closed 0.3 per cent higher at $25.205.

2:52pm:Educating Chinese drinkers about Australian wine at the point of purchase, including venues such as supermarkets, bars and six-star hotels, will be crucial for the industry to thrive in one of the most important wine markets in the world, writes BusinessDay‘s Eli Greenblat.

Mitchell Taylor, the third-generation Taylors Wines managing director and current chairman of peak body Australia’s First Families of Wine, said there was a great “thirst for knowledge” in China as the Chinese grew increasingly interested in wine and the broader wine culture.

“There is a great energy and drive, a great excitement to learn more about wine and they are really looking forward to educational events, so when you are displaying your wines it’s not only showing the quality of your own wines but also imparting information about how wines should be consumed,” Mr Taylor said.

“Education is crucial, and the thirst for knowledge is enormous.

“It’s usually done on premise, that’s how the Chinese like it, they like an event, a bit of prestige around it, so quite often they are in five or six-star hotels or prestigious wine shops and restaurants.”

Click here for the full story.

2:38pm: A $30-a-week pay rise for Australia’s lowest-paid workers is not likely to happen, the federal government says.

The Australian Council of Trade Unions will lodge a submission with the Fair Work Commission to increase the national minimum wage to $636.40 a week, benefiting 745,000 workers.

It equates to a 79 cent-an-hour increase from $15.96 to $16.75 per hour.

Employment Minister Bill Shorten said he doubted the commission would be so generous.

‘‘I think $30 is higher than we would land at,’’ he told Fairfax Radio.

‘‘I think that somewhere less than $30 will be the outcome.’’

2:26pm: Ascalon Capital Managers, a unit of Westpac Banking, has bought a 30 per cent stake in Singapore-based hedge fund company RV Capital Management.

The acquisition includes an investment into RV Capital’s Asia Opportunity Fund, Ascalon said in a statement on Wednesday. It did not disclose the amount invested.

RV Capital was founded in 2011 by Morgan Stanley’s former head of fixed income for Asia-Pacific,Ranodeb Roy, and Vickram Mangalgiri, who earlier worked at PIMCO.

Westpac shares are down 0.1 per cent to $30.66.

2:19pm: The consumer watchdog has defended itself against claims it’s not doing enough, saying its very presence changes behaviour and protects shoppers.

Australian Competition and Consumer Commission chair Rod Sims was responding to community concerns the authority wasn’t doing enough about petrol prices and the encroachment of large supermarkets.

‘‘Indeed, the most common complaint we face is that we are not doing enough on some front,’’ he told the National Press Club in Canberra.

But Mr Sims argued that because companies know it will enforce the law, the majority won’t consider engaging in cartel or other anti-competitive behaviour.

‘‘In my view, we must be an active advocate when complaints are made about behaviour that we believe should not be against the law,’’ he said.

1:55pm: Here’s how the rest of the region is doing:

Nikkei(Japan): flat

Shanghai: +0.6%

Taiwan: +0.3%

Kospi: +0.4%

Singapore: +0.4%

New Zealand: +1.2%

1:27pm: OzForex chief currency strategist Jim Vrondas said the Australian dollar was now near the upper end of the recent trading band between 101 and 106 US cents.

The Aussie dollar was at 104.75 US cents, up from Tuesday’s local close of 104.65 US cents.

‘‘We are nearing the top of that range so it is only natural that we get a bit of a pause at these levels,’’ Mr Vrondas said.

‘‘The question the market is probably asking itself now ‘is there enough behind this move at the moment to push the currency outside that range’?’’

The Australian dollar reached a high of 104.97 US cents during the overnight offshore session, when the currency moved in line with gains on US and European equity markets.

1:24pm: Lonsec senior client adviser Michael Heffernan said the Australian market was looking pretty good after a poor day on Tuesday when all attention was on the possible ramifications of the Cyprus bailout deal.

‘‘The important thing (for the Australian market on Wednesday) was what happened in the US market overnight,’’ Mr Heffernan said.

‘‘The American market was pretty good on the back of durable goods orders and home sales,’’ Mr Heffernan said.

1:00pm: More on the Qantas-Emirates deal, Federal Transport Minister Anthony Albanese said the decision by the ACCC was good news for Australian travellers and the local economy.

‘‘Millions of travellers stand to benefit from cheaper fares, reduced travel times and greater access to more destinations in the Middle East, Africa and Europe,’’ he said.

‘‘The partnership will also bring overseas tourists to more regional destinations in Australia and better access to international markets for regional Australians.’’

12:50pm: As we noted briefly earlier, Linc Energy shares have been placed in a trading halt ahead of an announcement about raising capital.

Linc, which is involved in the development and commercialisation of coal to liquid fuel, has recently experienced a surge in its share price.

Unless the Australian Securities Exchange (ASX) decides otherwise, Linc securities will remain in a trading halt until trading commences on Tuesday, April 2 or when the announcement is released to the market, Linc said in a statement.

Late last year the Australian Stock Exchange asked Linc to explain a spike in the company’s share price between December 7 and December 11, 2012.

Brisbane-based Linc said it was not aware of any explanation for the price change.

The best and worst performers on the ASX200 so far today.

12:37pm:QBE Shareholders appear to have made a significant vote against a $2.3 million retirement payment to former boss Frank O’Halloran.

Of the proxy votes disclosed at today’s annual meeting, more than 35 per cent were directed against the payment.

Chair Belinda Hutchinson said the payment honoured a contract signed with O’Halloran in the 1990s.

‘It’s important to be aware that these payments are no longer made to our senior executives,’ she said.

The final tally of votes has not yet been disclosed.

12:31pm: The Australian dollar traded 0.2 per cent from its highest level in two months amid bets policy makers won’t lower benchmark rates when they meet next week.

The dollar rose for a second day against the yen as gains in US equities spurred demand for higher-yielding assets. The Reserve Bank of Australia said turmoil in Cyprus highlights that global vulnerabilities remain, in its semiannual financial stability review.

“The Aussie is pushing higher because the market believes there won’t be a rate cut at the next meeting,” said Daniel Barnes, a senior market maker for currencies at City Index Group. “We’re waiting for the RBA’s financial stability report for an overview of how the economy is going.”

The Australian dollar was little changed at $US1.0477 after yesterday reaching as high as $1.0497, the strongest since Jan. 24. It rose 0.1 per cent to 99.07 yen.

Traders are predicting an 11 per cent chance the RBA will lower its benchmark 3 per cent rate at its April 2 meeting.

12:23pm: Some reactions to the RBA’s financial stability review are filtering in. Here’s Shane Oliver:

Reasonably benign #RBA FInancial Stability Review: Cyprus highlights challenges in EU but overall global financial conditions improved..

— Shane Oliver (@ShaneOliverAMP) March 27, 2013

12:13pm:Australian households are building mortgage “buffers” to help them withstand temporary unemployment or lower income, the RBA said, adding that tensions in Cyprus highlight global vulnerabilities.

Australian home-owners have repaid ahead of time about 20 months worth of scheduled loan payments, the RBA said in its semiannual financial stability review released in Sydney today.

“Household indebtedness and gearing are still around historically high levels though, so from the perspective of their financial resilience it would be preferable if households maintained this more prudent behavior.”

Australia’s household debt-to-income ratio stands at 148 per cent, compared with a record 153 per cent in late 2006, RBA data show. That’s higher than the 133 per cent Americans accumulated at the peak of the US subprime mortgage boom, according to the Federal Reserve Bank of San Francisco.

12:00pm:QBE chair Belinda Hutchinson is facing criticism from shareholders this morning over the board’s decision to slash the share of profits paid as dividends from about 70 per cent to 50 per cent, writes BusinessDay‘s Clancy Yeates.

‘We share your disappointment in having to reduce the dividend,’ she told one grumpy investor who had described the move as ‘draconian’.

The company has blamed the decision on a year of weak profits in its US business and tougher capital expectations from regulators and credit ratings agencies.

11:52am: The competition watchdog has rejected a central argument of Qantas management that its international operations face ‘‘terminal decline’’ without an alliance with Emirates, writes BusinessDay‘s Matt O’Sullivan.

The regulator gave final approval on Wednesday to Qantas and Emirates forming an alliance over the next five years but not before dismissing the claims about the performance of the Australian airline’s international unit.

The Australian Competition and Consumer Commission said it did not ‘‘accept or rely on Qantas’ claim’’ that its international operations were in terminal decline and unable to compete effectively or turn a profit.

‘‘The ACCC has rejected Qantas’ claims that in the future without the proposed conduct, it will cease all international services and operate a virtual network in the medium to long term,’’ it said.

The regulator considered confidential board documents and route profitability data, as well as reports provided by Qantas from Boston Consulting and Oxford Economics.

11:39am: As Boeing works to regain permission for its 787 Dreamliner to resume flights, the company faces what could be a costly new challenge: a temporary ban on some of the long-distance, trans-ocean journeys that the jet was intended to fly.

Aviation experts and government officials say the Federal Aviation Administration may shorten the permitted flying time of the 787 on certain routes when it approves a revamped battery system. The plane was grounded worldwide two months ago after lithium-ion batteries overheated on two separate aircraft.

Losing extended operations, or ETOPS, would deal a blow to Boeing and its airline customers by limiting use of the fuel-saving jet, designed to lower costs on long-distance routes that don’t require the capacity of the larger Boeing 777. Such a loss could even lead to cancellation of some routes.

11:28am:QBE chairman Belinda Hutchinson told shareholders at the company’s annual general meeting that while the insurer was disappointed with its 2012 result, things were looking brighter this year.

QBE in February reported a full year net profit of $US761 million and flagged major changes to its business to help save $US250 million in annual costs.

It expects to achieve a combined operating ratio of 92 per cent this year and an insurance profit margin of around 11 per cent.

‘‘We are at a stage in the global economic and insurance market cycle where there are encouraging signs of increasing premium rates, indications of positive economic growth in most of our key markets and improving investment markets, particularly longer term bond yields,’’ she said.

‘‘Results to date are on track to meet our targets for 2013 as advised to the market with the annual results in February.’’

11:18am: It looks like there has already been some fallout over Woolworths’ move on milk suppliers.

Fonterra announced today it plans to slash its consumer brands and jobs in Australia to restore profitability as competition intensifies for milk supply and retail sales.

The dairy giant’s ANZ division, which produces consumer products and ingredients in Australia and New Zealand said earnings for its Australian consumer brands fell 31 per cent for the first half of its financial year.

‘‘There’s a new reality in Australia,’’ chief executive Theo Spierings told reporters on a conference call on Wednesday.

Fonterra is facing ‘‘aggressive competition’’ in milk supply and, with a retail price war in Australia, it has to ensure its supply chain is cost-effective.

‘‘That’s why we have to rationalise brands, rationalise our organisation,’’ he said.

Fonterra has 21 brands in Australia, which has room for a maximum four or five, he said.

It was too soon to say what plants or jobs losses may result, though Mr Spierings noted the company has a wide variety of yoghurt brands and also faces pressure in the milk market.

11:10am:Europe’s financial crisis is costing lives, with suicides and infectious diseases on the rise, yet politicians are not addressing the problem, health experts said on Wednesday.

Deep budget cuts and growing unemployment are tipping more people into depression, and falling incomes mean fewer people can see their doctors or afford to buy medicines.

The result has been a reversal since 2007 of a long-term decline in suicide rates, coupled with worrying outbreaks of diseases including HIV – and even malaria – in Greece, according to an major analysis of European health in The Lancet journal.

Countering these threats requires strong social protection schemes, researchers argue. But the austerity measures imposed after a string of crises in southern Europe - most recently in Cyprus - has shredded such safety nets.

“There is a clear problem of denial of the health effects of the crisis, even though they are very apparent,” said lead researcher Martin McKee of the European Observatory on Health Systems and Policies, a group backed by the World Health Organisation.

11:01am: As we’ve already noted, BHP is higher and is threatening to snap a seven day run of losses. Its shares have added 0.43 per cent to $33.06 after closing below $32.92 yesterday.

But the market more generally is giving back its early gains. The ASX200 is back to 0.2 per cent higher after touching a gain of 0.58 per cent.

10:44am: As gains on the ASX200 moderate to 0.37 per cent, it’s the miners which are hauling the market higher with the materials sub index showing an early gain of 1 per cent. And iron ore miners are well represented in the list of early gainers.

Fortescue has added 4.72 per cent, Atlas Iron is up 4.17 per cent, Mount Gibson Iron is 3.88 per cent, while copper miner Discovery Metals is playing at pointy end of the market with a gain of 3.17 per cent.

10:42am: Among the big retailers

Woolies is 0.12% higher to $33.89

Wesfarmers is 0.07% higher to $40.43

Harvey Norman is 0.36% higher to $2.76

DJs is 0.17% lower to $3.06

Westfield is 0.14% higher to $10.88

10:39am: Among the big miners

BHP is 0.82% higher to $33.19

Rio is 0.88% higher to $57.43

Fortescue is 3.94% higher to $3.96

10:36am: Among the big banks:

CBA is 0.1%% higher to $68.38

ANZ is 0.25% higher to $28.51

NAB is 0.39% higher to $30.78

Westpac is 0.33% higher to $30.78

10:34am:Hills Holdings just released an update on their transformation project.

It has succesfully exited several businesses, including solar hot water, watertank-maker Team Poly, Korvest and its healthcare division. It has closed Fielders in Queensland and consolidated offices in Victoria. Meanwhile Lazard has been engaged to look at selling the building and construction Fielders and Orrcon businesses.

Hills, which manufactured Australia’s iconic Hills Hoist clothesline for many years, believes it will save $40 million by 2013-14 as a result of the transforation. It has taken a $115 million impairment, according to Wednesday’s update.

10:32am: Another trading halt: Oil and gas hopeful Linc Energy has announced a trading halt ahead of a capital raising.

10:27am: In early trade, the All Ordinaries index is 23 points higher, or 0.5 per cent, to 4987.7, while the benchmark SP/ASX200 is 24.2 points higher, or 0.5 per cent, to 4974.4.

10:23am: And here are the worst performers:

Coalspur Mines -2.7%

UGL -2.08%

St Barbara -2.05%

Medusa Mining -2.03%

Platinum Assets -2%

10:20am: Here are the best performing companies on the ASX 200 this morning:

Mount Gibson +4.85%

Fortescue +3.94%

ALS +3.29%

Atlas Iron +3.24%

NRW Holdings +2.73%

10:15am: A note on today’s main corporate event:

Just arrived at QBE AGM, should be interesting to see how much protest there is about Frank’s pay out.

— Intelligent Investor (@value_investing) March 26, 2013

10:13am: Agricultural chemicals supplier Nufarm has requested its shares be placed in a trading halt pending an announcement about the company’s half-year financial results and the outlook for the full year.

‘‘Nufarm wishes the trading halt to remain in place until the earlier of such time as it releases its results and outlook statement to the market and the commencement of trading on 28 March, 2013,’’ Nufarm said in a statement to the ASX.

Shares in Nufarm last traded at $4.77.

10:10am: Stocks have followed Wall Street’s lead in opening trade – up about 0.4 per cent.

10:06am: The NSW opposition is threatening to withdraw its support for a second Sydney casino unless documents about its impacts and benefits are released by the government.

Late last year, James Packer announced plans to build a $1 billion six-star hotel and casino at Barangaroo in central Sydney.

The opposition initially gave the proposal in-principle support but this could be removed if a report into the casino’s impacts prepared by consultants Deloitte is not made public, opposition planning spokesman Luke Foley said on Wednesday.

He also wants the government to publish its own assessment documents and the conditions of the casino’s gaming licence.

10:03am: As BusinessDay reporter Matt O’Sullivan reports, the competition regulator has given the final tick of approval for Qantas’ extensive alliance with Emirates but with conditions on flying on trans-Tasman routes.

Just four days before the tie up is due to be launched, the Australian Competition and Consumer Commission said it was ‘‘satisfied that the alliance is likely to result in material, but not substantial, public benefits’’.

The most contentious part of the deal has been for it to include routes between Australia and New Zealand.

ACCC chairman Rod Sims said the alliance was likely to ‘‘result in public benefits through enhanced products and service offerings by the airlines’’.

“In particular, the alliance is likely to provide Qantas and Emirates customers with increased access to a large number of existing frequencies and destinations under a single airline code, improved connectivity and scheduling, and access to each alliance partner’s frequent flyer programs,” he said.

Read the full story here.

10:00am: Evan Lucas, market strategist at IG, said he expected the markets to be up on some positive leads in the US.

‘‘[US] data over the last six weeks has, in general, been positive. In the next two weeks US reporting season will kick off once more with bell-weather stock Alcoa the first cab of the rank,’’ he said.

‘‘We are calling the ASX 200 up 10 points to 4960 (+0.2 per cent), which is quite at flat call considering the strength out of the US, and the fact commodities moved higher.’’

He said one stock to watch today would be Fortescue.

‘‘Brokers are starting to upgrade their outlook on the stock, with JP Morgan upgrading their call to overweight from neutral, with a price target of $4.70. FMG has dropped 27% since mid-February, and on a bottom-up view FMG will appear cheap.’’

9:57am: In local news, Toro Energy will have to wait an extra week to discover if the Federal Government will approve its plans to build Australia’s next uranium mine in WA.

A long awaited approval decision from environment minister Tony Burke was due this Friday – but was today pushed back a week to April 5.

The government said this latest delay was due to the Easter break, but we can’t help wondering if a certain leadership struggle in recent weeks also distracted Mr Burke.

It is the third time approvals have been delayed by Mr Burke.

9:50am: With lots of analysts tipping a slide in the iron ore price this year through the second half of this year, but the declines so far being only moderate, here’s a sentiment we may start hearing a bit more of.

“We think the bearish sentiment emerging in the iron ore market is overdone. It appears triggered by the fresh round of Chinese property investment curbs and the expectation of rising supply in the second half of the year,” said ANZ global head of commodity strategy Mark Pervan.

“Our take on this is – we don’t think China property demand is about to fall sharply – and increased supply was already known, and in China’s case, high cost and not viable under $US120 per tonne. In fact, we think prices could rebound $US5-10 per tonne in the short term as the seasonal strong construction season approaches.”

9:47am: Heading offshore first, and US stocks rallied, with the Dow climbing more than 100 points to a record close and the SP 500 coming within striking distance of its all-time closing high, as strong data on home prices and manufacturing fed optimism about the economy.

“I think the batch of data was enough to convince investors that the US economy is on the right track,” said Andrew Wilkinson, chief economic strategist at Miller Tabak Co, in New York.

“At this point, it’s hard to argue that anything will derail the US economy, and that is boosting investors’ confidence as they continue to load up on equities.”

The SP 500 made yet another attempt at a record, but failed to break above the all-time closing high for the second day this week.

At overnight’s close, the SP 500 was only 1.38 points below its lifetime closing high. On Monday, the benchmark index traded just a quarter point below its record closing high, which stands at 1,565.15 set on October 9, 2007.

9:42am: Morning all. Welcome to the Markets Live blog for Wednesday.

Contributors: Thomas Hunter, Jens Meyer, Max Mason

This blog is not intended as investment advice

BusinessDay with agencies

“Melbourne’s housing market is heading for further price falls and “softer” conditions, according to the Reserve Bank of Australia.

The unusually frank assessment is likely to dampen growing speculation the two-year old downturn has come to an end as a result of improving confidence and rising auction clearance rates.”

http://theage.domain.com.au/melbourne-property-prices-to-fall-further-rba-says-20130327-2gtww.html

Yikes what will that do to house prices?

Commenter
Allan

Location

Prahran

Date and time

March 27, 2013, 5:04PM

http://theage.domain.com.au/nonexistent-man-granted-leave-to-buy-598000-house-20130327-2gu0p.html

My hero is the person that pulled this stunt.

Clean out the review board.

Commenter
Opinion Only

Location

Melbourne

Date and time

March 27, 2013, 4:33PM
- Yep just like 457 visas the rules are there to serve vested interests not the wider public.
  
  Commenter
  Allan
  
  Location
  
  Prahran
  
  Date and time
  
  March 27, 2013, 5:03PM

NAB looking good again.

Commenter
alfa75

Location

Date and time

March 27, 2013, 4:12PM

Anyone looking to buy soon to be collectors item Billabong T-Shirts. Slightly used with a few wine stains but otherwise in good condition. I will post on Ebay shortly

Commenter
lima

Location

Date and time

March 27, 2013, 2:41PM
- For real? I’d just taken some serious positions at $0.75 !! betting for new suitors to salvage the company and its share price!
  
  Commenter
  DavidSylvian
  
  Location
  
  QLD
  
  Date and time
  
  March 27, 2013, 3:38PM
- No – just kidding. Hope they find a white knight for your sake
  
  Commenter
  lima
  
  Location
  
  Date and time
  
  March 27, 2013, 3:55PM

“Millions of travellers stand to benefit from cheaper fares,”

So far the only change I have seen is 1: An increase in the cost of redeeming frequent flyer ponts by about 30% and 2: an extra “fuel levy” on every flight out of Australia.

Not happy…

Commenter
paulh12345

Location

Date and time

March 27, 2013, 2:22PM

Well, i made a good call, i said BHP and RIO looked interesting, could be a short term buy. i bought BHP below 33, (Sold at 38 few weeks ago). I will take profit once it move up.

Commenter
wil

Location

melb

Date and time

March 27, 2013, 2:09PM

Answer to cost of living pressures?

- increase minimum wage
- increase pension
- more subsidies for low income/families

How to fund – raid money off people who are able to provide for themselves.

Outcome?

Cost of living increases…..

Commenter
Opinion Only

Location

Melbourne

Date and time

March 27, 2013, 1:41PM
- first you have to find the actual cost of living increases. They seem to exist only in the ramblings of some politicians.
  
  Commenter
  gannet
  
  Location
  
  Date and time
  
  March 27, 2013, 2:13PM
- gannet: 50% insurance premium rise this year + 21% power price rise + 13% rates rise. Cost of living is killing the increase in earnings!
  
  Commenter
  Liberator
  
  Location
  
  SEQLD
  
  Date and time
  
  March 27, 2013, 2:36PM
- The best answer to high living expenses is simply remove Police for a week, just one week. “Equilibrium” will very fast be reached. The Have(s) will very quickly turn into Have (nots). One single week.
  
  Commenter
  Libra
  
  Location
  
  NSW
  
  Date and time
  
  March 27, 2013, 2:38PM
- Or journos
  
  http://www.smh.com.au/travel/blogs/the-backpacker/australia-the-expensive-country-20130326-2gr6q.html
  
  Commenter
  Jabbawonky
  
  Location
  
  Date and time
  
  March 27, 2013, 2:38PM
- Seriously doubt that minimum wages have any noticeable effect at all on overall cost of living. They’re effect on the economy is absolutely insignificant compared to the wages and salaries of everybody else.
  
  Commenter
  Mark
  
  Location
  
  Date and time
  
  March 27, 2013, 2:41PM

- Mark, I’m not a fan of increasing demand when prices are high.
  
  If they want to curb cost of living remove subsidies, don’t increase real spending for struggling low incomes above CPI etc.
  
  It will be painful at first but prices will have to come down to meet peoples ability to pay.
  
  Commenter
  Opinion Only
  
  Location
  
  Melbourne
  
  Date and time
  
  March 27, 2013, 3:02PM

If our market is still spooked by the GFC, why is it that Wall Sreet is up up and away? Allegedly our economy is the envy of the world…

Commenter
New Chum

Location

Date and time

March 27, 2013, 1:31PM
- US is printing 40billion per month, going into the stockmarket.
  
  Commenter
  J.
  
  Location
  
  Syd.
  
  Date and time
  
  March 27, 2013, 1:46PM
- it is my view that within 1-2 years we will be following the low growth/high debt model of the developed economies.
  
  Commenter
  Opinion Only
  
  Location
  
  Melbourne
  
  Date and time
  
  March 27, 2013, 2:02PM
- QE3 = Wall St rally.
  ASX = Banks held up high by O/Seas investors seeking some form of div. return.
  EU = basket case with 2013 bring forward further likely Sovereign defaults requiring MORE bailouts.
  I would not be holding hopes high for a big return this year!
  PS: Aussie home prices will drop a further 4% by December nationally.
  
  Commenter
  Liberator
  
  Location
  
  SEQLD
  
  Date and time
  
  March 27, 2013, 2:40PM

Yesterday market in Red, today in Black…should one use the Martingale double up to secure a (small) profit or should one play individual numbers (companies)? Perhaps I should stick to outside bets only.

Commenter
Dan

Location

Crown Market

Date and time

March 27, 2013, 1:21PM

On trading over the past month it looks to me like TLS will settle at around $4.50 for the medium term. Any other thoughts please?

Commenter
New Chum

Location

Date and time

March 27, 2013, 1:20PM
- New chum I think you are right. As a yield play I think it is still has merit. When you compare the dividend with other telcos like M2, IInet and TPG the yield on these others is way below TLS. You might not get share price gains with Telstra but 8-9% grossed up is not too shabby with the franking credit particularly if you are a in pension mode in a SMSF
  
  Commenter
  MelbMan
  
  Location
  
  Date and time
  
  March 27, 2013, 3:27PM

“Reasonably benign #RBA FInancial Stability Review: Cyprus highlights challenges in EU but overall global financial conditions improved..”

Does anyone listen to Shane anymore?
I’d be willing to say
1. QE increases before Sept. this year.
2. Cyprus could ignite some really nasty stuff worldwide.
3. I’ll think you’ll find consumer confidence in the US is nowhere near pre-GFC levels champ.
4. Spain/Greece still have crazy high unemployment levels.
5. QE hasn’t slowed down since it started (in total), it has actually increased.
6. BoE said recently “no more QE” essentially.
7. Bond yields look so distorted it is not funny.
Check out that Japan 10-year @ almost 0.525% now! That’s about a 20% drop in a few months

Need I go on???
Go back to sleep Shane

Commenter
Bye Bye Fiat Money

Location

Date and time

March 27, 2013, 12:32PM
- By point 6 I mean they’re really worried about the medium to long term implications for inflation (see the BoE’s revised inflation targeting of late).
  
  Commenter
  Bye Bye Fiat Money
  
  Location
  
  Date and time
  
  March 27, 2013, 12:41PM
- The only good point in those reviews is the idea that everyone moving to deleverage too quickly will collapse asset prices.
  
  Commenter
  Opinion Only
  
  Location
  
  Melbourne
  
  Date and time
  
  March 27, 2013, 2:47PM

@Slice of Heaven, you said things would turn around for COH near 65. Looks like the mad sell off is over .Well done.

Commenter
Jim

Location

Date and time

March 27, 2013, 12:21PM
- will hit $71 shortly. And then don’t be surprised that closer to next reporting season, it slowly but surely is back up to $80+. That’ will be a good time to take some profits
  
  Commenter
  lima
  
  Location
  
  Date and time
  
  March 27, 2013, 1:43PM

Can someone tell me what the hellminister Bourke is doing to delay a decision tree times in 4 months?

Commenter
bondiboy23

Location

Date and time

March 27, 2013, 12:15PM

Well the miners, especially iron ore, have dropped almost every day for the past month, about time they went up.

Commenter
craig

Location

Date and time

March 27, 2013, 12:14PM

- Call it a dead cat bounce, as the iron ore price is predicted to fall to less than $100 a tonne. Some of these smaller miners will struggle to survive
  
  Commenter
  kingly
  
  Location
  
  Oz
  
  Date and time
  
  March 27, 2013, 12:36PM
- so many predictions of a crash…
  
  so few with a detailed understanding of the applicable market forces
  
  steady decline far more likely… falling below 110 this year for any length of time – highly speculative
  
  Commenter
  A Bodhi Nuisance
  
  Location
  
  Date and time
  
  March 27, 2013, 1:31PM

“Europe’s financial crisis is costing lives…” It happens when you’re broke…… you cannot afford stuff…… I wish I could get free stuff forever, that would be great….

Commenter
Bye Bye Fiat Money

Location

Date and time

March 27, 2013, 11:52AM
- I would rephrase it “Europes living beyond its means is costing lives.” Spain, Italy, Greece and Cyprus plus a few others have been living the life of riley on the goverment purse for so long that they can not now see the truth that the rest of the world, providing endles loans, are sick of it. Grow up !.
  
  Commenter
  Realist
  
  Location
  
  Melb
  
  Date and time
  
  March 27, 2013, 12:14PM
- Europeans have been living well beyond their means for a long time and they’ve had a welfare state that their low birth rate can’t handle in the long run. Those countries don’t have any alternatives but to exit the Euro and devalue their currency, kill off whatever is left of their welfare state, set wage-levels through the market, have more children and work harder.
  
  Commenter
  Dr No
  
  Location
  
  Spring Hill
  
  Date and time
  
  March 27, 2013, 12:30PM
- /agreed
  
  If only they followed Paul Krugman’s advice and printed some…. that would solve their problems apparently. Then they could have their healthcare, and other free stuff…
  
  Commenter
  Bye Bye Fiat Money
  
  Location
  
  Date and time
  
  March 27, 2013, 12:35PM
- That may be true of Greece but is not the case with the others. Pre GFC the goverment debts of ireland and Spain were way down on what they had been but were blown up by the property bubble implosion that destroyed their banks.Their competitiveness had been undermined by the property boom but is now returning – the hard way. Cyprus is another Iceland – an oversized internatonal banking sector that blew up on taking risky bets on high yielding bonds.
  
  Commenter
  Facts Not Fiction
  
  Location
  
  Date and time
  
  March 27, 2013, 12:49PM
- Spanish banks are pulling the plug on thousands of builders kept alive during the past five years even as they built almost nothing, said Mikel Echavarren, chief executive officer of Irea, a Madrid-based consulting firm that has advised on 22 billion euros ($28.5 billion) of refinancing. The banks, forced by the government last year to set aside provisions for the developers, have no incentive to keep funding them.
  “Banks have taken the hit, so extend and pretend is over,” said Echavarren. “There’s no motivation to refinance companies that aren’t viable, have no liquidity or possibility of future earnings so we’ll see a tsunami of developer bankruptcies in the next two years
  http://www.bloomberg.com/news/2013-03-19/spanish-banks-cut-developers-as-zombies-dying-mortgages.html
  
  Commenter
  stuarth44
  
  Location
  
  Date and time
  
  March 27, 2013, 2:19PM

Good looks like COH has started moving in the right direction,

Commenter
keep it up

Location

Date and time

March 27, 2013, 11:50AM

Surely the australian stock market is the most overreactive in the world. Is it a cartel controlling and manipulating this market, and if so how does one become a member

Commenter
Thinking of trading overseas.

Location

Melb

Date and time

March 27, 2013, 11:13AM
- Hard to be a rational investor for sure…
  
  Commenter
  The Next Excuse
  
  Location
  
  Date and time
  
  March 27, 2013, 11:54AM
- When the mood turns even a little bit negative, overselling happens easily in this shallow market because a few players can have a massive influence. It can then turn into an uncontrollable avalanche as the small players bail. .
  
  Commenter
  Jim
  
  Location
  
  Date and time
  
  March 27, 2013, 12:32PM

“The stealing of what has already been stolen continues”,

Nice one Prime Minister Medvedev..

Could it be that President Putin turned down the request of help from Cyprus because of an unwillingness to hand over the list of Russian accounts?

Commenter
Catch 22

Location

Date and time

March 27, 2013, 10:26AM
- where is the article on Medvedev.?
  Putin was a bit slow there, I would have said, ok, give me a bay for a navel base
  I lived awhile in Rural Ru and it made my blood boil to see how poor the towns and villages are
  All stolen, from shipping lines to rail, to mines to mills
  Only thing the Oligarchs overlooked was the land
  And brother do they ever have farmland
  
  Commenter
  stuarth44
  
  Location
  
  stuarth44
  
  Date and time
  
  March 27, 2013, 11:19AM
- You know them much better than me but even I know they are great chess players.
  
  Commenter
  Catch 22
  
  Location
  
  Date and time
  
  March 27, 2013, 3:12PM

Not so bright for CBA. Good for shorters. See previous post re fmg short, closed at 3.95. Pollyannas please bid it up to $5. Again.

Commenter
Allan

Location

Prahran

Date and time

March 27, 2013, 10:19AM

Hands up who panicked and sold yesterday?

Commenter
alfa75

Location

Date and time

March 27, 2013, 10:11AM
- nope shovelled more into wbc and if I had MORE would do so today too
  Looked good today but flatter now, will move after lunch –up
  
  Commenter
  stuarth44
  
  Location
  
  Date and time
  
  March 27, 2013, 10:19AM
- Good move. Gez, volumes low today though?
  
  Commenter
  alfa75
  
  Location
  
  Date and time
  
  March 27, 2013, 10:26AM
- Alfa, I’ve 2 of you and am relying on the market to skyrocket so I can trade up to its big and faster brother before I die. I’m not sure what comes first.
  
  Commenter
  DHT
  
  Location
  
  Date and time
  
  March 27, 2013, 10:30AM
- DHT..what?
  
  Commenter
  alfa75
  
  Location
  
  Date and time
  
  March 27, 2013, 10:38AM