Tuesday, January 21, 2014

Saved by the Bell ( (RBA minutes, SKC, REA, utilities,insurance sector Spt Q, resources.)

http://bitly.com/1cznFKH
Saved by the Bell ( (RBA minutes, SKC, REA, utilities,insurance sector Spt Q, resources.)

Good morning Some Observations. US - Stocks in the US were broadly unchanged as expectations for a start to tapering at the FOMC meeting, which commences today, rose to about 34% from 17%...according to a survey from Bloomberg. CPI data in the US was released overnight and showed an unchanged reading. The prior outcome was -0.1% and the YoY outcome now 1.2% and up from 1%. Also a measure the Homebuilder Index rose to 58 from 54 and the US current account deficit declined to the lowest level in four years as US exports increased in November . The positive outlook for a Senate budget deal sent stocks lower as it is considered another reason for an early start to tapering by the FOMC China - As is regularly the case in Chinese cash markets, short term borrowing costs surged yesterday as Banks speculated on the need for year-end reserve requirements. The pattern is to hoard cash and not lend into the equivalent of inter-bank markets. Shibor one month loans climbed to 6.24% and up 68 basis points yesterday. Europe - Inflation data in the UK unexpectedly slowed in November to 2.1% from 2.2% was close to the BoE target rate. Chancellor Angela Merkel took charge for a third term, after forming a coalition with the defeated Social Democratic Party. In two days European Union leaders will meet in Brussels to hammer out measures to strengthen banks. The Daily- According to UBS, the RBA minutes reflect a whisker of optimism. SKC- SKC has provided a trading update for 1H14. The net-impact to AUD EPS is -2.7%, 0.7% and 1.0% in FY14, FY15 and FY16 respectively. REA- The CEO resigns- maintain neutral. A UBS report on APA / ENV- maintenance of neutral stance. A UBS report on the insurance sector for the Sept Q. And resources at spot and long term prices. Have a pleasant day Regards Alastair.

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