Good Morning, a fabulous weekend with a Bonfire Bonanza which has no doubt upset all those dislike bangs and the festivities.
China October trade data shows signs of manipulation, hot money inflows - state newspaper. So it appears there's a difference between what China states is exported against what Hong Kong said it imported. Is there a common theme where covenants and capital controls are likely to be tested in due course with financial stress being felt across sectors. Will this only relate to Hong Kong is the question. Now you don't suppose the Chinese have a similar issue with their exports and invoicing as what they did with the copper and all other commodities that caused panic visits to various bonded warehouses.
Additional reading on GS today, who's flogged their stake in ICBC, Goldman exits China's ICBC (Industrial and Commercial Bank of China). It looks like GS may be calling the top of the Chinese banking market. Clever management of their holdings?
Now as if by magic, Cairn Energy (CNE) today announce their Second oil discovery offshore Senegal, which they consider significant. There's gossip about the significance of the similarities between SNE-1 well (24km's away) and the FAN-1, for which being far from qualified in oil, I'll leave to gossip at the moment. The question is when will the Australian contingent sober up!
Serco's Strategy Review including the Contract & Balance Sheet Reviews; capital structure and funding; latest trading and outlook does not bode well for the stock, expect some punishment on the market today! Serco (SRP) had recovered of late, with a good run which without a doubt will be eroded today and then some! With a fully underwritten rights issue on the way, expect some tears from those holding long for hope. The question of why the rights issue is delayed...to evaluate the audited accounts? Give over...
Limited time to cover Lonmin's results with management contradicting the outlook, Gold (which spiked massively on jobs numbers the trade) and Uranium now Kyushu Electric Power Co. to reopen as soon as early next year, With 48 reactors sitting idle and limited options, what other choices do Japan have? Perhaps the Abe and Xi were discussing power issues...I doubt it!
Atb Fraser
Fraser- Nice call re drunken Aussies (FAR)- I would assume drunk is the default position with Aussies, but apparently some stay sober for days on end... the news was significant and so thanks- FAR up 36% and a 12% pop for CNE early doors. Malcy predicted a 35m column of net oil and it was 36m-- looks like a few knew about this one. :-)) I bought on Friday and will hold due to the similarities between the two drill results, which suggests a link to me and the mkt too.
ReplyDeleteRe China- the overnight pop in the Hang Seng is linked to the opening of the Shanghai mkt to HK investors directly- this is major news and will support the Chinese stocks which are much more volatile than their HK equivalents. Perhaps as you say and GS indicate, a sell signal.
Yes- nice moves re uranium stocks re Japanese reactor reopenings. The spot price has been moving up gradually for a month or so and the indications are good here, albeit the number of false dawns has outnumbered my fingers and my toes now :-))
Cheers. The Leggie