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IDS World Markets Thurs 6th January 04


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Pretty much red across the planet yesterday and it continues today (so far)..

 

t?s=^AORD

 

Another dive on All Ords, currently -0.2%, but it seems the selling is weakening so it might be stand-by-for-bounce time, tomorrow if not today. The IT sector is zipping up today, +1.8% and Consumer Discretionary index doing the dive, -0.7%.

 

Golds flat to down, not much happening on there. Oils only down a smidge, -0.1%.

 

Asia still looking seedy, however the bullz might get it together later in the day:

 

t?s=^N225

 

t?s=^KS11

 

t?s=^TWII

 

t?s=^STI

 

t?s=^SSEC

 

t?s=^HSI

 

t?s=^BSESN

 

http://quote.yahoo.com/m2?u

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Argentina's Kirchner Asks Stores to Not Boost Prices

 

Jan. 5 (Bloomberg) -- Argentine President Nestor Kirchner urged the country's shopkeepers and company executives to keep their prices stable this year and said the government will act to control inflation.

 

Argentine consumer prices in December jumped 0.8 percent from the previous month, the biggest monthly increase since April and more than the 0.5 percent median estimate of four anal cysts surveyed by Bloomberg News.

 

-----------

 

Australian Dec. Services Index Rises to 2-Yr High

 

Jan. 6 (Bloomberg) -- Australian service industries expanded in December at the fastest pace in two years as demand increased at recreation, property and business services companies and retailers.

 

The performance of services index, which measures activity for retailers and other service companies, jumped 5.9 points to 65.4 in December...

 

--------------

 

S. Korea's Nov. Service Industries Output Falls

 

Jan. 6 (Bloomberg) -- South Korea's service industry production fell for a fifth month in November as a slowdown in consumer spending crimped sales at retailers and wholesalers, the National Statistical Office said.

 

Output declined 1.6 percent from a year earlier after falling a revised 1.8 percent in October, the statistical office said in a statement in Seoul. Revenue at wholesalers and retailers fell 1.7 percent, falling for a fifth month.

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w?s=^AORD

 

Nice try by the bullz but they didn't quite pull it off. All Ords closed -0.2% with things looking shaky by mid arvo followed by a plunge into close. In the sector indices we ended up with 5 green and 5 red and it was same as the am post, ie IT leading up, +2.1% and on the downside, Consumer Discretionary -0.9%. BHP managed to close up, +0.3% but RIO still wallowing, -0.6%.

 

In the golds, Lihir finished the day +0.9% but the other biggies still red. In the oils, Caltex took a tumble, -2.3% with minor losses on the others.

 

Ok on to Europe:

 

t?s=^FTSE

 

t?s=^GDAXI

 

t?s=^FCHI

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Debt? Not a problem

 

``In a world where household net worth is rising at a phenomenal pace, I don't understand all the hand-wringing over the low savings rate,'' says Ram Bhagavatula, chief economist for North America at The Royal Bank of Scotland in New York. Household net worth (assets minus liabilities) rose by almost $8 trillion in the two years ended in the third quarter of 2004, a 9.8 percent annualized increase.

 

``Why focus on one side of the balance sheet?'' Bhagavatula says. ``Assets are rising faster than debt.''

 

It really doesn't matter ``whether the consumer is saving out of current income or because his assets are going up in value,'' he says. ``It's an extension of the permanent income hypothesis. Permanent income is consistent with wealth.''

 

 

How permanent is "permanent"? :unsure:

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German November Retail Sales Fall

 

Jan. 6 (Bloomberg) -- German retail sales fell the most in six months in November as rising unemployment hampers a recovery in consumer spending in Europe's largest economy.

 

Sales fell 2.5 percent from October, when they rose 1 percent, the Federal Statistics Office in Wiesbaden said today. Economists had expected a drop of 0.2 percent, according to the median of 25 forecasts in a Bloomberg survey. From a year earlier, retail sales increased 0.1 percent.

 

Consumers haven't increased spending by more than 0.1 percent since the third quarter of 2002. The savings ratio has risen to 11.1 percent from 10.5 percent in the same period, and a survey by the Forsa polling institute published yesterday showed 63 percent of Germans want to save at least as much of their income this year as they did in 2004.

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Japan to Cut Port Costs

 

Jan. 6 (Bloomberg) -- Japan plans to cut fees at the nation's major container ports by as much as 40 percent to compete with Northeast Asian rivals.

 

The transport ministry aims to match moorage and handling fees in South Korea's Busan and Kaohsiung in Taiwan, which are between 30 percent and 40 percent lower than at Tokyo-Yokohama and other Japanese ports, said Hiroshi Ishihara, a government official at the ministry's Port and Harbor Bureau.

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Consumers Begin to Feel Inflation's Pinch

1/5/2005 6:02:00 PM

 

It's not a sharp pain yet, and some call it hardly noticeable. But with companies such as Procter & Gamble Co., Hershey Foods Corp. and Whirlpool Corp. passing along the higher prices they pay for raw materials to their customers, it's beginning to get attention from people who shop in grocery, appliance and department stores.

 

Other shoppers said they would do things like buy cheaper groceries and coffee, replace clothing or household items less frequently, and cut back on vacations, cable television and dining out.

 

"Wear it as far as you can, and pray that at Christmas time, everybody buys you clothing," Shaffer said.

 

For now, Sears, the country's biggest seller of home appliances, said it would pass along price increases to its customers, but would also watch closely for dropping commodity prices.

 

"I think we're treating it more as a passing situation," Sears spokesman Ted McDougal said.

 

Dow Chemical Co. this year began charging 19 percent more for its plastics, specialty chemicals and agriculture products, saying it was paying more for raw materials and energy.

 

The automobile industry is in a period of "profitless prosperity," said Neal Zipser, of the Motor & Equipment Manufacturers Association, whose members supply about two-thirds of the parts that make up a finished automobile.

 

"The volume is there," Zipser said, "but the probability is that nobody is making money on what they're selling."

 

http://www.marketwatch.com/news/newsfinder...4&property=sid&

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Someone thought that 990N had mebbee died and gone to "another " place.

 

Don't think so! Ole U-Rope goin' like a rat up a drainpipe.Nearly 1% up so far.

It's the currency circle-jerk don't ya know.Now the dollah is going back up all those profits that the European investors are going to be receiving from their US investments are going to keep rising--yeah right.

But when the dollah was tanking, were those expectations adjusted downward?--nope, not bloody likely cuz everyone knew that the dollah would be going back up and the market is always 6 months ahead of the curve--right!

 

Incidentally the Dutch CPB(Central Plan Bureau-- sounds Stalinist don't it) reported today that inflation in NL had reduced to 1.2% Y-o-y,the lowest level since 1989.Offsetting the rises in fuel prices were reductions in other areas like electronic components and home appliances. I suppose most people will be going to work on their home Hi-Fi systems in the future--commutin's a dream--soundblast me up Scottie!

post-568-1105008072_thumb.png

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Some useful info from me for a change!

 

Seems like the bonkers here are breaking out out of a year-long consolidation pattern upward.Yesterday Fortis and ABN Amro.The latter has gained 50 cents today on big volume(10 million before lunch is big)!

 

Maybe got something to do with short-term rates dropping recently while 10-year rates have been in a steady downtrend since June/July 03.

 

Chart ABN-Amro in ? --2nd chart

 

First chart is ABN but then in Dollahs--yikes lotta dosh been made since June.

Looking overcooked from here--but this is what da Boyz do.They fool da Punters into getting in at the top.Breakout fakeout stuff.Betcha all the volume today is selling by the mob movin' into something else.

 

Seems worthwhile watching these set-ups.Does the USD chart prevail or the ? chart?

post-568-1105008921_thumb.gif

post-568-1105009569_thumb.jpg

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Debt? Not a problem

 

``In a world where household net worth is rising at a phenomenal pace, I don't understand all the hand-wringing over the low savings rate,'' says Ram Bhagavatula, chief economist for North America at The Royal Bank of Scotland in New York. Household net worth (assets minus liabilities) rose by almost $8 trillion in the two years ended in the third quarter of 2004, a 9.8 percent annualized increase.

 

``Why focus on one side of the balance sheet?'' Bhagavatula says. ``Assets are rising faster than debt.''

 

It really doesn't matter ``whether the consumer is saving out of current income or because his assets are going up in value,'' he says. ``It's an extension of the permanent income hypothesis. Permanent income is consistent with wealth.''

 

 

How permanent is "permanent"?  :unsure:

 

Typical moronic mainstream economist ignores the fact that the increase in assets is a derivative of the leverage effect of the credit bubble. When the bubble deflates, asset values will deflate 5 to 10x because of that leverage. If your current asset value is 20% of the total value of the asset, when the total value of the asset drops 20%, you are left with...

 

ZEEE RO!

 

Morons. Every last goddam one of them.

 

Idiots. Pikers. Shitheads. Jerks. Schmucks and putzes. Assholes.

 

What more can I say. God, stuff like that pisses me off.

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