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Same, same but different.

We will cover the bigger issues shortly but I note NAB must have read our blog on Credit Cards recently.  They have introduced a nil interest rate card (beware the small print, but that is their headline)

Our article..  https://www.incognitomarkets.com/thieving-bastards/ looked at what is seen as the exorbitant rates on credit cards.

I’m thinking NAB are trying to counter the impacts that are starting to be felt from the After-Pay sector.

The UK economy does not get a lot of focus here in the Antipodes, but their relationship with the EU is tracking closely to how the western world is going with China…very poorly.

Thus an early introduction for the song of the week.  A few years old now, but a cracker.

Boris has claimed he may only abide by the decisions of the court that he agrees with.

Ursula von der Leyen, president of the European Commission, responded as we all would….”Pacta sunt servanda”.

The Latin phrase means “agreements must be kept” and as is a basic principle of international law.  Not sure how the end game will play out, but watch this space,  The euro will play on regardless – and in fact has gained some strength in recent day as economic signs of recovery emerge.  The GBP though may see some more volatility as this unfolds.

China seem to be accelerating their attack on just about everybody.  Whilst Trump may have kicked off the media sideshow, Australia are now well and truly on their radar.  The rapid evacuation of the last two Aussie journalists from China this week has seen me solidify my view.  Originally I thought we should have kept our heads down and just “play on”.  But like a bully in the schoolyard at lunchtime, China is actively looking to pick a fight with all and anyone.  Question is…do we have a can opener?

You may remember they have launched a protest against the Australian wine industry re dumping.  Interesting little snippet there, China have 875,000 hectares of vineyards, compared to the combined 146,000 hectares in Australia.  They have a massive population yes, but I had no idea they had 6 times as many grapes on the vine.

Closer to home Wetpatches Consumer sentiment survey was out yesterday.  It remains in overall negative territory, but jumped 18% in September from August, when it dropped 9.5%.  Victoria seem to be getting on top of their virus breakout, which appears to be helping.  I did like the wag that indicated a “road map” that shows you how to stay at home, is not much of a road-map.

Drinking this week has been regular but largely unspectacular. Peroni Red still my current favorite thirst quencher, whilst unusually I have gone down the white wine track. Unlike this blog (cheap and rough around the edges), this one costs a bit.  It is also smoother than Trump at a Republican rally.  Best to have with hot white meat, or a first date.

 

AUD levels pretty much unchanged week on week – marginally lower since we called it up last week.  At .7270 we go again….slight bent towards the upside.

Short end rates remain low, whilst longer term yields seem to be ever so slowly grinding higher, but without any real conviction.

Commodities are jumpy and oil is volatile, both in substance and price.  Chart below shows the impact on prices in Feb/March as the virus played out, then a steady recovery… until recent days. The market is thinking demand may take longer to ramp back up than the Jun-August rally initially suggested.

 

 

Equities bounced back strongly in the US after a nasty sell off.  We had the sell off but not the bounce.  An unfortunate but now too regular occurrence.  May need to source cheaper wines.

Not much on the economic release radar next few days.

RT U OK day – an important day for us all.  Make that call you have been thinking about for awhile.

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Cheers

BS