Sydney, I was half expecting the legal issues to come back. It was just too clean from what they reported about a quick simple billion 4 payment stretching 15 years, pardon the pun. On the bigger picture I was concern by the recent run on IOP not supported by fundamentals. My Yang of J Capital made some interesting observation in Tiki Fullerton slot last week when she observed that the rally in IOP and rebar were domestic punters speculating post Shangcomp bubble. Spec $ moved back to property speculating so that obviously had an effect on the commodity. I am expecting the sell off in the bug 3 to rotate back down to the support lows before making a come back. I have no idea when that will happen since the Vale 90MT has not hit the market yet. This could be another long slog for the IO boys struggling at low IOP. Incidentally FMG had made a second tranche of buying back their corporate bonds. That is an indication even Twiggy things the IOP is not sustainable!
As for AUD, and domestic gold players, that is sure good news as the AUD will underperform XAUUSD and most probably its cross counterparts to stoke some export growth. All we need now is to guess when the next rate cut will be? A new Central banker or is Steven in a big hurry to control that deflation. Coupled with this dilemma of stoking property bubble, I think ASIC has mitigated some of that risk by forcing banks to accept at least 20% deposit on property speculation. If any of that 4Corners sensation reporting is to be believed, then predatory lending is a disease that will be repeated with a generational break. Will it burst this time? Eventually they will run out of buyers but Turnbull is not helping with the budget and no mention of negative gearing reforms since it will hit Lib voters hard. This can all turn very bad very quickly looking for a trigger.
HaHa reading all these goldbug doom posts has influenced me!
