Under Pressure as Global Markets Outperform... | Can a Falling AUD Revive Growth? | US Housing Starts - Strong |

Good Morning, It certainly has been a tough two weeks (ASX-8%), once again, under performing its global peers… The Australian reporting season has been nothing short but “average”, with little headline growth, outlooks “grim” and capital management that has largely disappointed… As we’ve been noting over the past few weeks, Australia is in a “perfect storm”, along with other emerging markets (Canada, South Africa, Mexico, Brazil), as weak commodity & energy prices, put a large “dent” in the federal budget… Consumer confidence & business confidence are still lagging behind and if it wasn’t for our friends in Asia supporting the housing sector, we would be in a deeper black hole… So where to from here? We hope that a falling AUD can boost export growth, as this will be the main catalyst to drive our economy higher. Last night, US stocks fell as concern over slowing growth in China and other developing nations amid a deepening commodities sell off overshadowed improvements in America's housing market. Hopefully some buying will return in the banks... we need it... SPI up 12