Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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"I've been investing 40 years yet I still learned new concepts; one of the finest young commentators" - Michael Yardney, Amazon #1 bestseller.

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Thursday, 19 March 2015

Proteas through...

All too easy for South Africa in Sydney yesterday as they eased through to the semi-finals.

Farwell to Kumar Sangakara, a freakishly talented player for Sri Lanka over nearly two decades.


After a quiet couple of days, an interesting data release today being the Detailed Labour Force figures for February.

These figures attract very little attention from the media but are important in trying to understand what is happening in the economy at the local level.

The previous round of data which I analysed in more detail here showed that unemployment has been rising alarmingly in some regions of Australia.

There are some huge variances by region, however, so it is vital to drill in to the data at that level.

Some of the regions which we are expecting to see as the worst hit are coal mining regions in central Queensland.

It's not going to be a great time for those operating in the bulk commodities sector, particularly for marginal producers

The iron ore price was walloped by overnight by another $3.10 to just US$54.50/tonne, while the prices of both thermal coal and coking coal have tumbled to post financial crisis lows.

Lord knows what will happen to the Fortescue Metals Group (FMG) share price today, but it certainly won't be pretty.

As I looked at last year here, the capital structure of FMG when the share price was ~$3.00 was a potential disaster waiting to happen, and it likely won't be long before we see the share price at half that level.

More on the Labour Force figures later...