Ann: ACCC Draft Decision on Delta Joint Venture , page-12

re: Ann: ACCC Draft Decision on Delta Joint V... Good news for VBA. As i said yesterday VBA is highly leveraged to the economic recovery. Today the RBA gave us some insight into the economic recovery and it was great news. I'll quote directly from the statement on monetary polcy:

"these outcomes (their talking about recent economic data and market news) are better than those thought likely earlier in the year and forecasts for global growth have been REVISED UP, with growth in Australian trading partners expected to be close to trend in 2010. The large downside risks that were evident 6 months ago have also diminished."

In a nutshell the RBA now expects global growth to be a little above 2% in 2010 and 3% in 2011. They see it even stronger for our trading partners. They've also revised up domestic growth to 2.25% in 2010 and 3.25% 2011.

My take on this is that the strength in the economic recovery continues to surprise on the upside. Unless management stuff it up VBA will ride these stronger growth forecasts higher. The dollar and market have moved higher on this news and the rally in the US overnight. As I said last night, VBA is a great story and is still cheap, I'm very comfortable with my position.