In Australia, Wayne Swan and the Labor Government handed down their 5th budget last month and presto just like magic projected a surplus of $1.5 billion for 2012-2013.

Market volatility has returned as concerns about Europe have re-emerged. Elections in France indicating a shift towards socialism and no clear Greek results to their election have reignited fears about European debt. Fears about Spain have increased as Spanish bonds yields have topped 6%. Added to this is the mixed economic data coming out of the US.

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