Chillin' out till it needs to be funded
With arguments being heard exactly a week later from now, the Healthcare battle will leave a deep scar on the Obama campaign deeper than the Santorum – romney battles as Obama sturuggles with a spike in popularity ratings refusing to become his eterbnal lead . As of now the work man Santorum and the Logical romney have split the potential population of fence sitters between them with the constant debates and the public face offs being worth more press than a whitehouse media blitz. Though Obama hangs on to an early lead, jumpin gin front 20 pointas ahead of Romney, that can easily become breakeven for Mitt Romney as most people are now familiar witth the persona and probably do not mind having him a s President.
This campaign is not a passionate one though and I mean for all candidates, and the global nature of the crisis overshadowed by Oil, reform overshadowed by a gridlocked Congress which will generate another blitz of negative votes for the incumbent. Still, none of these seem to matter right now and we rush in to where fools fear to tread, predicating a decision ( in the wont of counting chickens or is it cheap chicken web ends? ) favoring the reelection campaign and looking for gains from that political stability. Wall Street though, for a change thinks otherwise, with Goldman Sachs and others backing the GOP campaign wondering if the ivy leage MidWest background of Romney isn’t worth a few dollars more.
India’s CPI inflation scare for February 2012 is an example of how Asia might react with Oil treading higher and China’s agreements with Saudi notwithstanding a production economy that was stalled earlier may probably face a challenge in reproducing 2012 growth as Chinese banks get ready to report the 2011 bonanza this week and new Capital and liquidity rules tread lightly from the supervisor so at least Services growth should guarantee the Chinese Economy’s return to growth. but even in India its more about the growth mechanics than the case for perennial shortages and political instability as a weak budget lets on, and China is wel l place with a 3% inflation and the Flash PMI tomorrow likely north of 50.
Germany in the meantime is slowing down on its strongest side of the field, unable to grow the Capital Goods sector on weaker exports though trade has held up well for most other sectors and PPI is still a high 3.2% on a Y/Y basis. the British CPI (update herE) in an hour from now
Mining and Services strength ( from the RBA minutes) keep the Aussies chugging along and less the risks to the downside. Banks in Australia under the RBS and other European umbrella / ownership were easier to sell off than other parts of Asia probably because of the Commonwealth history they share with the Queen’s England but it will be a surprise if the Chinese reliant Australians get hurt further by a squeeze in Europe.
this week, not much clarity yet, Housing data