Chillin' out till it needs to be funded
Even as Nat Gas below $2 continued to find a final bottom and EIA inventories remained stable, China’s reports for a low Q1 GDP came in at 8.1% below the flash estimate of 8.4%. however the number ‘s blow was softened by the maintaining of retail sales growth at 15.2% and Industrial production data at above 11.9% on a Y/Y comparison
Meanwhile, US Balance sheet remained static not shrinking further as the decline in Central Bank Liquidity swaps by $14 bln was matched by an increase in Treasury holdings by $11.7 bln. FC assets also increased $3.2 bln
Reserve Bank credit in the Fed also remained the same as Money Supply increased comfortably by $21.9 bln in the week. The $181 bln in exports beget a $225 bln in imports in Feb 2012. Surpluses remained with Hongkong, singapore and korea while the deficit with China reduced by $7 bln to $19 bln. The Non petroleum goods deficit was down to $33 bln, Petroleum deficit $28 bln while the Services surplus was $15.4 bln
Markets shrugged off most morning reports and jumped northward on bank earnings starting tomorrow even as GDP in FAr East singapore came beating the expectations of 6.3% to 9.9% in the first quarter. the ongoing jump in retail sales in China is the most interesting to those investing in China as that signifies policy success in increasing domestic consumption even as Cars face new Luxury taxes on imports.
Google profits jumped 60% in Q1 even as value per click nosedived 12% on increasing ad volumes and search business growth. The two for one stock split for a new non voting share in each portfolio also helped the stock keep its momentum as profits turned up above $10 per share