The Banking and Strategy Initiative

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US Morning Report: All’s not hunky dory but then, we have barely begun!

South Korea's Formula 1 Track @ Dawn

South Korea’s Formula 1 Track @ Dawn (Photo credit: k.kazantzoglou Life is full of surprises!!! :))

All Economic Data is not bad, in fact some  even “beat expectations”

Data is anemic at best confirming everyone’s worst fears for May and June. PMI for the month for manufacturing ticked down to 52.5 as expected, led down by the lowest new orders data. Chinese PMI does not help at 48.2. South Korea is also now in contracting zone at 49.3, below 50 for the first time among the emerging makrkets ex China group. Japan was subdued in production in June and technically, Australia is also undergoing deflation on month by 0.2% despite hefty rate cuts from march. The AUD manufact5uring index was hoit below 50 but is a notch above 42 for may at 47

French and German manufacturing PMI at 45 was a hell saver yet in deep contraction territory, Italian unemployment above 10% and UK manufacturing Index ticked up but stayed wel l in contraction territory  at 48.6. South Africa finally caught the flu too, reporting its first contraction zone PMI at 48 and the Euro (un)employment rate sticky at 11.1%. French improvements were duly rewarded after the new EUR 120 Bln growth pact with good demand for BTFs (Treasury Bills)

ISM and Construction spendding data is in soon after opening.

Howerver, Markets continue the celebration after Europe was just flat on the news and DJIA holds at 12,800. Later data from Brazil, Korea and Aussie will likely be ignored

More Regulatory Fallout 

Banks get ready for more pain , as Barclays first out of the gate in the Liborgate settlement erby asked chairman marcus Agius to resign. Bob Diamond is as of now as likely to follow. Mike Rake from their auditor KPMG was appointed Dy Chairman

Europeans in the meantime look to see more of Mario Draghi as ECB may soon be asked to fill in the shoes of a Superregulator, taking Banking union to real paper between the 17 nations whose currency has yet survived, giving markets aa cause to cheer in the week

Meanwhile Diamond follows his namesake in his shoes as he steps into the bvritish Parliament to “testify”

Tomorrow’s Car sales data may also provide some real relief, a little texture to the American recovery and more monthly data from around the world including UK housing sales data (Construction, Consumer credit, Mortgage approvals, Mortgage lending) Smaller deals have started pushing the deal economy even as more uncertainty surrounds yet to be completed deals like Glencore Xstrata and movies like the Amaing Spiderman continue to collect Box Office Collection Oscars, for probably the sixth time since 2010 as Asia’s markets also step up to welcome first screenings


Indian and Indonesian Trade Data and PMI reported improvements yet exports remain challenged except in countries like Malaysia and Thailand, near neighbours of the growth leaders










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This entry was posted on July 2, 2012 by in Amitonomics, CRR, US and tagged , , , , , , , .


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