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US Morning Report: ECB, China, Earnings all spell Doom and Gloom!

CHARLOTTE, NC - FEBRUARY 4: The Bank of Americ...

CHARLOTTE, NC – FEBRUARY 4: The Bank of America headquarters is reflected in the windows of the Bank of America Plaza building on February 4, 2010 in Charlotte, North Carolina. Bank of America’s former Chief Executive Officer Ken Lewis and former Chief Financial Officer Joe Price have been charged with securities fraud by the New York attorney general. (Image credit: Getty Images via @daylife)

Of course Marc Faber left the shores to invest internationally long ago as a true capitalist, bu t US Market look to a glum week as more than one or two hints have already been dropped for a good shapely bottom on the US indices before any further rally starts in US equities. Monday’s China reports underline China as a source of stimulus and safely ensconced in more $30 B swaps with trading partners to increase trade contribution in Yuan already 15% in 2011. Reports also confirm that is is time for European markets to forget the Euro struggles and focus on its producers listed on the countries’ exchanges and that Euro Stoxx might rise in the coming melee larger than the US DJIA or NASDAQ 100. S&P traded 1350 on Friday and NaSDAQ 2928 and both trade a further 0.5% don before the open.

Alcoa does not even count even as it reports earnings after two years of falling Aluminium and faollowing closely are other non services busineses like Caterpillar and Coke , the latter likely to give cause for another jump in the throbbling retail lifestyle heart of US companies and retail

JP Morgan will likely show up in a close shave and Apple and bofA will provide a punch, long awaited in the latter case, as Earnings are set to grow another 10-15% in the June quarter. Better marks from Disney and as last week’s media run showed, Netflix will keep investors a little interested with Amazon providing another punch before Q2 earnings season gets over on smaller reports from Linked In, Facebook and Zynga

Across the pond, Barclays continues to look for a new leader  and both Barclays and Deutsche Bank struggle with the impression they ill become second tier in the local races as legal action against Deutsche bank is also likely from criminal investigations initiated by the Bundesbank. The LIBOR saga is expected to last longer

Meanwhile Euro as a currency could be giving way to the Pound as the long innings in restructuring gets on and Germans slam plans for it becoming the beast of burden for the Euro sweepstakes. The Pound has been a reserve currency globally till the period leading to the Second World War

Mario Draghi in the mean time was man enough to let the European Parliament read on its own the chasm between expectations and reality washing his hands off the problems in Europe apart from the remaining inflation control and leading others to consider a more active rule for the Union’s other ministers.

 

 

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