The Banking and Strategy Initiative

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It’s Monday Again: A market holiday in the USA, and increasing Auto sales continue to drive


Thursday (Photo credit: bob8son)

..citizens out of the cities. Case Schiller did report the lowest price increases in New York this month and probably Boston as well as Arizona and San Diego continue to catch up on home prices. Auto sales are going to be higher by 10% for Ford and even as the Monday Holiday means a supercrunch of Data for Thursday, China would again put a foot in the door, reporting its monthly SAIC auto sales ( GM company) a day ahead of US Auto Sales reports.

The UK and the Euro zone in the meantime are more disappointed for having recovered and honestly, the $130 Bln that Vodafone is recovering for 45% of Verizon is halving the company’s revenues and starting it afresh on ambitions in Europe and across the pond before returning money to shareholders. Gareth Bale from the Tottenham Spurs in the meantime got his British Club the same amount for a year of holidaying in Madrid. The French PMI is still below 50

UK PMIs were 58 today , an almost unheard high for the islands and US Manufacturing data from ISM follows after the weekend tomorrow expecting like India to show a little weak even as Europe corners all the glory this month for Germany’s run ahead improvement in manufacturing and another round of revised positive GDP on Thursday. The US Auto Sales data day after tomorrow also show oyota bleeding in the US market in August again, revenues down 5% according to estimates

Factory Orders come out on Thursday while PMI, ISM for Manufacturing and Construction services data are out tomorrow. European Markets led by the FTSE are meanwhile trading higher while the lions of Wall Street enjoy the holiday on the data led joyousness with a lot of Bank auctions including Germany, France and Spain planned mid week and the currency holding 1.33 and the Pound stuck at 85 to the Euro despite th great performance, on matching performance and technicals. That just heightens or pont that the Euro could yet end up the currency market schmoo in the post crisis facade, kept up by non existent fundamentals and safe haven buys into a permanent non growth depression situation for the 17 nation tag team

Holiday shopping season has likely begun in earnest even as Oil and Gold finally turn the bend ready to fall into the lukewarm cofort of ‘no fighting zone’ trade. The condemned Iranian Oil it seems , could reduce the bill for India by $8.5 Bln, two welcome thoughts for US investors looking or their Fied Income exit to mean something. Also those with cream pie stuck in China’s shadow banking enhanced muddle have reason to cheer as the Flash reports everyone waits for show then making a positive increase in production in August and that means more exporter hubris of the monotonic upward direction variety from Europe, US and Asia.

The Jobs report on Friday will yield a 7.4% unemployment number, as Bernanke chairs th first of his last 2-3 meetings of the FOMC in two weeks. Services PMI data from Europe (Wednesday)  and USA (Thursday) complete the chalkboard data required to scribble up the new growth story . The trade deficit has taken a back seat in the USA too and with the price of Oil down, driving could be back too, not just the change of wheels phenomena seen now after more than three years

The find of the Holiday may well be the Electric Car, the one specifically from Tesla Motor though I would not believe in the hyperloop between San Francisco and San Diego/LA. In Asia, the currency moves should have seen monetary sanity returning to Singapore but likely Chinese investors returning to China should start the same time with China back int he growth charts in four months and warehouses presumably corrected for overpositions.

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This entry was posted on September 2, 2013 by in Financial Markets and tagged , , , , , , , .


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