2.NY Times: "Just to replace all the jobs lost in the recession and keep up with the population growth, the economy would have to add 275,000 jobs a month for the next five years."
3.K-Opinion: Both Indian and Chinese stock markets have hit new 3 year lows (a fall of about 40%). The Dow is holding at the 12000 mark, down only from 14200 in 2008. Could it be that the US is retaking the lead as the world's economic engine? As the emerging markets slow, it will be fascinating to see how the US markets react. Follow the money.
4. A side effect of the Asia-European slowdown is the weakness in commodity prices, except of course, oil, which is reacting to geopolitical factors.
5.FT: "It’s another milestone – an emerging economy overtakes a developed one in terms of GDP. Earlier this year it was China overtaking Japan. This time, Brazil has moved ahead of the UK as the 6th biggest economy in the world. The question is: who’s next? And does it matter?" So who is next? Well, Russia and India are set to move up from 9th and 10th respectively, with Italy at 8th in their sights. The CEBR predicts that by 2020, the four Brics will be the 2nd (China), 4th (Russia), 5th (India) and 6th (Brazil) largest economies, with only the US (1st) and Japan (3rd) ahead. Does it matter? Nope. Just another forecast.
6.The creation of a US Rare Earth strategic reserve is more likely to get the go-ahead after China's largest exporter halted production, two congressional sources told dealReporter. Such a move would create another source of demand for the metals, likely aiding a rebirth of the US Rare Earth industry, said two company executives and a company spokesperson. KISS: Rare Earth mining companies appear to be at the lower end of their cycle.
7.China has again outshone the U.S. as the top venue for initial public offerings despite steep share price falls on the mainland and Hong Kong stock markets, highlighting the shift in global financial activity from west to east Companies raised $73 billion from IPOs in Shanghai, Shenzhen and Hong Kong this year, according to Dealogic — almost double the amount of money raised on the New York Stock Exchange and Nasdaq combined. KISS: The interesting thing about these figures is that the Shanghai Stock Market had one of its worst years ever. Possibly because of an oversupply of equity via these IPO's. Simple supply and demand.
8.FT: US generals measure the war in Afghanistan by numbers, seeking to distil a messy conflict into neat graphs of troop levels, roadside bombings and suicide attacks. To gauge hopes for the country’s future, they might consider a new indicator: sales of Red Bull.
On the one hand, surging imports of the straw-coloured energy drink – now a staple at wedding parties thrown by the Kabul elite – are emblematic of Afghanistan’s galloping economy. They also signal danger: the booming business of war has fed a rise in consumption without fostering enough of the private investment needed to underpin more durable growth. KISS: This paints a bizarre picture of the Afghanistan situation. Elitist wedding parties, suicide bombers and Red bull.
KISS Market Summary: The DOW is still at the top of its trading range. Actually about 200 points above, however volume still on the low side. Most breakouts are accompanied by higher volumes. So in spite of better employment figures, the market is still hesitating. Possibly slow GDP and rising debt is putting a damper on the party. On the positive side, the markets are not showing any signs of panic with regards to the slowdown in Europe and Asia. GOLD and OIL would be a lot more volatile if the money suspected that the chest-beating out of Iran was serious. DR COPPER is stable at $3.40. So folks, as we move into 2012, its business as usual.
You cannot help the brotherhood of man by encouraging class hatred - Abraham Lincoln
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