Days after China reported some moderation in its April mfr’g indices following tightening steps taken by the PBOC, the Reserve Bank of India stepped up its pace of rate hikes as both their repo and reverse repo rate were hiked by 50 bps vs expectations of 25 bps. In response, the Sensex index fell 2.4% to a 6 week low. The hope of course is that both countries, the two fastest in the world, can achieve a reversal in inflation that both are fighting while at the same time only see a modest slowdown in economic growth. While the long term secular reflation trade/emerging growth commodity story remains firmly in place, the long term bull I’ve been on it has to acknowledge these events and the recent short term toppy action in the group, especially as we approach the end of QE2. The RBAustralia left rates unchanged as expected at 4.75%. April mfr’g PMI in the UK fell to a 7 month low and the pound is sharply lower in response as data like this doesn’t point to any soon to be rate hike from the BoE.
> If history is any guide, the S&P 500 Index is heading for new highs early next year. That is according to Thomas J. Lee, the chief U.S. equity strategist for JPMorgan (via Bloomberg’s Chart of the Day). Lee looked at the 10 worst bear markets since the 1920s, and found that the median downturn…Read More
Very cool to see how the traffic surged on the announcement of OBL’s death, from Twitter’s Global PR (Tweeted, of course). The Tweet saturation was the highest Twitter ever recorded, at a sustained rate averaging 3,000 per second. The below chart shows the traffic from 9:30pm to 12:30am EST. > flickr via FlowingData
President Obama announced tonight that U.S. special forces killed Osama Bin Laden. That’s great … but we could have killed him years ago. As I noted in 2009: According to the U.S. Senate – Bin Laden was “within the grasp” of the U.S. military in Afghanistan in December 2001, but that then-secretary of defense Rumsfeld…Read More
Excellent set of charts and analysis from the Pew Fiscal Analysis Initiative breaking down the sources of the deficit: The U.S. will likely owe $10.4 trillion this year, its largest debt relative to the economy since 1950. However, the Congressional Budget Office (CBO) projected in 2001 that the federal government would erase its debt in…Read More
Designing from the Inside-Out: Behaviour as the Engine of Product Design View more presentations from Dan Saffer
Category: Think Tank