Fri Sept 3 2010 – Weekly Recap & The Week Ahead
Stock prices tend to discount what has been unanimously reported by the mass media — L. Ehrenkrantz
1. IMF rolls out precautionary credit line — the goal is to provide these countries with financial help before they reach a crisis point. The IMF is creating a new credit line that is expected to serve as a precautionary “insurance policy” for developing countries with sound fundamentals that may not meet the more stringent requirements of the IMF’s 2009 flexible credit line.
2. India’s economy rockets ahead — India’s economy expanded at the fastest pace in over two years, growing 8.8% in Q2 from a year earlier.
3. Factories’ Strength In U.S. And China Reassures Investors — U.S. manufacturing growth unexpectedly accelerated in August and the jobs gauge hit a 26-year high, an industry report said Wednesday, complementing bullish data from Asia that bode well for the global economic recovery.
4. Retail Sales — Retailers rang up solid August sales Thursday, beating views for the first time since March as deep discounts spurred shoppers to step up back-to-school buying.
5. Rare glimpse into China’s forex reserves — A report in the China Securities Journal, an official newspaper, cited unnamed reserve managers who said the holdings are the largest stockpile in the world at $2.45T, roughly in line with global averages. 65% allocated to dollars, 26% to euros, 5% to pounds and 3% to yen.
6. Russia Wheat ban extended, fears of a global food crisis — Russian Prime Minister Putin extended his country’s grain-export ban through at least Nov. 2011, after announcing last month that Russia would suspend grain exports until the end of this year.
7. Gov’t Income Supports Surging — A record 30 cents of every dollar in personal income comes directly from government, Commerce Department data show.
Economic Calendar for next week:
1. 9/8 — Beige Book and July Consumer Installment Credit;
2. 9/9 — trade deficit;
3. 9/10 — July wholesale;
Embedded is an interesting Video from WealthTrack — Bruce Berkowitz, portfolio manager of the Fairholme Fund (best Domestic Stock Fund Manager of the Year in 2009)