Investment Chart Kondratiev Wave

Investment Chart Kondratiev Wave

Wednesday, 20 October 2010

Good News October 20

-Asian markets had no problems with the interest rate hike of 0.25% of China that caused clearly lower American markets. Chinese markets keep marching ahead.
-Access of Russia to the WTO is arriving in the not too distant future according to. Summers
-Guidance, sales expectations upward revised by PSA, BASF, so things don't go too badly in cyclical sectors like cars and chemicals
-Intel will invest $ 6 to $ 8 billion, not that bad for ASML.
-Posen (central bank of Engeland) wanted according to the minutes of the BOE 50 billion pound for QE2 in the UK; QE2 is now more likely in the UK.
-China doesn't want a currency war, it will make its currency more expensive now it has hiked its rate. The rise was not the usual Chinese 0,27% but the western 0,25%.
-Cisco and Oracle say in opinion part of of WSJ that when the US will allow again repatriation of foreign profits at 5% taxes about a trillion dollar can enter the US for investments etc.(and $50B extra tax revenues).
-Fear for inflation targeting is increasing on the bond market causing higher long rates (favourable for pension contributions levels).
-Opposition in Portugal seems to support big government deficit cuts (neceesary because there is a minority government in Portugal and this year the deficit is going down disappointingly (while it is going down more convincingly in Greece, Italy and Spain).
-Results and broker stories about Boeing, Merck, Pfizer, several materials and energy producers were splendid.
-Architecture Billings Index in the US for commercial real estate was up and is above 50 and is on the highets level since 2008.

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