Thursday, October 13, 2011

Morning Journal 10/12/11


News on Stocks in Our Portfolios

Pepsico reported third quarter earnings per share of $1.31 versus expectations of $1.29.

Economics

This Week’s Data


Weekly jobless claims were up 3,000 versus expectations of up 4,000.

The US August trade deficit came in at $45.6 billion versus estimates of $45.9 billion.


Other

China lowers the valuation of the yuan in response to the senate’s passage of the China currency manipulation bill (short):
http://www.zerohedge.com/news/pboc-launches-day-two-currency-cold-war-offensive

The Pulse of Commerce index supports the recent ECRI recession call; but it does not square with the trucking tonnage data. One of these two indicators will have to reverse sooner or later:
http://advisorperspectives.com/dshort/updates/Pulse-of-Commerce-Index.php

Politics

Domestic


Rich Lowery on not being a politician (medium):
http://www.nationalreview.com/articles/279706/businessman-canard-rich-lowry

Why running massive budget deficits won’t help the private sector ‘deleverage’ (medium):
http://www.nakedcapitalism.com/2011/10/will-internal-devaluation-work.html

Nor improve the prospects for economic growth (medium):
http://pragcap.com/more-unfortunate-math-behind-our-economic-plight

International

What Ireland and Iceland taught us (short):
http://www.zerohedge.com/news/banks-credit-events-and-sovereign-cds

A new bogey man (medium):
http://www.zerohedge.com/news/guest-post-new-boogeyman-america