Bad, bleak, weak and worse

Thursday 13 November 2008 - Bad, bleak, weak and worse Presented by Paul Donovan + Equity markets continue to slide on economic concerns (an economist has to ask - how can the extent of the global recession still be a surprise to equity markets? Don't they read economic research?). The G20 looms. Best not to expect anything from it. + Corporate news continues to look bleak. Intel warned that revenues would be lower on lower demand for chips globally. Best Buy described their sales as suffering from a "seismic" shock. The forward looking micro level information is not good. + China's macro data indicated that domestic demand is weakening faster than international demand. Industrial production was weak. Some of this was electronics (export driven) but the principle cause was weak steel production and related power production. + German GDP for the third quarter is forecast negative (-0.1% qoq). Inflation figures from France and Italy are also likely to be relatively subdued. Slowing growth and moderating inflation amidst a credit crisis - anyone might think this was an opportunity for aggressive interest rate cuts.

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YouTube | November 13, 2008

Tags:. .seismic. .subdued. .bleak. .amidst. .gdp