Views, Indicators, Opinions, Economy, Updates!

Woh! and more in the pipe line… will it be the last the QRT of decline in GDP for USA?

US 2nd QRT is out in the open. They contacted at slower pace in the 2nd QRT. This is owing to improved consumer and business spending according to Commerce Department's final estimate at 1% decline. US GDP may be -1.2% compared to 1st QRT of -6.4%. Prior to this posting the jobless rate for September 2009 has increased a bit but is still way below January 2009 figures. This is a good sign as it is not trending above the 10% mark.

Hey people found out the reason why S Korea stock market does not decline each time regional markets drops. New listings in IPOs were the reason after the global financial crisis. Kopsi index is up almost 50% since Jan'09. Many companies are new seeking list after a 2 year break since the global financial crisis started

They have listing for this week to raise funds:-

(i) Posco Engineering & Construction US912 million

(ii) Tong Yang Life Insurance US319 million

(iii) Soju US549 million.

There will be more listing to come after all the cash build up. China too is seeing lots of listing lately, also as most Asian companies is doing too. can you imagine what will happen if mainland China stocks are electronically traded in Hong Kong?

On hinge side, some economists are predicting that there may be a “L” recovery once the effects of all the stimulus packages effects tapper off. Any way the juries are still out and let’s stay with statistics that are still coming out - good reports people.

Here they are folks;

(i) Germany consumer confidence index rose in Sept.’09 to its highest level in 3 years on improved factory orders and exports.

(ii) US jobless rate is still below the 10% mark, at -263K in Sept. ’09 as compared to -741K in Jan. ’09.

WELL people let’s be on the lookout for more reports confirming the recovery of economies.

As we wait for those reports, don’t look back while waiting on the side lines as Asia power on in its recovery thus leading Europe and US too. It will be painfully stupid to expect others wise, yes Asia will lead the global recovery.

Till then and if you do have another view which is supported by facts and statistics post your comments.

Tj