Indian output cooling ?

markiteconomics/India manufacturing PMI

The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector dropped to 52.9 in July from 55 in June. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline.

New orders grew at the weakest pace since November 2011, with new export orders falling for the first time since October 2011 hurt by the lingering global economic slowdown. Chief Economist of HSBC for India Mr. Eskesen said that orders decelerated faster than inventory accumulation, suggesting that the slowness in output expansion will continue in the months ahead.

In another sign of cooling economy, India's merchandise exports fell 5.45% to $25.07 billion in June from a year earlier, while imports slid 13.46% to $35.37 billion, according to provisional data issued by the Ministry of Commerce. 

A good article about limit of diversification

Mckinseyquarterly/Testing_the_limits_of_diversification

Economic Data Update

31 July, 2012 a data heavy day and in next couple of days we expect some more data which will play an influential role in guiding Fed  to take decision about QE III. 

1-Aug-12	ADP Employment Report (Jul)
1-Aug-12	Construction Expenditures (Jun)
1-Aug-12	FOMC Meeting (Day 2 of 2) Press Statement at 4:30 pm
1-Aug-12	FOMC Press Conference
1-Aug-12	Light Vehicle Sales (Jul)
1-Aug-12	Manufacturing ISM/Prices Paid (Jul)
1-Aug-12	Online Help Wanted (Jul)
2-Aug-12	Chain Store Sales (Jul)
2-Aug-12	Challenger Layoffs (Jul)
2-Aug-12	Factory Orders (Jun)
2-Aug-12	Jobless Claims (Jul 28)
3-Aug-12	Average Hourly Earnings (Jul)
3-Aug-12	Average Weekly Hours (Jul)
3-Aug-12	Nonfarm Payrolls (Jul)
3-Aug-12	Non-Manufacturing ISM (Jul)
3-Aug-12	Private Payrolls (Jul)
3-Aug-12	Unemployment Rate (Jul)

S&P Case Shiller Index


One of the data, Home prices, showed signs of stabilization in May. According to the S&P/Case-Shiller indexes, the composite 20-city home price index, a key gauge of U.S. home prices, was up 2.2% in May from the previous month and fell just 0.7% from a year earlier. Although prices continue to fall on an annual basis, the rate has slowed indicating that home prices may be close to posting year-over-year gains. Twelve of the 20 cities posted annual increases in May.

However, other data like Consumer spending and personal income were mixed.Consumer spending for June slid less than 0.1% compared with the prior month, the second consecutive fall. Incomes rose a healthy 0.5% last month. But instead of spending more, Americans saved more. The savings rate increased to 4.4%, the highest level in a year.

In another development, the pace of hiring in the U.S. manufacturing sector slowed in July even though overall economic activity picked up slightly during the month, a survey of Chicago-area purchasing managers revealed on Tuesday. The Institute for Supply Management-Chicago‘s business barometer rose to 53.7, from 52.9 in June. The index continued to rebound from a 2 1/2-year low of 52.7 in May. However, ISM-Chicago’s employment index dropped to 53.3 in July, down from 60.4 in June and the year’s high of 64.2 in February.

Fitch: RBI's Outlook Doesn't Raise Rating Risk

http://online.wsj.com/article/SB10000872396390444405804577560753433689104.html?mod=WSJINDIA_hpp_LEFTTopWhatNews

McKinsey: The four Cornerstones of Corporate Finance

http://www.mckinseyquarterly.com/Creating_value_An_interactive_tutorial_2698?pagenum=1#interactive

CDS Auctions

http://www.creditfixings.com/CreditEventAuctions/results.jsp?ticker=HTNMIF

http://www.creditfixings.com/CreditEventAuctions/results.jsp?ticker=GM-ResCLLC

Creditex  and Markit conducted a credit event auction to facilitate settlement of credit default swaps (CDS) trades on Houghton Mifflin Harcourt Publishing Co and Residential Cap LLC with final price for the auction settlement at 55.5 and 17.625 cent on a dollar.