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Great Graphic: Brazil Giving Up Another Goal?

July 11, 2014
Many Brazilians are loath to see their rival Argentina win the World Cup at the Maracana on Sunday. However, as this Great Graphic from the Financial Times beyondbrics blog, shows, Brazil is falling behind another regional rival, Mexico, in auto output.   
Mexico's auto output in H1 was 1.60 mln units, while Brazil produced 1.57 mln vehicles. 
Great Graphic: Brazil Giving Up Another Goal? Great Graphic:  Brazil Giving Up Another Goal?  Reviewed by Marc Chandler on July 11, 2014 Rating: 5
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Sense of Relief Ahead of the Weekend

July 11, 2014
The dollar is little changed against the major currencies, with a slightly heavier tone. It is poised to finish the week in a similar manner. 
Within the trading ranges, the dollar has weakened marginally against the major currencies over the past five sessions. Sterling is the main exception and it is only fractionally low (0.13%, according to B…
Sense of Relief Ahead of the Weekend Sense of Relief Ahead of the Weekend Reviewed by Marc Chandler on July 11, 2014 Rating: 5
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The Yen Continues to Surprise

July 10, 2014
There have arguably been two significant surprises in the capital markets this year, the strength of the yen and US Treasuries.  The two are related.  
The dollar-yen rate appears particularly sensitive to US interest rates.    The yen (not dollar) moves in the opposite direction of US 10-year Treasury yield two-thirds of the time of the past 60 da…
The Yen Continues to Surprise The Yen Continues to Surprise Reviewed by Marc Chandler on July 10, 2014 Rating: 5
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Emerigng Markets: What has Changed?

July 10, 2014
(from my colleague Ilan Solot)
1) While not yet official, it’s now almost a given that Jokowi has won the Indonesian elections 2) The Korean central bank may be ready to cut soon 3) Brazil is out of the World Cup, but equity markets are celebrating 4) China’s trade surplus was nearly 20% smaller than expected 5) Modinomics is launched in India 6) …
Emerigng Markets: What has Changed? Emerigng Markets:  What has Changed? Reviewed by Marc Chandler on July 10, 2014 Rating: 5
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Great Graphic: Disinflation or Deflation in Europe?

July 10, 2014
This Great Graphic appeared was posted by Alen Mattich at the Wall Street Journal.    The red bar shows the average CPI in the 2000-08 period.  The blue bar shows the latest inflation. 

That was before today's reports.  These include France, where the year-over-year rate in June slipped to 0.6% from 0.8% and the Netherlands, where the year-ove…
Great Graphic: Disinflation or Deflation in Europe? Great Graphic:  Disinflation or Deflation in Europe? Reviewed by Marc Chandler on July 10, 2014 Rating: 5
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Euro and Yen Resilience Helped by Lower US Yields

July 10, 2014
The euro and yen's resilience stand out today. Both have reported important data that was shockingly weak. Japan reported a whopping 19.5% decline in May machinery orders. The Bloomberg consensus called for a 0.7% increase after the 9.1% decline in April. The year-over-year figure plunged to -14.3% from +17.6%.
The dismal news from Europe…
Euro and Yen Resilience Helped by Lower US Yields Euro and Yen Resilience Helped by Lower US Yields Reviewed by Marc Chandler on July 10, 2014 Rating: 5
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UK Issued Shariah-Compliant Bond, Others to Follow

July 09, 2014
In late June, as many participants and the media focused on the fallout from UK Prime Minister Cameron's defeat in trying to objections to Juncker's nomination for EC President, the UK became the first western country to issue a bond structured in way that was compliant with Islamic law (shariah).  
The bond was five year in duration.  The …
UK Issued Shariah-Compliant Bond, Others to Follow UK Issued Shariah-Compliant Bond, Others to Follow Reviewed by Marc Chandler on July 09, 2014 Rating: 5
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Germany Blocks Feint

July 09, 2014
The foreign exchange market is quiet, and the US dollar has been confined to narrow ranges.   Sterling's probe higher faltered in front of $1.7150.   The dollar steadied against the yen, but only after slipped to JPY101.45, a five-day low.  The euro rose to $1.3630, a four-day high.  The dollar-bloc is flat, though the New Zealand dollar remai…
Germany Blocks Feint Germany Blocks Feint Reviewed by Marc Chandler on July 09, 2014 Rating: 5
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Great Graphic: Bumper US Crop Frustrates Europe

July 08, 2014
The CRB appears to be rolling over.   As this Great Graphic from Bloomberg shows, this popular index of commodity prices gapped lowed on Monday and took out last month's lows by a penny earlier today. 
It is actually the second gap in as many weeks.  It gapped lower last Monday (June 30).  It is a small gap (310.12-310.46), but is has not been …
Great Graphic: Bumper US Crop Frustrates Europe Great Graphic:  Bumper US Crop Frustrates Europe Reviewed by Marc Chandler on July 08, 2014 Rating: 5
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