Recap 12-02-13


An unoriginal follow up to last Wednesday – Low capex makes sense given the weak growth outlook. The idea that businesses are simply scaling back capex based on their own revenue projections seems like a better explanation than things like side effects of the IT revolution, corporate incentives, executive pay design, data measurements that exclude intangible investments, suffocating regulation, and increased monopolisation power.

Also, this post from last week is interesting:


  • PMI:
  1. China Mfg PMI was stable at 51.4 vs 51.1 prev. The HSBC measure was also roughly stable at 50. vs 50.5 prev
  2. AU Mfg PMI declined to 47.7 in Nov vs 53.2 prev
  3. UK Mfg PMI jumped to 58.4 vs 56.1 exp and 56 prev
  4. Italy Mfg PMI rose to 51.4 vs 50.8 prev
  5. US ISM improved to 57.3 vs 55.1 exp and 56.4 prev

Japan Capital Spending growth declined to 1.5% YoY in 3Q vs 3.6% exp and 0% prev

Australia Building Approvals rose to 23.1% YoY vs 17% exp and 18.6% prev

Upcoming Data:

  • Tue : China Non-Mfg PMI, Australia Retail Sales, RBA, Australia GDP
  • Wed : EU GDP, US ADP Employment, Canada Trade, US ISM Non-Mfg, US New Home Sales, AU Trade Balance
  • Thu : BoE, ECB, CanadaBuilding Permits, US Jobless Claims,
  • Fri : US Employment, Canada Employment, US PCE Deflator, UMichigan Consumer Confidence,
  • Weekend : China Trade Balance
  • Mon : Japan Current Account, Eco Watchers Survey, China CPI, Canada Housing Starts, UK RICS House Prices Bal, AU Home Loans, Business Confidence