Chicago Purchasing Manager’s index at 52.0 from 51.6 confirms soft landing for now
Special Correspondent
Jan. 31, 2007

The Dollar can go South. The Bonds can take a slight beating. But Stock market likes the scenario of Wednesday morning. The inflation is down, GDP is up and the Chicago Purchasing Manager’s index at 52.0 from 51.6 conforms expanding GDP growth rate back to benchmark 3.0.

The consumers are little jittery with increasing oil price again.As a matter of fact recovering oil, metal and gas prices just confirm that some kind of recovery from a soft landing is in place.

The problem can be if the GDP accelerates and causes the price deflator to show sign of inflation. The Fed is expected to stay put for now.

Chicago Purchasing Manager’s index at 52.0 from 51.6 confirms soft landing for now
Special Correspondent
The inflation is down, GDP is up and the Chicago Purchasing Manager’s index at 52.0 from 51.6 conforms expanding GDP growth rate back to benchmark 3.0.
READ MORE>>

GDP Price Index increased by 1.5% against 1.9% prior and GDP race back to 3% growth
Special Correspondent
The decelerating GDP Price Index increased by 1.5% will provide some comfort to the Fed, the stock market and the Treasuries. Interestingly, Dollar may not like that.
READ MORE>>

Employment Cost Index will remain at 1% in spite of shortage of skilled workforce - another sign of deflation – what happens to bond yields?
Special Correspondent
The Corporations are fighting hard to contain the labor cost through alien workers and outsourcing. They know very well that they cannot raise prices due to deflation.
READ MORE>>

India's Tata Steel outbid Brazilian rival CSN to win the auction for Corus but this may signal start of end of Tata Empire
Special Correspondent
But the problem lies with the fact that as the world economies goes into deep recession in coming years, Tata Steel with its debt burden can go down more rapidly than the Empire of Mittal.
READ MORE>>

Was it currency and foreign-investment curbs by Thai Military Government or Fprd’s internal trouble that made the automaker withdraw $1 Billion in investments?
Special Correspondent
Ford is blaming the Thai Military Government’s currency and foreign-investment curbs. But some think tanks believes Ford is worried about its internal finance. The automaker withdrew $1 Billion in investments from Thailand...
READ MORE>>

Japan leads the world into deflation with wages falling at the fastest pace in 16 months – US and Europe is next but the big one is in India and China
Special Correspondent
The biggest deflation story is in economies that are flying with one borrowed engine – India and China. The world depression can wipe these economies out contrary to double-digit expansion for ever.
READ MORE>>

Tata Steel Ltd. offered 6.2 billion pounds ($12 billion) in cash for Corus Group Plc, beating Brazil's CSN but CSN is ready with counter offer
Special Correspondent
CSN of Brazil is ready to beat the Tata of India with a bigger offer….
READ MORE>>

Fed policy makers began a two-day meeting – Fed still debates if stagflation ever happened as economy goes into deflation – effects on bonds, stocks, gold and dollar?
Special Correspondent
The stagflation in the economy was totally overlooked. Some say, they knew it very well. They fought inflation by raising rates. They also knew they cannot do much against the stagnation while fighting inflation.
READ MORE>>

MORE ARTICLES >>