Morning Memo: Monday, August 12, 2013

 "Morning Memo" begins below this "NOTE for  NEWCOMERS" to "Morning Memo"...... Each morning, we post a short bullet-point list of noteworthy events, data, etc that find their way into the assessment of global markets.  It's far from complete and is not meant to be an exhaustive reconciliation of all things that could possibly impact stocks, bonds, currencies and commodities!  Rather, it's best viewed as a cryptic memo of "highlights", noteworthy items that took place in Asia, European and US hours.....and color-coded 'Red' for seemingly negative impact on equity markets, 'Green' for positive.
This will also serve as a useful review mechanism, as scrolling through the series of "Morning Memo" posts over time ought to summarily highlight what generally drove price action.  
We hope you find this useful and informative....and as always, that you'll share feedback!!
7:50am ET...

• Japan...Q2 GDP weaker than expected!  2.6% vs 3.6% exp.  Raising question as to whether sales tax increase will be implemented in April as planned under Abe-nomics.  Some argue the GDP data understates real growth due to calculation methods related to real-estate investment under construction.  Others say growth is genuinely weaker, and although the weaker Yen has helped exporters, it's hurt those more reliant on imported goods.
• Asia...other than the Nikkei, Asian markets were generally higher on the heels of recent good economic news in China and on a Hong Kong paper's report that the Chinese gov't was quietly offering stimulus to various cities.
• European markets opening lower, coming off of 2+month highs, seemingly more focused on Japan's disappointing GDP data and lingering concerns about 'tapering' in the US.  Last week's 1+% decline in US indexes is dampening markets in typical summertime relatively light activity.
• Euro lower on an article in German newspaper Der Spiegel suggesting Germany believes Greece will need another bailout in 2014.  Greek GDP contracted in Q2 4.6%, slightly less contraction than the expected  4.9%y/y.
• More later....
• fyi....from the Financial Times fastFT, some charts from HSBC showing the issues that the new central bank head of India's Reserve Bank of India faces....
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