Sunday, July 3, 2011


F's June vehicle sales increased by 10% vs. a 12% consensus.

GM's June total U.S. vehicles sales rose by 10.2%, a bit light as consensus was for up 18%.

Good news from Asia - China's June manufacturing index came in at 50.9, against an expectation of 51.6 and May's report of 52.0 (actual). The print was the worst in 16 months ... but bad is good in China these days, as long as it's not too bad!. It is clear that tight money has been effective in slowing the region's growth rate. As significant, monetary policy has effectively reduced inflation, as indicated by June input prices coming in at the lowest level in 11 months. It appears likely that the central bank in China is about done with its tightening efforts.

The 2Q2011 Japan Tankan survey was surprisingly upbeat, with capital spending growth of +4.2% (the consensus forecast was for only +2.4%). This, coupled with the +5.7% sequential improvement (month over month) in May industrial production, augurs well for Japanese growth.