Archive for September 1st, 2011

Central Bank Watch

Dramatic Reversal of Brazilian Monetary Policy

September 1, 2011

Brazilian monetary authorities unexpectedly cut the key Selic interest rate by 50 basis points to 12.0% on August 31.  A statement released by COPOM, the policy committee, justified the action because of the sudden emergence of a “deflationary bias” in the international environment due to worsening growth estimates, limited scope for more monetary stimulus among […] More

Deeper Analysis

Manufacturing Purchasing Managers Spread Widened Last Month

September 1, 2011

Manufacturing in the euro area contracted last month for the first time since July 2009 as the region’s PMI index fell 1.4 points to 49.0.  Sub-50 readings were registered in France (49.1), Italy (47.0), Ireland (49.7), Spain (45.3), and Greece (43.3).  Germany (50.9) and the Netherlands (50.7) had scores barely above the 50 breakeven line.  […] More

New Overnight Developments Abroad - Daily Update

New Month… Same Worrisome News

September 1, 2011

Euroland purchasing managers index for August in manufacturing was revised to 49.0 from 49.7 preliminary indication and July reading of 50.4.  Result elicits warning that regional economy could enter recession before yearend.  Germany PMI was revised to 50.9 from 52.0, and the French index of 49.1 was marked down from 49.3.  Italy’s index slumped 3.1 […] More