Outlook deteriorating

A few comments regarding European economy From Morgan Stanley

Euro Area | Softer data, slower recovery “we expect this weeks PMI data to weaken but hold above 50, indicating continued recovery at a modest pace.

UK Data-wise, following a strong summer, we expect data to slow into the autumn. September PMIs should decline sharply, although remain at an elevated level.

From raboBank “With central bank’s having come to the rescue in March, the fact that the US has failed to get the virus under control while many countries that were successful in bringing cases down to manageable levels, including Britain, are now very clearly entering the so called second wave of infections paints a bleak picture as regards global growth.”

A proxy for Asian Economy’s ,South Korean Exports reported late last week “

Korea’s September first 20 days exports have softened somewhat. However, this does not reverse the recovery trend in exports under way since early May. (Morgan )

With the chances of A another round of Fiscal stimulus fading fast some look to the Fed to fill the need, the Fed will not do anything in near term so to stay out of political fray, but comment from Dallas President Kaplan shows that the Fed may be in no hurry to increase bond buying regardless of politics “Asset buying at this point may do more to stimulate financial markets than then it helps the real economy,” Mr. Kaplan said. “I’d rather get to where the issues are, which I think are to encourage passage of more fiscal policy, health care protocols, and then go to areas of the economy where there isn’t good access to credit” as a way to help the recovery, he said-WSJ

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