Recall walking through the ubiquitous chain drug store near you to see the cologne shelves where the knock-off brands advertised “If you like Paco Rabanne, you’ll love ‘Paul Raven’ cologne.” Basically it smells the same but is a lot cheaper.
While the U.S. was gorging on turkey, China printed the highest HSBC Flash PMI in 13 months and looks to be ending a 7 quarter contraction in manufacturing that has been overly detailed by market players and media.
Even as many manufacturers bring operations back to the United States, IT outsourcing is still doing well as evidenced by Wipro (WIT, quote) earnings out last week. The company presented a positive report and outlook, a rarity for the company as of late, with a 24% increase in net income to $300 million on a 17% jump in revenues over the same period last year.
The ruling Congress party staged a huge rally over the weekend to defend recent reforms and build support for more foreign investment in retail and insurance. Just last week the Premier, Manmohan Singh, replaced members in his cabinet to reach the younger electorate and restore credibility to a government that has been racked by widespread corruption. Elections in India are held every five years and are scheduled next for 2014.
With all the doom and gloom in the euro zone, China and in general mixed economic data out both developed and emerging markets, we can find a bright spot in India’s equities and economy.
Auto manufactures typically run with the herd as auto manufacturers attempt provide consumer what they want or what they didn’t know they wanted. When one auto manufacturer raises prices the herd follows. Not so for Tata Motors (TTM, quote)where many auto manufacturers have raised prices or currently thinking about raising prices Tata motors is setting themselves apart by re-launching its compact car Indica eV2 with a new updated fresh look while lowering the price by 23,000 Rs.
If the last 3 weeks weren’t crazy enough, this week’s economic calendar could very well make this week even crazier. As the U.S. three-day weekend comes to an end and traders are stuffed full of BBQ, the economic calendar swings into high gear during the overnight session Monday night.
Data will be fairly light during the first two days after the long weekend but could set the markets up for volatility in the last two days of the week.