U.S. Review
Turn Those Machines Back On!
* After the second week of limited economic indicator releases and watching the state of the federal government in suspended animation, it is easy to empathize with Mortimer Duke in Trading Places (1983) after market close on the commodities trading floor.
* The frustration is being felt by businesses as well. The NFIB small business survey released this week showed wilting confidence as businesses cited red tape and taxes as the most important problems they faced.
Global Review
Brazilian Interest Rates and Mixed Data From Europe
* The Brazilian central bank continues with its lonely campaign of increasing interest rates in what is an effort to try to counteract the reversal in capital flows as interest rates continue to increase in developed countries while at the same time reigning in inflationary expectations due to the weakening of the currency.
* The news from Europe was mixed this week as the U.K.’s industrial production index dropped 1.1 percent month-overmonth in August, while manufacturing dropped 1.2 percent, surprising the markets that were expecting both indexes to have improved 0.4 percent.
Read full report: Market Research
Wells Fargo