What happened this past week?

Positives

  1. Thailand’s auto sales increase 200+% in October
  2. Thailand’s exports improve 14% in October
  3. Greece escapes and is given more time to figure itself out
  4. Spanish and Italian bond yields fall to new lows
  5. Japan’s IP in Oct unexpectedly jumps by 1.8% helped out by smartphone component production. Also, further yen weakness leads to highest Nikkei close since late April.

Negatives

  1. German retail sales in Oct fall 2.8% m/o/m vs est of down .4%.
  2. Euro zone unemployment rate ticks up to new high at 11.7%.
  3. German and Italian consumer confidence fall.
  4. Japan’s PMI 46.5 v 46.9 in Oct, below 50 for 6th straight month.
  5. Hong Kong exports in Oct unexpectedly fall and imports grow less than expected.

Jeremy Grantham’s latest quarterly letter

Lots to cover from his latest quarterly letter and I highly suggest you go to the source link below, but these are a few of the highlights

  • US GDP growth rate will never return to 3% p.a.
  • Resource costs have been growing @ 7% a year since 2000, if the world continues to grow under 4%, a squeeze will intensify
  • Increasing climate change, reflected in food prices and flood damage, is going to increase

Source: GMO