Given this is something we do internally weekly I thought it would be good to share our basic thoughts on what were the key events happening within the past week. Its a simple point by point thought on the positive and negative events that we notice both locally and internationally.

Positives:

• After falling every single day last week, the Spanish IBEX rallies every single day this week in anticipation of bank recap via EFSF.
• The PBOC (China) and RBA (Australia) both cut interest rates.
• Canada and Australia both report better than expected job gains in May.
• Thai inflation still remains benign
• UK PMI services index holds at 53.3 for 2nd month instead of falling to 52.4 as expected.
• US ISM services index unexpectedly rises to 53.7 in May vs 53.5 in April, a phew moment in light of growing economic worries.

Negatives:

• Euro zone retail sales, German factory orders, German exports and Italian IP all fall more than expected in April.
• None of the central banks confirmed that they were going to print silly amounts of money
• Thai Parliament begun to emulate Taiwan’s parliament with slapping and hair pulling.
• Foreign fund flow continued to exit from Thailand until the past 2 trading days.
• China’s state sector weighted PMI services index falls to 55.2 from 56.1, the lowest since at least Mar ’11.