In a harbinger of what’s to come in terms of Q3 growth, Singapore is the first nation of significance to report Q3 GDP and it was better than expected. Its GDP grew 14.9% q/o/q annualized, .4% higher than forecasts. Q3 Earnings reports beginning in earnest this week will translate for us what the statistical global economic improvement will mean for revenue and earnings and, with company guidance, what the sustainability of it is. Self sustaining are the two key words where the economic uncertainty resides. Will we have it or won’t we past Q3-Q4? Will temporary government largess turn into a self sustaining recovery or not? Both earnings and revenue estimates were exceeded by Phillips Electronics and that in turn is helping to lift European markets. While the S&P futures are higher also, the rise in gold again by about the same amount shows the S&P’s keep running in place in non US$ terms. Nominal gains are all we’re seeing.
