Good morning! Welcome to Tuesday. Let’s get started…
1. US industry booms. The data in recent weeks on the US economy has been consistently surprising on the high side, and last night’s Markit US flash PMI for June showed American manufacturing activity is at its highest level since May 2010. “U.S. industry is booming again,” wrote Markit’s Chris Williamson. “The survey data suggest that GDP should be set to rise by at least 3.0% after the 1.0% decline in the first quarter.”
2. This follows another strong manufacturing number out of China yesterday, where the PMI hit 50.8 – back in expansion territory and at a seven-month high – over market expectations of 49.7. The Aussie dollar roared on the news, ripping above US94c again. This morning it was trading at US94.24c.
3. But stocks were flat, again, with the major US bourses going nowhere for the session. It followed a rise in the Asian session of 0.13% for the Nikkei and a fall of the same proportion for Shanghai. The ASX200 was up more than 0.6% for the session, helped largely by some momentum from the Friday US session and the recent falls in the iron ore price appearing to have bottomed out. Today in Australia we get an update to the ANZ-Roy Morgan consumer confidence index at 9.30am AEST.
4. This might explain the mood. Markets might be at all-time highs but there’s not much cheer in the financial industry. Volumes of trades and volatility in price – the things that make money for brokers and traders – are at record lows. This is being reflected in Australia, too – many analysts you speak to are concerned about the current state of the markets, especially about the low levels of activity. It also means the need for brokers is falling on Wall Street, which you can see in this chart:
Linette Lopez has more here.
5. Mining boom? Big deal. RBA board member and former advisor to Paul Keating, John Edwards, writes in a new book that the contribution of the resources investment boom to Australia’s economy has been overstated. This bucks a lot of conventional wisdom, chiefly that the transition following the passing of the investment peak is going to be painful, and that the benefits of the boom have been squandered by policy failures.
6. ‘Yo’ explodes. Yesterday we noted the explosion in popularity of the app ‘Yo’, which allows you to send a message that’s simply that word to your contacts. Now it has passed the 1 million-user mark – up from 60,000 just a week ago. And we have it mentioned in our first note from a Wall Street analyst. Morgan Stanley’s Joachim Fels wrote in his Sunday Start note that he, like many, found it “utterly ridiculous” at first. But, “the more I think about it, the more I like the ‘yo’ concept… because I’ve always thought that there is beauty in simplicity. I’m a minimalist. I like to sit in my scarcely furnished study with white-washed walls while I write this comment. I hate Christmas decorations…. Life is full of complexity — family, friends, work, politics, financial markets, the global economy. Coping with complexity requires filtering, sorting, reduction, concentration and, at least sometimes, simplification. Sometimes, a simple ‘yo’ can say and mean more to your ‘contacts’ than all the babble.” Yo.
7. Ebola’s terrifying spread. The outbreak of Ebola in West Africa that started some months ago in Guinea is now in a “second wave”, according to doctors, and is “totally out of control”. There have now been 528 cases across three countries and the mortality rate for this strain is around 60% (some strains have killed 90%). There’s no vaccine, and no cure.
8. Marissa Mayer’s Cannes disaster. Apparently at Cannes the Yahoo! CEO tanked in a major presentation by doing a hard sell – a bit of a faux pas to the ad execs in the audience. But there are rumours that’s not all that went wrong on the trip. After another presentation, it’s she was reportedly “hammered” by WPP CEO Sir Martin Sorrell – head of the world’s biggest ad agency – who asked her why she didn’t reply to emails, and that Sheryl Sandberg always replied straight away. Then, to cap it off, she reportedly “slept in” for an 8.30pm dinner with another ad agency, IPG. Details here. Perhaps she could have used this: 11 tips for calming your nerves before that big presentation.
9. Palmer’s budget black hole. A proposal from Clive Palmer for companies to pay tax on an annual basis rather than in more regular instalments would blow a $70 billion hole in the budget, News Corp Australia reports.
10. The old Socceroos finally showed up. Australia bid farewell to the World Cup with a 3-0 loss to Spain this morning. It’s a disappointing result that belied their amazing efforts in the first two games, both of which finished with What Could Have Been statuses. But without Tim Cahill, the ‘Roos were toothless up front, and no match for the class of Barcelona midfielder Andrés Iniesta and a particularly sweet back heel from David Villa. But hats off; they acquitted themselves well.
Bonus item: LPGA star Michelle Wie finally won the US Open. And she celebrated by drinking beer from the massive trophy, and twerking, as seen in this video obtained by Golf.com.
Have a cracking day. I’m on Twitter: @colgo
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.