Now For Something Different: Brazil Cuts Interest Rate1 September, 2011, 14:48. Posted by Zarathustra
Although it did not paint a very bleak outlook by itself, the August China manufacturing PMI has one spot which is particularly ominous. New export order index fell below 50 for the first time since April 2009, highlighting the
Meanwhile, the Central Bank of Brazil cuts interest rate unexpectedly by 50 basis points to 12%, while the consensus expected the central bank to keep rate unchanged at 12.5%. Below is the yield curve, which is inverted. That is probably an early sign of recession or something. With significant exposure to China, one would also wonder if it tells much about the demand from China. I have no definite answer here, but I will certainly keep an eye on it.