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Tonight’s Agenda

Economic DataCurrent EventsBRICs

ISM Manufacturing Index: 50.8

Any level at 50 or above signifies growth in the manufacturing sector.

Between 43 and 50,

indicates that the U.S. economy is still growing even though the sector is contracting.

Below 43 indicates that the economy is in recession.

Jobless Claims: 397K Jobless claims

continue to come down but ever so slowly

Better than Expectations

FOMC Summary Keeping the fed funds target unchanged, the Fed retained

language that rates will remain exceptionally low through mid-2013

Will continue to extend the average maturity of its holdings of Treasuries in Operation Twist.

Remains moderately positive about economic growth

Sees a stronger economy in the third quarter and now expects a moderate pace of economic growth in coming quarters.

Leaving the door open for additional ease with the emphasis on significant downside risks remaining

Draghi is the new ECB president - Jon Claude Trichet retired

Samsung Tops Apple as No. 1 Smartphone Maker

Groupon advanced 31 percent in its trading debut

MF Global Falls Victim to Europe

S&P 1257 is the break-even point for yearIf the market goes above that level, it could trigger BUY orders

The High Speed China/Asia/BRICs

The Slow Speed Developed Markets (DM)

Brazil Russia India China

BRICs

Goldman Sachs:

“The last decade saw the BRICs make their mark on the global economic landscape. Over the past 10 years they have contributed over a third of world GDP growth and grown from one-sixth of the world economy to almost a quarter. Looking forward to the coming decade, we expect this trend to continue and become even more pronounced”

http://www2.goldmansachs.com/ideas/brics/brics-decade.html

Brazil

Gerdau: (GGB)Vale: (VALE)Petrobras: (PBR)

Banco Sandtander: (BSBR)

Commodity Producing Country

Russia

Commodity Producing Country

Gazprom: (OGZPY)

Mechel: (MTL)

Mobile TeleSystems: (MBT) Vimple Communications: (VIP)

India

ETFs:iPath MSCI India: (INP)WisdomTree India Earnings Fund: (EPI)

PowerShares India: (PIN)

China

Export Led - Export Dependent

Currency Situation China has their currency pegged to the U.S.

dollar in order to keep their currency cheap Good for them - Bad for us

When China starts to appreciate their currency, it will lower the DM's currency against China's Would make the DM more competitive Should boost growth in DM since exports is the #1

way to boost an economy and have high growth/GDP

Bloomberg Video/

Video Summary

If China does appreciate their currency too quickly, many factories could go bankrupt since they have slim profit margins

If that happens unemployment could sky-rocket, and with a 1.3 billion person population, massive social unrest could occur

The Transition

When countries have massive growth and become rich (usually through exports), it's natural for that economy to transition into a service/consumption economy like the U.S. and Europe

The solution to this 2-speed global economy is for countries like China to slowly transition into a higher consumer/service economy social unrest

China

Export/ Manufacturing Country

Macau Las Vegas Sands: (LVS) Wynn Resorts: (WYNN)

PetroChina: (PTR)

Aluminum Corp of China: (ACH)

BRIC ETFs

(BRIL): 2X Bull

Jim O’NeilStart min: 1:00

Thu 20 Oct 11 | 07:03 AM ET