- Asian markets got hammered overnight, following yesterday's disaster in the US. Things started off awfully in Europe.
- *Europe continues to see lots of turbulence***<http://e.businessinsider.com/6870.fnv/TkD3W0UiHfHs1iE0Bd825>, as a resolution to the crisis does not appear forthcoming. Of note are widening German CDS. - In the US, the comeback in markets comes ahead of the FOMC release at 2:15 ET. The world is waiting for some kind of indication that the Fed will ease, and stabilize markets, but a full-fledged QE may have to wait. - *China's inflation soared to 6.5% in July*, from a year ago, and up from 6.4% in June. This has been its fastest rise in three years and was driven by a 14.8% rise in food prices from a year earlier. It also lowers the odds that China will be able to re-lift the world economy via further stimulus. - UK continues to get battered by weak economic data. *Factory output fell 0.4% in June from the previous month*when it was up 1.8%. With a drop in manufacturing, the trade gap widened indicating that recovery is slowing. The riots in London are also beginning to become a concern for investors worried about growth. Meanwhile, German exports fell 1.2% in June to €88.5 billion hurting economic growth. - *Freddie Mac said it would need an additional $1.5 billion in taxpayers funds* to help make-up for losses from weak housing markets. The company registered a net worth deficit of $1.5 billion in part because of the dividends it needed to pay out to the Treasury. - *Tokyo Electric Power Co. posted a $7.4 billion net loss for the three months from April - June* as it grapples with compensation costs and the Fukushima Daiichi nuclear disaster. The Nikkei was down 1.68% in overnight trading. - *Gold hit a record $1,778 an ounce in its biggest three-day rally since 2008*, as investors turned to the precious metal amidst concerns over the global economy stemming from European and U.S. debt. *'+'*
