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Analyst Upgrades/Downgrades

Japan Cuts China Growth Estimates and Sees a Global Slowdown

“economic outlook was cut by Japan, its biggest Asian trading partner, as the Shanghai Composite Index fell to its lowest level in three years on concern about faltering domestic demand and export growth.

“The slowdown in the global economy is becoming more widespread,” the Cabinet Office said in a monthly report released in Tokyo today. Song Guoqing, an academic member of a monetary policy committee, said July 21 that China’s expansion may be 7.4 percent, the least since the first quarter 2009.”

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Goldman Cuts Its Q2 GDP Estimate Again To 1.1%

“Just as we speculated less than an hour ago, here comes Goldman with its take of retail sales and its impact on GDP: “Retail sales decline more than expected in June. We revised down our Q2 GDP tracking estimate by two tenths to +1.1%. The Empire manufacturing survey rebounded somewhat in July although the details were mixed.”

Full note:”

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Merrill Tries to Shift Investor Portfolios to Safer Heaven Investments Without Creating a Panic

“This year, investors have been gobbling up US treasuries in a desperate effort to search for safety. But would they have done better to grab Australian sovereign debt or Singaporean bank bonds, as a shield against political incompetence in a fractious world?

If the wealth management arm of Merrill Lynch is to be believed, the answer could be “yes”. This month, the US broker is quietly circulating a memo which tells its affluent clients to reposition themselves — and their portfolios — for a fundamental geopolitical shift.”

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Moody’s and the S&P Downgrades Barclays

“LONDON (AP) — Two leading credit rating agencies took steps Thursday toward downgradingBarclays in the wake of a trading scandal that’s seen three senior officials, including chief executiveBob Diamond, hand in their resignations.

Though both Moody’s and Standard & Poor’s maintained their ratings on the bank, they lowered their outlooks to ‘negative’ from ‘stable. That means that a downgrade of the actual rating is now more likely.”

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