Following the end of july the news from the old Europe come with no surprise. Reports show that the retail sales have increased with 0.4% for the past month, following the psychology of customers ready to spend more. The major driving forces of this movement are France, Spain and Germany with average PMI index of 53.6. Is this a good sign or not we are looking forward to see, but from the look of it seem that Europe is ready to man up and solve the issues from the past several years.
Australian dollar winning positions
The Australian dollar (AUD) has managed to hold its position vs the USD in the 2 days momentum, even after the meeting of the Ausie central bank which was set for last night. In the past weeks the AUD had reached a 8months bottom losing heavy on the USD. The climb this week is due to the fact of the expectation of the central bank meeting which ended as most traders though leaving the base rate of 2.5%, as well with the much expected report of the employment in Australia, with experts expecting Australia to declare the opening of 13 000 new jobs, increase for a second month in a row.
Warren Buffet waiting for the next big hit, tons of cash sitting in the investment companies
The cash stock in the major investment company Berkshire has reached close to 50 billions USD, almost double the safest reserves it should have. This is becoming a major problem since the company is kind of too big and very pick over its investments. Reports say that Buffet is not going to invest any time sooner so much of this cash will go in the developing companies the fund has bought for the past several years.
Other investors are also flooded with cash with reports numbers of around 1.16 trillion USA, which is the biggest amount of money waiting to be invested in the history. It will be very interesting to see what will happen in the next 6 months, but keep following this big fish and you get wrong.