While we expect Mylan Inc.’s (MYL) acquisition of Merck Generics to contribute to long-term growth, near-term execution risks remain. Mylan announced certain strategic initiatives which should help drive long-term growth. We view these initiatives as steps in the right direction. But the management also stated that they expect 2008-2010 EPS to be negatively impacted by a slower-than-expected new product launch.

The company adjusted EPS guidance for 2008-2010 based on higher expenses, reduced opportunities from patent challenges and the potential sale of its specialty business. We believe that the new guidance should be achievable and we have updated our model based on the guidance. The company expects to conclude the sale of its specialty business later this year - we have removed contributions from this segment from the fourth quarter onwards. We maintain a Hold rating on the stock.

The Merck Generics acquisition will allow Mylan to expand its footprints in

...

The status of personal transportation varies greatly by country. The United States appears in decline, while emerging economies can hardly meet bludgeoning demands. China is especially spectacular, doubling in less than the last 5 years, and exceeding even the fabled Japan in demands for cars and trucks.

The Auto & Truck Manufacturers Industry has lost more than 15% value in the last three months. Should stock investors exit? Is Detroit beyond hope? The truth is that some US automobile majors have expanded feverishly in selected foreign markets. Stock investors can copy this approach: switch investments in the domestic Auto & Truck Parts Industry to listings from other countries.

Here is a small-capital NASDAQ listing from Jingzhou City in China. It is a holding company for auto components, especially parts and systems used in steering. The stock is buttressed by some 60 satisfied clients, including world leaders in automobile manufacture. The company has

...

We have reached a disturbing moment in financial markets, where the noise to signal ratio across all asset classes is probably at an all time high, the August effect notwithstanding. Never has it been more important to adopt a strategic mindset to investing, rather than stampeding after the latest momentum trade without a shred of conviction. I've been a skeptic on economic decoupling, and had bet the right way on the dramatic reversal in the dollar (where I strongly suspect we saw discreet US intervention last week, possibly as a quid pro quo to the Gulf States/Saudi for maintaining their dollar pegs after recent visits by Hank Paulson). I'd advised a short on oil and other commodities, where the deteriorating outlook triggered a sudden slump, but I fear that equity markets are still dangerously complacent as to the risk of the brakes slamming on global growth. We will probably ...

Article Source Enrique Martinez-Garcia and Janet Koech at the Dallas Fed present their perspective on the international macro outlook. The first is particularly interesting to me. Chart 1 from Enrique Martinez-Garcia and Janet Koech They state: According to advance estimates released by the Bureau of Economic Analysis, U.S. real GDP growth was 1.9 percent in the second quarter of 2008. The contribution of net exports to U.S. growth was a robust 2.4 percent. In fact, net exports have partially offset the negative drag from private residential investment especially since 2007 (Chart 2), although this positive contribution could diminish as global growth slows. The rest of the article is well worth reading. I'd like to just observe that the forecasts for RoW growth might have been overtaken by recent announcements regarding negative growth in Japan, incipient slowdown in the Euro Area and UK, and ...

Japan economy posted negative growth -0.6%. After Canada and Italy it is the third economy in G7 group which is not in expansion. Tomorrow the GDP statistics are released for countries of Euro zone.Last days China is in focus. Unexpectedly high inflation and slowing economic growth dragged Shanghai Composite index 55% from October high. Another hot stock markets in Viet nam lost all the attractiveness. Country joined World Trade Organization and VNINDEX was one of the best performing in the world. But now country fights with hyper-inflation which is now 25%.Another emerging markets hit in last days is Russia. Political situation and plunging commodity prices outflow money from market and currency Rubl. These factors make recently RTS index as the worst performing emerging index....

About 840 million people from around the globe tuned in to watch the opening ceremony for the Beijing Olympics, making it the most watched sporting event in history.

I hope you were one of them because it was an amazing $300 million spectacle that condensed 5,000 years of Chinese history into the most spectacular visual imagery I have ever seen.

30,000 glimmering rockets that torched the sky, 11,000 elaborately costumed dancers, 2008 drummers in perfect unison, and Cirque du Soleil-style trapeze artists were all intricately choreographed using some of the most sophisticated cutting-edge technology in the world.

…

In my last note on Japan I asked how much longer Japan could continue to fight off the incoming recession faced with a continuing shaky outlook on exports as well as a domestic economy steadily slowing down. Well, it seems as if the answer to this question can now be provided. With the recent news that industrial production continues its slowdown as well as the news that exports actually fell in June I am thus confident to stick with my call that Japan will enter a recession at some point in 2008-09. The exact timing will be suggested below. In fact, a recession seems to be almost a foregone conclusion at this point since if we look at the recent messages emanating from official Japanese authorities, they are indeed bracing themselves for something ugly. Perhaps someone from the statistics department sent a primer of the Q2 GDP figures (due 13.08.2008) ...

[Update: Brad Setser clarifies, in the comment section, his view on Sender's FT piece referenced below]

THE last week (or was that year?) has certainly been something of a ride hasn't? In fact, I thought it would be apt to reproduce this picture by the brilliant KAL who normally spices up the Economist with his imagery that lay serious claim to the adage that a picture tells more than a thousand words. This particular specimen and the ensuing headline were on the front cover in October 1997 when markets also took investors and observers for a roller-coaster ride. I think it is quite fitting in describing the feeling many a trader and market participant must have at the moment.

Even though it could only seem as a few days ago that the credit turmoil went global with BNP Paribas' announcement that it too

...

There is certainly a lot of commotion at the moment not least surrounding the rescue plan to shore up the two biggest US mortgage lenders Fannie and Freddie Mae, but also, and if we stay in the US we had the collapse of IndyMac, in Spain Martina-Fadesa is in the ropes and in Denmark we have Roskilde Bank. Especially, the last event prompted me into action as I decided to have a closer look at the Danish economy and where it might be heading. In many ways Denmark is similar to other credit crunch struck economies not least in the context of experiencing a severe unravelling of a housing boom. As we saw last week this is now beginning to have collateral damage. Yet, Denmark is also a bit different not least because the economy is going into this crisis with a positive balance both on the ...

The World Health Organization says that 25% of Chinese are now overweight and it blames the growing popularity of western foods in China.I don't believe those numbers one bit. I've seen a fair amount of overweight people in Japan and India....but very few in China. I do agree that western foods are becoming very popular in China. Especially KFC and Pizza Hut.