Morning Journal---With the Fed, less is best

    News on Stocks in Our Portfolios

           
Bank of Nova Scotia misses by C$0.01, beats on revenue

·         Bank of Nova Scotia (NYSE:BNS): FQ3 EPS of C$1.40 misses by C$0.01.

·         Revenue of C$6.49B (+17.6% Y/Y) beats by C$550M.

Economics

   This Week’s Data

            The August Markit flash services PMI came in at 58.5 versus expectations of 62.0.

            July new home sales fell 2.3% versus estimates of a 5.9% increase.

            http://www.calculatedriskblog.com/2014/08/new-home-sales-at-412000-annual-rate-in.html

            The August Dallas Fed manufacturing index was reported at 7.1 versus forecasts of 13.5.

            http://www.zerohedge.com/news/2014-08-25/dallas-fed-plunges-biggest-miss-16-months-new-orders-collapse

            A very unusual report this morning.  July durable goods orders rose 22.6% versus estimates of up 5.1; but ex transportation (aircraft), they fell 0.8% versus forecasts of up 0.4%,

   Other

            The less the Fed does, the better off we are (medium):

            http://www.realclearmarkets.com/articles/2014/08/25/the_economy_will_be_better_off_when_the_fed_does_less_101237.html

            The latest from David Stockman (medium):

            http://www.zerohedge.com/news/2014-08-25/why-sp-2000-fed-manufactured-mirage-buy-dips-chart-says-it-all

            Try free enterprise in Europe (medium):

            http://www.rationaloptimist.com/blog/try-free-enterprise-in-europe.aspx

            Repeal the corporate tax (medium):

            http://www.nytimes.com/2014/08/24/upshot/one-way-to-fix-the-corporate-tax-repeal-it.html?smid=pl-share&_r=0&abt=0002&abg=0

           

Politics

  Domestic

  International

            Escalation in the Middle East: UAE bombs Libya (medium):

            http://www.zerohedge.com/news/2014-08-25/us-furious-after-source-mystery-libya-bombing-raids-revealed

            Iran shoots down Israeli drone (short):

            http://www.zerohedge.com/news/2014-08-25/iran-state-tv-airs-footage-downed-israeli-drone