At the same time, McDonald’s Corporation (NYSE: MCD) fell to 72.58 points, losing -0.67 (-0.91%). The world’s largest fast-food chain McDonald’s has become the first foreign non-financial company, which sold in Hong Kong Renminbi yuan-denominated bonds. It is reported that McDonald’s sold 3%-WIDE notes maturing in September 2013 to 200 million yuan ($ 29 million).

The Dow Jones Industrial lost more than -0.08% in the first half of the trading session. Before the U.S. stock market trades were published inflation data for July, which partially were better than forecasts. Thus, the consumer price index excluding food and energy (including seasonality) rose in July at 0.1%, as expected. Growth of retail sales amounted to 0,4% with a projected increase to 0.5%, while the consumer price index taking into account the seasonality has increased by 0,3% with the expected increase by 0,2%. US stock will aim higher next week due to good data, – the Open Knowledge experts say.

The Dow Jones Industrial lost more than -0.08% in the first half of the trading session. Before the U.S. stock market trades were published inflation data for July, which partially were better than forecasts. Thus, the consumer price index excluding food and energy (including seasonality) rose in July at 0.1%, as expected. Growth of retail sales amounted to 0,4% with a projected increase to 0.5%, while the consumer price index taking into account the seasonality has increased by 0,3% with the expected increase by 0,2%.

The company expects to increase sales for the full year by 5%. Net profit of Swiss manufacturer of food products for the first half increased by 7,5% and amounted to 5,45 billion Swiss francs (3.93 billion euros). Nestle takes about 1,5% of world market of food and beverages, is the largest producer in these categories. Currently, it owns over 480 factories and industrial enterprises in 86 countries. Major brands of the company – Nesquik, Nescafe, Extreme, Maxibon, Maggi, KitKat, Perrier, Sanpellegrino, Vittel.

The favorite measure of inflation the Fed, the index of personal consumption expenditures, rose by 1.2% for 12 months. The U.S. economy is currently experiencing disinflation, ie period of slower growth in prices rather than deflation, which is accompanied by a fall in prices. In general, moderate deflation – it is not so bad. To get started is to say that if the Fed wants to achieve one of its objectives – price stability – the unofficial target level of inflation of 1.5-2% is clearly not contribute to it. 2% th annual inflation rate corresponds to 48.6%-th price increase for 20 years. After 35 years, prices will double. Those who doubt these calculations, let look at the inflationary impact of the great moderation in U.S. dollar. Each month the Bureau of Labor Statistics includes the purchasing power of consumers in the lower part of Table 1 report on the CPI, using as the base period 1982-1984. or 1967

Good and bad news

Let’s start with the good news. In May, U.S. From 1982-1984 he. You could buy goods and services by 46 cents. It provided that in 1982 inflation was still high, but fell to 2% only by 1986, however, the loss of the dollar, more than half of its purchasing power can not be reconciled with the notion of price stability. The bad news is that the dollar in 1967 today you can buy goods and services only 15 cents. Each year inflation exceeds the target level, so if the Fed is serious in achieving price stability, it needs to reduce inflation. Otherwise, the pricing will be asymmetric. “There is nothing wrong in the short term minor deflation”, – said Marvin Goodfriend, an economics professor at Carnegie Mellon University in Pittsburgh. “The trouble is that a slight deflation of lower inflation expectations. Now the Fed is afraid of this.” Anyone who remembers the Great Depression and the lost decade in Japan, frightened. During the Great Depression, the Fed allowed the money supply decline by one third. At the moment, the most common indicator of money supply, M2, slowly but surely growing.

Japan as a model

After the stock market crash and explosion of a bubble in property prices in 1989, Japan could not solve the problem of their zombie banks. And, according to Michael Bordo, an economics professor at Rutgers University in New Brunswick, New Jersey, in the center of the Japanese economy is just the banking sector. ” The Fed justifies the attempt to achieve price stability by means of a positive target level of inflation so that price indexes overstate the CPI and PCE inflation. At least, so we are told. Although I’m not so sure. And Mr. Goodfriend, too. “In order to avoid price increases business began to use modern administrative technologies, allowing to pass price increases on the consumer,” – he says. It’s just what to say, if the art of buying goods or using the service requires the ability to navigate through endless automated telephone menu. Degradation of individual services – come to mind airfare – is subjective and therefore can not be studied using the adjustment process as the Bureau of Labor Statistics. But this does not mean that it will be painless.

According to the report, the Fed’s last meeting in April assessment of inflation risks were “mixed.” Some believe that inflation threatens to decline due to excessive weakening of the economy. Others worry about rising inflationary expectations, which fell after commodity prices fell, and the financial crisis in Europe has struck yet another hole in the boat, floating towards recovery. Perhaps that’s enough about the credibility of the Fed. If financial markets believe that it will achieve price stability, inflationary expectations will rise and fall from day to day in response to economic data and world events. In the United States with their problems in the housing market, where there is a decline in bank lending, and consumers remain cautious, the economy is still far from stable growth phase, when it will be possible without the effects of higher interest rates. When inflation expectations are not equal to zero, the Fed should be more serious about price stability. And for this it should be included in the political strategy of a short period of slight deflation.

So, expectations were lower quarterly results the company Amazon.com Inc. (-8.25%), Which owns the world’s largest online store Amazon.com. In particular, the net profit in II quarter of 2010. recorded in the amount of 207 million dollars, and revenue – to $ 6.57 billion in addition, the world’s largest software maker Microsoft Corp. (-1.24%) Reported the results of the 2009-2010 fiscal year ending June 30 Despite the increase in net profit to 28,8% – to 18.76 billion dollars compared to 14.57 billion dollars in the previous year, experts expect from a successful outcome, against which quotes Microsoft fell 1%. Reported back today and fast-food chain McDonald’s Corp. Net profit in the first half of 2010. reached 2.31 billion dollars, while revenues rose to 11.55 billion dollars, however, these indicators could not beat market expectations, which led to a drop in quotations of the company in the first hours of trading at 1.76%. A successful session for the sum of the second-largest auto concern in the U.S. Ford Motor Co. (3.72%), the net profit which, according to published today, the materials company, in the I half of this year amounted to 4.68 billion dollars, more than 5.6 times the figure a year ago.

Secondly, lower prices for electronic reader Kindle negative impact on the company’s financial results, despite the fact that this measure will enable readers to increase sales tripled. In addition, Apple “comes on the heels of” Leadership Kindle with successful sales iPad. Projections of the company for growth in operating profit in the third quarter to $ 310 million to $ 210 million failed to smooth out the frustration reporting. The world’s largest fast-food chain McDonald’s has published data for the second quarter. Sales at restaurants open more than a year, rose by 4,8% due to dollar menus, as well as increased consumption of soft drinks. Net income showed a growth of 12.84% compared with 2 square. 2009 to $ 1.13 per share. It is worth noting that in recent years McDonald’s has progressively increased its market share, pushing competitors such as Yam! Brands – owner of the brand KFC. Nevertheless, the results fell short of expectations of analysts and shares are traded with a decrease to 3.35%.

At the same time, the world’s largest fast-food chain McDonald’s has published data on 12% of Mr. growth of profit in the second quarter of this year thanks to increased sales of soft drinks. It is reported that net income rose to $ 1.23 billion, or $ 1.13 per share. At the same analysts expected a profit of $ 1.12 on the paper. Sales in the second quarter rose 5.3% to $ 5.95 billion, thanks to increased consumption of soft drinks.

Analysts also forecast a significant increase in profits compared to the same period last year. Thus, it was expected that the profit margins of up to II quarter was $ 0.56 per share, in reality, Verizon Communications reported a loss of $ 0.07 on the paper. In turn, the results of Microsoft and American Express were better than expectations. According to the report Microsoft, its net profit rose 48% to $ 4.52 billion, or 51 cents per share, exceeding analysts’ forecasts by 5 cents. Sales rose 22% to $ 16 billion. At the same time, net profit American Express reached $ 1.02 billion, or 84 cents a share, compared with $ 337 million, or 9 cents a share a year earlier. Analysts expected earnings of 78 cents per share. Of the companies whose shares are included in the index Dow, these quarterly reports will also publish fast-food chain McDonald’s.

Bernanke is like pushing lawmakers to new steps to stimulate and withered over the past couple of months of consumer demand. Senators heeded hints financial helmsman and within a few hours after the speech Bernanke overwhelming democratic majority (59:39) took the bill to extend welfare to the unemployed, lost their jobs over the 26 weeks ago. Typically, unemployment benefits paid to the administration of the state within six months after the dismissal and an average of $ 309 per week. Federal funding will last until November and will affect even those who lost their jobs 99 months ago. The bill, which now must pass the ratification in the House of Representatives, which has touched 3.23 million people and cost the U.S. treasury of $ 34 billion. In November, the U.S. mid-term elections in which voters have to completely re-election of the House of Representatives, one third of the Senate and a third of state governors. Given that the poor in an absolute majority for the Democrats, the party mode, including the current head of the White House, did everything to force in the bill as soon as possible. Its passage through the corridors of Congress took a little over a month. However, the output of a bill to the finish line pleases not only the unemployed who are tired of searching for work. The funds will follow as quickly into the pockets of corporations engaged in retail business and, certainly, improve financial performance in the current quarter. In this context, indirectly earn benefits for U.S. unemployment may even Russian investors. First of all I would recommend to pay attention to stocks retailers economy class and companies that manufacture food for mass consumption. As an example, you can name the most affordable and extensive network of hypermarkets in the world of Wal-Mart (WMT), retail chain Family Dollar (FDO), where the price of any commodity does not exceed ten dollars, the largest producer of chicken Tyson Foods (TSN) or the Finnish maker of mobile phones Nokia (NOK), has a long line of tubes in a cheap price segment.