daytrades june 8 pre-market, page-17

Some of you may have yesterday's email from Gavin Wendt, but here it is anyway.

By the way, anyone else think the Steve Jobs look is getting a bit long in the tooth? I always wonder whether he's just on his way to a Trekkie convention, or perhaps a Kraftwerk reunion concert.


Dear All,

Whilst we move towards the first edition of our new report within the next month, it�s interesting to share with you some of the more interesting articles that I�ve come across just this past weekend.

As I pointed out recently, I am a firm believer in continued growth in the world economy, particularly amongst the emerging economies, albeit with a high degree of volatility thrown in.

Well, this is clearly demonstrated by data released on Friday.

It showed GDP in India reflecting a surge in economic growth as industrial activity and strong services growth helped the Indian economy. First quarter GDP came in up 8.6% year on year (slightly below consensus of 8.8%), building on the 6.5% rise in Q4 2009. The figure puts India on a similar path to its neighbor China and places it in a similar predicament on the monetary policy front, with India having already increased its interest rate 25bps in April.

The chart below shows India�s strong economic performance.



In terms of the outlook, the Indian economy seems to be relatively strong at this point, echoing the trends of the other big emerging markets like China, Brazil, Indonesia, etc. The IMF noted in its World economic outlook that it expects the Indian economy to grow 8.8% in 2010 and 8.4% in 2011. The HSBC-Markit PMI for India rose to 59.0 in May, from 57.2 in April, and exports have shot up strongly in recent months.

The second interesting piece that I�ve come across was an interview late last week with the legendary Jim Rogers. He had some more very bullish comments about China.

In response to a question on inflation in China, Rogers responded: �There is inflation in China. There are many places that are reporting inflation. It�s dumbfounding to me that many countries have inflation and the US doesn�t. That�s because some governments lie and some governments don�t.

In response to a question about China being in a real estate bubble: �In urban, coastal real estate there certainly was a bubble. That�s not the whole of China. Have you ever looked at a map of China? Do you consider urban, coastal real estate the Chinese economy? Where�s the bubble? Other real estate in China has, for the most part, had very little movement.

In response to a question about the sustainability of China�s economic growth: �Is it sustainable, yes; every quarter, every year, of course not. You know, in the United States in the 19th century, we had 15 depressions, a horrible civil war, no human rights, massacres in the streets and very little rule of law, and yet, out of that, we had a pretty successful 20th century. China is going to have many, many problems as they rise. I don�t know what and I don�t know when, but I know it�s going to happen. I don�t see any other country on the horizon that is going to have, long term, a sustainable, good future in the 21st century.

Kind Regards,

Gavin Wendt

Founding Director & Senior Resource Analyst

MineLife Pty Ltd