A lot has been made of the relative strength in US activity data recently, especially in contrast to the weaker China and European newsflow and the potential for rate cuts in Latam and Eastern Europe (Chile of course carrying through with a 100bp rate cut last week). There has been a slightly softer tone to this morning's US data though with a few disappointing outcomes. The July ISM manufacturing index rose to 46.4 from 46.0 (consensus 46.9), but given it is below the 50 break even line it still suggests the sector is contracting, as it has been doing for nine straight months now. New orders improved to 47.3 from ... (full story)