As is normal for U.S. administrations, the gloss appears off the sheen now for President Obama, with execution challenges epitomized, beyond economics, by the Middle East internationally, and domestically Healthcare. Amongst the largest economies, China Prime Minister Wen has found it necessary to caution about uncertainties. In Japan, polls indicate for August 30 an opposition Democratic Party sweep with policy change to follow. Similarly, on September 27, German elections could well lead to substantive change if Chancellor Merkel were to form an exclusive coalition with the Free Democrats for whom financial reform appears a key. Last not least, a heavy calendar looms- September 4 in London, G-20 finance ministers meet as do the Leaders in Pittsburgh September 24/5 and September 23/30 the United Nations General Assembly takes place with uncertainties ranged from the global economy to global trade to climate change. Markets will likely not benefit from central or private banks shying away from publicly highlighting the palatable and unpalatable in finance, business or otherwise. Quality is likely to remain crucial, recent market behavior and the re-nomination of Fed Chairman Bernanke notwithstanding.
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