Market Comment
The US Federal Reserve has virtually conceded it will need to provide further stimulus to the economy, despite already near-zero interest rates. An already bloated balance sheet will get bigger as the central bank buys more government securities to try and avoid the dreaded double dip recession that hovers menacingly over Wall Street.

The Thai Fund - Hold
What a difference a few months has made in the case of Thailand. With anti-Government protests, which started in March, forcibly ended in Mid-May the economic outlook now looks robust. In fact growth forecasts for the full year have recently been revised up on the back of a jump in exports. Accordingly, we rate the Thai Fund a hold.

News Corporation – Buy
After starting the 2010 financial year quite tentatively, News Corporation has roared home with net income of $2.5 billion. Advertising has picked up in most areas of the group which is now supporting the runaway train that is the Cable Network Programming division. News is now guiding the market to operating income growth in the low to mid-teens for 2011.

Walmart - Hold
International growth is providing the earnings growth impetus for Walmart presently. The US consumer is spending very cautiously in the current environment, but the company is lifting its productivity to make gains. Walmart’s second quarter profit of $3,596 million was 3.4% ahead of the prior period. The company has raised its earnings guidance for the full year.

Hecla Mining – Hold
With the US Federal Reserve underlining their commitment to loose monetary policy of late, the appeal of precious metals has never been so bright. Whilst gold remains at the forefront of the precious metals spectrum, silver benefits from greater industrial usage. Good job then that Hecla Mining provides leverage a plenty to both.