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The Institute of Supply Management's Index of manufacturing activity declined to 49.7 for June from 53.5 in May. Figures below 50 indicate contraction in manufacturing activity. The measure for new orders declined rapidly falling to 47.8 from 60.1. New export orders dropped to 47.5 from 53.5. This shows that the slowdown in China and Europe is now reaching the U.S. with slowing exports and new orders. At the same time auto sales are growing, with auto sales up 26% in May 2012. GM's auto sales were up 16% in June, Ford's 7%, Toyota 60% and Honda 49%. Auto sales were at an annualized pace of 14.1 million in June 2012, showing that this sector is holding up.

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Ron Howard remembers Andy Griffith, who was his Dad in the Andy Griffith Show. He says Andy showed a lot of respect for his audience and displayed this by trying to earn its respect every week.

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The U.S. strengthens its forces in the Persian Gulf to keep open the Straits of Hormuz, especially to block any effort by Iran to mine the narrow waters of the Strait. Saudi Arabian oil exports come through this waterway.

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Japan's prime minister, Yoshihiko Noda, keeps hs majority intact and now leads a more unified party after the defection of Ichiro Ozawa with 37 members of the lower house of parliament. Ozawa left to form his own party after opposing the doubling of the consumption tax by 2015, a measure that was recently passed in the lower house of parliament.

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British prime minister David Cameron tells the House of Commons- after it is revealed that Barclays management set artificially low LIBOR rates- "We need to take action right across the board." CEO Diamond resigns. This was designed to avert regulator scrutiny of Barclays in the aftermath of the financial crisis of 2008.

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Japan Airlines plans for a $8.8 billion initial public offering in September 2012.

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The June 28, 2012 EU deal is expected to increase the role of the European Central Bank in addressing the eurozone crisis with powers of banking regulation and supervision and direct capital aid to Spanish banks. Mario Draghi's experience with the Bank of Italy and in dealing with different Italian governments has prepared him for the difficult task of making sure governments in the eurozone make responsible decisions for eurozone finances.

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Pena Nieto, the new president of Mexico, says that this is a new generation and a different PRI party from the one in the past. His focus is to learn from efforts made by countries such as China, Brazil and India in modernization and reducing poverty, so that Mexico can fulfill its potential. His goal will be to avoid ideological positions and patronage, and achieve measurable progress against poverty in Mexico. He cites the Mexico's Office of National Statistics figures showing Mexico's growth rate at 1.7% for 2000-2010, and the lack of reforms in the energy sector, labor markets, education and social security.

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Diesel prices are regulated and subsidized by the Indian government, but gasoline prices are deregulated since 2010, resulting in gasoline costing 64% more than diesel in India. As a result buyers are staying away from gasoline cars and shifting to diesel creating distortions in demand. The government is considering a tax on diesel cars and SUV's of between $3000 to $4600 to correct the distortion. Because lower income people woud be hurt by increasing the price of diesel it continues to be subsidized. Because of the uncertainty car manufacturers are shutting down production to reduce growing inventory of gasoline vehicles. High interest rates of 12% on car loans also reduces demand. Suzuki Maruti sales declined 6% in May 2012, Ford and GM showed sales declines of 14% and 20%. The year ending March 2012 shows Indian car sales growing only slightly by 2.2% to 2 million cars. Sales were rising at 29% only about a year ago. Gasoline costs 68 rupees a liter in New Delhi after a 11.5% increase in May 2012, compared to 41 rupees per liter for diesel. The increase in gasoline prices is a result of the government having difficulty paying the rising imports of oil, costing $141 billion for the year ending March 31, 2012. The sharp slowdown in the car industry and the problems in the energy sector have affected India's growth rate....