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Earnings Are Heading into Even Rougher Seas

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Second hald profits will get hammered by inflation and the economy will be getting much worse with housing deteriorating and the credit crunch only getting worse. Exports the one bright spot also is on the decline as manufacturing output in the EU and Japan declined in the second quarter and growth in emerging markets including India is cooling. So the contribution of 1 to 1.5 percentage points from overseas trade is declining.


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