The month of March capped off a quarter which was refreshingly positive, particularly compared with all the angst last year. That said there is still a lot of water to go under the bridge. The economic data is broadly consistent with the big three economic themes of 2012: a mild recession in Europe, a soft landing in China, and a debt constrained recovery in the US. The wildcard remains in the hands of central bankers and politicians. March saw continued, albeit selective, monetary policy easing in emerging markets. Meanwhile fiscal austerity remains the dominant feature in Europe with many of the requisite crisis management measures broadly on track. The drive for fiscal austerity, coupled with growth oriented policies will make the economic recovery tougher, but perhaps ultimately more sustainable.