• *** ECONOMIC DATA ***
  • GE Q3 Final GDP: Q/Q 0.7% v 0.7%e || Y/Y 2.5% v 2.5%e || Y/Y nsa 2.4% v 2.4%e
  • GE Q3 Final Private Consumption: 0.5% v 0.3%e || Prior revised from 0.6% to 0.8%
  • GE Q3 Final Government Spending: -0.1% v 0.3%e || Prior revised from –0.2% to 0.0%
  • GE Q3 Final Equipment Investment: 0.4% v 2.0%e || Prior revised from 2.5% to 0.9%
  • GE Q3 Final Construction Investment: 0.6% v 0.8%e || Prior revised from –4.8% to –3.5%
  • GE Q3 Final Domestic Demand: 0.9% v 0.7%e || Prior revised from –0.6% to –0.9%
  • GE Q3 Final Imports: 3.9% v 2.2%e || Prior revised from 0.9% to –1.8%
  • GE Q3 Final Exports: 3.1% v 2.1%e || Prior revised from –0.9% to 0.8%
  • SP Sep Services Sector Turnover: 3.2% v 6.1% prior
  • SZ Q3 Employment Level Y/Y: 2.7% v 2.3%e [highest since Q1 2000]; Employment Level 3.871M v 3.373M prior
  • IT Oct Trade Balance: -€313M v -€2.11B prior || Prior revised from -€2.11B to -€2.10B
  • EU Sep Current Account: €600M v €4.0Be || Prior revised from €3.8B to €4.5B |||| Current Account nsa: €4.4B v €0.0Be || Prior revised from €700M to €1.5B
  • UK Q3 Preliminary Total Business Investment: 0.0% v 1.1%e || Y/Y 4.6% v 6.1%e
  • EU Sep Industrial New Orders: M/M –1.6% v –0.7%e || Prior revised from 0.3% to 0.8% |||| Y/Y 2.0% v 6.5%e || Prior revised from 5.1% to 5.3%
  • *** SPEAKERS/COMMENTS ***
  • CH Statistics Head: Reiterates 2007 GDP growth forecast of 11.5%
  • CH Statistics Head: China faces monetary and currency policy dilemmas
  • CH Statistics Head: Undervalued Yuan adds to economic problems
  • JP Economic Minister Ota: Stronger Yen is a negative on economy from current levels
  • EU Barroso: The strong Euro is becoming a concern
  • GE Finance Minister: Economy remains robust
  • GE Finance Minister: Export growth likely to slow due to Euro strength
  • GE Finance Minister: Industrial production growth seen losing momentum
  • GE Finance Minister: Rise in inflation is burdening private consumption
  • GE Finance Minister: European Macro News/Economic Numbers
  • GE Economic Minister: Private consumption may stabilize further in the coming months
  • GE Economic Minister: Third-quarter growth confirms Germany’s solid economic momentum
  • SW Riksbank's Nyberg: There is reason to believe that the credit market unrest will continue
  • SW Riksbank's Nyberg: Will be a long time before all bank losses are known
  • SW Riksbank's Nyberg: Too early for clear conclusions on market turmoil
  • *** FIXED INCOME/FX/COMMODITIES/ERRATM ***
  • FR AFT sold €1.083B in 4.00% September 2009 BTAN with an average yield of 3.77% and a bid-to-cover of 4.73x. The auction brings the amount outstanding for the issue up to €11.67B. The bid-to-cover compares to 5.51x at the previous auction.
  • FR AFT sold €1.97B in 4.50% July 2012 BTAN with an average yield of 3.85% and a bid-to-cover of 2.88x. The bid-to-cover compares to 4.03x at the previous auction.
  • Overall, today has been relatively quiet as the US is on holiday. Economic data was steady, however nothing market moving was released. Most notably on the data front was the weaker than expected industrial new orders data in the Euro-Zone. Similarly, on the speaker front, most comments were in line with past comments, and, again, there was nothing market moving to report. Equity markets quickly dropped off into negative territory following the open, but staged a slow but steady rebound into the green after bottoming out.

By: John J. Phillips IV