Quote:
‘Marriage is a bribe to make a housekeeper think she’s a householder.’ Thornton Wilder (1897-1975)
The News:
US Housing Starts and Permits drop to lowest since records began in 1955, dragged down by a 46.1% drop in construction of multi-family units.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP Q1 GDP –4.9% Q/Q, -15.2% Y/Y (worst since records began in 1955), Deflator +1.1%, versus revised –3.8%, –14.4% and +0.7% Q4.
07:00 DE April PPI –1.4% M/M, -2.7% Y/Y (lowest since 1986’s record low), versus –0.7% and –0.5% March.
08:00 JP April Convenience Store Sales (versus +4.2% Y/Y March).
09:30 GB Bank of England Minutes of May 6/7th MPC meeting.
10:00 CH May ZEW Survey (versus –27.7 April).
11:00 GB May CBI Industrial Trends (-62 to –40 versus -57 April).
12:00 CA April CPI (0% to +0.4% M/M, +0.4% to +0.8% Y/Y, versus +0.2% and +1.2% March).
12:00 CA April Core CPI (-0.1% to +0.2% M/M, +1.6% to +1.9% Y/Y, versus +0.3% and +2.0% March).
13:30 CA April Leading Indicators (-1.2% to +0.2% versus –1.3% March).
14:30 US Treasury’s Geithner testifies on TARP to Senate Finance Committee.
19:00 US Fed’s FOMC Minutes April 29th.
00:50 JP March Tertiary Industry Index (Mizuho Securities –1.9% versus –0.8% February).
The Psychology:
Politicians having increasing trouble dealing with the credit crunch.
The Risk:
Momentum builds as markets break out of the broad ranges many have held since October/November.
Today’s most interesting chart: Nymex Gasoline future
Highest since early November as President Obama forces car manufacturers to make more fuel-efficient vehicles.
