Quote:
‘Better a new face coming out of an old car than an old face coming out of a new car. Spend money on you’. Joan Rivers (1933-)
The News:
Ten US banks will be allowed to repay $68B in TARP money.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP May Domestic CGPI –0.4% M/M, -5.4% Y/Y, versus revised –0.6% and –4.0% April.
00:50 JP April Machine Orders -5.4% M/M versus –1.3% March.
09:30 GB April Industrial Production (-0.8% to +0.6% M/M, -12.9% to –11.9% Y/Y versus –0.6% and –12.4% March).
09:30 GB April Manufacturing Production (-0.6% to +0.5% M/M, -13.2% to –12.3% Y/Y, vs –0.1% and –12.9% Mar).
09:30 GB April Trade Balance (-£6.7B to -£6.1B, Non-EU -£3.6B to -£3.0B, vs -£6.6B and -£3.3B March).
13:30 US April Trade Balance (-$31.5B to -$26.0B versus –$27.6B March).
13:30 CA April Trade Balance (C$0 to +C$1.6B versus +C$1.1B March).
13:30 CA April New Housing Price Index (-0.6% to 0% M/M versus –0.5% March).
15:00 US Fed’s Lacker speaks on the economic outlook, North Carolina; Duke at 17:15, Cleveland.
17:00 US auction result of US ten-year TNote auction.
19:00 US May Monthly Budget Statement (-$202B to -$170B versus –$165.9B April). US Fed’s Beige Book.
00:01 GB May NIESR GDP (versus –1.5% April).
00:50 JP Q1 final GDP (Mizuho Securities –4.2% Q/Q, -15.8% Y/Y, Deflator +2.0% vs –4.0%, –15.2% and +1.1%).
The Psychology:
Irish parliament votes on a motion of no confidence in PM Brian Cowen, proposed by Fine Gael.
The Risk:
Chart levels do not hold.
Today’s most interesting chart: Eurodollar future
Rethinking quickly on the interest rate outlook.
