Quote:
‘I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub’ Grover Norquist (1956-)
The News:
President Obama says a second stimulus package is not needed yet though unemployment will top 10% because nobody understood what the depth of the recession was going to look like’.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP May Trade Balance 299B yen versus 67.7B April.
00:50 JP May Corporate Services Price Index –3.0% Y/Y versus –2.4% April.
11:00 GB June CBI Distributive Trades (-25 to –5 versus –17 May).
13:30 US May Durable Goods Orders (-3.9% to +1.0%, Ex-transport –2.8% to +1.0%, vs +1.9% and +0.8% April).
14:30 GB Bank of England’s Barker, Bean, Fisher, King and Sentence testify on inflation report, Treasury Select Committee. Bailey and Haldane on the banking crisis at 15:45.
15:00 US May New Home Sales (345K to 380K versus 352K April).
18:00 US auction result of seven-year TNote sale.
19:15 US FOMC interest rate decision (nearly all expect unchanged at 0.25% though 7 favour a cut to 0.13%).
The Psychology:
Day 1 of 4 of United Nations Summit on financial and economic crisis. Midsummer holidays in the Baltic states.
The Risk:
FX moves gather momentum.
Today’s most interesting chart: Benchmark US 30-year TBond yield
Breaking below the ‘neckline’ of a small ‘head-and-shoulders’ top as it drifts towards this year’s trendline.
