Quote:
Florida: ‘Some people go there to enjoy life; I’d go there to die in perfect physical condition because there isn’t much else to do.’ Barbara Amiel (1940-)
The News:
The Bundesbank has voted to dismiss Thilo Sarrazin and has asked president Christian Wulff to remove him, the first time a board member has been sacked. He is likely to dispute this.
The Numbers:
British Summer Time, with expectations and previous figures in brackets.
00:50 JP Q2 Capital Spending –1.7%, Ex-Software –1.5% to –8.9%, versus –11.5%/–12.9% Q1.
08:15 CH August CPI (-0.2% to +0.2% M/M, +0.1% to +0.6% Y/Y, versus –0.7% and +0.4% July).
09:30 GB August Services PMI (52 to 54 versus 53.1 July).
10:00 EZ16 July Retail Sales (-0.2% to +0.6% M/M, +0.4% to +1.2% Y/Y, versus +0.1% and +1.0% June).
13:30 US August Non-Farm Payrolls (-150K to –50K, Unemployment 9.5% to 9.7%, versus –131K and 9.5% July).
13:30 US August Hourly Earnings (+1.5% to +1.8% Y/Y, Workweek 34.1 to 34.2 hours, vs +1.8% and 34.2 July).
14:00 US Fed’s Bernanke testifies on the causes of the banking crisis is at the Financial Crisis Inquiry Commission.
15:00 US August Non-Manufacturing ISM (51 to 55 versus 54.3 July).
15:00 US Fed’s Lockhart speaks about the economy, Tennessee.
The Psychology:
Labour Day holidays in Canada and the US Monday 6th September.
The Risk:
China’s FX reserves hold 65% in USD and ‘special mention’ loans rise by $7.9B at state banks.
Today’s most interesting chart: Benchmark 20-year JGB yield
Wild gyrations at the long end.
