U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
"The volume of new export orders also increased, up for the seventh consecutive month in May."
"Pencil in" another LTRO announcement at the ECB's July meeting, says JPMorgan, also predicting a 25 basis point rate cut for September. The bank cites today's PMI reads as the final straw to stir the ECB to action (then why wait until September?). Something is clearly up in the currency markets, where the euro has spiked higher vs. the dollar and, more interestingly, against the Swiss franc. [View news story]
Hmmmm...2 year euro swap spread keeps sliding off...
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
Expect the ECB to respond to Greece by holding another LTRO, says Commerzbank's chief economist, adding he expects the bank to take its time about announcing such. "The growing uncertainty is poison for the economy," he says. He predicts a cheaper euro, not because of a run, but because the ECB will have the loosest monetary policy. [View news story]
The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
5year note at .748...average interest rate of U.S. government debt 2.13%
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications:+3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]
JPMorgan is sued on behalf of its employees, accused of violating its duties to 401(k) and other retirement plan participants by including JPM as an investment choice and hiding the stock's risk. Also named in the suit are individuals, including Jamie Dimon and Ina Drew. Shares are finally getting a bounce today, +5.3%. [View news story]
While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. [View news story]
"If history is any guide, it hasn’t often been the result of speculative bets. It has been the result of banks making loans to individuals and businesses who can’t pay them back."
Postponable Purchases to GDP had been way above its 65 year average for too long and not allowed to find its appropriate bottom after the tech bust ( in other words they jacked up Residential Investment to soften the 2001 recession)...we paid the price later...
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
Bears wanted to talk median prices when prices were down but now ..oh no...the numbers are distorted because???...
The short sales and foreclosures in my neighborhood have long since been bought up....now they are remodeling the homes...
India's rupee falls more than 1% to an all-time low, now requiring 55 of them to buy one greenback. The central bank is in a tough spot as inflation remains high while the economy slows. The slide in the rupee - at least some of which has to do with the "risk off" tone of markets - won't help the inflation picture. [View news story]
"In spite of the recent moderation in activity, assessments for business activity over the next six months remained generally positive since our last report. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would continue to grow at a solid pace."
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
up for the seventh consecutive month in May."
Shouldn't this be going down???
"Pencil in" another LTRO announcement at the ECB's July meeting, says JPMorgan, also predicting a 25 basis point rate cut for September. The bank cites today's PMI reads as the final straw to stir the ECB to action (then why wait until September?). Something is clearly up in the currency markets, where the euro has spiked higher vs. the dollar and, more interestingly, against the Swiss franc. [View news story]
U.S. Flash PMI (first ever) for May 53.9 vs. April's final read of 56.0. It indicates the slowest level of expansion in three months. New Orders 54.8 Vs. 56.9. Backlogs of Work 51.7 vs. 52.2. Input prices 56.3 vs. 63.1. Output prices 52.8 vs. 53.9. [View news story]
Tiffany (TIF): Q1 EPS of $0.64 misses by $0.06. Revenue of $819M (+8% Y/Y) beats by $3M. (PR) [View news story]
Expect the ECB to respond to Greece by holding another LTRO, says Commerzbank's chief economist, adding he expects the bank to take its time about announcing such. "The growing uncertainty is poison for the economy," he says. He predicts a cheaper euro, not because of a run, but because the ECB will have the loosest monetary policy. [View news story]
Ripping The Bandage - Greece And The Eurozone [View article]
The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications: +3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]
JPMorgan is sued on behalf of its employees, accused of violating its duties to 401(k) and other retirement plan participants by including JPM as an investment choice and hiding the stock's risk. Also named in the suit are individuals, including Jamie Dimon and Ina Drew. Shares are finally getting a bounce today, +5.3%. [View news story]
While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. [View news story]
Postponable Purchases to GDP had been way above its 65 year average for too long and not allowed to find its appropriate bottom after the tech bust ( in other words they jacked up Residential Investment to
soften the 2001 recession)...we paid the price later...
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
now ..oh no...the numbers are distorted because???...
The short sales and foreclosures in my neighborhood have long since been bought up....now they are remodeling the homes...
India's rupee falls more than 1% to an all-time low, now requiring 55 of them to buy one greenback. The central bank is in a tough spot as inflation remains high while the economy slows. The slide in the rupee - at least some of which has to do with the "risk off" tone of markets - won't help the inflation picture. [View news story]
April Existing Home Sales: +3.4% to 4.62M vs. 4.66M expected, 4.47M prior (revised from 4.48M). [View news story]
May. Richmond Fed Mfg. Survey: -10, to 4 (above 0 = growth). Shipments -18 to 0, new orders -12 to 1, jobs +6 to 16. [View news story]
Doesn't sound like recession talk....