- US Core PCE rose to 0.9% YoY in Feb as expected, vs 0.8% previously.
- Personal Spending was strong, rising 0.7% MoM in Feb vs 0.5% expected and 0.2% previously. However, Personal Income was a bit weaker at 0.3% MoM vs 0.4% expected, even as the prior print was revised upward from 1.0% to 1.2%.
- Both Merkel as well as Sarkozy suffered political set backs this weekend, as their political parties lost ground. Merkel’s coalition got only 44% of the vote, losing an area it had ruled over for the last 60 years. The center-left opposition, composed of the Greens and their Social Democratic Party allies, won over 47% of the vote.
- ECB preparing new emergency liquidity facility to provide financing to Europe’s troubled banks over an extended period; the new facility will replace the existing ELA (Emergency Liquidity Assistance) and is said to be designed specifically for Ireland’s banks.
- The Irish Times reports the ECB is preparing a EU60B emergency financing to provide Ireland’s banks with medium-term “liquidity” loans. The package is being worked on ahead of the stress test results due out this week for the country’s banks.
- Ireland’s bank stress tests will reveal a EU20B capital hole that needs to be filled; analysts had expected the losses to be around EU25B. Ireland will publish the stress test results on Thursday.