G3 Recap 9-01-11

Main Items:

  • ISM Manufacturing declined to 50.6 in Aug vs 48.5 exp and 50.9 prev. The New Orders measure actually improved to 49.6 vs 49.2, but employment declined to 51.8 vs 53.5, and inventories increased to 52.3 vs 49.3. Note that all responses were in before Irene hit.
  • US Initial Jobless claims declined to 409k last week vs 410k exp and 417k prev
  • Unlit Labor Costs were finalized for 2Q at 3.3% vs 2.2% prev
  • BCB surprised with a 50bp cut overnight, with the vote split 5-2.
  • The IMF circulated a report stating that if European banks marked sovereign holdings to market, it could cut tangible common equity by EUR 200bn, or 10-12% of the total. The impact could be increased substantially, perhaps doubled, by the knock-on effects of European banks holding assets in other banks. The EU and ECB have strongly rebutted the IMF’s numbers and called the report partially misleading. The final report will be published in 3 weeks. FT

Overseas:

  • Chinese PMI improved to 50.9 in Aug vs 51 exp and 50.7 prev. The HSBC measure also improved to 49.9 vs 49.3 prev.
  • South Korea PMI declined to 49.7 in Aug vs 51.3 prev
  • Italian PMI Manufacturing declined to 47 in Aug vs 29 exp and 50.1 prev.
  • Final EU PMI Manufacturing for Aug dropped to 49 vs 49.7 exp and prev.
  • UK PMI Manufacturing was basically unchanged in Aug at 49 as exp vs 49.1 prev
  • Swedish PMI Manufacturing declined to 48.7 in Aug vs 49.8 exp and 50.1 prev

Commentary:

  • None.
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