Recap 11-03-11

Main Items:

  • Papandreou appears to have lost his parliament majority (down to 149 seats out of 300) and the Greek finance minister has come out against the idea of a referendum. Papandreou said that there will be a confidence vote.
  • ECB cut 25bps to 1.25% vs expectations of no cut. The vote was unanimous, although that may also be because it is Draghi’s first meeting.
  • Non-mfg ISM declined to 52.9 vs 53.5 exp and 53 prev.
  • Initial Jobless Claims declined to 397k last week vs 400k exp and 402k prev
  • US Unit Labor Costs decreased a sharp -3.4% in 3Q vs -1.0% exp and 3.3% prev.
  • 100 members from both parties (60 Dems and 40 Republicans) urged the supercommittee to cut the budget deficit by $4T over 10 yrs. Republicans have signaled they would agree to tax increases while Dems acknowledged the need for benefit cuts. WSJ


  • UK Services PMI declined to 51.3 in Oct vs 52 exp and 52.9 prev
  • China Services PMI dropped to 57.7 from 59.3. The HSBC services PMI increased to 54.1 from 53.0.
  • Australia Services PMI declined to 48.8 in Oct vs 50.3 prev