Recap 1-24-12

Main Items:

  • Richmond Fed Mfg Index improved to 12 in Jan vs 6 exp and 3 prev
  • Last night it was announced that EU finance ministers are rejecting the PSI deal on Greek debt. They want 3.50% coupons versus 4.25% by investors. Juncker, who leads the group of EU finance ministers, said the coupon should be “well below” 3.5% for the period to 2020. The interest rate on the bonds should be below 4% “over the total period.” February 13th is the official PSI deadline.


  • EU PMI’s for January improved more than expected.
  1. Composite improved to 50.4 vs 48.5 exp and 48.3 prev
  2. Mfg improved to 48.7 vs 47.3 exp and 46.9 prev
  3. Services improved to 50.5 vs 49 exp and 48.8 prev
  4. Both French and German PMI’s surprised to the upside.

The Bank of India unexpectedly cut the cash reserve ratio to 5.5% from 6%.