- US Retail Sales dropped -0.5% in July vs +0.2% exp and -0.2% prev. The Control Group declined -0.1% vs +0.2% exp and 0.0% prev
- US Empire Mfg improved to 7.39 in July vs 4 exp and 2.29 prev
- WSJ reported that Draghi proposed senior debt burden sharing for Spanish banks that receive EU capital if they undergo liquidation. This was a surprise because the ECB had been against burden sharing in Ireland’s case previously. However, the proposal was rejected by EU finance ministers due to concerns about the funding stresses.
- JPM expects Spain to be downgraded by Moody’s in the next one or two months, causing the country to lose market access to bond issuance.
- EU CPI was inline at 2.4%.
- Tues: UK CPI, German Zew, USCPI, US NAHB, BoC
- Wed: BoE minutes, UK Unemployment, US Housing Starts, Humphrey-Hawkins
- Thurs: US Jobless Claims, Philly Fed, Existing Home Sales
Commentary & Links:
If LiborGate is not problem enough, the NYTimes reports that the Investment Banks have been releasing analysts’ estimates to preferred clients early.