Recap 8-8-12

Main Items:

  • US Unit Labor Costs increased to 1.7% YoY in 2Q vs 0.5% exp and 1.3% prev. However, productivity improved to 1.6% from -0.9% prev
  • BoE Inflation Report projected weaker inflation. King said the Funding for Lending scheme will need to be evaluated with respect to how it affects the rise in bank funding costs. Risks to inflation at the forecast horizon are broadly balanced
  • Fannie Mae earned 5.1bn in 2Q. They think home prices have stabilized, but it’s too early to say it’s a recovery. It believes loss reserves peaked in Dec 2011
  • For the first time in four years, UNP is removing rail cars from storage to haul lumber for homebuilders. NA American rail carloads of lumber and wood products are 10% higher as of July 28th and YoY basis. Bloomberg
  • Last Thurs the ECB approved the Greek Central Bank’s ELA increase, permitting the country’s banks to purchase more Greek bonds and thereby keeping the government afloat until the troika can wrap up their supervisory review in Sept. WSJ


  • Japan Eco Watchers Outlook Survey declined to 44.9 vs 44.0 exp and 45.7 prev

Upcoming Data:

  • Wed: Korea Central Bank, Australia Employment, China CPI
  • Thurs: BoJ, China IP, Retail Sales, US Jobless Claims,
  • Fri: UK PPI, Canada Employment
  • Mon: RICS House Prices Balance, BoJ Minutes, Australia NAB Business Confidence
  • Tues: UK CPI, EU 2Q GDP, German Zew, US PPI, Retail Sales

Commentary & Links: