Recap 2014-12-01

Commentary:

None

Notable:

  • Manufacturing PMI’s:
  1. US ISM declined to 58.7 vs 58.0 exp and 59.0 prev
  2. EU PMI was revised down to 50.1 vs 50.4 exp and prev. strength in France was offset by weakness in Italy and Germany
  3. UK PMI improved to 53.5 vs 53 exp and 53.2 prev
  4. China PMI declined to 50.3 vs 50.5 exp and 50.8 prev

Japan Capital Spending rose 5.5% YoY in 3Q vs 1.8% exp and 3.0% prev

Moody’s downgraded Japan one notch to A1 from Aa3, on the same day Japanese yields printed negative.

Abe said “Abenomics still only halfway” to achieving their goals.

The Fed is more worried about inflation than it is letting on in public according to Reuters. The persistent undershooting of the 2% inflation goal is increasingly becoming a concern for those inside the Fed and inflation expectations are starting to slip. “One Fed official, who declined to be named, told Reuters policymakers must resist the urge to lift rates at the first opportunity because they might be forced to backtrack if inflation failed to pick up.” “Other officials, who declined to be named, were not ready to sound alarm yet but said that if inflation continued to disappoint the Fed would have to admit it did not know how long it could last, or how it might shape longer-term expectations.”

US retailers’ combined sales over Thanksgiving weekend fell this year according to initial estimates, despite stores aggressively extending opening hours in an effort to fire up spending at the start of the holiday season. The National Retail Federation, the largest US industry retail group, estimated on Sunday that spending over the four-day weekend would fall 11% to $50.9bn, from $57.4bn in 2013. The average shopper is expected to spend $380.95 over the weekend, down 6.4% from last year.

Upcoming:

  • Mon: Australia Current Account, Building Approvals, RBA
  • Tue: Australia GDP, Services PMI, China Services PMI, Japan Services PMI
  • Wed : EU Services PMI, UK Services PMI, US ADP, Services PMI, ISM Non-Mfg, BoC, US oil Inventories, Australia Retail Sales, Trade Balance
  • Thu : BoC, ECB, US Jobless Claims,
  • Fri : EU 3Q GDP, US Employment, Canada Employment,
  • Mon: Japan Current Account, China Trade Balance, Japan Eco Watchers Survey, Canada Housing Starts, Australia NAB Business Confidence
Advertisements