Succinct summation of week’s events:
1) Markets hang in on belief EU officials will come to some sort of an agreement to force Greek bondholders to mark to reality, provide some debt relief to Greece and buy time and refinancing backstop for Italy and Spain
2) Initial Claims, while higher than expected, has 4 week avg at lowest since April
3) Philly mfr’g surprises to upside at +8.7 vs est of -9.4 and -17.5 in Sept
4) Multi family starts a bright spot for construction industry, reach highest since Oct ’08
5) NAHB home builder survey rises 4 pts to best since May ’10 at 18
6) Fed members Turullo, Rosengren and Evans want to do even more, only good for asset prices and nothing else.
1) Just as the Police Academy movies should have ended after the 1st instead of making 7, the Fed should have stopped a while ago and Turullo comments proves Fed policy is off the rails
2) CPI in Canada 3.2% y/o/y, CPI in Hong Kong 5.8%, CPI in Malaysia 3.4%, CPI in the US 3.9% and last week saw euro zone CPI at 3%. Inflation is a growing problem
3) Months supply of existing homes ticks up to 8.5 from 8.4
4) Operation Twist this, refi’s fall 16.6% and purchases drop 8.8%
5) NY mfr’g at -8.5 vs expectations of -4.0
6) German IFO business confidence lowest since June ’10, French business confidence weakest since July ’10
7) Moody’s downgrades Spain’s credit rating to one notch below S&P and Fitch
8) China’s Q3 GDP rises 9.1%, touch below estimates and Shanghai index down 4 straight days to lowest since Mar ’09.