Outside of analyzing Europe’s attempt to bail themselves out, we of course have to also watch the collateral damage being done to global economic growth. China’s mfr’g PMI in June fell to 50.2 from 50.4, a 7 month low but was a touch better than expectations of a dip below 50. Mfr’g PMI in South Korea fell to 49.4 from 51. In Taiwan, PMI dropped to 49.2 from 50.5 but India saw a slight increase to 55.0 from 54.8. The Q2 Japanese mfr’g Tankan report rose to -1 from -4 and favorably compares to estimates of -4. The Final June PMI reading in the Euro zone was slightly better than the preliminary at 45.1. UK PMI rose to 48.6 from 45.9. Also, the euro zone unemployment rate ticked up to 11.1% in May from 11.0%, a fresh record high. In response to the belief on Friday on the part of Italy that money would be disbursed from the ESM/EFSF without strings attached, a German gov’t spokesman said “It’s been claimed that there will be aid without conditions; this claim is fundamentally wrong.”

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