04/05/11 ECONOMIST REPORT
Economic Indicators Recap
Eurozone Irish stress tests of banks came back mixed. Additional bailout of up to 24 billion euros is possible. In Portugal, Socrates and Socialist Party resign after government fails to approve self-imposed austerity plan. Likelihood of bailout in Portugal = high. Credit rating cut by Fitch, S&P, others. 5 year bonds yielding 8.56%. Meanwhile, the European Central Bank wants to raise interest rates.
Stalemate Gadhafi versus Rebels Democrats versus Republicans Key city of Brega going back and forth. Rebels hope to begin oil exports. Democrats versus Republicans Paul Ryan budget targets $5.8 trillion in cuts over ten years. Current compromise must come between Democrats’ $33 billion and Republicans’ $61 billion. Government shutdown. Bulls versus Bears Negative world news Positive domestic data
Looking Ahead… April 13: Retail Sales April 14: Producer Price Index April 15: Consumer Price Index April 15: Industrial Production Escalation of Coalition involvement in Libya? ECB treatment of Portugal.