1. 04/05/11 ECONOMIST REPORT

4. Economic Indicators Recap

5. 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.

6. 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

7. 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.