Friday, February 20, 2015

Greece dominates the news again

•     Greece dominates the news again
–    Greece requested an extension of its rescue package; Germany rejected it
–    Finance ministers’ deputies met yesterday, apparently are near an agreement
–    Finance ministers meet today at 1400 GMT; this is the big one!
–    It’s not clear what will happen if they don’t reach agreement today.

•     US indicators are conclusive
–    Leading index rose, but not as much as usual; jobless claims are very volatile, indicating problems with seasonal adjustment; Phili Fed index shows modest growth
–    Fed funds futures creep higher, reversing some of Wednesday’s move, as investors look to next week’s testimony by Yellen

•     Japan’s manufacturing PMI falls to lowest since last July
–    Some return to talk of weak yen is likely after elections in April are finished

•     Today:
–    Eurozone: PMI day – manufacturing & service sector PMIs for several European countries and Eurozone as a whole are expected to rise, which could boost EUR
–    UK:  Retail sales for Jan expected to fall

–    US: preliminary Markit manufacturing PMI

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