Hello,
Yesterday we met a great data from the U.S. Preliminary GDP for the third quarter was up 2.8%, while economists predicted growth of only 1.9%. The unemployment rate rose as expected from 7.2% to 7.3%.
U.S. GDP for the third quarter: 2.8% Consensus: 1.9% previously: 2.5%
Today, morning the decision by rating agency S&P the long-term rating was downgraded for France to AA from AA +. The rating outlook remains stable.
Today, morning the decision by rating agency S&P the long-term rating was downgraded for France to AA from AA +. The rating outlook remains stable.
With such a good labor market data for October (+204 K) and considerable upward revisions in the previous two readings QE3 likely to be limited in December strongly increasing. If we add a very high readings ISM index and the Chicago PMI, unchanged from the September FOMC Statement and the assumption of reading the next payrolls above 180k it can be argued that the consensus market expectations for QE3 restrictions may soon move in March 2014 to December 2013 (!)
The data certainly favor the fact that a consensus could be moved to December. The only question is whether Ben Bernanke has the courage to decide to limit QE3. He is a man who, through his actions brought the market into a period of cheap money. The only question is whether the courage to take the first step towards a return to normality ...
Where did the increase of employment in the United States by as much as +204 thousand:
19 thousand. This increase of employment in factories
44 thousand. This increase of employment in the retail sector (retailers)
54 thousand. an increase of employment in the goods and services used in their free time (leisure industry)
95 thousand. This increase of employment in other sectors of the private
-8 Thousand. This decline of employment in the government sector
Today we have at the end of the European session speech Lockhart, a member of the Fed.
most significant themes:
- If employment growth continues, it should be limited QE3;
- Today's data encourage the reduction of QE3.
nice weekend,
oscarjp
The data certainly favor the fact that a consensus could be moved to December. The only question is whether Ben Bernanke has the courage to decide to limit QE3. He is a man who, through his actions brought the market into a period of cheap money. The only question is whether the courage to take the first step towards a return to normality ...
Where did the increase of employment in the United States by as much as +204 thousand:
19 thousand. This increase of employment in factories
44 thousand. This increase of employment in the retail sector (retailers)
54 thousand. an increase of employment in the goods and services used in their free time (leisure industry)
95 thousand. This increase of employment in other sectors of the private
-8 Thousand. This decline of employment in the government sector
Today we have at the end of the European session speech Lockhart, a member of the Fed.
most significant themes:
- If employment growth continues, it should be limited QE3;
- Today's data encourage the reduction of QE3.
nice weekend,
oscarjp
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