I realise I am missing a shed load of links on what’s actually happening in the markets today but I was spending a lot of time watching the Krugman/MMT/Steve Keen debates on whether the Fed controls base money. So far, from what I have read, the MMT/Keen guys have got a good grasp of the stuff and I am surprised at how much basic stuff Krugman doesn’t get.
Anyway, let’s talk data. The German data is still looking rather weak. I saw some numbers out of Germany that showed business confidence was rising. I don’t know why. When I listen to German news radio as I do every day, everyone is obsessed with the bankruptcy of drug chain Schlecker. That’s what’s in the news all the time in recent days. As for actual data, the Manufacturing PMIs were pretty lacklustre across Europe. Germany printed 48.4 which is below the expansion divide. Austria and Ireland were the only ones over 50.
Retail sales was weak too. In Germany they were down 1.1% in February compared to the month prior. remember, the German economy contracted 0.2% in Q4 2011. It wouldn’t be a hug shocker if we saw another negative GDP print for Q1 2012.
Bottom line: German domestic demand is still relatively weak. Most of German growth has been coming from export demand. And that area is slowing not just in Europe but in emerging markets too.
That’s it. Here are the links.
Justice Anthony M. Kennedy, joined by the court’s conservative wing, wrote that courts are in no position to second-guess the judgments of correctional officials who must consider not only the possibility of smuggled weapons and drugs but also public health and information about gang affiliations.
Most of the people of southern Europe have stayed surprisingly stoical up to now in the face of some of the most painful budget cuts in living memory, but signs are stirring that patience may soon run out.
The Facebook-related firings have begun: A teacher’s aide in Michigan was let go from her job after a school administrator demanded that she turn over her Facebook password and she refused. The aide, Kimberly Hester, is preparing for a legal showdown with the school system.