One Minute Macro Update

US:  Geopolitical risk takes center stage following the weekend's geopolitical headlines and Friday's slight disappointment on GDP.  The Fed does seem to be getting some consumer stimulus to go along with the commodity price inflation as the consumer contributed 3.04%age points of the 3.2% preliminary number on Friday.  Today will see more critical consumer data points in PCE and consumer spending/income.

Europe:  Fitch issues a warning on last week's Spanish court ruling regarding mortgage foreclosure sale proceeds.  Eurozone Jan CPI YoY 2.4% v 2.3%E (exceeds ECB target for 2nd straight month), providing more pressure on the ECB to move in a hawkish manner despite facing continued debt problems.  BOE's Weale joining Sentance in hawkish talk as well.  To Vima (Greek newspaper) reporting today that ECB, EU, and IMF are working on a 're-profiling' of Greek debt.  Belgium, France, Austria, Portugal, and Spain all set to issue this week amidst the Egyptian geopolitical concerns.

Asia:  PBOC Zhou warns on further RRR tightening (Nikkei News) and PBOC statement contains hawkish language. JPY manufacturing PMI and December industrial production both expansionary.

From Brian Yelvington of Knight Capital


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