Global Macro Perspectives
U.S. industrial production rose 1.2% in May. The consensus was at 0.9%, April reading at 0.8%. Capacity utilization rose from 73.7% in April to 74.7%; the consensus was at 74.5%. Main contributors to growth were automakers and utilities. Chart 1. U.S. Industrial Production and Capacity Utilization
U.S. producer price index fell 0.3% in May vs. -0.5% consensus and 0.1% fall in April. Food & energy taken out U.S. producer price index rose 0.2% in May. The consensus was at 0.1%, prior reading at 0.2%. Chart 1. U.S. Producer Price Indexes
U.S. housing starts were reported at 593.000 vs. revised 659.00 April reading. The consensus was at 648.000. Building permits in the same period fell 5.9% to 574.000. Bad report. Chart 1. U.S. Housing Starts Chart 2. U.S. Building Permits
MBA mortgage applications rose 17.7% for week ending June 11 on back of a 21.2% refinancing surge, the prior reading was a decrease of 12.2%. Chart 1. MBA Mortgage Applications
HMI came out at 17 vs. 22 in May. It is expected result of first home-buyer tax credit expiration. Nevertheless the U.S. housing is in a downward slope threatening the financial sector. All index components were down. Chart 1. NAHB / Wells Fargo Housing Market Index
Todays Financial Times front page: Spanish banks break ECB loan record. Spanish banks borrowed €85.6bn ($105.7bn) from the ECB last month. This was double the amount lent to them before the collapse of Lehman Brothers in September 2008 and 16.5 per cent of net eurozone loans offered by the central bank. Financial Times article: Turmoil in Spain […]