Last
week showed a lackluster economy where the number of POSITIVE developments
equaled the NEGATIVE developments. And, the stock market dropped

Below is a succinct list of last week’s
events:

Positives:

1)
European bond yields fall across the board and across the curve (except Italian
10 yr)
2) Euro basis swap, euribor/ois spread down a touch on the week
3) Euro zone mfr’g and services composite index unexpectedly rises to 47.9 from
47
4) German ZEW 6 mo expectations outlook up slightly
5) Philly and NY mfr’g survey’s surprise to upside and 6 month outlook improves
6) Initial Claims fall to 366k, the least since May ’08
7) CPI rate of change about in line
8) MBA said refi’s rose to 5 week high
9) Big demand for Treasury auctions of 3′s, 10′s and 30′s
10) No QE3, for now at least. Money printing just a drug and hangover will come
anyway at some point
11) China’s HSBC flash mfr’g # rises to 49 from 47.7 but still below 50 for 5th
month in past 6

Negatives:

1)
Implementation of EU summit agreement easier said than done
2) Euro zone CPI runs 3% y/o/y for 3rd straight month
3) US CPI up 3.4% y/o/y headline, 2.2% core, core rate at most since Oct ’08
4) US retail sales in Nov light vs estimates
5) MBA said purchase apps fall to 4 week low
6) Nov IP unexpectedly falls .1% led by auto’s and nat gas output
7) Shanghai index falls another 4% on week, FDI down 9.8% in Nov, 1st drop
since July ’09
8) Indian Sensex drops to lowest since Nov ’09 as Oct IP falls 5.1% vs forecast
of .7% fall
9) Japanese Q4 Tankan mfr’g # falls to -4 from +2
10) Solid demand for Treasury’s 3′s, 10′s and 30′s, what does that say about
the economic outlook?
11) FOR STOCK MARKETS ONLY, no QE from Fed and ECB (Source: The Big Picture).