While the week looks to start off with quite a bit of talk about the Merkel victory, look for that to be quickly overshadowed. Merkel has never been a favorite of the decidedly “progressive” Euro gang, but she is now widely seen as better than the alternatives. She tends to talk a tough “austerity” game, which gets under the elite’s skin to no end, but always seems to cave to the bailout folks in order to save the EU. Freed from reelection worries, the consensus is that Merkel will now lean much more openly toward salvaging the European currency. And she has an additional bit of wind at her back as new PMI (purchasing managers Index) numbers have just been released, and while hardly fabulous, they are at least going in the right direction:
“An upturn in the euro-zone PMI in September rounds off the best quarter for over two years, and adds to growing signs that the region is recovering from the longest recession in its history,” said Chris Williamson, chief economist at Markit, in the release.
“The overall rate of growth signaled by the euro-zone PMI remains modest, however, consistent with gross domestic product rising by a meager 0.2% in the third quarter,” he added.
Hey, in Europe, that’s good news!
Back here in the U.S., Obama has apparently acquiesced to the liberal’s demands as Politico and WSJ reports that the White House is expecting a full-throated defense of Janet Yellen once she is nominated:
A Senate Democratic aide said the White House is making clear that it wants senators to coalesce around Yellen.
“They are discussing a possible nomination and urging members to publicly defend her,” the aide said.
This should make those traders that want QE (quantitative easing) to end a few days after never particularly joyful, as it seems all but certain that she will get the nod. This will take up a lot of time on CNBC and FOX Business this week, so get ready.
Finally, the cloud hanging over even the Fed successor talk, will be another round of government shutdown. Nothing seems to get the media. and the markets analysts especially, more agitated than this stuff. If the past is any guide expect to see a lot of yelling and screaming on both the business and the news channels. Of course, since this is about the 78th time this has occurred in the last few years (ok, it just seems that way) one might think that the television commentators would be a little more circumspect in their prognostications. Ahh, who am I kidding, that’s not going to happen! Have a good week everyone.