Eurion Constellation | US Macroeconomic Focus 3
EURION
CONSTELLATION US MACROECONOMIC FOCUS
April 2009
Eurion Constellation| Sample Report
Eurion Constellation | US Macroeconomic Focus 3
US Weekly Macroeconomic Focus
Monetary News
The cost of addressing the financial crisis is increasing due to rising yields and debt levels
in the economy. The 2009 budget deficit could be close to$2 trillion or 12.5% of the GDP,
more than twice the record high of 6% during the deep recession of 1983. Two weeks ago,
budget analysts estimated that the measures to infuse liquidity might push the deficit to
as much as $1.5 trillion. The benchmark 10-year notes yield rose to 3.82% in New York,
from a close of 3.45% on October 6, 2008. This year, gross U.S. debt stands at over $11.3
trillion as compared to $10.6 trillion in 2008.
(Source: Bloomberg; October 10, 2008)
Fed and other central banks reduce
policy interest rates
The FOMC has decided to lower its target for
the Federal Funds rate to 1-1/2%. The
committee took this action in the light of the
evidence pointing to weakening economic
activity, and a reduction in inflationary
pressures. The incoming economic data
suggests that the pace of economic activity
has slowed markedly in recent months.
Moreover, the intensification of the financial
market turmoil is likely to exert additional
restraint on spending, partly, by further
reducing the ability of households and
businesses to obtain credit. Inflation has been
high, but the committee believes that the
decline in energy & commodity prices and
weaker prospects for economic activity has
reduced the upside risk to inflation. In a
related action, the Board of Governors
unanimously approved a 50 basis-point
decrease in the discount rate, to 1-3/4%.
(Source: Fed; October 8, 2008)
Market Data
Equity (close)
Oct 3
Oct 10
% Chg
S&P 500
1,099
899
-18%
DJIA
10,325
8,451
-18%
MSCI World
1,139
910
-20%
(Bloomberg)
T-Bill Yields
2-Yrs
1.60
1.62