The Banking and Strategy Initiative

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US Economy: The Tuesday Services PMI scare

S&P’s latest analysis note suggest Greece indeed has a one in three chance of leaving the union as almost commonplace but hitherto largely ignored data hich has yet been important for academics and highlighted by us this year for its importance to the Global Economy as the fount of recovery had a scary horror story to tell. While Indian data put it in the forefront of the Economic recovery for the world at a 3 month high of 54.7, employment contraction worried investors in the US as the Services Index slid to 53 levels in wake of the equally horrendous performance on the contraction production index. Hoever, in the case of US Services, the International trade surplus helped it maintain strength in outstanding and new orders.

On the other side of the pond, Delta’s fewer flying miles apart, ( which still grew 6% on strength of Latin American and global fares) German, French, Italian and Spanish services Indices were more or less scraping the barrel though the German one was almost respectable at 51.5. Italian and Spanish services PMI number s of 41.8 and 42.8 mean there is a long awaited requirement of public spending that the economies were addicted to, hile the Franco German low scores of 45. 6 for France and 46.7 for the EU indices mean the EU GDP will be biting the bullet to make a big hole on the Continent and in the incipient recovery in the Euro that will further constrain imports.

China’s Services PMI als o hit a new peak in the meantime at 54.7 in good news for US exports. The Services Value Add for China is  9.34% compared to a 30% Value add for Manufacturing which continues in a bad state.

Greece in the meanwhile has two more weeks for the critical elections.

P.S. In what has become high fashion this eek, everyone has agreed on when to buy Facebook stock ( BELOW $20! and its puts mean a lot for my recommended options portfolio)

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