by Calculated Risk on 9/26/2012 08:04:00 PM

On Europe ...

From the Financial Times: Rajoy fights Spanish turmoil

Mariano Rajoy will on Thursday attempt to stave off a backlash from financial markets by announcing budget plans for next year ... His government is also preparing to unveil a new reform programme and the results of a banking stress test.
Excerpt with permission.

From the NY Times: European Markets Jolted Amid Protests in Greece and Spain

On Tuesday in Spain, tens of thousands of demonstrators besieged Parliament to protest austerity measures planned by Mr. Rajoy. ...

In Athens, trade unions called a nationwide strike Wednesday to contest billions of dollars in new salary and pension cuts being discussed by the government and its international creditors. ...

[Prime Minister Antonis] Samaras is negotiating a $15 billion austerity package that is needed to persuade Greece’s so-called troika of lenders — the International Monetary Fund, the European Central Bank and the European Commission — to release nearly $40.7 billion in financial aid that the country needs to stay solvent.

Mr. Rajoy has been trying for months to convince investors that Spain can handle its own problems and that it will not need a bailout that would force Madrid to cede some authority over its fiscal affairs to its lenders, and is set to introduce new cutbacks to meet budgetary goals. Those will include restrictions on early retirement and various measures to streamline regulations and fight unemployment ...

On Thursday:
• At 8:30 AM ET, The initial weekly unemployment claims report will be released. The consensus is for claims to decrease to 376 thousand from 382 thousand.

• Also at 8:30 AM, the Durable Goods Orders report for August will be released by the Census Bureau. The consensus is for a 5.0% decrease in durable goods orders.

• Also at 8:30 AM, the BEA will released the third estimate of Q2 Gross Domestic Product. The consensus is that real GDP increased 1.7% annualized in Q2, unchanged form the second estimate.

• At 10:00 AM, the NAR will release the Pending Home Sales Index for September. The consensus is for a 0.3% increase in the index.

• At 10:30 AM, the Kansas City Fed regional Manufacturing Survey for September will be released. This is the last of the regional surveys for September. The consensus is for a reading of 5, down from 8 in August (above zero is expansion).


A question for the September economic prediction contest:

Earlier on new home sales:
• New Home Sales at 373,000 SAAR in August
• New Home Sales and Distressing Gap
• New Home Sales graphs