by Calculated Risk on 8/14/2012 09:15:00 PM

First on Europe, from the WSJ: Euro Zone Economy Shrinks, Darkening Outlook

Economic activity in the 17-country currency bloc fell at an annualized rate of 0.7% in the second quarter after stagnating in the first three months of 2012, according to data from the European Union's statistics arm.

And on Greece from the Financial Times: Greece seeks two-year austerity extension

The extension plan calls for a slower adjustment with cuts spread over four years until 2016 ... Greece would need additional funding of €20bn
Excerpt with permission

Europe will be a hot topic in September and October (a few key dates here).

• On Wednesday, at 8:30 AM ET, the Consumer Price Index for July will be released. The consensus is for CPI to increase 0.2% in July and for core CPI to increase 0.2%.

• Also at 8:30 AM, the NY Fed Empire Manufacturing Survey for August will be released. The consensus is for a reading of 7.0, down from 7.4 in July (above zero is expansion).

• At 9:15 AM, theThe Fed will release Industrial Production and Capacity Utilization for July. The consensus is for Industrial Production to increase 0.5% in July, and for Capacity Utilization to increase to 79.2%.

• At 10:00 AM, The August NAHB homebuilder survey. The consensus is for a reading of 35, unchanged from 35 in July.

For the August economic prediction contest: