The Chicago Purchasing Managers Index or PMI rose 2.7 points in September to 54.2 on a big jump in production despite employment and order backlogs both slipping.
The Atlanta Fed slashed its GDPNow model for the 3rd quarter from 2.8% to 2.4% as the quarter comes to a close on weak business spending or CAPEX due to overcapacity, or put another way soft consumer demand.
The debate over the financial strength of Deutsche Bank, Europe’s largest investment bank, rages as the similarities with Lehman Brothers grow. Of note changes in European regulatory structure forbids state bailout of financial institutions as the FDIC does on a limited basis in the USA. What this means is that like Cypriot and Greek banks they get bailed in. meaning depositors fund the banks bailout. With the share price breaking all-time lows below 10 Euros it’s no surprise that institutional depositors are moving to limit exposure to Deutsche Bank out of fear that their funds will be used to recapitalize it in the event of failure.