Wednesday, March 03, 2010

• Greece - the Greek gov't has approved fresh austerity steps that are worth EU4.8B. Among the
measures approved - the VAT will be increased from 19% to 21% while civil service salaries and
entitlements will be cut. CDS spreads on the usual suspects in Europe are all flattish as the budget cuts
were widely expected (Italy, Spain, Greece, etc, are all flattish). The market is still waiting for further
headlines on the much anticipated German/French-engineered ~EU30B bailout for Greece involving
German and French state-owned banks. Greece’s PM has apparently told the country’s cabinet that he
will seek IMF assistance if EU aid isn’t forthcoming.
• US eco growth trimmed for Q1 – from JPMorgan’s M Feroli - Recent incoming data, along with a
projection for weak February data, suggest first quarter GDP growth is tracking a bit below our previous
3% estimate, and to better balance the risks around that outlook we are revising down estimated Q1
GDP growth to 2.5%.
Forecasts for Real GDP Growth QoQ

• BAC – the Treasury will be auctioning off its warrants in BoA today
• Mortgages – while rates are near record low levels, not many US homeowners are able to benefit
b/c they are being locked out of the refinancing market – WSJ