Tuesday, December 14, 2010

NFIB Small Business Optimism rises to 93.2 vs expectations of 92.3. – Perhaps more important
is the Small Business Hiring Plans continues its sharp move higher.

NFIB Small Business Hiring Plans Index

US Retail Sales Rise 0.8% more than the 0.6% forecast.

Munis – the muni market was hit on Mon as investors came to accept the fact that the BAB
program won’t be extended. The lack of another 1-2 years for the BAB subsidy means more supply will
be coming to market. There is also some concern that states will see yet more budget pressure next
year. – WSJ
Munis – PIMCO’s B Gross spent ~$4.4MM of his own money this month to purchase shares in 5
muni funds fun by his firm. – Bloomberg
Tax-cut package clears procedural hurdle in Senate – Washington Post
By the RGE Macroeconomics Team: Global growth in 2011 looks marginally weaker than 2010,
as growth in the emerging world will cool from the above-potential rates of 2010 and a large part of the
advanced world continues to struggle with balance-sheet repair and debt crises, but the recovery
continues, and chances of a double dip in 2011 have significantly decreased. – Roubini Global Economics
– This is just about the most positive statement you will get out of Roubini. Even the pessimists are
conceding a more positive outlook.
A federal judge in Virginia ruled Monday that it is unconstitutional for the government to
compel Americans to buy health insurance, marking the first time a court has struck down any facet of
the massive new law to overhaul the nation's health-care system. – Washington Post
 The International Air Transport Association (IATA) revised its industry outlook for 2010 to a net
profit of $15.1 billion (up from the $8.9 billion forecast in September). Similarly the Association revised
upwards its projections for 2011 to a net industry profit of $9.1 billion (up from the $5.3 billion forecast
in September). Net margins remain weak at 2.7% for 2010 and falling to 1.5% in 2011. – IATA

CEOs expected to attend the summit with President Obama at Blair House on Wednesday
include Google's Eric Schmidt and Cisco's John Chambers. CEOs from Boeing, GE, Honeywell, Dow
Chemical, Pepsi, Comcast, Motorola, Pritzker, Next Era Energy and Duke Energy may also attend. Several
financial executives are expected, including Kenneth Chenault from American Express and Richard Wolff,
a close Obama ally and head of U.S. investment banking for UBS. Executives from Centerbridge Partners
and Kleiner Perkins are also expected. But as of last night it did not seem likely that CEOs from the
nation's largest banks including Citigroup, Bank of America, Wells Fargo, Morgan Stanley, or Goldman
Sachs would be there – Politico