Week of August 28, 2011 thru September 3, 2011

US ICSC: Mixed Hurricane Irene Impact On Aug Same-Store Sales

NEW YORK (MNI) - The following is the International Council of
Shopping Centers analysis of the same-store sales results for August,
published Thursday:

U.S. chain-store sales rose by 4.6% on a year-over-year basis
according to the International Council of Shopping Centers (ICSC), which
matched July's performance. Hurricane Irene's impact was mixed, as some
retailers got a lift from consumers stocking up before the storm, while
others were negatively impacted after it hit. Overall, the sales pace
was likely slowed by 0.5 to 1.0 percentage points from Irene.

Summary of Select August US Auto Sales Figures Reported Sep 1

WASHINGTON (MNI) - The following is an initial summary of the
August U.S. sales performance of select auto manufacturers announced
Thursday:

* General Motors Co. Thursday reported total sales of 218,479
vehicles in August, an 18% increase compared with August 2010. Retail
deliveries were up 22% compared with the same month a year ago and
accounted for 74% of GM sales. Deliveries to fleet customers increased
8%. In August, year-over-year passenger car sales increased 18%,
crossover sales increased 17% and truck sales increased 18%. GM

ECB Update: Bond Buys May Hurt Credibility But Still Continue

FRANKFURT (MNI) - European Central Bank governing Council member
Jens Weidmann warned today that continued bond market interventions by
the ECB could undermine the central bank's credibility, while weak
Spanish and Italian debt auctions this week showed that the thus far
successful program may have its limits.

US Corporate Bond Chatter: No Supply Ahead of Jobs Report

By Steven Levine

NEW YORK, Sep 1 (MNI) - There were no new high grade debt offerings
to report for Thursday's dollar-denominated bond issuance calendar,
ahead of Friday's August non-farm payrolls report and upcoming Labor Day
holiday weekend.

US Swaptions: Steady/Firm, Light Short Cover 10Y Tails Pre-NFP

By William Sokolis

CHICAGO, Sep 1 (MNI) - After a steady to mixed open,
over-the-counter swaption volatility edged higher at points, notably in
the short to intermediate sector on 10-year tails.

Analysis: UK Manufacturing PMI Breakdown Further Dims Outlook

--May Tilt BOE Debate Further In Direction QE2; EZ Woes Still Key

LONDON (MNI) - A year is a long time for the UK economy. Last
August, Chancellor of the Exchequer George Osborne gave a speech n which
he said that despite looming spending cuts and a bleak outlook for
consumer spending he remained 'cautiously optimistic' about the
country's growth prospects.

"Employment is growing at the fastest pace for over a decade,
confounding predictions that the economy cannot generate private sector
jobs... Manufacturing is picking up and exports are recovering thanks to

Talk From The Trenches: Welcome to New Month,Wait for Payrolls

By Joe Plocek

WASHINGTON, Sept. 1 (MNI) - Merely lackluster manufacturing data
caused longer rates to back up Thursday, but sources say the month's
near-term market direction will be determined tomorrow with the August
employment data -- or maybe not!

US ISM's Holcomb: Orders Moving Away From Exports To Domestic

By Mark Pender

NEW YORK (MNI) - A slowing in export orders is clouding the U.S.
outlook warns Institute For Supply Management survey chief Bradley
Holcomb, who notes that manufacturers are now focusing on their domestic
business as an offset.

"There's a jockeying in position between imports and exports.
Previously we tended to see exports strong and domestic relatively weak,

Goldman Text Excerpts: Cutting Payrolls Forecast to +25K

NEW YORK (MNI) - The following is excerpted from Goldman Sachs
comment Thursday:

1. The manufacturing ISM declined less than expected to 50.6 in
August, down only 0.3 point (versus 2.4 points expected) from July. The
details of the report, however, were softer than the headline suggests:
while new orders held up (49.6 after 49.2 in July), the production and
employment indexes both declined (by 3.7 points to 48.6 and by 1.7 point
to 51.8, respectively). Inventories rose (by 3 points to 52.3), pushing
the new orders-inventory gap down to -2.7. The prices paid index

US Swaps: Lag Tighter MBS, Spread Curve Flatter Pre-NFP

By William Sokolis

CHICAGO, Sep 1 (MNI) - Spreads gradually moved wider early
Thursday, sedate action as markets traded lower following
better-than-expected ISM, many sidelined as they awaited Friday's August
job report and the extended holiday weekend.