Morning Report

Vital Statistics:

	Last	Change	Percent
S&P Futures	1402.6	-4.6	-0.33%
Eurostoxx Index	2422.6	-11.7	-0.48%
Oil (WTI)	95.45	0.0	-0.04%
LIBOR	0.421	-0.001	-0.24%
US Dollar Index (DXY)	81.45	-0.104	-0.13%
10 Year Govt Bond Yield	1.63%	-0.02%
RPX Composite Real Estate Index	192.1	-0.8

Markets are lower after ho-hum economic data in the US and disappointing data overseas. Bonds and MBS are up slightly. Tonight we will get Mitt Romney's speech at the Republican Convention and then all eyes turn to Bernake's speech in Jackson Hole.

Personal Income and Spending both rose in July, with income coming in at .3% and spending coming in at .4%. The spending number was the strongest number since last winter, but was little below street expectations. The retailers will report BTS comps a week from today, and that will give us a more granular look at spending patterns. Initial Jobless Claims were 374k last week, more or less in line with the latest readings.

Tomorrow, Ben Bernake will give a speech in Jackson Hole. The Street will be looking for clues to further stimulus, and they will probably be disappointed as politics are now center stage and the Fed wants to appear independent. Mitt Romney has been skeptical of the Fed's reflation efforts and has already said he would replace Ben Bernake if he wins. Which means you should watch the polling numbers as a Romney win should be bond bearish at the margin. Especially if the Europeans find a way to muddle through.

The national settlement over foreclosure abuses is 6 months old, and the settlement monitor has released his first report. Total consumer relief has been $10.6 billion, of which the lion's share has been short sales. At first glance, it appears the banks are over halfway there on delivering the $20 billion in relief, but that $10.6 billion will be haircut as there are different weights for different outcomes.