@ The White House
In the morning, the President will receive the Presidential Daily Briefing in the Oval Office.
Later in the morning, the President will travel to Northern Virginia Community College in Annandale, Virginia, to deliver remarks to students on his FY 2013 Budget.
In the afternoon, the President will award the 2011 National Medal of Arts and National Humanities Medal in the East Room. The First Lady will also attend. This event will be open press and will also be live streamed at www.WhiteHouse.gov/Live.
@ Wall Street
Equities were down Friday as the negotiations to avert a Greek default next month hit another snag. Greek political parties had agreed on a set of austerity measures that its lenders were requiring before disbursing bailout funds. But the agreed budget cuts for 2012 were about $430 million short of the targets Eurozone finance ministers were demanding, leading to the impasse.
At home, forty-nine attorneys general, the five largest mortgage servicers and the federal government settled a probe into shortcuts lenders took in processing home foreclosures. The $25 billion settlement will help the housing market at the edges, but is not a game changer.
The week was light on economic releases. Consumer credit increased by about $20.0 billion in both November and December, the two largest individual monthly gains since November 2001.
The initial unemployment insurance claims four-week moving average fell to its lowest level since April 2008, good news for further employment gains. The trade deficit widened in December despite a rebound in exports. And consumer sentiment took a hit in mid-February on worries about personal finances, but employment perceptions were very solid.
Mild weather is likely to affect many of the numbers coming out in the upcoming week (January 2012 was the third-warmest January since 1895, and the 29th driest). Housing starts in January should reach their highest level in more than three years on a sizable weather-related boost. January retail sales, particularly autos, which also benefited from mild weather, will also be up.
Mild weather suppressed the utility component of the industrial production index in January, but not enough to offset a very strong performance from manufacturing. Finally, consumer and producer price inflation are expected to be up in January on higher energy prices. The core readings for both should come in tame.