• Euro-Area PMI figures unexpectedly contracted for both services and manufacturing, according to London-based Markit Economics. The composite index fell to 49.7 from 50.4 in both sectors. Readings below 50 indicate a shrinking economy. Data continues to support the notion that it will be difficult to avoid a recession in the euro zone. From Bloomberg News.
• Automakers Peugeot and GM are discussing a production alliance in Europe. GM’s Opel unit continues to struggle in the region’s slumping auto market. The challenge remains for the two companies to describe any deal as something other than another “me too” alliance between manufacturers with similar over-capacity issues. From Reuters News.
• Fitch downgraded Greece to C from CCC minus. The country’s sovereign debt will be moved to “restricted default” after completion of the debt exchange negotiated to reduce Greece’s debt burden. From the Wall Street Journal.
• U.S. President Obama will propose cutting the corporate tax rate in the to 28% from 35%, and eliminate loopholes in the code. There is a special 25% rate for manufacturers in the plan. It’s unlikely that anything will be done with the proposal in an election year, but it will at least sharpen the debate around high corporate tax rates in the U.S. From Reuters News.