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And so it drags on

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  • The US House did nothing on the looming debt deadline. The Senate fearlessly took up the challenge before deciding it was past their bedtime and shutting down for the night. Markets should not worry, the Senate reconvenes today around midday (this is not serious enough to do anything so vulgar as work during the morning hours).
  • The cacophony of inaction from Capitol Hill has been loud enough to wake one of the credit rating agencies from their customary slumber for long enough to put the US credit rating on negative watch. Markets may already have noticed that there might be a problem, of course.
  • German Chancellor Merkel has lost one potential coalition partner, with the Green party saying they are not holding any more negotiations. It was never a terribly likely combination, and throws the issue back to the idea of a grand coalition with the SPD.
  • UK labour market data is due, with an unchanged unemployment rate but employment and earnings still seen improving. The Euro area offers harmonised CPI. The US actually has a data release of sorts �€“ the Fed's Beige book, which economists will seize upon with all the decorum of a pack of starving wolves.

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