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Italy shows the US how democracy works

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  • Italy should demonstrate to the US how a responsible legislature operates, with the vote of confidence in the Letta government expected to pass today (Berlusconi's PDL having signalled a willingness to support the government for now).
  • The US government shut down continues with all factions seeking to win the battle for public opinion. The BLS has announced that the weekly initial claims will be published for this week, but if the shutdown continues other economic data will not be compiled, far less published.
  • Japan's monetary base grew more than 46%yoy. As printing money is pretty much all there is to t, this signals that the initial objective is being met. The absence of capital spending (the Tankan showed small business capex still declining) raises questions about what this accomplishes in the real world..
  • The ECB rate decision is not likely to be a big market mover what can Draghi say that is new? He will doubtless be asked about the impact of the US shutdown, but there is not much to say there either. UK PM Cameron gives his big speech to his party conference, which may include a policy gesture.

Listen to the audio version of this briefing.