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Give thanks by spending

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  • Americans are off giving thanks, of course. Let us hope that they decide to give thanks by spending. The global economic recovery has broadened somewhat but it does still rest largely on the phenomenal ability of American consumers to find things to buy in the mall.
  • A contrast of inflation data is due from the Euro area today. Spanish inflation is skirting very close to deflation, and deflation has to be a risk in 2014 (creating troubling weakness in nominal GDP and thus the government's debt dynamic). German inflation is, if not elevated, avoiding deflation.
  • Euro area M3 money supply is expected to continue to hover around the 2% level (kept low by the absence of bank lending growth in the Euro area). Consumer and industrial confidence data is also due.
  • The Bank of England Financial Stability Report is due, a day after Governor Carney said he did not have the power to veto the government's help to buy housing scheme. Investor and media interest in potential housing bubble risks may focus in on the report.

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