Bold, decisive fiscal policy. Not.
- Senator Murray and Representative Ryan have brokered a two year budget compromise that boldly and decisively faces up to US fiscal issues - by following the strategy that if you ignore a problem long enough it might just possibly go away.
- Speaker Boehner has smiled favourably on the compromise (which would tweak sequestration a little). Tea Party fundamentalists, however, seem somewhat irked by the whole process and do potentially have the power to derail it.
- Australia has seen General Motors announce it will cease production (by 2017) of one of its locally made models, citing the strength of the currency. Whether or not this is the real reason, the announcement is likely to keep political pressure on the RBA to try and influence foreign exchange markets.
- The Euro area offers nothing especially exciting in terms of events and data, but there are background events. The Troika turn up in Greece again, but the time is probably not quite right for a restructuring. Italy's government has another confidence vote. German final CPI is due.
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