Busy doing nothing (but they do nothing so well)
- The European Heads of Government summit continues on Friday. To date the EU Heads of Government have provided bold inaction. That could all change. They could provide masterful inaction instead. The Eurogroup is to discuss Cyprus (again) but the Germans are hinting a deal, though likely, is not imminent.
- The Spanish media report that the government is contemplating individual fiscal targets for the regions, rather than a collective target for all regional governments in aggregate, if it can persuade the EU that it needs a relaxed target for the central government's fiscal deficit.
- Bank of England governor King has said the central bank is not seeking a weaker pound, and that markets determine FX values (a line from the G20's "what every public official should say about currencies" guidebook).
- The US data includes sentiment (Empire State on manufacturing, Michigan on consumer) industrial production and inflation. We are generally looking for better than consensus numbers, consistent with the slow process of economic recovery.
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