To shutdown or not?
- The Beige Book was broadly supportive of the concept of an ongoing but somewhat slow economic recovery in the United States. Housing was seen as a support, the labour market somewhat anaemic, and inflation is no where in sight.
- The US House of Representatives passed a temporary measure aimed at avoiding a government shutdown at the end of the month. However, the measure ahs to go to the Senate which is likely to make significant changes, so a shut down is still a possibility.
- One of the credit rating agencies (not a terribly high profile credit rating agencies) downgraded Italy's sovereign rating. It is unlikely that Italian bond holders will be panicked by this move. Indeed it is unlikely that Italian bond holders will notice this move.
- The Bank of England and the European Central Bank both report interest rates and monetary policy decisions today. We are not looking for changes from either. The Spanish have a bond auction, and there are trade figures due from the US.
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