Illusions, upgrades and lawyers
- The Bank of Japan completed its two day meeting and with masterful decision chose to do nothing new. Markets had held onto a somewhat forlorn hope that there might be some bond market pacifying measures on offer, but it seems it was not to be.
- One credit rating agency upgraded its outlook of the US credit rating to stable on the back of deficit improvements. This is about as logical as any credit rating agency decision ever is. A reasonable part of the deficit improvement has been due to temporary factors that will not be repeated.
- In Germany a group of lawyers with no economic training are going to hold hearings on whether monetary policy mechanisms are economically sound. It sounds absurd - and obviously there is a reason it sounds absurd - but there will not be a decision from the constitutional court any time soon.
- The data calendar is relatively quiet. UK RICS house prices came in at the best reading since the start of 2010.UK manufacturing and industrial production, US wholesale trade and inventories and Swedish inflation will all make an appearance.
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