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Waiting for Wednesday

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  • The G8 summit will cost a lot of money, but it is unlikely to do anything else. Politics takes the main focus (with Syria the key topic for disagreement) but global tax will be on the agenda - allowing the G8 to demonstrate ineffectiveness in the economic as well as the political sphere.
  • Markets are more likely to worry about the outcome of the Federal Reserve meeting on Wednesday than the G8 conclusion on Tuesday. We do not see anything happening yet - a longer period of positive news is probably needed to get the Fed to slow liquidity injections.
  • UK house prices hit a new high on Rightmove, breaching a quarter of a million pounds average - driven by a mix of government schemes, credit from funding for lending, and international demand.
  • The US gives us the housing market index, which we expect to stall at an unchanged reading, and the Empire State survey of local manufacturing around New York. The survey should return to positive territory, forecast at 2.0.
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