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China imports, the world imports

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  • The Bank of Japan did nothing new at the conclusion of its meeting �€“ the balance sheet expansion ploughs on without any incremental stimulus. The economic watchers' sentiment survey deteriorated again (four months in a row).
  • The Bank of England has chained itself to the mast of forward guidance with the best quality paper chains tissue paper can manufacture (the guidance could be summarised as "we will do what any sensible central bank would do). Market reaction could be summed up as "supreme indifference"
  • Chinese imports and exports showed surprising strength, and as Chinese imports are often for re-export this could be taken as a signal of global economic strength. Of course, Chinese data quality has occasionally been less than reliable, so some caution may be merited.
  • Australian labour market data was soft, but the Reserve Bank has already eased and we do not see them rushing to do any more. Spanish industrial production is due today and may be worth a glance in the wake of better German numbers yesterday.

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