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Syrian adventures

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  • Syria is back as a topic for investors, though seemingly encouraging market risk taking. A US Senate vote on air strikes has been postponed, and ahead of his speech tonight US President Obama has said that genuine international control of Syrian chemical weapons would prevent US military action.
  • Fed president Williams yesterday reiterated that the Fed reducing bond buying was not the same as the Fed raising rates (a point that has been made several times before of course). Markets are focused on the structure of reduced bond buying, with few questioning it happening this year.
  • Japanese M3 money supply remained at a 3% yoy rate of growth. The driver of this, however, is companies hoarding cash rather than investing it (a trend somewhat at odds with the improved capital spending data in the GDP).
  • UK house prices saw their fastest gain in seven years on the RICS survey, with the number of buyers and sellers both increasing (indicating easier credit conditions, perhaps). Australian business sentiment saw improved confidence but a weaker assessment of current conditions.

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