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While the US is away...

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  • With the US on holiday, markets are relatively quiet. Chinese GDP came out in line with market expectations - we expect the economy to grow around 7.8% in 2014 (with a slow pace of economic reform). Industrial production was a little weaker than expected however.
  • Japanese industrial production was revised down for November (from slightly positive to slightly negative). This is consistent with improving corporate confidence, if Japanese corporates focus on increasing production outside Japan (as they have been).
  • UK house prices from the RICS accelerated again, with a 6.3% yoy rate of growth. The RICS attributed this in part to government schemes, and as 6.3% is not a sustainable pace of growth this may call those schemes into question.
  • One of the credit rating agencies upgraded the Irish sovereign rating. Normally this would not occasion much comment, but this time the upgrade takes Ireland back into investment grade territory. Markets had anticipated the move, however.
     
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