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  • The US Federal Reserve cut its bond buying program by another USD10bn, as was expected and as it should have. All of the US primary dealers expect the preordained path of quantitative policy tightening to be continued, with a universal expectation of a further USD10bn reduction at the March Fed meeting.
  • US GDP is due today, and in some ways it is less about appreciating the numbers and more about feeling the quality of the US growth. We see the US economic recovery broadening out this year, which will give the growth outlook a more durable nature.
  • China's PMI index was revised down 0.1, which has apparently sent a frisson of fear through investors - despite the fact that this was a tiny revision, in sentiment data, for Chinese data. An economist could, perhaps, question how important a signal this is.
  • Spanish Q4 GDP is due, and is expected to come in with a yoy decline in real terms. In fact, it is the risk of negative nominal GDP that is potentially more troubling in 2014. Japanese retail sales were weaker than expected, and signalled consumers more worried by inflation impacting their living standards than inducing them to spend.
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