Follow Paul Donovan

Give thanks for the American consumer

| Tags: Paul Donovan

  • US data showed the US consumer doing their part to boost the economy in Q4 last year (but to date this is not a story of leverage, more the slowing of consumer deleverage). We have consumer sentiment today (expected to gain), as well as the Chicago PMI (also seen firm).
  • Japanese consumer inflation excluding food and energy remains low - the Tokyo data showed 0.3% yoy. This is problematic in that consumers face a deflation-biased environment, but believe that their real standard of living is falling.
  • The Danish prime minister seems to have misplaced part of her cabinet (six members walked out). Danish politics is not normally a major focus for international investors, but the dispute does seem to pitch politics against finance, and so may raise some interest.
  • Spain and the Euro area give flash estimates of consumer prices. The deflation fears are not that elevated at a Euro level, but markets may look closely at price pressures in Spain. Thailand will be holding elections this weekend, without opposition participation.

Listen to the audio version of this briefing.