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All quiet on the economics front

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  • With European and US calendars quiet, Bank of England governor Carney's speech assumes an unusual prominence in the calendar today. The problem with this is that his speeches are generally ignored. Some comments on the Euro economy are possible (as a risk to the UK).
  • Italy is offering industrial production data (expected negative) and Greece is offering consumer price data (expected negative). Italy has failed to boost competitiveness - rising unit labour costs continue. Greece's deflation is a reminder of the variations of the Euro area.
  • The Catalan region of Spain held its unofficial consultative vote over the weekend, with reports of 80% favouring independence. Markets should treat this calmly, as the constitutional position in Catalonia is very different from that of (say) Scotland in September.
  • The US has the Fed's Rosengren speaking late today, but otherwise investors are left to digest the consequences of last Friday's employment report. The Asian markets have seen some profit taking in dollar positions.

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