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Abe wins. Did Abenomics lose?

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  • Japan's elections produced over two thirds representation in the lower house for the government. This was largely anticipated by the markets, but it now raises the question as to whether the government focuses on economic or constitutional reform.
  • Japan's Tankan survey of corporate sentiment was released (it has been a big day for Japan). The data was generally disappointing with a weaker headline (large manufacturers) but also a noticeable deterioration in small business sentiment, which is important for a self-sustaining recovery.
  • The UK (probably) showed more evidence of the effects of the Bank of England's existing tightening, with a further moderation in the growth of house prices being asked by buyers. CBI business sentiment should be supported, as the BoE tightening to date has been selective.
  • US manufacturing sentiment comes out in the form of the Empire State survey. Industrial production and capacity utilisation data is also due, and should signal improvement (which would be consistent with labour market and other data).

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