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  • The US Fed's Beige Book of economic anecdote continued to point to economic expansion. Specifically it offered insight into the small business sector - a poorly served area of economic information, in spite of the critical role small businesses play in the economy.
  • The Beige Book did note that there were wage pressures building in some skilled labour sectors (though non-skilled wage pressures are still moderate). The development of wage pressures lies at the heart of any assessment about the speed of US interest rate increases.
  • We have the Philly Fed survey of business sentiment due from the US today (forecast at a robust 18.0). Bullard of the Fed is also scheduled to speak.
  • Portugal has seen its bond spreads continue to narrow after the excitement and drama of last week. The Euro area harmonised CPI inflation data is due, and is expected unchanged from the flash estimate at 0.5%. This is not, it will be noted, deflation.

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