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  • Geopolitical tensions are impacting markets a little, with Asian equity weakness being attributed to the protests in Hong Kong. At this stage the economic risks look relatively subdued. Meanwhile in Spain the Supreme Court ruled against a Catalan vote on independence.
  • Japanese economic data was mixed but with some worrying weakness in the details. Retail sales improved and the unemployment rate fell, but industrial production and overall household consumption were weak.
  • Euro area CPI and unemployment data are both due. The hype around Euro area deflation risks are so overdone as to make markets oversensitive to the slightest movements in the measure, though the regional data yesterday showed no disinflation surprises.
  • The UK publishes final Q2 GDP and then (with no sense of irony) revises all the final GDP figures of the past several years. The effect is likely to be a less severe economic downturn in the UK, which will raise productivity and also lower the debt: GDP ratio.

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