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Courting bond buying

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  • The European Court of Justice rules this morning on the legality of the OMT - one of the ECB attempts to buy bonds that has fallen into obscurity now that Draghi seems likely to cast aside all pretence and buy Italian bonds in a quantitative policy measure (he'll buy other countries' bonds too).
  • Inflation figures still feature - the UK saw a slowing of CPI (though RPI was as expected) with BoE governor Carney saying additional monetary stimulus was not necessary. Given that this is largely a relative price move this is obvious to most (although not necessarily the ECB).
  • French and Italian consumer price inflation figures are expected to be flat in year on year terms. The United States offers import and export price inflation, which gets economists excited because of the conflicting interaction of oil, the dollar, and pricing to market strategies.
  • The US Federal Reserve should publish their anecdotal Beige Book, which is worth trawling through for instances of wage pressures (especially in the higher skilled sectors), labour shortages, and just possibly elements of pricing power in the small business retail sector.

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