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Judicial approval

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  • The European Central Bank has been given judicial permission to go forth an buy bonds – effectively. The details of the preliminary (non-binding) ECJ ruling on the ECB's OMT are as tedious as the acronyms, but basically green light quantitative policy next week.
  • The US. Retail sales disappointed (they may be revised of course) but the Beige Book was pretty positive in its economic anecdotes. Even the oil industry, as source of concern to some, was seen slowing only a little.
  • Spain and Ireland have CPI today – Spain's unit labour costs have topped falling and Ireland shed periphery status some time ago, so weaker CPI is likely to be oil rather than broader deflation related. US producer prices are seen falling on the headline, steady on the core.
  • US regional business sentiment surveys today should be consistent with ongoing growth. Japanese machinery orders were somewhat weak, but it is a volatile series. Italy's president resigned – it is probably too soon for Mr Draghi to apply, whatever the Germans may wish.