Follow Paul Donovan

Busy doing nothing

| Posted by: Paul Donovan | Tags: Paul Donovan

  • There is basically nothing out there today – a desert of economic data, with tumbleweed rolling around the financial markets. This is worrying. Without the guidance of economic data, markets are denied the guiding wisdom of economists commenting on economic data.
  • Carney of the Bank of England is speaking again. The Bank has been inclined to downplay the impact of financial markets on the real economy. The UK economy is more financial market dependent than others (the US, say), which might raise questions about the angst of other central banks.
  • Japan's trade data was released with weaker exports, in spite of the weaker yen. This is partly because Japan has been losing global market share as its exporters fail to change the relative price of their exports (preferring to increase profit margins as the currency weakens).
  • Powell of the US Fed speaks again today. Yesterday he was promoting the merits of less volatile markets. Yellen meanwhile was praising the idea of reliable economic data. Both are laudable aims. That does not mean that we enjoy either.