Follow Paul Donovan

Synchronised speaking

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US Federal Reserve gave another fine demonstration of synchronised speaking - rates are going up in December, they will rise slowly thereafter, and the dollar is not something that seems to be causing a great deal of concern.
  • Draghi of the ECB is taking a different view - advocating easing in a rather extreme manner. His views are not necessarily shared by everyone (the Germans, for instance). Note, incidentally, that Fed policy has already diverged from ECB policy - quantitative policy has been moving in opposite directions all year.
  • Euro area flash third quarter GDP is due today, and the headline is expected to show a trend like rate of growth in the economy. It is the details that are of more interest (they come later), as we believe the Euro area growth story is essentially domestic led.
  • The US consumer is in focus with retail sales and consumer sentiment. There has been some concern about rising retail inventory of late, so the robustness of the US consumer remains a focus for investors.