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Open issues

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Today's European politicians seem to lack the stamina of their forebears. In the good old days, no self-respecting negotiation would end before at least 5am. Yet overnight talks between Greece, Germany and France concluded at 1am – with "open" (meaning "gaping") issues outstanding.
  • Perhaps German Chancellor Merkel wanted a good night's rest before the excitement of the final GDP data for the first quarter. The details should show how well domestic demand is performing, and Germany's unaccustomed role as an importer.
  • US consumer price inflation is due. It will be negative on the headline (negative CPI is not deflation when one price is falling and lots of other prices are rising). The core figure remains relatively robust (though core CPI also has a fairly large energy component to it).
  • The Bank of Japan did nothing. The Bank of Japan is very good at doing nothing.