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Mother knowbest

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The Greco-German crisis in 45 seconds. When I was a small child I would regularly scream for an hour every evening. My mother's strategy was to shut the door and ignore me entirely. This seems an admirable approach to take with regards to the Greco-German crisis today.
  • US consumer spending is on display, with consumer expenditure and income data, in the wake of a stronger first quarter GDP figure that owed much to the US consumer's unremitting hedonism. Income data should be boosted by wages, and this should aid consumption.
  • Along with the consumer spending data we also get the personal consumer expenditure deflator, the core version of which is the Fed's favoured indicator. Wage pressures and retail pricing power suggest this should be rising, although not as much as the CPI measure of prices.
  • The German GfK consumer confidence measure is expected, in the wake of a slightly softer ifo business confidence reading yesterday. The UK is digesting comments from the Bank of England's Weale, suggesting rates need to rise sooner rather than later.