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The planet is saved (some time in the next 85 years)

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The White House denied that President Obama had hinted at a suggestion that he might be concerned about dollar strength. Foreign exchange markets reacted anyway. So much for the rational market hypothesis. It is worth noting that US exporters have increased their EU and Japanese market shares as the dollar has risen.
  • The G7 has agreed to end fossil fuel emissions. Sometime this century. Having first travelled with their entourages to Germany, emitting fossil fuel emissions as they went. An email exchange and a photo-shop group photo would surely have done the job just as effectively.
  • Chinese consumer price inflation weakened. This is a domestic issue (Chinese CPI is mainly food prices; China is not a major food exporter). However, as China becomes more consumer led this may be more important: lower domestic inflation = higher real income = higher consumption = higher propensity to import?
  • The Greco-German crisis is still there. Economists do not want to talk about it. Euro GDP is revised, but is not interesting because the Euro is not a functioning monetary union and insufficiently homogenised to. US wholesale sales data is due, but overshadowed by retail sales tomorrow.