The UK and the precious union
- The UK Prime Minister has declared she would "never allow divisive nationalists to undermine the precious union." She meant the United Kingdom. Undermining the EU was given the go ahead, with a March deadline for the UK to invoke Article 50 and exit.
- US politics is dominating economics at the moment, in the wake of an eventful week on the campaign trail. One should be careful about using financial markets as predictors of the result, as the demographics of a market participant are unlikely to coincide with the demographics of a Trump supporter.
- Japan's Tankan survey of business sentiment was weaker than expected on the headline data. Small business data indicated poor sentiment, but not as poor as it has been – smaller businesses are less impacted by currency moves.
- The US ISM survey of manufacturing is due, and is expected to signal improving sentiment. It is important to remember that the ISM does not signal growth (however the media may choose to report it), merely the opinion of its participants.