Follow Paul Donovan

Attacks and protests

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Seemingly unrelated attacks in Europe have had some impact on markets. Aside from the tragedy of the human cost, markets will consider the political implications though it is too soon to draw any meaningful conclusions in that direction.
  • Trump was elected president of the United States by the electoral college yesterday (the votes are not formally counted until 6 January). Some electors refused to cast their votes for either Clinton or Trump, a protest device that has been used in the past to highlight the flaw in the electoral college system.
  • The Bank of Japan concluded its final policy meeting of the year. 2016 saw a decisive, bold, revolutionary new policy initiative from the BoJ. This was the BoJ's 27th decisive, bold, revolutionary new policy initiative since introducing zero rates in 1999. Policy was left unchanged today in a decisive, bold, and revolutionary manner.
  • German producer price inflation was somewhat stronger than expected. Germany has greater wage pressures than other countries in Europe, and this is manifesting itself in such measures. Producer prices are a better proxy for corporate pricing power than consumer prices.