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Lend, but not too much

| Posted by: Paul Donovan | Tags: Paul Donovan

  • China's credit growth has seemingly agitated the authorities, with newswire reports that banks inclined to overindulge in lending have been hit with regulatory tightening. This is further evidence of the PBoC's desire to try and micromanage the economy.
  • US Fed President Williams was sounding pretty dismissive of the moves in financial markets (focusing his attention on the real world). US consumer price inflation is due, with the core rate having risen inexorably over the last year.
  • Europe is offering producer price inflation for Germany (interesting if you are an economist, not so much in the financial markets). The UK has retail sales with some possible distortion from sterling on the value of energy sales.
  • The EU leaders' summit grinds on, debating the new deal for the UK within the EU. There is a desire to view the UK as a "special" case (so others do not get the same terms) without being so "special" as to skew the balance in Europe.