Some inflation and some deflation
- Japan saw producer prices falling over 4% yoy. There is a certain symmetry here – Japanese consumers think consumer prices will rise (sic) over 4% yoy. The Bank of Japan has to manage this. Meanwhile Abe is indicating ministers should start coming up with stimulus ideas.
- German consumer price inflation is due – the headline is not likely to be interesting, but look to the detail to see if any of the rather elevated pay settlements are starting to show up in domestic inflation pressures.
- EU finance ministers meet today. The British will send someone, but not the Chancellor. The Chancellor may be more occupied, as the chances are Her Majesty will ask Theresa May to have a go at forming a government. Meanwhile the Bank of England governor talks financial stability.
- There is a trio of US Fed speakers scheduled for the day ahead. We also have the US NFIB survey of small business sentiment. Not, perhaps, the best quality data report in the world but it is pretty much all we have at the moment.