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More anti-establishment events?

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US is off trying to console itself for rebelling against the legitimate rule of the British monarchy. Tearing asunder such long established ties tends to be irrevocable, as the cost of coming back together is just too high.
  • The UK's Chancellor has floated the idea of a 15% corporation tax rate as part of an attempt to offset the costs of leaving the European Union. The question, of course, is how the fiscal books are balanced if revenues are reduced.
  • Euro area producer price inflation for May (yes, it is July, and we are getting data for May) is scheduled for release. This is likely to be negative. It is relevant because PPI is a better indicator of corporate pricing power than is consumer price inflation.
  • Australia's general election has produced no result so far (they continue counting tomorrow), although the media are focusing on the anti-establishment nature of the poll – the two main parties have the lowest share of the vote since 1943.