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Delicate negotiations

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US President Trump's delicate political negotiations with Congress over tax reforms continue. The delicate political negotiations consist of the phrase "you'd better pass it". ‎Failure of tax reform would probably push US equities down around 5% (economic growth and deregulation remaining positives).
  • The UK-EU EU-UK delicate divorce negotiations conclude the latest round today. Reports suggest that the negotiations are going backwards. It is in the grand tradition of the EU that anything important is left to the last minute. On this occasion markets may price in their verdict before the last minute. Spanish-Catalonian delicate non-negotiations are interrupted for a holiday today.
  • Swedish consumer price inflation is released today. This is not necessarily a world stopping statistic in the normal course of events, but‎ the data has been above target recently. Sweden's Riksbank has yet to join the throng of international central banks that are inclined to tighten policy.
  • US producer price inflation will give some insight into corporate pricing power. Producer proces are a far better indicator than consumer price inflation in this regard.