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Tightening without conviction

| Posted by: Paul Donovan | Tags: Paul Donovan

  • ECB President Draghi managed to tighten policy without sounding like a tightening of policy. The fundamentals of the Euro area demand a tightening of quantitative policy in 2018, and that is what will. Draghi's addiction remains demonstratively intact.
  • US GDP for the third quarter is due. This data will be revised many times in the future, and the errors are getting larger and larger over time. This data will also be distorted by the natural disasters.
  • Australia's government has lost its majority owing to the deputy prime minister forgetting they were not 100% Australian. After all, who hasn't forgotten they were secretly a citizen of another country. The pause before the by-election leaves the government vulnerable to a no-confidence motion.
  • The Spanish Senate debates allowing the government to invoke article 155 of the constitution and impose direct rule on Catalonia. Protests have taken place in Catalonia, but for now the economic consequences of the dispute seem limited.