Ignoring the Trump Twitter Feed
UK PM May heads to Brussels for lunch with one of the many presidents the EU has. Media reports suggest tentative agreement on some contentious issues around the UK-EU divorce process, although the Irish border issue is unresolved. We believe talks can progress to the next stage.
The US Senate passed their version of a tax cut bill (with a liberal sprinkling of concessions). The process moves to reconciliation with the House version of the bill. With relatively little spare capacity in the US economy, the financial market impact is likely to be more significant than the economic impact in the near term.
The Trump Twitter Feed was quite active over the weekend, and there has been a lot more comment on the Russian affair. While the political noise seems important in Washington, it is unlikely to have any economic consequences. Investors are also likely to view Congress as being the more important branch of government.
The data calendar is relatively quiet today. Euro area producer price inflation is probably the most interesting data release (and that is not saying much). The figures do offer better insight into corporate pricing power than consumer price inflation will.