Follow Paul Donovan

Cruising

| Posted by: Paul Donovan | Tags: Paul Donovan

  • US Fed Chair Yellen turned to simple metaphors to explain the economic and policy position. The US economy, like a car, does not need more acceleration. It needs to cruise at its current speed. The Fed is clearly trying to set the cruise control to automatic.
  • UK inflation data is due today, at a time when the BRC retail sales measure showed weakness of consumer spending in the first quarter. The BRC lobbying group is blaming rising prices (a late Easter may have had something to do with it).
  • The German ZEW economic sentiment opinion poll and the US NFIB small business opinion poll are both due today. The NFIB may be interesting – a few years ago there was evidence of political bias as survey respondents lobbied against Obamacare. They may now react to the failure of Trumpcare.
  • The G7 foreign ministers meet in Italy today. Following recent events in Syria, this will be of relevance to markets, and could affect perception of issues like Russian sanctions.