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The thwack of flip flops

| Posted by: Paul Donovan | Tags: Paul Donovan

  • Flip flops seem to be the footwear of choice in Washington today. US President Trump has indicated that funding for the big, beautiful wall with Mexico could be delayed until September. The issue of the wall has been a bipartisan obstacle to getting a budget agreement to keep the government open.
  • French business sentiment opinion polls are due, which are only worthy of note in that they are released in the middle of the presidential election campaign. Of more interest economically is the ECB's bank lending survey. Constraints on bank lending act as constraints on growth.
  • US housing data is scheduled – including new home sales. There is evidence that labor market constraints are limiting housing supply – most construction workers are skilled or semi-skilled, and in short supply. This has a bearing on infrastructure spending, as significant spending may increase imports, inflation or both.
  • US consumer sentiment from the conference board and the Richmond Fed business sentiment survey are due, and are unlikely to reflect the real world.