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Marking Brexit I

| Posted by: Paul Donovan | Tags: Paul Donovan

  • The US markets are obviously closed, as citizens of the United States celebrate Brexit I. This does at least offer reassurance to the EU that it is possible to have a life after leaving the United Kingdom.
  • European producer price inflation makes an appearance. This serves as a better indicator of corporate pricing power than consumer price inflation (companies sell to other companies, not consumers) – acknowledging of course that listed Euro area companies also export.
  • Policymaker comments from the ECB are scheduled, with the noted dove Praet and Nowotny both due to speak. Now that ECB President Draghi has admitted to having an easing addiction and hinted at trying to break the habit, the views of other ECB members assume heightened importance.
  • There is some political noise – a North Korean missile landed in Japanese waters. President Xi of China is doing the rounds in Europe ahead of the taxpayer funded G20 leaders' weekend mini-break at the end of this week.